Archived posting to the Leica Users Group, 1998/03/16

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Subject: Re: [Leica] Gray Market vs US Import?? Leicas and Jeans.
From: "Cyrus Gardner" <gardner@pop-list.cais.com>
Date: Mon, 16 Mar 1998 08:37:46 +0000

snip
> It's not the same film. They have plants in other countries that make film. 
> 
> >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
snip 
> But it's mostly the cost of doing
> business in that country that can determine the difference. That and "what
> the market will bear." I.E. Capitalism.
  The cost of doing business in the US is generally lower than in 
other industrialized countries, principally because of higher taxes 
(esp. payroll) elsewhere.  In any event, IMHO local 
distribution costs constitute a fairly small portion of the total cost of a 
precision manufactured item and cannot explain large cross-border price 
differences.  The mfr's minimum resale pricing, and inflexibility in 
the face of currency and economic disruptions, are surely to blame.  
And where such price differences are large enough, distributors and 
dealers around the world will invade each other's territories until 
the differencital pricing is arbitraged away.  That happened in the 
mid-80s with luxo European cars, it's been happening recently in 
high-end watches, and now apparently it's Leica.  BTW, are there any 
Hasselblad bargains out there <g>?
Cyrus Gardner
Kormendi\Gardner Partners
202/822-0900 voice
202/331-1151 fax