Archived posting to the Leica Users Group, 1998/02/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]>>>I'd buy a newly-minted CLE in a microsecond - - provided the QC problens are overcome.<<< George, I'd buy two. The CLE is the camera I really need. It's just that I simply refuse to pay up to $1,000 for a 15-year-old sample. (Leica should be learning a lesson from the ridiculously high used prices of the CLE, however.) They don't even really have to change anything, from my standpoint. Just reissue the darned thing. Also, I agree with whoever said that the CLE is a better camera than the CL. I'd even pay $1,000 for one, as long as it was new and had no QC problems. As far as Art's critique of my economic arguments, note that I umbrellaed my comments by saying "we don't know." But it certainly is not impossible that the scenario Stephen Gandy and I are positing might be true. I'll venture the following points, again umbrellaed by the fact that neither I nor anyone else knows the real truth: --If the major appeal of the whole product line is the lenses, and the only body the lenses will fit on is the $2,000 M6, then cutomers must buy the M6 in order to use the lenses. This surely "forces" some M6 sales from people who would choose to buy a cheaper body if one were available. --The CL and CLE were being made by Minolta. The M6 was being made in Wetzlar. It doesn't stretch credibility to my mind to imagine a disadvantage to Wetzlar if the CL and CLE were selling well. --The CL and CLE were not made for the whole Leitz lens line. They had their own budget lenses. If the CL/E takes off in popularity, what does that do to sales of the Leitz lenses not intended for it? --Finally, from a pure economic standpoint, generalizations are shaky and suspect. What follows is a hypothetical example. Imagine you've got a premium model that sells for $2,000, and half of that is profit. You've got a budget model that sells for $500, and 1/5th of that, or $100, is profit. That means you've got to sell 10 of the budget models to make the same profit you make when you sell 1 of the premium models. You say you can just "raise the price of the hot-selling item," but that doesn't work either--to make the same level of profit, the budget model would have to sell for $1,400--and it might not sell at all at that price-point. In fact, it might not be a good seller at _half_ that. Positing an imaginary price of $500, you might kill sales just by raising the price to $700. What is all the good SLRs all cost $600? It depends on what else is available from other companies that the $500 model is competing with. Again, we don't know. But saying that a company would never kill a good-selling product just doesn't take into account many factors that may have well been true of the CL/E. --Mike Again, apologies for the fact that this doesn't have a subject line. My offline reader does not give me an easy way to change the subject line in a reply.