Archived posting to the Leica Users Group, 2004/07/13
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Frank, what do you mean by production cost? The $25,000,000 includes R&D, salaries for all the mechanics, etc. etc., doesn't it? -dan c. At 08:44 PM 13-07-04 +0100, Frank Dernie wrote: >BD, >I am an engineer with a reasonable knowledge of manufacturing processes >and costs. The main reason for the high cost of Leica items is that >their market is so small. Canon can recover the design and tooling >costs of a lens over probably hundreds more units than Leica can. >To put this in perspective a good quality road car production cost is >about $4000, a Champ car (Indy car) about $400,000 and a Formula 1 >(World Championship) car about $25,000,000. There is a considerable >technological difference but the main reasons for these vast difference >in costs are the quantity of units over which engineering and tooling >costs are amortised. >Leica lenses are sold in too few numbers to be inexpensive without >bankrupting the company. And you have to pay a premium for the brand, >like cars :-)