Archived posting to the Leica Users Group, 1997/08/18
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]At 10:08 PM 17/08/97 -0400, you wrote: [some parts deleted] >I'm sure this is a problem that Leica would like to see solved but it does >create issues for dealers who would love to sell me equipment but they >don't have it and can't seem to tell me when they will get it. Nothing >beats a close relationship with a dealer. Some dealers have even hand >delivered Leica product to my office. Its nice when you call up your >favorite Leica salesman and they recognize your voice. But if they don't >have the lens I need, I can't wait months until their name comes around on >the distribution list from Leica. > >Maybe I'm the only one in the U.S. having a supply problem. Thanks for >letting me blow off some steam. > >Richard I don't think this is a problem that is unique to Leica equipment. In Canada, the same situation exists for other major camera brands as well. Since the recession, or perhaps because of it, dealers have kept their inventories lower, stocking only those items which are most likely to move faster. The problem may have something to do with the amount of money that dealers have to pay up front to be able to hold large inventories. I am not a camera dealer, so I am speculating on this point. I suspect that this creates cash flow problems, and can leave some dealers overstocked. Margins on cameras are very small (at least in this country). The dealer markups are about 7%, to remain competitive. They have higher markups on smaller items, like accessories and consumable supplies. One solution might be to reduce the up-front costs that the dealer has to pay to stock the equipment. They can then reimburse the distributor the balance after a sale is made. This may be a bigger problem for the distributors, creating other inventory problems if dealers are overstocked. But from the consumer's point of view, it is preferable to have equipment available in the store. Perhaps someone with more experience in camera sales could comment on this further. - -GH