[LRflex] Re: North American Leica promotions.
- From: "David Young" <telyt@xxxxxxxxx>
- To: leicareflex@xxxxxxxxxxxxx
- Date: Thu, 18 Aug 2005 11:20:54 -0700
G;Mornin Elliot!
You wrote:
>Well, as you know, the price on M cameras has been increased to levels
>that ordinary mortals would find difficult to justify.
Actually, Elliot... Leica's price has not gone up. The value of the US=
dollar has gone down, making imported goods more expensive in US$. The=
Canadian dollar has risen significantly in the last year, against the=
greenback, as well. This makes US made goods cheaper for us, and our=
goods more expensive for you.
> In addition, I have been told that Leica has removed the ability for=
various dealers to become more
>"aggressive" in pricing such that all dealers are supposedly selling M
>cameras for the same price(s).
I know nothing of this. However, under US law, anyone can sell at any price=
he likes. What Leica has (quite legally) done is to say that if you=
advertise for less, we won't give you advertising support money and other=
such perks. So you can still dicker with the dealer, but you won't see=
them **advertised** for less. This is done by many quality makers to=
prevent price wars which can tarnish reputations faster than lightning.
You'll see used car dealers offering all sorts of freebies and gimmicks=
("bring you're wife...we'll give you $20 per pound off the price of your=
next car!") that would never be used by new car dealers. In turn, GM,=
FORD, Honda etc., use promotions that would never be seen at your Mercedes=
or Ferarri dealerships. And, of course, Rolls Royce have never heard of=
the word "sale". I don't know about your town, but in mine, their=
dealership doesn't even have a illuminated sign. Just a small painted=
wooden one that simply says "Rolls Royce - builders of fine motor cars".
So, it's all in the image. And despite their current troubles, Leica don't=
want theirs destroyed. They're planning on being around when the troubles=
are over!
>When added to the vast increase in sales
>of digital cameras ( as well as the falling prices of such cameras ), one
>might suspect that the already limited market for new M gear is decreasing=
even
>more.
Yes... you'd think that. But, apparently the M cameras are holding their=
own, in sales, quite nicely. I think this is because despite being a=
tiny, niche market, they have it pretty much to themselves. True, the=
Cosina/Voigtlanders are there, as well as the Epson digi-cam, but neither=
are in Leica's quality level. I suspect they're all doing fairly well.
And as a percentage, a free Leicavit or motor drive with an MP or M7 is a=
significant savings/reduction. Neither item is cheap... appoaching 1/3=
the price of the camera.
According to the factory, it's the "R" sales that have suffered at the=
hands of digital and even conventional auto-everything SLR's from Nippon.=
Thus, I'd have expected a similar deal on the R9. (Rumour has it that they=
have a warehouse full of them!) Say.. buy an R9 and get a free motor=
drive.
Or, more likely, buy a DM-R and get an R9 for, say, US$ 699!
But, it didn't happen. Perhaps the DM-R is causing enough people to buy=
R9s that they don't feel they need to do this... at least, not yet.
However, it is part of the official plan to "re-value" their inventory.=
This normally means writing it down, flogging it cheap and getting much=
of the difference back from the tax man. A great way for any troubled=
company to raise revenue in a hurry.. something I supect Leica needs to=
do.
As for older "M" gear going up in value... well, I supect it's the=
collectors hedging their bets that Leica will not make it. Sort of like=
an artist who's works go up in value the minute he dies, because there=
just won't be any more.
Y'know... if they did do the "buy a DM-R and get a cheap R9" trick, even=
I'd start stroking my chin about it! I'm looking forward to playing with=
a R9/DM-R in San Francisco, come October. :-)
Cheers!
David Young,
Logan Lake, BC
CANADA.
Personal Web-site at: http://www3.telus.net/~telyt
Leica Reflex Forum web-page: http://www3.telus.net/~telyt/lrflex.htm
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