Archived posting to the Leica Users Group, 1998/11/13

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Subject: Re: [Leica] Pros and Leica sales! was vanc.
From: "Robert G. Stevens" <robsteve@istar.ca>
Date: Fri, 13 Nov 1998 11:53:46 -0400

Greg and Ted:

Since you are both Canadians, I will point out a difference between what
pro's and amatures spend.  Both of you being pros can spend the $10,000 a
year and use the depreciation as an expense of your business.  Depending on
your tax bracket, you could be saving 30% to 50% compared to non pros.  In
Nova Scotia and Newfoundland, we have replaced the Provincial and Federal
Taxes with the HST and ,in Nova Scotia at least, the tax paid on purchases
are used as input tax credits on your HST return, which means you get these
items tax free and a savings of another 15%.

Leica may market to the advanced amature because for us to buy a R8 at
$2,900 CAD, we must earn about $5,800 before taxes to pay for it.  What it
means is that it takes a lot more convinving to have an individual part
with after tax money than a business entity to spend before tax money.  I
am sure the tax numbers are similar in Europe, and probably quite a bit
less in the US.

Regards,

Robert

At 07:15 AM 11/13/98 -0800, you wrote:
>Greg Locke wrote:
>>        This brings up the question of misguided marketing.
>>Most working pro's I know spend a lot of money on equipment. They buy MANY
>>camera, lenses, accessories and pay for repairs.
>>
>>        While I would love to be proven wrong, I know I spend a lot more
>>money on camera equipment than my doctor and lawyer friends (yeah! I
admit, I
>>do have some)
>>
>>        I budget $10,000.00 per year for equipment replacement and repairs
>>(although, it often comes in less then this. This year it was only
>>$7000.00).  Do amateur photographers (not collectors) regardless of their
>>net worth, REALLY spend $10,000.00 on cameras?>>>>>>>
>
>Hi Greg,
>
>You're right with many pro's and I believe Leica miss this point far too
often.
>
>Instead of using some mountain climber to promote their gear, I mean just
>how many people climb Everest anyway carrying a Leica? It doesn't give me
>any reason to buy a Leica and I'm sure many other professionals as well.
>
>If they were to use a pro-shooter on a "pro-lecture teaching-promotion"
>circuit, I'm sure their sales would show a marked improvement in the
>professional ranks.
>
>I know of professionals who have an M camera of some sort in their shoulder
>bags for "quiet situation assignments" each one of them is a potential
>customer, as many of them only own one lens & body. If there were a
>promotion event directed at professionals by a professional in various
>disciplines (news, commercial or wedding) I don't have any doubt the sales
>and use of Leicas would increase.
>
>If they are shown reasons for using them when and where, they will buy. No
>not all of them, but a greater number would be buyers if the promotion were
>directed along their line of work.
>
>And as many pros do, put back into his gear $10,000 a year for replacement
>or new, I'd sure want a chunk of that each year!
>
>Leica misses out on this market constantly! It's their loss and could
>become our  loss in the future if sales are not sufficient to make a solid
>profit for the shareholders! It's history!
>ted
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