Archived posting to the Leica Users Group, 1999/09/06

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Subject: Re: [Leica] M and R Future
From: Marc James Small <msmall@roanoke.infi.net>
Date: Mon, 06 Sep 1999 19:14:34 -0400

At 03:15 PM 9/6/1999 -0700, Henning J. Wulff wrote:
>About $1000 less enthralled, but quite enough to have bought it.

No, they wouldn't, and that was precisely Cosina's point in marketing it as
they did.  At $1,500, it would have sold to the few but, at $500, it sold
to the many.  Now, if they could sell it for $500, they are making, say,
$200 in profit.  At $1,500, they'd be making $1,200 profit.  So, you sell
5,000 lenses at $500 and make $1,000,000 in profit -- or, at $1,500, you
have to sell 835 lenses to make the same.  Cosina apparently thought the
market would bear the first, but not the second.

Interesting analysis.

Marc

msmall@roanoke.infi.net  FAX:  +540/343-7315
Cha robh bas fir gun ghras fir!