Archived posting to the Leica Users Group, 1997/07/18

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Subject: Re: Leica-Users List Digest V1 #550
From: "Frank Filippone" <red735i@worldnet.att.net>
Date: Fri, 18 Jul 1997 21:45:48 -0700

"Think about it.

If you bought your Leica in Japan, deal with the Japanese Leica
distributor. He is the one who has a financial interest in the deal!  "

I hope you don't believe that Leica USA makes all the money and that Leica
SOLMS makes less or even no  money ?  Leica Solms owns Leica USA... and as
I noted, also owns, in most likelihood, Leica Japan.  

Same is true of Nikon and Canon, with the same bizarre warranty story.

"Put yourself in the position of the authorized importer of any product, in
any country. Someone buys the product you sell in another country. This
means that you make no money from the sale. Yet he asks you to pay for his
repairs.  Would *you* pay for his repairs in this situation?"

Agreed, but this is the logic I have heard used to justify local P+L
centers.  This could easily be handled under a worldwide accounting system
for repairs' billback.  Within one company this is easily handled with
todays' computer and communication technology.  That was not true say 40
years ago.

The Europeon approach to local sales channels is to set them up as separate
P+L centers..... regardless that they are owned by the main conglomerate. 
Locally policies such as warranty, prices, advertising, etc are decided. 
Japan followed that model.  At the end of the accounting games, the sales
dollars are all reflected to the parent.  The parent should control all
policy that is a worldwide issue... in this case, warranty and sales price.
 

Under the principal of world wide pricing, all the grey market games would
end, the customers' price would be really close throughout the world, and
warranties would be worldwide.

I am looking for improvement of customer satisfaction.  Worldwide
warranties and worldwide pricing are ways to improve.

Thank You
Frank Filippone
red735i@worldnet.att.net