Archived posting to the Leica Users Group, 2001/06/03
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Kevin, I disagree..... Leica USA will always be there because the US market is so large. If we all bought Leica Gray market, Leica USA would not close shop. They would restructure their costs in a different way. The associated costs of Leica USA would be borne by the parent, and effect world wide cost/pricing. There are costs in doing biz in the USA..... parts, warranty service, etc.. But those costs exist because the equipment is here and users are here, not because it was bought here. A global business plan to consolidate all costs under the parent organization would be quickly squashed. I have had some experience in similar matters. The pride and power of the "defeated" local organizations becomes such a big deal that the effect of good business practices is lost. The Leica system is a parochial local profit system based upon the concept of producing a profit on a local basis. Multiply that profit % by the cost and you develop higher prices. Returning the cost of overhead services ( warranty, repair, S+A, parts) to the parent adds NOTHING to the total costs ( remember the costs are the same, it is the allocation of those costs that we argue). It would lower and more importantly, make more CONSISTENT the cost throughout the world. Frank Filippone red735i@earthlink.net