Archived posting to the Leica Users Group, 2002/08/16

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Subject: Re: [Leica] rebate news
From: Bryan Caldwell <bcaldwell51@earthlink.net>
Date: Fri, 16 Aug 2002 06:33:04 -0700

On 8/15/02 10:27 PM, "Frank Filippone" <red735i@earthlink.net> wrote:

> You would not normaly give a rebate,, you would discount the price
> directly....at least in certain business areas....
> 
> Frank Filippone
> red735i@earthlink.net
> 
> 
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> To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html

Frank, 

The problem with this approach is that, by just lowering the price, you end
up in competition with your dealers who already have the item in stock (for
which they paid the older, higher price). Not a very good way to instill
loyalty throughout your dealer network. If Leica just lowered the price,
Every dealer with that item in stock would have a greater cost in the item
than a non-stocking dealer who placed an order at the reduced price. By
offering a rebate instead, Leica effectively lowers the price to the
consumer without offending stocking dealers.

Bryan

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