Archived posting to the Leica Users Group, 2001/06/05

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Subject: Re: [Leica] Why does it cost more for USA Leicas than grey market
From: "Tom Schofield" <tdschofield@email.msn.com>
Date: Tue, 5 Jun 2001 08:07:39 -0700
References: <NABBLIJOIFAICKBIEPJJIEPNJPAA.darkroom@ix.netcom.com>

It is my understanding that the grey market is driven by currency
fluctuations.  I heard that for a while the grey market stuff was coming in
from Austria, presently it appears to be from Hong Kong.  It depends on the
relative exchange rates between the dollar and other currencies.  Leica USA
may have inventory purchased at the then current exchange rate, and when the
exchange rates fluctuate, someone else may be able to bring something in at
a lower cost.  Leica monitors this, as they know where they ship every
serial number to.  All they have to do is to have someone buy a grey market
camera or lens to know where the store is getting them from.

Leica USA, and our Northern California representative, definitely provide
added value through photo days, clean and checks, passport warranty, photo
shoots, etc.  I think the technical term I learned in my college economics
classes for those who would buy grey market and then expect Leica USA to
service it for them is "freeloading."  I am not trying to sound "holier than
thou" in saying that -- I recently made my only grey market purchase, an APO
Componon enlarging lens from Adorama.  I decided that for the $100 savings,
I would take the risk of not having the lifetime USA warranty on an
enlarging lens, but I would expect Adorama to service it if necessary, not
Schneider USA.

OTOH, I was very glad that I had a USA Passport Warranty on my M6 TTL when
it fell out of my bag onto the driveway last month!

Tom Schofield

In reply to: Message from "Austin Franklin" <darkroom@ix.netcom.com> (RE: [Leica] Why does it cost more for USA Leicas than grey market)