Archived posting to the Leica Users Group, 2008/10/23
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]The base reason is the marketing approach of a lot of European countries. In a lot of ( mostly older) companies, the foreign sales outlets are allowed and encouraged to sell at a profit that they set themselves. While the manufacturer may sell to the US, Switzerland, and Belgium at the same wholesale price, the local company distributor sells at a marked up price that he himself sets. Different local profit goals sets different sales prices. It stoked the Grey market importation of places like B+H and others. Drove and still drives the manufacturers crazy. Yes, the warranty stuff enters in to the picture, but not a lot. It is sometimes used to defend the local profit motive argument. The majority of the price differences is the local profit motive. This all worked according to plan until first Shutterbug ads, and later the Internet allowed us all to see the local and foreign prices and make comparisons. Ditto travel and the EEU import tax rules . Today, we each make a decision to support our local store or save ( maybe more than) a few dollars by buying mail order. World wide pricing Is the only way to go.... same price, world wide, with the difference being local import rules and taxes. Frank Filippone red735i@earthlink.net Because Leica gear still costs less in the US than in most > european countries, even when we deduce the partially high VAT fees from > here. The reason is not clear to me, must be a marketing decision made in > the Leica HQ. I once asked Leica Switzerland why they want 33% more for a M8 > than an official US dealer, like popflash, wants; though we've one of the > lowest VAT in Europe (7.6%). They never answered. > > Didier >