Seeingeye Posted January 4, 2015 Share #1 Posted January 4, 2015 Advertisement (gone after registration) It looks as though Leica has increased the cost of the M body on 1 January and the list price in the UK is now £5,250 if the Leica Mayfair website is correct. https://www.leica-select.co.uk/Products/Detail/340 Based on the rumours I saw before Xmas, it seems probable that the prices of other items have also gone up. New Leica price increase in Europe on January 1st, 2015 | Leica News & Rumors Quote Link to post Share on other sites More sharing options...
Advertisement Posted January 4, 2015 Posted January 4, 2015 Hi Seeingeye, Take a look here Leica Price Increase in UK. I'm sure you'll find what you were looking for!
fore Posted January 4, 2015 Share #2 Posted January 4, 2015 I wonder what this will do to used M/M9 prices? Quote Link to post Share on other sites More sharing options...
Jeff S Posted January 4, 2015 Share #3 Posted January 4, 2015 And February 1 in the US, $950 more than currently discounted price. Jeff Quote Link to post Share on other sites More sharing options...
fore Posted January 4, 2015 Share #4 Posted January 4, 2015 Darn. If I could've swung the M's price now, it'll be nearly impossible with such a price increase. The Leica dealer told me my R 90mm AA could use a cleaning, but would take a mos or so. Time is not my friend here...so I'm considering trying an even trade for this lens for a M in good condition. Any thoughts? Quote Link to post Share on other sites More sharing options...
Jennifer Posted January 4, 2015 Share #5 Posted January 4, 2015 I thought Leica had already increased its prices back in the autumn, or was that only in the US? Given the Eurozone is perilously close to deflation and the value of the Euro has been slipping against most other major currencies, especially the US$, I can only interpret this price hike as an attempt to improve margins still further. Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 4, 2015 Author Share #6 Posted January 4, 2015 I thought Leica had already increased its prices back in the autumn, or was that only in the US? Given the Eurozone is perilously close to deflation and the value of the Euro has been slipping against most other major currencies, especially the US$, I can only interpret this price hike as an attempt to improve margins still further. Leica has made a substantial investment in its new Wetzlar premises which has to be repaid somehow. Quote Link to post Share on other sites More sharing options...
Guest Posted January 4, 2015 Share #7 Posted January 4, 2015 Advertisement (gone after registration) Leica has made a substantial investment in its new Wetzlar premises which has to be repaid somehow. Progressive companies increase margins by increasing productivity and market share. Increasing prices alone is not always a good long term solution. BrianP Quote Link to post Share on other sites More sharing options...
Jennifer Posted January 4, 2015 Share #8 Posted January 4, 2015 Progressive companies increase margins by increasing productivity and market share. Increasing prices alone is not always a good long term solution. BrianP I guess Leica's attitude is that it's customer base, at least that element they wish to hang on to, is so price insensitive that the odd $1k extra is neither here nor there. I've noticed that many top luxury brands have been hiking up their prices hugely in recent years, apparently without denting sales. There are parts of the world where the prestige of ownership rests entirely in the price a brand name can command. I have a friend in the far east who buys Chanel handbags, she really hasn't got the wherewithal to buy Chanel handbags, but she goes without, IMO, far more important things just to be able to afford them. For myself, I'll stick with a Chanel lookalike, and buy that addition Leica lens with what I save 1 Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 4, 2015 Author Share #9 Posted January 4, 2015 I guess Leica's attitude is that it's customer base, at least that element they wish to hang on to, is so price insensitive that the odd $1k extra is neither here nor there. I've noticed that many top luxury brands have been hiking up their prices hugely in recent years, apparently without denting sales. There are parts of the world where the prestige of ownership rests entirely in the price a brand name can command. I have a friend in the far east who buys Chanel handbags, she really hasn't got the wherewithal to buy Chanel handbags, but she goes without, IMO, far more important things just to be able to afford them. For myself, I'll stick with a Chanel lookalike, and buy that addition Leica lens with what I save Leica is following the principle of Veblen goods. Veblen good - Wikipedia, the free encyclopedia Quote Link to post Share on other sites More sharing options...
IkarusJohn Posted January 4, 2015 Share #10 Posted January 4, 2015 It is also possible that the price increases are not market or demand driven, but cost driven - lots of potential M9 sensor replacements out there ... 1 Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 5, 2015 Author Share #11 Posted January 5, 2015 Perhaps Leica could use the increased income to upgrade the repair facility at Wetzlar so that the turnaround time for servicing is substantially reduced from the current three months? 1 Quote Link to post Share on other sites More sharing options...
Guest Posted January 6, 2015 Share #12 Posted January 6, 2015 Perhaps Leica could use the increased income to upgrade the repair facility at Wetzlar so that the turnaround time for servicing is substantially reduced from the current three months? As they have only just moved into the new factory I suspect turnaround time is as good as it is going to get.3 months turnaround for servicing a camera is a total nonsense assuming it has not improved. BrianP Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 6, 2015 Author Share #13 Posted January 6, 2015 As they have only just moved into the new factory I suspect turnaround time is as good as it is going to get.3 months turnaround for servicing a camera is a total nonsense assuming it has not improved.BrianP I don't have any recent experience, but last month I was quoted three months by Leica Mayfair for a M9 corroded sensor replacement. It is still early days for the new Wetzlar facility and Leica might well be giving priority to increasing production, which drives revenue, over improvements to servicing turnaround times. As it must take time to get a repair technician to the required level, this might be something which is still in the pipeline. Quote Link to post Share on other sites More sharing options...
Guest Posted January 6, 2015 Share #14 Posted January 6, 2015 I don't have any recent experience, but last month I was quoted three months by Leica Mayfair for a M9 corroded sensor replacement. It is still early days for the new Wetzlar facility and Leica might well be giving priority to increasing production, which drives revenue, over improvements to servicing turnaround times. As it must take time to get a repair technician to the required level, this might be something which is still in the pipeline. What you are saying is a "excuse" for a poor service and not a reason . BrianP Quote Link to post Share on other sites More sharing options...
jaapv Posted January 6, 2015 Share #15 Posted January 6, 2015 (edited) Leica has made a substantial investment in its new Wetzlar premises which has to be repaid somehow. I doubt that the Leica investment is substantial. All indications are that they rent the property from Leitz Park GmbH, whose main investor is ACM Capital Management GmbH, the German daughter of the family firm of Dr. Kaufmann, if my Google search is correct. Edited January 6, 2015 by jaapv 1 Quote Link to post Share on other sites More sharing options...
250swb Posted January 6, 2015 Share #16 Posted January 6, 2015 It looks as though Leica has increased the cost of the M body on 1 January and the list price in the UK is now £5,250 if the Leica Mayfair website is correct. I'm sure the Leica Mayfair web site is correct for Leica Mayfair. But with the instant cashback an M is still only £4150 at other dealers until the end of January. Steve Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 6, 2015 Author Share #17 Posted January 6, 2015 What you are saying is a "excuse" for a poor service and not a reason .BrianP Actually, I rather thought I was expressing an optimistic hope that with its new premises Leica will finally be able to address what has been a longstanding deficiency, which I agree does not befit a premium product. We have previously been informed that the old premises at Solms were holding the company back, so there are no more excuses once the company has had an opportunity to complete any restructuring it needs to do. Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 6, 2015 Author Share #18 Posted January 6, 2015 I'm sure the Leica Mayfair web site is correct for Leica Mayfair. But with the instant cashback an M is still only £4150 at other dealers until the end of January. Steve Leica Mayfair is honouring the old price (complete with discount) for existing stock, but has run out of black M240s. Quote Link to post Share on other sites More sharing options...
Seeingeye Posted January 6, 2015 Author Share #19 Posted January 6, 2015 I doubt that the Leica investment is substantial. All indications are that they rent the property from Leitz Park GmbH, whose main investor is ACM Capital Management GmbH, the German daughter of the family firm of Dr. Kaufmann, if my Google search is correct. Thanks for the info, Jaap. I had assumed that the costs were being met directly by Leica, rather than coming out of one of Dr Kaufmann's other pockets. Given the low rate of German inflation reported yesterday (0.2% annually in December), the reason for the price rise is unclear. The recent decrease in the value of the euro will be beneficial to Leica as well, although that could not necessarily have been foreseen when the increases were planned. I would not be surprised if Leica's costs have gone up due to the move, so perhaps sales have not been sufficient to make up the difference? Quote Link to post Share on other sites More sharing options...
IkarusJohn Posted January 6, 2015 Share #20 Posted January 6, 2015 I doubt that the Leica investment is substantial. All indications are that they rent the property from Leitz Park GmbH, whose main investor is ACM Capital Management GmbH, the German daughter of the family firm of Dr. Kaufmann, if my Google search is correct. I doubt very much that the rent is discounted. Leica will be paying a commercial rent which includes the recovery of the cost of the development, the holding cost of the land, and a commercial return to the landlord. While spread over the term of the lease, the rental cost to Leica for the enlarged, purpose built space will certainly be significantly more than what it was paying at Solms. As Leica Camera AG has a minority shareholder (in Blackstone) there is absolutely no reason for ACM to discount the rent from normal market prices. 2 Quote Link to post Share on other sites More sharing options...
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