Archived posting to the Leica Users Group, 1998/07/05
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Hi Jim, I think we all have to realize that we pay our money and make our choices, and that gray market products, Leica or otherwise, entail risks and/or inconvencience if mechanical problems develop. And for the 5% spread you mention many of us might choose the authorized dealer route. However, when looking at international pricing, especially in the wake of the Asian currency crises, the difference between authorized dealer prices in the US and gray market in Asia could pay for Francesco's vacation to Japan/Greece/France/wherever he winds up. My current favorite Leica dealer, Lemon Camera, deal exclusively in gray market product, covered by their own 5-yr guarantee. Current prices, at 140yen/US$, look like this: M6 body: US$1,285 Summilux-ASPH 35/1.4: US$1,500 The savings on these two items alone vs. K&S' sale prices is US$1,150, which in yen (160,000yen) will buy me a roundtrip ticket (coach) to the US. Adding savings from another lens or two would pay for my hotel and meals. Or make a heck of a Leica repair fund! =20 Lemon's gray market prices are usually around 15-20% less than Japanese authorized dealer discounted prices, so there are still savings over US authorized dealer prices without going the gray market route here in Japan. =20 I'm not advocating gray market purchases, and I don't see these price fluctuations as an evil plot hatched by Leica USA to enslave Americans through high prices. The yen is very weak, the Japanese economy has been flirting with recession for years, consumer spending is way down and Japanese companies will often sacrifice profits to maintain market share and cash flow. This gives someone with access to US$ a lot of purchasing power in a market where prices should be much higher but aren't. =20 However, depending on your home country and the pricing policy of the authorized Leica agent in your home country, combined with the everpresent wrinkles of international currency values and trade, gray market or even authorized product purchased in other markets can sometimes offer attractive savings. Somebody posted an article on Philip Greenspun's PhotoNet on financing a trip to Tokyo to purchase Canon equipment on the cost savings of buying in Tokyo vs. B&H. I don't remember if he broke even on the trip or still had some cash left over after returning to the US, but the savings were substantial and this was when the yen was around 120yen/US$. Best Regards, PB On Fri, 03 Jul 1998 23:12:07 -0700, Jim Brick <jim@brick.org> wrote: >Do we pay for this protection? Yes. How much? The difference between = gray >market prices and authorized dealer prices. It's insignificant. Really >insignificant when you add in the service you get from a good authorized >Leica dealer. Look at the prices at K&S last month. Approximately 20% = off >of the normal prices. That put a new M6, with passport warranty, at = $16xx >(I don't remember exactly.) Exactly the price of a good used M6. My >passport warranted new 35/1.4 ASPH was $2335. Someone will say "I got = one >for $2295" or "$2195". I personally don't care. Another 5% off for a = gray >market lens just does not compute. No matter how you arrange the parts, = the >gray market package is a loser. IMHO. Paul C. Brodek Kobe, Japan pcb@iac.co.jp