Archived posting to the Leica Users Group, 1999/10/21
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Stephen proposed that: . . . >Today's localized distribution center / sales rep / local dealer network is >a dinosaur from Leica's 1930's sales network. > >Suppose all the overhead of distribution centers, sales reps, and dealer >profits were eliminated. > >Instead, all of that would be replaced by a comprehensive ordering and >information system out of Solms. Presumably this savings would mean not only >lower prices to the end user, but more profit to Leica as well. Besides >profit, it would also improve Leica's cash flow. No longer would Leica have >to grant credit to dealers, and await payment. All sales would be paid for >by credit card. Instead of layoffs, Solms would be hiring. --> although this is meant as a very positive suggestion, many high end luxury products require proper client qualification and demonstration, then "closing" to register real world sales. People who have no sales experience fail to understand that most of the durable luxury goods simply are more than merely technically based products ... they are SOCIAL products, too, most especially in sales context, then onward. It's quite obvious that IBM, in such a dominant market position, whose consumer products are one of many similar me-too microprocessor based products that DON'T require demonstration to justify their price or to demonstrate their performance and in-built value, made the right choice, especially as the arguments put forward apply 100% for IBM. You also must factor in the FACT that IBM has decided to use its sale force [ ! ] to revamp the corporate computer base IBM style. Internet sales is an excellent tool for IBM: the medium is THEIR very product ! ! ! We think small compared to IBM: they want to sell their servers and other high end technologies. This requires a trained sales force. Their Internet operations have simply made available their product to many who, otherwise, would not even have been shown IBM brand products because there are less expensive alternates, in many boxes-in boxes-out cheap storefront sales operations. Further, it's quite unlikely that Leica would register multiple item sales on single invoices, like 50 Leica M6 TTL with 50 Summilux 35mm f/1.4 asph and 50 Summicron 90mm. IBM does that each and every hour where the Internet is a sales closing tool as such ! [ I recommend you look into IBM Aptiva 902 and 916 and their P72 17" monitors especially. Now you know I shop the Internet. Local IBM dealers did not even stock the brand: how do you expect 'local' IBM sales to go ahead with more profitable clone oriented "DISCOUNT" goons who have strictly done NOTHING to BUILD IBM e-q-u-i-t-y... to shore up their market position ? ] Leica requires, at least for its high end series, quite a lot of pampering and up-market sales techniques and SUPPORT. Internet based sales for high ticket items could make sense but it could also mean the very demise of Leica. I vote the conservative road in all this, at least where Leica is concerned (and I don't own a Leica camera shop). [ PS: Leica could do better as to their website, making it more sales oriented for its dealer network but the solution sure is not a ready made one and could become a waste of money, time and energy even with the best webmasters in the world. ] Although these are times of change, successful Leica dealers have a lot of equity in the brand. Perhaps many dealers simply assume Leica as their "ultimate camera" line but when competition sets in, just see them scurrying around to protect their turf: brand equity in such a line as Leica can mean their very position [ and survival ] in their respective markets: not IMMEDIATE sales but overall product mix that simply cries for a high end that is unquestionably credible. Retail sales require such mind gizmos as cheap stuff, better stuff, super stuff, out-of-this-world stuff and SOLUTIONS that work. Price is most unlikely to be a Leica brand customer's motivating force: prestige by association, technical merit, personal identity factors probably are closer to reality than deals and specials on inflated price lists on made-to-order discount products of "white sale" fame. Nobody gets anything for nothing: there's ALWAYS a consideration somewhere . . . Yes, we may see a lot of Internet based sale systems, but it could kill Leica in less than 5 years: who'll recommend a Leica when there are gizmo this and gizmo that brands that whirrr and beep-beep and motor in motor out for much less money, generally recognized brand names shopping people also associate with professional photographers ? How many Leica sales were registered from savvy sales person- nel who could identify a "Leica potential" out of the crowd ? FAR more than non sales oriented people can realize: Leica is NOT one of those products that sells itself, except to established Leica brand customers. Hence the wide discrepancy in sales levels from shop to shop, markets notwithstanding. The "missing link" : properly educated [ + motivated ] sales forces and dealers, then consumers: not such a simple task ! I could go on but I must say that, though there is a lot of merit to the Internet, we have not seen the end of the camera shops, private business people and career sales personnel. The more intelligent business people make sure, simply out of interest, to cater to a COMMUNITY of users and customers. Try that with the Internet in high end sales context. To whip up sales, to advertise, to support interest, to disseminate information faster, YES, to motivate and close still hesitant potential customers to the beauty and excellence of a Leica product, that's a whole different universe: REALITY ! Unless one thinks all cameras and lenses are the same . . . and that WallMart is a great one-stop-shop for everything and that dependable qualified personnel is totally un-significant. Now, I'll read the other replies. Best regards, Andre Jean Quintal