Archived posting to the Leica Users Group, 1998/10/06

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Subject: Re: [Leica] Leica products over-priced ? I don't think so.
From: jimbrick@photoaccess.com (Jim Brick)
Date: Tue, 06 Oct 1998 16:31:37 -0700

So what is the definition of over priced? Comparison with Canon? No! We do
not know how much money Canon is willing to lose in the G market in order
to maintain their position. It's clear that Leica is not willing to lose
money. Canon is a HUGE company that dwarfs Leica. They can afford to price
certain products at a positional price rather than a profitable price. And
we, as consumers, don't have a clue as to which products and why. I suspect
that the G Canon is one of these products. Once owned, they command little
respect. Their used marketability sucks. K&S has a whole shelf full of used
G stuff.

I suspect that the market reflects the real worth of the equipment. No
respect.

And I suspect that Leica equipment is not truly overpriced for the type of
manufacturing they do. The actual term "overpriced" is a completely
nebulous word with respect to a product. The logistics of a large
manufacturing company is so involved, we, out here, haven't the slightest
clue.

If a product is priced to reflect a modest markup, based upon costs cost
and sales analysis, there is little room for R&D. R&D is an expensive
function that doesn't pay off until many years down the line. Without R&D,
we would not have the best ASPH lenses available in the world, or the 100mm
APO Macro. The cost on ongoing R&D is factored into every piece of
equipment sold. And I am willing to pay a little more for my Leica
equipment knowing that the Leica R&D arm will continue to function properly.

IMHO, Leica products are priced properly. I believe we get what we pay for.
And the used market is alive and well and holding it's own. A sign of a
healthy product. A respected product.

Jim

At 11:55 PM 10/6/98 +0100, you wrote:
>> > Jim
>> Allow me to wade in here....I think what is meant by less Leica is less
>> price charged for the Red Dot. No one can challenge the fact that the M
>> cameras are absolutely superb mechanical rangefinders, and that the optics
>> are world class. On the other hand, from everything I have read and heard,
>> the optics for the Contax G2 are also world class, and they are a fraction
>> of the cost of the Leica lenses - which suggests that with the Leica one is
>> paying for the name, for the fact that the product is made in a higher cost
>> labor market - which is Leica's lookout, not ours, etc.
>> 
>> As to the R cameras. Yes they are terrifically well made. Yes they are
>> serviceable. Yes the optics are terrific. But are the optics enough MORE
>> terrific than the top Canon and Nikon optics? If they were, I'd wager more
>> working pros would use them than do, because there would be more of a
demand
>> for that quality.
>> 
>> I think we on this list often lose sight of the fact that it is no longer
>> 1954, and the photo equipment industry is no longer dominated by the
>> Germans. Yes, Leicas are mythically wonderful cameras.
>> 
>> But they are over-priced. :-)
>> B. D. Colen
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Jim Brick, ASMP, BIAA
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