Archived posting to the Leica Users Group, 2009/09/11
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]It is not that I disagree with your comments, but when the exchange rate reverses, one would then expect a reduction in selling price. It does not happen. Call me suspicious.... However, I repeat.. there are 2 times to buy a new Leica item.. on release as a new product, or when the dealers want to dump the inventory. That means the M9 and M8 are both good buys right now...... Frank >Well, but Leica did not raise its base prices (that is, the EUR >prices) on those occasions. It simply decided that it was not forever >going to eat the decline in the value of USD, as did many other >companies selling into the US market. In fact, that is one of the >economic adjustment mechanisms when a country has a persistent balance >of payments deficit--its currency falls, which means that imports >become more expensive relative to domestically produced goods. > >In January 2006 a dollar was worth 0.85 EUR. In mid-2008 that had >fallen to 0.63 EUR. That is a big change. The dollar has since >recovered a bit and is now worth just under 0.70 EUR. When stuff like >this happens, a company like Leica, which manufactures its products in >Germany and Portugal and therefore incurs all its costs in Euro, has >to choose between lower margins in an important market, or higher >prices. Eventually higher prices are necessary in the weak currency. A >company like, say, BMW is in a better position, since they have >manufacturing facilities in the US (is it Alabama?) and so incur most >of the cost of producing the cars for the US market in dollars. > >Nathan > >Nathan Wajsman >Alicante, Spain >http://www.frozenlight.eu >http://www.greatpix.eu >http://www.nathanfoto.com > >Books: http://www.blurb.com/bookstore/search?search=wajsman&x=0&y=0 >PICTURE OF THE WEEK: http://www.fotocycle.dk/paws >Blog: http://www.fotocycle.dk/blog > > > >On Sep 12, 2009, at 7:37 AM, red735i at earthlink.net wrote: > >> Best check out the past on Leica Lenses and, for that matter, the >> bodies as well.... every year or 6 months, they raise the price by >> 5-10% (USD). They usually blame it on currency exchange, weak >> dollar, weak Yen, weak Euro, weak Pound, weak whatever. When the >> exchange rate reverses, the price stays the same increased number. >> >> The Only 2 times to buy new Leica items is on first intro, and again >> when they dump the stock when a new model comes out. That is when >> they are priced at their least. >> >> BTW, my M8 was bought, new, US warranty, for a bunch under $3K. I >> realized ( when my wife mentioned it to me) , that a new $7K camera >> was out of my price range...... >> >> Yes, you read that right, I bought a M8. I am now (partially) >> digital. >> >> Frank Filippone, M8'd >> >>> I cannot imagine that they will raise the price. I cannot think of >>> ANY >>> camera or other electronic product whose price has gone up in the >>> past >>> 10 years. The market simply does not work like that... >> >> _______________________________________________ >> Leica Users Group. >> See http://leica-users.org/mailman/listinfo/lug for more information > > >_______________________________________________ >Leica Users Group. >See http://leica-users.org/mailman/listinfo/lug for more information