Archived posting to the Leica Users Group, 2001/06/23

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Subject: Re: [Leica] Black Hole? Now grey market
From: John Collier <jbcollier@powersurfr.com>
Date: Sat, 23 Jun 2001 14:12:37 -0600

A grey market lens is not a lens sold with an international warranty. A grey
market lens is sold without any official warranty whatsoever.

The distributor buys product from Leica AG and profit from the sale of that
item is used to pay for a number of expensive services we benefit from. The
expense of maintaining parts and staff to service the cameras is one of
those expenses. The distributor gets reimbursed at a unprofitable rate for
warranty work done and is subject to penalties if excessive an amount of
warranty work is claimed. In other words, the distributor does not make any
money on warranty work and is lucky to break even but most likely loses
money on each warranty repair. Again, part of the profit from the sale of
the item is used to cover this cost.

Now how this next bit comes about is a mystery to me (perhaps Joseph or some
other importer could enlighten us?) but some how people are able to buy
product from Leica who are not official distributors (or the official
distributor is somehow allowed to sell the item with no warranty). They
maintain virtually no staff or any other expensive services that official
distributors have to. This enables them to sell the product at a
significantly lower price than any official distributor can. Leica must be
complicit in this I do not know how else it could happen.

So there are three scenarios for an newish item that needs repair:

ONE - You bought if from the official distributor in the country you are
trying to get it repaired in. There should be no problems and service should
be reasonably expeditious depending on the quality of the distributor
(Canada is fortunate). Leica AG will be billed directly.

TWO - You bought it from an official distributor but are trying to get it
repaired through another country's official distributor. The repair
department will verify with the other country's distributor and will bill
the other country for the repair which will then be passed on to Leica AG.
The work will not be as high a priority as there own warranty repairs.

THREE - You bought it grey market. The distributor will verify that the item
is grey market. You will be billed for the full amount of the repair at
retail rates not warranty rates. The work will be low priority.

Now, what should be happening? Leica should only supply official
distributors and get rid of any distributors who sell any gear without
warranty (again I do not know how this is happening). Leica should create a
"professional sales" category where service is given number one priority at
any official distributor in the world. This would not apply to mere mortals
such as myself but professionals who are accredited by various sanctioning
bodies.

John Collier

> From: "Frank Filippone" <red735i@earthlink.net>
> 
> If the lens were grey market ( International Warranty) 

Replies: Reply from Michael Gardner <mlgardner99@earthlink.net> (Re: [Leica] Black Hole? Now grey market)