Archived posting to the Leica Users Group, 1996/10/08

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To: leica-users@mejac.palo-alto.ca.us
Subject: Re: New Cameras -- Street and Retail Prices
From: MBell@mail.utexas.edu (Michael Bell)
Date: Tue, 8 Oct 1996 11:42:30 -0500

>> Wonder what the R8 "street price" will be?
>
>It seems to me that every authorized leica dealer advertises new Leica
>prices that are exactly the same -- leading me to believe that Leica
>in some way influences the prices that the dealers sell for.  Now I
>believe if Leica were controlling the dealer's end user pricing, it
>would be considered an unfair trade practice, so I'm not sure what is
>going on here.

It's been my experience that high end products in a variety of areas are
sold at retail price per agreement with the manufactor.  Sales or other
special deals must be authorized or instigated by the manufactor.  This is
true of much of high end audio, although it seems to be less so in the past
few years.  I believe the idea is that the dealer promises to provide a
certain level of service and does not have to worry about a mail order or
warehouse kind of places undercutting him.  It's a way of ensuring that the
kind of shops that provide the level of service that Leica prefers are able
to stay in business.

Michael Bell
MBell@mail.utexas.edu