Archived posting to the Leica Users Group, 2003/03/06
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]With all due respect to everyone who has posted to this thread, I think it is difficult to compare the products that Tom makes to those that Leica makes in terms of cost, because they are two different products, with very different business models. Though both are hand-made, the infrastructure that is bringing these two products to market is very, very different. Not only that, but even if Tom's overhead is lower than Leica's because he operates a smaller operation, the cost of creating each individual unit is how you have to compare--and again, that's only if the two are identical products. It may well be that both products are equal in terms of quality and function, but we don't know that yet, as we haven't seen what the new Leicavit-M will do, in the short haul or the long haul. Given what I've heard from users about Tom's products, they are top-notch in every regard. If the new Leicavit-M is a good product, it will have to be every bit as good as Tom's product, or surpass it, for some folks to buy it. There are some who would only buy Tom's products, because of what they are. They are durable, tried and tested workhorses with a loyal following. And then there are those who will only buy the Leicavit-M because they want something that is Leica. One would think that a large company that can take advantage of economies of scale by using its existing manufacturing capacity and whatever else can make a larger company more efficient at making something in quantity would be able to do so with a price that is competitive. But we are basing our idea of a competitive price on Tom's current price for his product, which, and I know I may get a faceful of rotten tomatoes for this one, may very well be underpriced. Then again, maybe they are priced just right. If that's so, then I think--and I may get a faceful of rotten wienerschnitzels for this one--that the introduction of the Leicavit-M may in fact help Tom's business. In any case, it will be very interesting to see what happens. ;-) Kit - -----Original Message----- From: owner-leica-users@mejac.palo-alto.ca.us [mailto:owner-leica-users@mejac.palo-alto.ca.us]On Behalf Of Austin Franklin Sent: Thursday, March 06, 2003 10:13 AM To: leica-users@mejac.palo-alto.ca.us Subject: RE: [Leica] Comments on a BD Colen statement & PMA > B.D., you seem to know so little about business. > > Leica has to pay for: > > Salaries for thousands of employees > Health care for thousands of employees > Factories to pay for and maintain > R&D to pay for > Advertising/marketing to pay for > Has to produce hundreds (if not thousands) of units of product everyday > > Tom Abranshom has to pay for: > > 1, maybe 2 salaries > Health care for 1, maybe 2 > A small rental unit in a industrial park > No R&D to pay for > No advertising/marketing to pay for > Daily out put is maybe 1 unit per day > > Is there something I am missing here? Steve, Yes, it would appear you are missing something. That your comparison is a "so what". Why should Leica's expenses have a thing to do with anything? That's like someone wanting a raise because they have higher expenses than someone else. People should get raises/charge more because they earned it, not because of circumstances that they NEED more money for. Austin - -- To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html - -- To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html