Archived posting to the Leica Users Group, 1997/10/20

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Subject: Re: Ricoh lens
From: "Patrick G. Sobalvarro" <pgs@sobalvarro.org>
Date: Mon, 20 Oct 1997 12:35:16 -0700

At 05:46 AM 10/22/97 -0600, roy wrote:
>
>Thomas Kachadurian wrote:
>
>>>A far better question is why would you want one? I have the GR-1 itself,
>and while I like using the tiny camera, the lens isn't its strong suit.<< 
>
>>> I don't get it.<<
>
>Tom, This is my question too.  I have a GR-1 and it's a dandy little camera
>and the lens is nice but not outstanding.  
>
>...
>Doesn't make a whole lot of sense to me but then what do I know...  
>

I think there's really only one possible reason for Ricoh's production of
this lens, and it isn't that users will prefer it to the Elmarit.  I think
it's a show-off publicity item intended to demonstrate that Ricoh can make
something as nice as the "retro" European lenses that Japanese users are so
enthusiastic about.

One might think that perhaps it will sell sufficiently to earn them a
profit that is worth their notice -- after all, if the lens was already in
use on the GR cameras, they didn't have to do any optical design.  But they
still have to defray the mount, barrel, hood, and finder design and tooling
costs.  Maybe not the finder -- perhaps they are simply OEM'ing someone
else's finder.  If the lens sells for $800, let's be generous and suppose
they build it for about $300.  That means they sell it to retailers for at
most $600, probably less, and they make $300 on each lens.  Suppose they
sell 20,000 over a five-year lifespan of the product -- that's $6 million.
Leaving aside the fact that $6 million is chump change for Ricoh, not even
something they should divert a product group's attention for: if you
consider the cost of capital (their investment for design and tooling is up
front), I don't think that they realize any profit at all -- perhaps they
even make a loss.

So I think it's a publicity stunt, something to get written up in the trade
rags about.  It's a little like Digital doing AltaVista, which is not so
much a money-making enterprise as it is intended to show that Digital makes
the best Web servers around.  Of course, it always makes sense for the
consumer to take advantage of publicity stunts if they meet one's needs,
and if you need a compact 28mm lens and are happy with the quality of this
one, their publicity stunt is your opportunity.

- -Patrick