Re: [Leica] Re: Int'l price differences

[Jim Brick <jim@brick.org>]

Hi Paul,

You are correct, we all have different requirements. For me, the personal
and rewarding relationship that I've nurtured over twenty years far out
weighs raw cash or airline tickets. Not only have these people become
personal friends, they have become a part of my photographic thought
process. I feel that this relationship and the service afforded me, over
the long run, is worth far more than the dollars saved on gray market
products. For example, six years ago I bought a "USA new" 15mm Super Elmar
R, via my local dealer, for less than $3000. They happened to end up with
this lens through a special buy, and passed the savings along to me. They
could have just as easily priced it at market level and sold it to
whomever. But they didn't. This has happened on other products as well.
It's a two way street.

The world is full of interesting people, methods, agendas, etc.

Jim

ps... taking photographs with a 15mm Super Elmar is a unique experience.
How did they make such a magnificant lens? 15mm focal length, rectalinear,
yet the meter and mirror both work, without problems, in an R camera.
Amazing! A fantastic piece of engineering.



At 12:33 AM 7/6/98 +0900, you wrote:
>Hi Jim,
>
>I think we all have to realize that we pay our money and make our
>choices, and that gray market products, Leica or otherwise, entail
>risks and/or inconvencience if mechanical problems develop.  And for
>the 5% spread you mention many of us might choose the authorized
>dealer route.
>
>However, when looking at international pricing, especially in the wake
>of the Asian currency crises, the difference between authorized dealer
>prices in the US and gray market in Asia could pay for Francesco's

>vacation to Japan/Greece/France/wherever he winds up.  My current
>favorite Leica dealer, Lemon Camera, deal exclusively in gray market
>product, covered by their own 5-yr guarantee.  Current prices, at
>140yen/US$, look like this:
>M6 body: US$1,285
>Summilux-ASPH 35/1.4: US$1,500
>
>The savings on these two items alone vs. K&S' sale prices is US$1,150,
>which in yen (160,000yen) will buy me a roundtrip ticket (coach) to
>the US.  Adding savings from another lens or two would pay for my
>hotel and meals.  Or make a heck of a Leica repair fund!  
>
>Lemon's gray market prices are usually around 15-20% less than
>Japanese authorized dealer discounted prices, so there are still
>savings over US authorized dealer prices without going the gray market
>route here in Japan.   
>
>I'm not advocating gray market purchases, and I don't see these price
>fluctuations as an evil plot hatched by Leica USA to enslave Americans
>through high prices.  The yen is very weak, the Japanese economy has
>been flirting with recession for years, consumer spending is way down
>and Japanese companies will often sacrifice profits to maintain market
>share and cash flow.  This gives someone with access to US$ a lot of
>purchasing power in a market where prices should be much higher but
>aren't.  
>
>However, depending on your home country and the pricing policy of the
>authorized Leica agent in your home country, combined with the
>everpresent wrinkles of international currency values and trade, gray
>market or even authorized product purchased in other markets can
>sometimes offer attractive savings.  Somebody posted an article on
>Philip Greenspun's PhotoNet on financing a trip to Tokyo to purchase
>Canon equipment on the cost savings of buying in Tokyo vs. B&H.  I
>don't remember if he broke even on the trip or still had some cash
>left over after returning to the US, but the savings were substantial
>and this was when the yen was around 120yen/US$.
>
>Best Regards,
>
>PB
>
>On Fri, 03 Jul 1998 23:12:07 -0700, Jim Brick <jim@brick.org> wrote:
>
>>Do we pay for this protection? Yes. How much? The difference between gray
>>market prices and authorized dealer prices. It's insignificant. Really
>>insignificant when you add in the service you get from a good authorized
>>Leica dealer. Look at the prices at K&S last month. Approximately 20% off
>>of the normal prices. That put a new M6, with passport warranty, at $16xx
>>(I don't remember exactly.) Exactly the price of a good used M6. My
>>passport warranted new 35/1.4 ASPH was $2335. Someone will say "I got one
>>for $2295" or "$2195". I personally don't care. Another 5% off for a gray

>>market lens just does not compute. No matter how you arrange the parts, the
>>gray market package is a loser. IMHO.
>
>
>Paul C. Brodek
>Kobe, Japan
>pcb@iac.co.jp
>