Re: [Leica] Re: Subject: Increasing sales of R8s and R lenses.

[Andre Jean Quintal <megamax@abacom.com>]

	--> This all sounds nice and easy,
	but the ultimate problem is DEMAND for an
	ultra-expensive item many competitors have
	cornered with easier-to-sell THRILLING models
	that are easier to use for the typical wealthy customer.
	EASIER - TO - SELL (and not RISK a walk-out) . . . !

	--> I expect some of the new Leica models coming out
	probably will be handled through the Internet,
	in a two step process as you describe, BUT it will
	have to be HIGH DEMAND items, H-O-T,
	not warehouse clean-out stuff
	(which could definitely kill a whole line !!! ),
	so as to make an actual purchase easier, assuming the
	product does not have to be DEMONSTRATED
	to elicit product envy and actual sales.

	--> QUALITY is NOT everything in sales . . .  :+(
	though I have always sold quality products.

	--> Photography may NOT be the motive
	why many buy Leicas. Ponder on that, too.

	Andre Jean Quintal

The basic problem with authorized Leica dealers is that they are not
getting the job done -- they are not selling enough product to keep Leica
healthy financially.  Why worry about dealer loyalty when  Leica's
existence is threatened by poor dealer sales?

In my opinion, rather than keeping the present arrangement and flirt with
insolvency for the sake of dealer loyalty, Leica needs to sell directly
to the consumer on the internet, by passing the dealers.  Leica would
make more profit per item and have greatly increased cash flow. The good
dealers who provide great service will still do fine, selling at the same
price as Leica. The weak dealers who don't know the product will find
their Leica customers migrating to Solms internet sales, a  good thing as
far as I am concerned.

Stephen Gandy


Bill wrote:

> Brian Caldwell wrote:
> The problem with your plan is that it puts Leica into direct
> competition
> with its authorized dealers.
> Leica would be, in effect, stealing sales away from dealers who have
> the R8
> in stock. No dealer would be able to sell an existing stock R8 unless
> they
> did so for a loss. All the capital a dealer has tied up in R8s would
> become
> a loss.
> Not a good way to inspire dealer loyalty.
> Bryan
> ....................................................................
>
> Hi Bryan,
>
> Re-read my initial post.
>
> Here's how it works:
> John Doe orders an R8 and pays for it on the Leica web site.  John
> then goes down to his local Leica dealers and picks up an R8 (from
> dealer stock) with the receipt and authorization number generated off
> of the Leica web site. The local Leica dealers then submits a form to
> Leica USA showing that he delivered an R8 to John Doe that he
> purchased on the Leica web site.  Leica USA then ships the dealer an
> R8 to replace the one which he sold.
>
> There are of course variation on the above, but you get the idea.
>
> This is one of those rare deals where everyone comes out a winner.
>
> * John gets an R8 (for which he needs at least one lens)
>
> * Leica (Solms) moves a slow selling inventory item and gets paid for
> it immediately
>
> * The dealer has a de facto product cost of zero
>
> * The dealer acquires a new in store customer
>
> * The dealer has the opportunity to sell the customer more product
>
> * The dealer increases his inventory turn-over rate
>
> Regards,
>
> Bill