[Leica] Thoughts on the new Zeiss lenses

[jonathan at openhealth.org (Jonathan Borden)]

Frank Filippone wrote:
>
> It has some component of small volume runs, some labor costs ( 
> overhead,
> time and hourly rate) , and some distribution costs.  But the wild 
> majority
> is pure profit.  The 50/1.4 ASPH is the best example..... 8 times the 
> street
> cost of a 50/1.4 from Nikon......$300 vs $2500.
>
>

Heh, heh... since Leica is loosing money, there is no profit even at 
$2500. You might consider the incremental cost of making each lens, 
i.e. variable cost, but in Leica's case that's less than half the 
equation. Small manufacturers have relatively higher fixed costs i.e. 
the cost to design the lens and keep the base operation running. In 
Leica's case the "wild majority" is the *overhead* (unfortunately).

Jonathan