Archived posting to the Leica Users Group, 1997/09/12
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]
> Right now the price reduction is unconfirmed--for all we know its some
> kind of misunderstanding.
I was offered a new leica M6 straight from factory for $1500,
delivery within five days. I hardly can call this a misunderstanding.
>
> But if it is true, Leica is making an incredibly bad mistake which could
> well send them into receivership. Leica employees , are you reading
> this??
>
> The problem is not with the price reductions themselves -- which will
> stimulate sales short term.
>
> The problem is the lost dollars and profits of the worldwide Leica
> Dealer network. They tied up their investments in existing stock bought
> at the OLD PRICES. Now they will have to sell for less than their cost
> just to move the product. They are doubly screwed since not only will
> they NOT be making a profit, they cannot reinvest their money at the new
> prices until they sell the old stock.
The price reductions are on the wholesale prices. I didn't say the
consumer prices will also drop by 33.3%
greetings,
Michiel.