Archived posting to the Leica Users Group, 2003/12/04

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Subject: RE: [Leica] Leica users complaining of high prices?
From: "Kit McChesney" <kitmc@acmefoto.com>
Date: Thu, 4 Dec 2003 09:00:07 -0700

John--

You are absolutely right. And from a dealer's perspective, the margins are
pretty narrow. Those optics are very expensive, and for a reason. Not just
because there is a red dot on them. They are made differently, with
different materials, processes, and standards, from the mass-produced
products. With all due respect for those products, they are very high
quality, but Leica quality is even higher, and produced in small batches.
Thus the high costs. 

Kit


- -----Original Message-----
From: owner-leica-users@mejac.palo-alto.ca.us
[mailto:owner-leica-users@mejac.palo-alto.ca.us] On Behalf Of John Collier
Sent: Thursday, December 04, 2003 7:47 AM
To: leica-users@mejac.palo-alto.ca.us
Subject: Re: [Leica] Leica users complaining of high prices?

If this was the case then Leica would be rolling in dough. 
Unfortunately the reality of economy of scale is against Leica. How 
many 50/1.4s do you think Leica sells in a year, under a thousand, a 
couple of hundred? How many 50/1.4s do you think Nikon sells in a year? 
Maybe not the best example as everyone seems to be buying fast (sic) 
f/2.8 zooms these days. The fewer made means each individual component 
costs more. Add the more complex M lens cam and suddenly you are not 
raking in the dough even at Leica's high retail prices.

John Collier

On Dec 4, 2003, at 7:08 AM, Frank Filippone wrote:

> Nikon et al charge around $200 for a 50F1.4 lens.  Leica gets $2000.  
> Why?
> Because we, the public, are willing to spend it for Leica optics.  
> Using
> that same logic, and a bit of a stretch on the whereabouts of the lens
> construction, this new digital camera should sell for $2K.
>
> It's all about marketing, not facts.

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Replies: Reply from John Collier <jbcollier@shaw.ca> (Re: [Leica] Leica users complaining of high prices?)