Archived posting to the Leica Users Group, 2011/06/14

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Subject: [Leica] Another R option (now M9)
From: wildlightphoto at earthlink.net (Doug Herr)
Date: Tue, 14 Jun 2011 20:21:11 -0700 (GMT-07:00)

Frank Filippone wrote:

>Doug... if you increase production by hiring more workers, and get more
>large volume discounts, you make money for your more profitable lines as
>well...  Unit cost drops as you divide the overhead by more units, people
>and volumes.
>
>Increasing production for the highest cost line is not necessarily the best
>way to increase profits, even if temporarily, you are production limited.

I'm aware of economies of scale.  Economics for Engineers 101.  Rangefinders 
are a niche market.  You need scale to get economies of scale, you're not 
going to see enough scale to realize the economies.  Not a lot of price 
elasticity, and no competition to canibalize sales from.

Doug Herr
Birdman of Sacramento
http://www.wildlightphoto.com