Archived posting to the Leica Users Group, 1997/08/18

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Subject: Re: Leica Has A Dealer Problem...
From: George Huczek <ghuczek@sk.sympatico.ca>
Date: Mon, 18 Aug 1997 07:55:13 -0600

At 10:08 PM 17/08/97 -0400, you wrote:
[some parts deleted]
>I'm sure this is a problem that Leica would like to see solved but it does
>create issues for dealers who would love to sell me equipment but they
>don't have it and can't seem to tell me when they will get it.  Nothing
>beats a close relationship with a dealer.  Some dealers have even hand
>delivered Leica product to my office.  Its nice when you call up your
>favorite Leica salesman and they recognize your voice.  But if they don't
>have the lens I need, I can't wait months until their name comes around on
>the distribution list from Leica.
>
>Maybe I'm the only one in the U.S. having a supply problem.  Thanks for
>letting me blow off some steam.
>
>Richard

I don't think this is a problem that is unique to Leica equipment.  In
Canada, the same situation exists for other major camera brands as well.
Since the recession, or perhaps because of it, dealers have kept their
inventories lower, stocking only those items which are most likely to move
faster.  
   The problem may have something to do with the amount of money that
dealers have to pay up front to be able to hold large inventories.  I am
not a camera dealer, so I am speculating on this point.  I suspect that
this creates cash flow problems, and can leave some dealers overstocked.
Margins on cameras are very small (at least in this country).  The dealer
markups are about 7%, to remain competitive.  They have higher markups on
smaller items, like accessories and consumable supplies.
   One solution might be to reduce the up-front costs that the dealer has
to pay to stock the equipment.  They can then reimburse the distributor the
balance after a sale is made.  This may be a bigger problem for the
distributors, creating other inventory problems if dealers are overstocked.
 But from the consumer's point of view, it is preferable to have equipment
available in the store.  Perhaps someone with more experience in camera
sales could comment on this further.

- -GH