Re: [Leica] Why are Leicas so much less expensive in Asia??

[Claes Bjerner <claes.bjerner@pi.se>]

David Freedman wrote:

>Last night, in response to a pricing query I sent off a few days ago, I
>received a fax from my favorite (authorized) Leica dealer in Hong Kong. I
>never cease to be amazed at the wide discrepancy between the prices I'm =
used
>to paying here in New York and the quotes I receive from Hong Kong.  Some
>examples (converted to US$) followed by current post-rebate New York =
prices
>in parens:
>
>M6 body:               $1,517  ($1,995)
>21/2.8 asph           $1,491  ($2,095)
>24/2.8 asph           $1,362  ($1,895)
>35/1.4 asph           $1,491  ($2,595)
>50/1 Noctilux         $1,660  ($2,795)
>75/1.4 Summilux   $1,582  ($2,795)
>
>for the "R" system:
>19/2.8                     $1,816  ($2,745)
>80/1.4                     $1,790  ($2,645)
>180/2 APO             $3,696  ($6,095)   <=3D This is tempting!
>400/2.8 APO          $7,912  ($12,440)
>
>Having purchased my 70-180/2.8 and 280/4 lenses from this particular =
dealer,
>I'm reasonably confident that these prices are correct.
>
>Anyone on the list care to offer a layman's explanation of the wide price
>differential? The equipment I received came with the appropriate papers
>(including international warranty) from the official Leica agent in Hong
>Kong.  Why should an M6 outfit cost thousands more in Solms than it does =
in
>Hong Kong?
>
>Dave F.


Dave,

Your Hong Kong prices are about the same as in Tokyo. Some of the =
items are slightly lower in Tokyo, but some - like the Noctilux - are =
more expensive. 

One explanation for the low prices in HK is given by Ray Tai:

>The economic situation in all
>of Asia has left plenty of unsold stock, especially from Southeast Asia
>and Korea.  So the stock is ending up in Hong Kong where the economy is
>still thriving (HK has the largest cash reserve per capita in the
>world).

Sorry to say, this explanation doesn=B4t hold! The Leica prices are =
relatively low all over the Far East. And these items are not old =
unsold bodies and lenses. For instance the Aspherical 21/2.8 hasn=B4t =
been around long enough to be regarded as part of unsold leftovers!

I think the main reason for these low prices is that Asian importers =
and dealers simply are very efficient. They use as few middlemen as =
possible. And they don=B4t mind undercutting the prices of their =
competitors. Just call them good and honest businessmen! 

Before our 25% VAT is added, the Leica M6 price here in Sweden is =
lower than the US price!  And price competition between the shops =
here in Stockholm is very hard. Not two shops will ask for the same =
price! So I get very suspicious when I read the advertisements in =
Shutterbug. How come every advertiser has exactly the same price - =
US$1995 - for a new M6?? Is there a Leica price cartel in the US? 

Claes