[Leica] Too much inventory

[ferider at yahoo.com (Der Eiserne Reiter)]

Hi Frank:

assuming the major market is in $ (independent how accounting works):

- costs in Euro
- revenue in $
- $ sinks vs Euro
-> prices must go up to make profit. Assuming the market takes it.

The $ sank drastically vs the Euro H2/2004

I think it is possible that Leica is trying to cut costs and _then_
sell the company. Reducing inventory is a popular way of doing
so (and become more flexible).

Regards,

Roland.

--- Frank Filippone <red735i@earthlink.net> wrote:

> Their real accounting ( costs like labor, etc.) is in Euros.  They must
> convert dollars to Euros to figure if they have a profit.
> 
> It is always an excuse to raise prices when the main currency drops 
> compared
> to the big market currency, but at times, it is fair.  However, for the 
> past
> few years, the dollar has sunk against the Euro, so prices should have
> dropped.  They did not.
> 
> So yes, this is an excuse to produce some more, free,  revenue.  What is
> also true is that it is fortuitous for Leica, a Company in great financial
> trouble.  Survival requires some gnashing of the teeth... this should have
> caused that gnashing.  IF I were King?  Yes, I would do the same in this
> time of bankers all over my back.
> 
> Frank Filippone
> red735i@earthlink.net
> 
> 
> Could the Euro be an excuse, rather than a cause?
> 
> 
> 
> _______________________________________________
> Leica Users Group.
> See http://leica-users.org/mailman/listinfo/lug for more information
> 



                
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