RE: SHOW ME THE MONEY! aka $3,340

[Jorg Willems <jorg@mindspring.com>]

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Hi Chuck,

I sincerely hope that your logic does not apply, although I see how a =
CPA can reason like you.
Just for a moment I took your line of reasoning serious ....

From:	Chuck Warman [SMTP:cwarman@wf.net]
Sent:	Sunday, August 03, 1997 9:50 AM
To:	leica-users@mejac.palo-alto.ca.us
Subject:	Re: SHOW ME THE MONEY! aka $3,340

<<Lemme see if I've got this right:

Leitz's low sales volume squeezes their profit margin, >>

(Not necessarily caused by low sales volume. Low sales volume could be a =
strategic marketing position to avoid mass market business consequences =
for example=20
- - greater dependency of general economics,=20
- - competition with more experienced mass market companies,=20
- - competition not so much based on true product differentiation but more =
on marketing driven perception steering
- - change to mass market manufacturing
- - etc.
- -=20
<< compelling them to offer inferior service>>

 (That's you assumption not necessarily shared by everybody)=20

<<and overpriced >>=20
(By whose standard "overpriced"?)=20

<<(though superb) products. The high price further drives down sales =
volume, forces more service cutbacks,>>

(Again, I disagree with this conclusion.  It's based on the assumption =
that they made already cutbacks in service ("more" service cutbacks).  =
If there is actually a valid complain for poor service they better wake =
up.  Personally I have only good experiences (M6, M3, 8 lenses, Visoflex =
etc. my wife: R6, R7, 6 lenses and Focomat V35 and many other Leica =
equipment we don't own anymore). =20

<<resulting in either another round of price increases, or panic-driven =
rebate programs.

What's wrong with this picture?>>

Chuck the CPA  =3D=3D> We are not counting beans  ;~)

	... just kidding.
	I hope the bean counters are not taking over at Leica.  There is more =
to running a profitable business.  Leica needs to decide in what kind of =
business they are and build their strategy around that.

BR J=F6rg

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