Archived posting to the Leica Users Group, 2002/12/19

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Subject: Re: [Leica] Re: Leica Price increase
From: "Simon Lamb" <simon@sclamb.com>
Date: Thu, 19 Dec 2002 13:27:02 -0000
References: <00c901c2a75c$ef0c8480$eb72793f@dimarcojr.pressroom.com>

Sal

Interesting utopian view of international business.  Here the UK angle:

1.  We are in an economic downturn that is affecting all industry sectors,
with massive numbers of people being made redundant, companies ceasing to
trade etc.
2.  In order to maintain profitability, cost management is essential, hence
no payrises, tighter financial controls, focus on maitaining revenue streams
etc.
3.  Less business results in more people competing for it, so price becomes
integral to winning, and lowering prices is happening across all industry
sdectors as they vie to maintain revenue.
4.  I would be happy to spend some time with Leica understanding the
business sensitivities within the organisation.  I am willing to bet £100 of
my money to £1 of yours (or anyone else's) that they could maintain current
pricing levels (or even reduce them) through cost management, supplier
management, profit protection etc. etc.
5.  Many world leading companies ahve gone bust, and they all suffered the
same basic issue - costs higher than revenue - and they were either too big
to change quickly and hence had to carry that cost for too long, or they
were too stupid to see it coming (you would be surpised how many fall into
this category).
6. I run an international company.

Simon



Sal DiMarco,Jr wrote:

> Friends,
>     For the past couple of days, I've been reading the comments about the
> upcoming Leica price increase and I must conclude the following:
>     1.- Many of you feel the employees of Leica do not deserve an increase
> in salary.
>     2.- Leica AG never has any increases in the cost of doing business.
>     3.- Their suppliers do not have or are not permitted to have increases
> in their cost of doing business.
>     4.- Leica should lower its prices and eventually go out of business.
>     5.- Most of you have absolutely no idea of how to run an international
> business.
>


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In reply to: Message from "Sal DiMarco,Jr." <sdmp007@pressroom.com> ([Leica] Re: Leica Price increase)