The grey market is a mess.

I recently bought a Nikon full frame DSLR and some lenses. Last time it was Canon (the 5D, sold long ago, and excellent in every way) so this time I thought I would give Nikon a shot. I am brand agnostic. I elected the D700, shortly to be replaced by the D800, because it is affordable used, well built, dust sealed, there’s lots of lightly used inventory out there and because the pixel density and low light performance are ideal for my needs. Most importantly, it’s full frame which is what’s needed for true wide angle snaps with the best optics out there.

The Grey market racket:

But, being cautious by nature, it was not lost on me that Nikon products in the US are frequently sold as both “USA import” and “Grey market”, the latter a few dollars less. The greys circumvent Nikon USA as the importer, thus denying the business the profit it might otherwise earn. So what does Nikon USA do in its infinite stupidity? Why, try and cartelize the import racket by refusing either warranty or post warranty service to any grey market camera in the USA. And while there are instances of a lucky few managing to get service on their ‘greys’ it’s not like you want to take the risk of your megabuck D700 or D3/4 ending up as a brick because you have to send it to south central Mongolia for service, which will take a year if you ever get it back at all, covered in yak goo.

An example of split pricing – Grey and USA. No, the economics do not add up after shipping.

Further, the accountants at NUSA, really getting the pencil between their teeth now, have started refusing to sell parts to non-authorized dealers, arguing that special gear is needed to fix their fancy hardware. Mercedes tried that racket 25 years ago and lost a massive class action suit, which not only required them to sell parts but also dictated that the related diagnostic equipment be made available. It was nothing more than a crude land grab aimed at putting tens of thousands of independent repair places out of business.

Let’s hope Nikon is next to be sued. In one fell swoop NUSA has:

• Upset any grey market buyer who cannot get his camera serviced. It’s not like he checked this out when saving his $50.
• Made absolutely sure that the buyer will never return to Nikon products, destroying brand loyalty and repeat sales.
• Generated abysmal word of mouth from every abused owner.
• By refusing non-warranty service to grey owners, decided to pass on the income stream that results.
• Remained completely clueless whether their childish attempts at price controls have any effect.

A basic principle of economics is that “All control drives up price” or, in NUSA’s case, destroys profits. This is what happens when you let accountants run a business.

Now given that I had decided to buy my D700 body used, it was clear that I would have to establish that it was a legitimate USA import. So I tried eight sellers on eFraud, each claiming his camera was bought at B&H NYC. Can I see the invoice please? No, I have lost it. Well, given that the camera is <4 years old and B&H keeps 5 years of invoices on line, could you please download yours and copy me? Silence. Eight out of eight. You wanna get cheated? Hasten over to the 'Bay.

The shutter activation lie:

The other bit of cheating the fraudsters there indulge in is the ‘shutter activation’ count lie. They reset the camera’s counter and claim that the number of the file indicates the count. Nonsense. So of each seller I asked for a current NEF (Nikon RAW) file. I would then upload this to MyShutterCount.com and get the true number. In all cases but one, the true count was far higher than the advertised one. No surprises there.

The one I bought had a count which exactly matched what the seller stated and it came with an original B&H NYC invoice. Easy. It’s not like I need the remaining count to be huge. I do not. But the last thing I want is a pro’s beater on its last legs.

The true shutter count on the used D700 I bought.

The quoted life of the D700’s shutter is 150,000 activations, so I’m not exactly going to trouble that ceiling.

An alternative to determine true shutter count:

You snap a JPG image and drop it onto Preview, dialing in the application as below:

Shutter count on the author’s 2005 Nikon D2x body.

The shutter count is disclosed in the highlighted row.

Stay safe:

If you are going to buy costly Nikon gear in the US, do yourself a favor. Forget saving $50 on grey imports. And when you get that purportedly USA import in your hands, check the serial number with Nikon to make sure your vendor has not tried to cheat you. Yes, it happens.

Finally, don’t buy on eBay. The odds against finding an honest seller are long and the gear will be marked up 7%, 3% for PayPal and 4% for eBay fees. I bought my used body at Fred Miranda which also happens to be where I sold all my Canon 5D gear. It’s largely the province of Nikon and Canon users, and I have only had good experiences as both seller and buyer.

Other brands:

I haven’t checked for other brands but if you are contemplating costly aquisitions of Canon, Sony, Pentax, Fuji, etc. gear, you should do your due diligence before buying grey. The Japanese are not exactly known for original thinking, so it’s a fair bet to assume that other Japanese manufacturers are adopting similar policies.

For the many micro-four-thirds aficionados who visit here and enjoy the intimate style of street snapping that compact gear encourages, fear not. I have not gone to the dark side. Indeed, there could scarcely be a less appropriate camera to that sort of work than a full frame DSLR with a honker lens attached.