Archived posting to the Leica Users Group, 1999/12/30

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Subject: [Leica] Re: Lieca price fixing
From: Bill Erfurth <m6rf@yahoo.com>
Date: Thu, 30 Dec 1999 19:16:26 -0800 (PST)

"Dan S" <dstate1@hotmail.com> wrote:

Here is how it works..

A manufacturer produces a product on which they want
absolute price 
stability.  (Bose speakers for example)

They approach the retailer with a proposition.  We
will
sell you product 
XXXX.  You, Mr Retailer, may sell this product for any
price you choose.  
However, if you choose to sell it for below the price
contracted, we will 
CHOOSE not to sell more of these items to your
chain....
- - - - - - - - - - - - - - - - - -

Dan, you are correct on this one.  And this is the
heart of Leica's problem.

Leica (for example) is not selling the M6 body (or
M6TTL) for the same price everywhere.  There is one
selling price for the dealers in Denmark, one selling
price for the dealers in Switzerland, one selling
price for the dealers in the US (plus the lovely 
passport warranty add on), one selling price for the
dealers in South Africa, etc.  You get the idea.  Now,
you have to add to this the prevailing exchange rate
between the currencies of these various countries.

What all of this means right now, is that a
knowledgeable dealer in the US can go to Denmark (for
example) with US dollars and buy M6 TTLs in Danish
Krona much cheaper than he can from Leica USA in
Dollars.  It's the same camera, that came down the
same assemble line, and made by the same people,
except for a hell of a lot less money in Denmark than
in the US.

This problem is going to escalate for Leica.  Now,
mark this on your calender, two or three years from
now, you will be buying you new M6 TTL (or whatever)
on the Internet from a dealer (or sub-dealer) in
Europe, Hong Kong, India, etc.  I am already seeing
this with other products, and it is a natural path for
Leica sales.   I have purchased two items this week
out of Europe because they were either not available
here in the US or the price in Europe (including
shipping) was considerable less than it was here in
the US.

Price-fixing by any other name is still price-fixing. 
Don't tolerate it.  Remember, there is power in your
Dollars.  Vote with your dollars and Vote with your
feet.

Regards,

Bill


 









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