[Leica] Should Leica sell direct to customers?

[reid at mejac.palo-alto.ca.us (Brian Reid)]

Historically it has been impossible for a manufacturer to switch from 
selling through dealers to selling direct to consumers. All attempts to do 
that, as far as I know, have resulted in failure.

The reason is simple: when a manufacturer starts selling direct, it is 
competing with its customers. (Its customers are the dealers). This 
demotivates them, and sales through dealers fall off much faster than direct 
sales ramp up.

In the computer industry this phenomenon was responsible for the fall of 
Compaq and the rise of Dell. Dell sold direct to consumers; Compaq sold 
through dealers. But then Compaq tried to sell direct, and the dealers 
responded by returning inventory, which nearly bankrupted them.