[Leica] Should Leica sell direct to customers?

[pdzwig at summaventures.com (Peter Dzwig)]

Frank Filippone wrote:

> No.  It short cuts the dealer network. Dealer networks take in inventory 
> and
> hold it, thus cutting factory inventory, increasing factory demos, and
> lowering customer support.
> 
> Bad move.
> 
> Frank Filippone
> red735i@earthlink.net
> 
> 
> _______________________________________________
> Leica Users Group.
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> 
> 
Frank,

Dealers hold inventory, the cost of which they pass on to you the buyer. If 
the 
factory is selling direct to the purchaser then it isn't building for dealer 
inventory and can reduce its workforce accordingly as it now knows what the 
actual demand is. Thisd means that costs and probably prices can be reduced, 
or 
at least that there is more room for flexibility. However dealer stock does 
have 
the effect of cushioning the factory from the worst of surges in demand.

Personally I don't like factory demos 'cos I want to see a product from my 
perspective, not from an "incentivised" salesman's.

I appreciate dealers and don't think it's an easy call.

What is really a minefield is price-fixing. If Leica did not attempt to fix 
retail prices, then the purchaser would benefit and volume might increase. 
Why 
do they imagine that new camera sales are falling...?


Peter Dzwig