Archived posting to the Leica Users Group, 2005/06/29
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Stephen, Margins on Leica are typically less than 10%. Your dealer was probably selling old stock that he had purchased a while ago. Time value of money means he lost money on the deal. As to profit, an non bick and mortar store can sell with very low profits as overhead is pretty small. A web site, phone and fax do not cost very much. Also, stores like B&H charge a little more because of their reputation. Also a web based entrepeneur with good contacts can buy up small stores stock if he has good contacts. King Grant from KEH has been doing that for years with a regular tour of small shops buying their overstock, used, and other unloved items. Last, many small dealers will buy a relatively large quantity from a manufacturer to get to a price break and then dump the excess through alternative channels. Don don.dory@gmail.com On 6/30/05, Stephen York <York915@msn.com> wrote: > Do you mean the profit margin? I just purchased a Leica rangefinder at > dealer costs from a store which was liquidating it's Leica inventory, and > it was about $500 less than the price for the same item from a store > like B&H. And Tony Rose (www.popflash.com) is always selling his stuff at > a couple hundred dollars less than everyone else, and he's still making a > profit. So I figure that the "normal" retailers are making about a 20% > profit on Leica items. This would be consistent with the price of the > camera and lens which I purchased at this fire sale. > > ----- Original Message ----- > From: brad daly > Sent: Tuesday, June 28, 2005 8:27 PM > To: Leica Users Group > Subject: Re: [Leica] where oh where is the DMR? > > in the photo store in which i worked from 2000-2002, the margin on > leica products was absolutely zero. i can't comment on any other > store. in the entire time i worked there, i sold 1 leica. the buyer > ordered a couple of extra lenses, and they took months to arrive. i > can't imagine it was a good buying experience for him--though he was > always patient with us--and i know it was bad for us simply because > we were embarrassed that we couldn't get the customer the stuff he > had ordered. we stopped keeping leica in stock after that. > > for the record, the margin on *any* equipment was extremely low. > generally the higher priced the equipment, the lower the margin. > > also for the record, the store in which i worked was not a canon > dealer when i worked there. they stopped carrying canon in the early > 90s because of supply problems and problems getting any attention > from the canon corporate rep. just in the past few weeks they've > started stocking canon digital cameras--20D and rebel XT. (nikon's > corporate rep was a great guy. very accessible to us sales peons on > his store visits and very considerate of the guys in our management, > even though we were a very small store and represented a very small > segment of his sales.) > > --brad > > On 28 Jun 2005, at 8:31 PM, Don Dory wrote: > > > Why do dealers not restock an expensive film based inventory? Its all > > about inventory turn and profit levels. $2000 U.S. in a Leica body > > that might sell in six months or 200 1GB cards that will turn in two > > or three months. Five percent margin on the Leica body versus twenty > > percent on the memory cards makes this a really easy decision for the > > camera store owner. > > > > -- > brad daly > brad@bradbrad.com > http://www.bradbrad.com > > "I love the Pope, I love seeing him in his Pope-Mobile, his three > feet of bullet proof plexi-glass. That's faith in action folks! You > know he's got God on his side." > --Bill Hicks > > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >