Archived posting to the Leica Users Group, 2004/07/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]This sum includes the design, R&D and tooling costs including overhead and salaries for the appropriate employees - it is the break even cost at which one would have to sell the car to not go bust. It does not include mechanics, travelling etc expenses for racing it. It does not include the engine (!) Frank On 13 Jul, 2004, at 23:40, Dan C wrote: > Frank, what do you mean by production cost? The $25,000,000 includes > R&D, salaries for all the mechanics, etc. etc., doesn't it? > > -dan c. > > > > At 08:44 PM 13-07-04 +0100, Frank Dernie wrote: >> BD, >> I am an engineer with a reasonable knowledge of manufacturing >> processes >> and costs. The main reason for the high cost of Leica items is that >> their market is so small. Canon can recover the design and tooling >> costs of a lens over probably hundreds more units than Leica can. >> To put this in perspective a good quality road car production cost is >> about $4000, a Champ car (Indy car) about $400,000 and a Formula 1 >> (World Championship) car about $25,000,000. There is a considerable >> technological difference but the main reasons for these vast >> difference >> in costs are the quantity of units over which engineering and tooling >> costs are amortised. >> Leica lenses are sold in too few numbers to be inexpensive without >> bankrupting the company. And you have to pay a premium for the brand, >> like cars :-) > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >