Archived posting to the Leica Users Group, 1999/10/20
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]According to an article in today's LA Times, IBM is ending distribution of its APTIVA PC line through retail stores. Instead, they will sell them only on the internet -- like Dell and Gateway. I can't help but wonder what it would be like if Leica did the same thing. Today's localized distribution center / sales rep / local dealer network is a dinosaur from Leica's 1930's sales network. Suppose all the overhead of distribution centers, sales reps, and dealer profits were eliminated. Instead, all of that would be replaced by a comprehensive ordering and information system out of Solms. Presumably this savings would mean not only lower prices to the end user, but more profit to Leica as well. Besides profit, it would also improve Leica's cash flow. No longer would Leica have to grant credit to dealers, and await payment. All sales would be paid for by credit card. Instead of layoffs, Solms would be hiring. Imagine emailing Leica, ordering whatever product, and getting a definite delivery date within 24 hrs. Unfortunately this new direct system is not likely to be popular with such people as Leica USA personnel, sales reps, or dealers. However, if Leica fails to survive due to lack of sales, they will be out of a job anyway. Stephen Gandy