Archived posting to the Leica Users Group, 2009/09/11

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Subject: [Leica] How I plan to get my M9 while keeping both kidneys...
From: photo at frozenlight.eu (Nathan Wajsman)
Date: Sat, 12 Sep 2009 07:59:21 +0200
References: <21859266.1252733875437.JavaMail.root@mswamui-andean.atl.sa.earthlink.net>

Well, but Leica did not raise its base prices (that is, the EUR  
prices) on those occasions. It simply decided that it was not forever  
going to eat the decline in the value of USD, as did many other  
companies selling into the US market. In fact, that is one of the  
economic adjustment mechanisms when a country has a persistent balance  
of payments deficit--its currency falls, which means that imports  
become more expensive relative to domestically produced goods.

In January 2006 a dollar was worth 0.85 EUR. In mid-2008 that had  
fallen to 0.63 EUR. That is a big change. The dollar has since  
recovered a bit and is now worth just under 0.70 EUR. When stuff like  
this happens, a company like Leica, which manufactures its products in  
Germany and Portugal and therefore incurs all its costs in Euro, has  
to choose between lower margins in an important market, or higher  
prices. Eventually higher prices are necessary in the weak currency. A  
company like, say, BMW is in a better position, since they have  
manufacturing facilities in the US (is it Alabama?) and so incur most  
of the cost of producing the cars for the US market in dollars.

Nathan

Nathan Wajsman
Alicante, Spain
http://www.frozenlight.eu
http://www.greatpix.eu
http://www.nathanfoto.com

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On Sep 12, 2009, at 7:37 AM, red735i at earthlink.net wrote:

> Best check out the  past on Leica Lenses and, for that matter, the  
> bodies as well.... every year or 6 months, they raise the price by  
> 5-10% (USD).  They usually blame it on currency exchange, weak  
> dollar, weak Yen, weak Euro, weak Pound, weak whatever.  When the  
> exchange rate reverses, the price stays the same increased number.
>
> The Only 2 times to buy new Leica items is on first intro, and again  
> when they dump the stock when a new model comes out.  That is when  
> they are priced at their least.
>
> BTW, my M8 was bought, new, US warranty, for a bunch under $3K.  I  
> realized ( when my wife mentioned it to me) , that a new $7K camera  
> was out of my price range......
>
> Yes, you read that right, I bought a M8.  I am now (partially)  
> digital.
>
> Frank Filippone, M8'd
>
>> I cannot imagine that they will raise the price. I cannot think of  
>> ANY
>> camera or other electronic product whose price has gone up in the  
>> past
>> 10 years. The market simply does not work like that...
>
> _______________________________________________
> Leica Users Group.
> See http://leica-users.org/mailman/listinfo/lug for more information



In reply to: Message from red735i at earthlink.net (red735i at earthlink.net) ([Leica] How I plan to get my M9 while keeping both kidneys...)