[Leica] Re: M8's high price

[mark at rabinergroup.com (Mark Rabiner)]

On 1/13/07 10:27 AM, "Lawrence Zeitlin" <lrzeitlin@optonline.net> typed:

> A Leica fable re the price of the M8. (and Rolex watches, Mont Blanc
> pens, and all cosmetic products.)
> 
> We have a friend, a dealer in modern paintings in New York's trendy
> uptown art market, who is a firm believer in negative price
> elasticity. Since it is almost impossible to tell the absolute
> artistic merit of a contemporary painting, most of her customers use
> price as a surrogate cue to quality. "You get what you pay for" seems
> to be the mantra of the affluent customers who patronize her studio.
> When a painting doesn't sell after a reasonable amount of time, she
> raises its price by several thousand dollars. A customer, returning
> to the studio, notices that the painting is now more expensive than
> it was on the last visit, concludes that the painting must be worth
> having since the price is going up. Out comes the checkbook and the
> painting changes hands before the price increases again. The dealer
> makes a nice profit. The customer hangs the painting on the living
> room wall, confident that everyone will admire his/her good taste.
> "It costs more but I'm worth it."
> 
> The painting may be a piece of crap but it doesn't matter. Everyone
> is happy.
> 
> Larry Z 
> 
In Art-money there is also the controversy as to big art costing more than
small art. Should a big painting cost more than a small? Or photograph?
There's is no reason why it should certainly.
And art which takes longer to make costing more than a watercolor thing
which takes less than a minute. NO reason there either.
No rules apply.
Other than the rule of capitalism.
Which is it will sell for what they can get for it.
Not sure if this is fair to the production by hand by several people on a
classic piece of engineering such as the Leica camera.
Kind of in some ways seems like the direct opposite of the case.
Obviously it coast  more to make less stuff by hand then it does lots of
stuff by huge mechanized robot factory.
For all we know they loose money on every M8 they sell.
The cost of making them right the second time can not be cheep.





Mark Rabiner
New York, NY
40?47'59.79"N   
73?57'32.37"W

http://rabinergroup.com/