Archived posting to the Leica Users Group, 2001/06/03

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Subject: RE: [Leica] Warranty & New vs. Used
From: "Austin Franklin" <darkroom@ix.netcom.com>
Date: Sun, 3 Jun 2001 15:24:05 -0400

> > Just wondering....if gear does not arrive from one country to another
> > through "official channels," then how does it arrive?  The parent
> > company must be selling it to someone who is not an official channel,
> > right?

> Generally, gray market importers take advantage of differing exchange
> rates, countries that have few if any import duties, and so forth.

So?  The gear is STILL purchased from Leica, and Leica gets the same money
for it.

> They avoid the support costs that Leica USA has, and the inventory
> stocking costs that US dealers have.

What they avoid is the Leica USA piece of the pie, and that's it.  Companies
could 'get away' with this crap for years, but now that the economy is a
global economy, Leica, and others, better get their act together, or it WILL
be the death of them.  If Leica gear were less expensive, more people would
be buying it, and Leica AG would sell more or it, and make more money.
Also, importing restrictions and costs have come WAY down in the past
decade.

> The main reason Leica USA or Nikon
> USA (or whoever USA) object is that the gray market equipment can be sold
> for less than the dealers pay.

And...why DO US dealers pay more?  Well, because Leica USA CHARGES them
more.  Duh.

> If everyone buys gray market, there are no more USA dealers.

My gawd, that's a completely silly statement.