Re: [Leica] subject: Increasing sales or R8s and R lenses

["Bryan Caldwell" <bcaldwell@softcom.net>]

Bill,

The problem with your plan is that it puts Leica into direct competition
with its authorized dealers.

Leica would be, in effect, stealing sales away from dealers who have the R8
in stock. No dealer would be able to sell an existing stock R8 unless they
did so for a loss. All the capital a dealer has tied up in R8s would become
a loss.

Not a good way to inspire dealer loyalty.


Bryan



- ----- Original Message -----
From: "Bill" <m6rf@yahoo.com>
To: <hpc.vv@leica-camera.com>
Cc: <leica-users@mejac.palo-alto.ca.us>
Sent: Tuesday, July 04, 2000 11:20 AM
Subject: [Leica] subject: Increasing sales or R8s and R lenses


> Dear Herr Cohn,
>
> I have devised a program for increasing sales of R8s and making  a
> profit at the same time.
>
> Leica Solms would sell the R8s directly to the end user and receive
> payment on the Internet.  The buyer would them be required to pick up
> his R8 at a local dealer.  In the event that the buyer lives more
> than 100km from his local dealer, the dealer could them ship the R8
> to the buyer.
>
> The R8s would sell for $995 (USD) including VAT.  The export price
> (outside the EU) would be $850.
>
> The advantages to a program like this are numerous.
>
> 1)  Get customers in to their local dealers.
>
> 2)  Immediate increase in cash flow.
>
> 3)  Increases sales of a slow moving inventory item.
>
> 4)  In many cases the local dealer will sell one or more lenses and
> other Leica accessories to the Internet customer.
>
> 5)  In addition to accepting credit cards for sales, you can also
> make financing available.
>
> 6)  Provide a full "unconditional" 5 year warranty.  Warranty service
> must be through a local dealer (the customer can't mail it directly
> to a Leica distributor unless they are more then 100km from a
> dealer).
>
> 7)  It will significantly increase sales of R8s and R lenses to
> dealers.
>
> 8)  The beauty of this program is that  (A) it will bring customers
> into their local dealers at least -TWICE-, once to look at the item
> and the second time to pick it up, and  (B) you get to sell the
> camera  -TWICE-, once to the dealer and the second time to the
> Internet customer. (Then you make money on the "float" while you
> refund the dealer's original purchase price.)
>
>
> The purpose of this program is to (A) Get customers into their local
> dealers, and (B) move out the inventory of R8s.
>
> In addition, you could also make this offer available at Photokina,
> where the visitors to Photokina can purchase the R8 and take delivery
> at their local dealer.
>
> How to SCREW-UP the above promotional program.  If you want to
> screw-up the above program and make it into a gigantic failure, all
> you have to do is put in some type of a "mandatory tie-in"...like the
> customer "must buy a lens" from his local dealer.  Don't even think
> about such an idea.  Just put the R8s into the market place on the
> Internet and you will not be able to keep up with the sales of R8s
> and R lenses.
>
>
> Regards,
>
> Bill Erfurth
> m6rf@yahoo.com
> tel: 303-674-0510
> fax: 303-670-3015
>
>
>
>
>
>
>
>
>
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