Archived posting to the Leica Users Group, 1997/09/12

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Subject: Re: Pricereductions & Receivership
From: Paul Schliesser <paulsc@eos.net>
Date: Fri, 12 Sep 97 14:16:33 -0400

>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.

Stephen,

It doesn't work that way. The rebate is for the end customer only; it's 
not a rebate that the dealer gets and then passes on. The dealers are 
paying the same price for the M6, but are selling it for $500 less than 
they would normally. Then the dealer fills out and sends in some 
paperwork and Leica reimburses the dealer for $500. It doesn't really 
matter to the dealer whether the body is new or old stock; it cost the 
dealer the same either way. They still paid the same ammount and made the 
same ammount of profit.

This seems to me to be fair for everyone, and is very convenient for the 
buyer. I bought an M6 earlier this year, and was pleasantly surprised 
that I didn't need to pay full price and then wait for a rebate check.

- - Paul