Archived posting to the Leica Users Group, 2000/06/16

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Subject: Re: [Leica] 35-70/2.8 out of production ??? commercial point of view !!!
From: "Simon Lamb" <simon@sclamb.com>
Date: Fri, 16 Jun 2000 16:14:27 +0100
References: <132wEn-1LVdsOC@fwd06.sul.t-online.de>

I spoke to Leica today and only the sliver Tri-Elmar is discontinued.  The
black is still in production.

Simon

Amateur efforts at http://www.phoenixdb.co.uk/leica

Hans-Peter Lammerich wrote:

> Price, weight and bulk in relation to its not so exciting zoom range
> and speed show that Leica's design department could not do miracles. The
> market is limited and a limited production run to eliminate the risk of
> an unsold stock of lenses was a wise decision.
>
> However, I am curious how that project looks like from the commercial
> point of view. 300 lenses at a retail price of DM 4,750 (excl. VAT) give
> DM 1,450,000. Deduct the dealers' margin, marketing, overheads etc. and
> you arrive at DM 1,000,000 (maximum). How that relates to the cost of
> engineering-months and computer time (DM 300,000?), special tools (DM
> 100,000?) e.g. for the asphercial lens elements) and the unit
manufacturing
> cost (DM 2,000/piece = DM 600,000)? When Leica designed the current
> 4/35-70 they must have looked at alternative designs (e.g. a f=1:3.5), but
a
> f=1:2.8 would have been quite far from that, certainly more than just
> an academic exercise, spending a couple of extra weeks at the computer.
>
> I remember an article about the Apo 2/180, saying that Leica marketed
> the lens without prototyping. They went from optical and mechanical
> design straight into production. Possibly I therefore grossly overestimate
> the cost of r&d and production start-up for a lens.
>
> Did Leica use idle capacity in its design and production departments at
> zero opportunity costs?
> Was the 2.8/35-70 intended as a prestige project, irrespective of cost
> and market potential?
> Will Leica keep tools, surplus materials and CAM data files for a
> second run to justify start-up costs?
> What would have been the retail price, if 3000 instead of only 300 had
> been made?
> What is then the profit margin for the 4/35-70 or 3.5-4.5/28-70 which
> are made in thousands and are selling for DM 1,800 (excl. VAT)?
>
> Hans-Peter
>
>

In reply to: Message from Hans-Peter.Lammerich@t-online.de ([Leica] 35-70/2.8 out of production ??? commercial point of view !!!)