Archived posting to the Leica Users Group, 1999/03/02

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Subject: RE: [Leica] Leica and MAP (Long)
From: "Frank Filippone" <red735i@earthlink.net>
Date: Tue, 2 Mar 1999 09:40:29 -0800

I had it explained to me that in the US, it is Illegal to require a retail
outlet to SELL at a fixed price.  It is not illegal to pull advertising
co-op funds, special pricing incentives, offers to buy at discounted  rates,
etc if dealers ADVERTISE at prices not to the suppliers liking.....

Now the practical translation....
The dealer has the option to sell at whatever price he wants.  It is notable
that in MY experience, B+H, Addorama, Jimmy Koh all advertised a new
Hasselblad item at one MAP price, but all broke that price when I called
then to purchase.

The advertisements all read the same, higher numbers.  Why? Because Leica
has told the dealers that the advertising co-op dollars will be pulled if
they shave a buck off the MAP.  Essentially, these dealer ads are Leica USA
ads.

How significant are the advertising bucks?  I heard up to 7% of the
purchased items ( includes bodies, lenses, cases, filters, etc.)
How significant is this compared to the selling prices?  I was told the
dealer cost on a M6 was $1600 at the time the MAP was $2000. Translation,
20% GP.  Adding a third (an additional 7% ) for cooperating with Leica's
advertising deal IS significant.

Now why do they all sell at that price?  Because, gentlemen and ladies, we
are (negative connotation inserted here)  enough to PAY those prices.  Ask
for the  discount and only purchase from those dealers that so offer.  Note:
Patrick McKee offers a $100 off a M6 MAP.  Buy your next camera from him!

I want to add to this that for many, seeing, feeling, touching, ( I don't
want to go after carressing, lovingly stroking, etc) a new camera item is
what many enjoy doing.  If you go to your local dealer to perform these acts
of ( ???) then by all means, buy from that dealer.  He has added value to
your purchase.  He has shown you how and  he has spent his time and effort
to show you why the R8 has that little button, and what it does.

But for those of you, including myself, that feel comfortable without that
support, buy mail order and buy from the best deal you can get.  Best being
in the eyes of the beholder.

Frank