Archived posting to the Leica Users Group, 1997/08/04
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Chuck writes: > Lemme see if I've got this right: > > Leitz's low sales volume squeezes their profit margin, compelling them > to > offer inferior service and overpriced (though superb) products. The high > price further drives down sales volume, forces more service cutbacks, > resulting in either another round of price increases, or panic-driven > rebate programs. > > What's wrong with this picture? I think you know the answer, it all collapses in tears and recrimination :-) But in marketing-speak Leicas are 'aspirational' products, which follow rather different economic models: it's certainly not clear that if the M6+50/2 price were halved, for example, the unit sales would increase to the extent that one would expect from conventional supply & demand curves, since the M would become less of a 'product to aspire to', simply because it would be cheaper and more easily attainable. (This isn't about logic, remember.)