Archived posting to the Leica Users Group, 2011/11/18
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]As far as I recall Leica has regularly reviewed their prices every year for ages and we have always seen those incremental rises. Paying more for premium goods hurts of course but I understand existing orders are not affected. I guess the side effect is increasing value for what you have. I did the exercise with a calculator. The average price increase is not quite 7%. I don't know inflation or material or labour or distributions costs or development costs or market price differences or any of those factors. I don't think that 7% is very surprising though. I dare say that Leica Camera is not the only premium brand to see annual price reviews but the web discussions seem to be full of theories on gouging and company explosions etc etc etc. Cheers Geoff *Lighting- eyes- action* http://www.pbase.com/hoppyman On 18 November 2011 18:40, Jayanand Govindaraj <jayanand at gmail.com> wrote: > They have raised PE money from Blackstone mainly to 'expand', i.e.open > Leica stores, in Emerfing Markets, mainly China for the time being. This is > why prices are going up in my view - Blackstone wants to maximise profits > in the short to medium term so that exit would not be an issue - so to this > end they are starting to price the product, not at what can sustain sales > over a long period, but at what the market can bear right now. As for the > long term implications, as Keynes pointed out long ago, in the long term we > are all dead.(-: > Cheers > Jayanand > > On Fri, Nov 18, 2011 at 12:38 AM, dnygr <dnygr at cshore.com> wrote: > > > When companies start to raise their prices outrageously higher, it > > sometimes reflects that the end is near. What one is seeing is a milking > of > > a cash cow and lasts until the cow is dry. Then the company folds. That > > business model does not seem to fit Leica, but.... > > Is there any truth to the rumor that Leica is going to follow Apple's > > model and start openign "Leica Stores?" > > Cheers, > > Doug > > > > _______________________________________________ > > 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 >