Archived posting to the Leica Users Group, 2012/05/19

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Subject: [Leica] Layman explanations of pricing and revenue
From: photo at frozenlight.eu (Nathan Wajsman)
Date: Sat, 19 May 2012 23:55:07 +0200
References: <CAF8hL-EKvD=ugzfwRUVfFpTemT+FEB+RdJEFntYGLsNM=9cGSQ@mail.gmail.com>

She is complicating simple things. Basically, Leica has a rather unique 
product (there are no other digital rangefinders) and are pricing the 
cameras at the highest price the market will bear. We are talking about an 
industry structure best described as a differentiated oligopoly, in which 
behavior of the individual players is hard to predict.

The bottom line is that as long as enough people are prepared to pay Leica 
prices, those prices will be what they are.

Cheers,
Nathan

Nathan Wajsman
Alicante, Spain
http://www.frozenlight.eu
http://www.greatpix.eu
http://www.nathanfoto.com
PICTURE OF THE WEEK: http://www.fotocycle.dk/paws
Blog: http://nathansmusings.wordpress.com/


YNWA



On May 19, 2012, at 10:57 PM, Richard Man wrote:

> What do the economists on the list think?
> 
> This has relevance in my dayjob too of course :-)
> 
> http://leicarumors.com/2012/05/19/the-mystery-of-leica-pricing-explained-by-j-shin.aspx
> 
> 
> 
> -- 
> // richard <http://www.richardmanphoto.com>
> 
> _______________________________________________
> Leica Users Group.
> See http://leica-users.org/mailman/listinfo/lug for more information
> 



Replies: Reply from red735i at earthlink.net (Frank Filippone) ([Leica] Layman explanations of pricing and revenue)
Reply from jayanand at gmail.com (Jayanand Govindaraj) ([Leica] Layman explanations of pricing and revenue)
In reply to: Message from richard at richardmanphoto.com (Richard Man) ([Leica] Layman explanations of pricing and revenue)