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: Donal Philby <donalphilby@earthlink.net>
Date: Mon, 16 Mar 1998 10:46:39 -0800

Eric Welch wrote:
> 
> At 07:35 PM 3/15/98 -0800, you wrote:
> 
> >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.
> Donal,
> 
> It's not the same film. They have plants in other countries that make film.

Sorry Eric.  Kodak does have such plants and undoubtedly some of the
film from them makes its way to US markets, but Kodak reps have
acknowledged what I say and admit they have no justifiable answer.
> 
> >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
> 
> They have to pay for advertising, and for staff in the U.S. (or Canada or
> elsewhere). On top of that, they are giving more value with the Passport
> than other distributors are. Maybe it's too expensive, and they should
> offer with or without Passport to save a couple hundred bucks for those who
> never take their cameras out.
> 
> But the way they trade with each country is a matter of dealing with that
> country. Import taxes here vs. there. 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.

If Leica is wholeselling cameras for different prices to different
countries, the various distributors should be yelling and screaming. 
The only acception I can think of is differences in import duty.  Yes to
advertising, but so do other countries in their own countries which are
also re-exporting.  As for the Passport cost, perhaps you have a good
idea.  But I still am cynical about all the pricing.   And stand by what
I wrote earlier until (I'll listen!) I hear more specific arguments. 
The most egregious violator is Kodak and I love their films anyway.  
The world is growing too small for these kind of games and greed.

donal
> ==========
> 
> Eric Welch
> St. Joseph, MO
> http://www.ponyexpress.net/~ewelch
> 
> I exist as I am - that is enough.
> 
> - Walt Whitman

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