Archived posting to the Leica Users Group, 2003/03/06

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Subject: RE: [Leica] Leicavit, After Market Products, etc.
From: "Kit McChesney | acmefoto" <kitmc@acmefoto.com>
Date: Thu, 6 Mar 2003 12:09:19 -0700

With MORE all due respect to everyone, including Tom, there is one factor
that we haven't actually factored into this equation: Tom's products would
not exist in their current configuration (if at all) had Leica not invested
in R&D in the original Leicavit product when it was first introduced. That
fact may or may not be relevant now, but it is true that it would be much
easier for one to take apart an existing product and remanufacture or
improve upon the original design, than to make a totally new design,
completely from scratch. There is engineering and design time and investment
in the original product that is absent from the manufacture of the
redesigned product made by an after-market concern. Not only that, but there
is a tremendous investment in the total product line, with hundreds of items
from lenses to cameras to parts ad infinitum, that is absent from the small
after-market operation. Every Leica product that is currently manufactured
is part of a manufacturing matrix, a web of products that are interconnected
in thousands of different ways, both in design and in overall cost to
create. Don't forget all that.

Reducing the price differences to whether the CEO drives a company-leased
BMW is ... well, I won't say silly, but ... how about simplistic? (Sorry
Austin, but we've had this discussion before about gray market costs versus
authorized market). The expense of a car lease or other costs for travel and
meals, and whatever--if in fact there is one, and we do not know if there is
a car lease, remember--are probably less relevant to the price of the unit
in question than are other costs related more directly to research,
development, manufacturing, transportation to market, etc., which are much
higher overall and more directly related to the price of the product. Yes,
compensation is a factor, but we are also talking about two very different
kinds of companies, too. One a very small company, the other a company with
a global reach and a wider range of markets.

My .02 cents. ;-)

Kit

- -----Original Message-----
From: owner-leica-users@mejac.palo-alto.ca.us
[mailto:owner-leica-users@mejac.palo-alto.ca.us]On Behalf Of Austin
Franklin
Sent: Thursday, March 06, 2003 11:21 AM
To: leica-users@mejac.palo-alto.ca.us
Subject: RE: [Leica] Comments on a BD Colen statement & PMA


> The fact that the Leicavit costs 1.5X the cost of the
> Winder-M is troubling.

Patrick,

I believe you have failed to factor in the "Ivory Tower" factor...  You
don't think Herr Cohn drives a Hyundai, now do you?  My guess is the company
leases a new BMW for him at least every two years...  You don't think he
stays in a Holiday Inn when traveling, or eats at Friendly's for a "night
out on the town" with clients?  I'm sure this is all factored into the price
of the Leicavit, and other Leica products.

Not that there's anything wrong with that, mind you...but if what I jest
about is even remotely true, realize you are subsidizing that with your
Leica purchase...and again, not that there is anything wrong with that...

;-)

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Replies: Reply from Stephen Gandy <LeicaNikon@earthlink.net> (Re: [Leica] Leicavit, After Market Products, etc.)