Archived posting to the Leica Users Group, 2002/03/03

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Subject: Re: [Leica] Re: Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...
From: Andrew Schroter <schroter@optonline.net>
Date: Sun, 03 Mar 2002 22:01:00 -0800
References: <3.0.6.32.20020303104129.00a0c260@POP6.sympatico.ca> <NABBLIJOIFAICKBIEPJJCEBDOOAA.darkroom@ix.netcom.com> <3.0.6.32.20020303114629.00a16700@POP6.sympatico.ca> <l3n48u83enl11jv7hrooulfoendvs24t7c@4ax.com>

I beg to differ. Let me use an extreme example.  Leica USA has a  plant and
infrastructure costs to support the marketing, sales, and service  of Leica
Cameras as well as support their dealers, through such events as Leica Days.
That costs lots of money, folks, especially when you're located in North
Jersey.  The infrastructure costs of dealers in many other countries often
are lower, as the cost of doing business often is lower/higher in those
countries (low wages, low property costs, etc.)  Those dealers have the
ability to order a large quantity of Leica gear and sell it to an American
Grey market dealer at a relatively low markup, thus giving them lots of
turnover, with relatively low retail sales expenses.  they are able to make
lots of profit as a result.

When that Grey market dealer in the US sells the Leica gear to a retail
customer, Leica USA receives no money associated with the sale of that gear,
hence does not receive anything to fund it's infrastructure.  If Leica USA
honored Grey gear warranty repairs, they'd be put in the position of
repairing gear for which they received no funding to support their facility
and programs.  Even if Leica USA were to receive compensation for repairs
incurred from Solms or the original Leica Agency/Distributor/dealer, they'd
receive no funds to support their Sales/Marketing staff and facilities.  It
would also be in Leica USA's interest to "maximize" the cost of warranty
repairs, which does no one any good.

A single, world wide price for Leica Gear is an unattainable goal, in my
opinion.  This is due to the disparity in costs of operation in the various
parts of the world.  The cost per square foot for a retailer in NYC is far
in excess of the cost per square foot for a retailer in Manila, Jakarta,
Bangok, etcetera, etcetera, etcetera.  Salaries for the retailers' sales
forces in the US would necessarily be much greater than say in Mexico City
or Sao Paulo, etcetera, etcetera, etcetera ( You can tell I just saw the
King and I).

While a Leica camera originates from a Leica dealer somewhere, if that
camera, along with many others, is sold to a Grey Market dealer at 50% off
list that Leica dealer is doing so as they will not be incurring the
sales/marketing/warranty service costs.  the Grey Market dealer ends up
arbitraging the difference between the Original dealer cost and the US
dealer's costs, and hurting the Leica US organization in turn.

Not something Id like to see.  I like having Leica days and Leica presence
at the various Photographic events around the country, don't you?

AGS

- ----- Original Message -----
From: "Eric" <ericm@pobox.com>
To: <leica-users@mejac.palo-alto.ca.us>
Sent: Sunday, March 03, 2002 9:29 AM
Subject: [Leica] Re: Doesn't ALL Leica gear originate from a "Leica
Authorized Dealer"????? - Was International warranty...


> Dan:
>
> >thereby bypassing
> >Lisle-Kelco.  This camera is what I refer to as "gray market".  Maybe
Solms
> >will repair it, but I don't see why any local distributer would.
>
> Because in the ideal company, the local distributer would get reimbursed
by
> Solms.  What's the point of chopping Leica up into smaller fractions?
>
> You may come back and say they are separate entities, but at what cost?
The
> customer's.  Like Austin points out, it's BS.  Barnes & Nobles is even
> worse.  They treat their online division as being a separate company from
> their regular stores.  I had a gift certificate to B&N.  Their online
stores
> wouldn't accept it because it had been bought from a real store.  That's
> just bogus.  It's a way of excusing lousy customer service.
>
> Leica is Leica is Leica.  Buy a Leica.  Get it repaired.  I can understand
> that if Leica USA offers a warranty over and above the standard one, then
> that extended warranty would only apply to officially imported Leicas so
> that Leica USA gets its cut from each one.  But to charge for warranty
work
> just because you bought the camera from Leica instead of from Leica is
> bogus.
>
>
> Eric
> --
> To unsubscribe, see http://mejac.palo-alto.ca.us/leica-users/unsub.html

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Replies: Reply from "Eric" <ericm@pobox.com> ([Leica] Re: Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...)
In reply to: Message from Dan Cardish <dcardish@sympatico.ca> (RE: [Leica] Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...)
Message from "Austin Franklin" <darkroom@ix.netcom.com> (RE: [Leica] Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...)
Message from Dan Cardish <dcardish@sympatico.ca> (RE: [Leica] Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...)
Message from "Eric" <ericm@pobox.com> ([Leica] Re: Doesn't ALL Leica gear originate from a "Leica Authorized Dealer"????? - Was International warranty...)