Archived posting to the Leica Users Group, 2002/02/20

[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]

Subject: RE: [Leica] R and M 6 Prices
From: leica@davidmorton.org
Date: Thu, 21 Feb 2002 01:23:43 -0000

B. D. Colen writes:

"I believe that it suggests, with all due respect to those who love the R8,
that no one is buying the damn things. Look at Leica's financials and you'll
see that R revenues have been declining for some time now. So they've
figured out a clever way to lower the price without lowering the price."

But only for very small values of 'clever'. It's going to have to work out
how to make the R line sell or bail.

Can you imagine the conversation if it called in the management consultants:

"so you have two product lines?"

"ja"

"one sells itself and is often at production capacity?"

"ja"

"the other one is a real struggle to sell?"

"ja"

"you make virtually your entire profit from the high selling line?"

"ja"

"and the low selling line makes a loss, and the development costs to remain
competitive are a serious worry?"

"ja"

The rest of the conversation doesn't take much to work out, really, does it?

D
(who was once a management consultant but hated the job so much he walked
out one afternoon never to return)
- --
To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html