[Leica] Leica prices

[Akhil Lal]

As I have posted before, when analysing historic price trends it is
instructive to compare prices of consumer goods not to the official cpi, but
rather  to the rate at which the value of a primary residence has increased
over the period under consideration. In 1955 an M3, DS of course, with 50 mm
Summicron sold for approx DM 1100,  $ 275.  Today a new M7 + 50 Summicron
will cost $ 7400. Over the same period of time a 'starter' middle class home
in one of NYC's boroughs has gone from ca. 10k to  800k.

As Piketty and others have pointed out, we are living  in new Belle Epoch so
it is not a surprise to see that brands which were formerly accessible to
the middle class have adjusted their pricing (and market positioning) in
order attract a more upscale buyer and maximise profits.    

BTW, this link from Fortune magazine might be of interest:

http://fortune.com/2012/05/06/how-top-executives-live-fortune-1955/ 

Regards,
Akhil

  

-----Original Message-----
From: LUG [mailto:lug-bounces+alal=poly.edu at leica-users.org] On Behalf Of
Larry Zeitlin via LUG
Sent: Wednesday, September 24, 2014 9:04 PM
To: lug at leica-users.org
Subject: [Leica] Leica prices

 So contrary to the assertions of the most avid Leicaholics on the LUG. you
don't get what you pay for. Like jewelry or cosmetics you get the price that
the market will bear.
Given the cost of the new models, I'm shocked, shocked that Leicas aren't
made of platinum and gold by Black Forest elves. I guess I'll stick with my
60 year old M3.
Larry Z
- - - -
I am surprised that the price has only doubled in real terms. Other
companies that have made the leap from manufacturers of relatively mass
market consumer durables to high luxury (like Montblanc and Rolex for
example) in the same period have seen much higher increases in prices in
real (i.e. inflation adjusted) terms. All these companies price their goods
at what the market will bear, and not on plebeian principles like cost plus,
so there is no point going down that road. It is like trying to figure out
the price of a Dior Couture dress by the cost of the cloth and thread.
Pointless.
Cheers
Jayanand