Archived posting to the Leica Users Group, 2002/07/04

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Subject: Re: [Leica] Noctilux Prices
From: John Collier <jbcollier@shaw.ca>
Date: Thu, 04 Jul 2002 10:09:58 -0600

I always wonder who could be so stupid as to post a quote with no 
response.

Now I know!

What I meant to add was that retail prices are set by what the market 
will bear. If Swiss people are willing to pay the price then it is 
reasonable. If not, they will not sell any. A good example is the price 
of Leica accessories.

Leica USA keeps the prices of its cameras and lenses lower than nominal 
list by the use of rebates and Leica Day discounts. It also tries to 
raise perceived value using Passport Warranty and inexpensive warranty 
extension options. All this is to stay competitive with the grey market.

Now with accessories there is not the same quantity involved and there 
are many items to stock. This makes it unprofitable for grey marketers 
to compete with Leica USA. Leica USA then is able to use higher than 
normal accessory prices to offset the narrow profit margins on cameras 
and lenses.

Leica in Canada does not have the same competitive pressures from grey 
marketers so their retail camera and lens prices are similar to nominal 
Leica USA list. Leica Canada does not have to make its money elsewhere 
so accessories are much more reasonably priced. I typically pay less 
than the US nominal price and in $CAN too!

So in short, the Swiss Leica distributor is not ripping anyone off. They 
are balancing sales with profit margins. Often you are better off 
lowering your sales slightly but getting a good profit margin than you 
are if you reduce your price to the bone and sell cameras by the bucket 
full.

John Collier

On Thursday, July 4, 2002, at 09:29 AM, John Collier wrote:

>
> On Thursday, July 4, 2002, at 09:34 AM, you wrote:
>
>> It is simply the
>> Swiss importer and Swiss dealers ripping customers off.

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Replies: Reply from Nathan Wajsman <wajsman@webshuttle.ch> (Re: [Leica] Noctilux Prices)