Archived posting to the Leica Users Group, 1998/03/15

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Subject: Re: [Leica] Gray Market vs US Import?? Leicas and Jeans.
From: Donal Philby <donalphilby@earthlink.net>
Date: Sun, 15 Mar 1998 19:35:58 -0800

Frank Filippone wrote:
> The Supreme Court has passed a ruling on the legality of Grey Market
> Imports....
> The old trademark law gave the trademark owner the EXCLUSIVE right to
> import goods. ,...  This has now legally been overthrown.
> 
> The effect of this ruling is that there will be more grey market stuff
> available..... more freely.
> 
> The reaction to this from the official importers is already heard on the
> Nikon (List)  front.... Nikon USA refuses to repair (in warranty or out of
> warrant ,,, it maks no difference) a camera that was not bought in the USA
> or to which you do not have a purchase receipt from a foreign country, even
> if you are willing to pay the repair charges.....
> 
> so what do you do with a second hand camera?

Frank,
Very interesting.  Great last questions. I read the article in the Times
(we don't have a real paper doing journalism in San Diego!), but hadn't
consider the implications you suggest.  Partly I have no sympathy for
the US importers.  I have argued vociferously with Kodak reps about the
fact that they can make film in Rochester, ship it to Europe or South
American, dealers there can reimport in to the US paying transportation
both ways plus import duty on it and still sell it cheaper than the film
coming from Rochester directly to my photo store.  Same film out of same
machine.   Something is wrong.  If they can indeed export film cheaply
enough to come back here cheaply, they are over charging the US
customers.  Period.  

Same situation with grey market cameras.  How possibly could foreign
dealers get Leicas and export them to the US, pay customs charges and
still have them sell for less?  If US distributors won't match grey
market prices, they are overcharging in the first place.  End of story. 
You can argue warranty work, but most warranty work is reembursed by the
OEMs in most industries.  So that doesn't wash.  It is price protection,
pure and simple.  As a consumer, I feel ripped off.  

And don't get me started on the cost of gasoline in San Diego being 30
or 50 cents more per gallon than in Los Angeles 100 north.  Industry
people say the cost of transportation is two cents per gallon.

At least we can buzz down to Mexico and buy prescription drugs over the
counter (often with same lot numbers) for 10% to 50% of US prices.  

donal
- -- 
Donal Philby
San Diego
http://www.donalphilby.com