[Leica] euro vs dollar and leica

[leica at screengang.com (Didier Ludwig)]

Concerning Leica prices and $ vs. ?, the north americans shouldn't complain 
too much. If Leica prices come a bit up in the USA they're just catching up 
our level here. Because Leica gear still costs less in the US than in most 
european countries, even when we deduce the partially high VAT fees from 
here. The reason is not clear to me, must be a marketing decision made in 
the Leica HQ. I once asked Leica Switzerland why they want 33% more for a M8 
than an official US dealer, like popflash, wants; though we've one of the 
lowest VAT in Europe (7.6%). They never answered.

Many other companies have a similar price politics, for instance for the 
higher priced german car models. They cost less overseas, and newer models 
are earlier available than here. A member of my family just imported a 
brandnew mercedes like this and saved more than 15% compared to the price of 
here, all customs, vat, fees and shipping included. Those who want to buy 
the same car here in Switzerland are put on a waiting list, with a delay of 
about one year (and when they finally get it, the even newer model is 
available in US again...)

Didier



>It is the "ratcheting" effect....
>
>Dollar goes down, so European companies price in Euros, and therefore the
>item becomes more expensive in Dollars.  Dollar recovers, they price in
>Dollars... repatriating more Euros....
>
>Happens all the time..... 
>
>Or, if you prefer, the part of the price that is dependent on the exchange
>rate, is recalculated only once or twice a year ( especially when the dollar
>is rising).  It is not time now, so we'll have to wait and see.....
>
>Frank Filippone