Leica rebates: Do they work?

[patashnik]

I'm posting this with the best intentions, it is not meant to be a flaming torch.

I'm lucky enough to have a professional photographer living nearby, not a Leica shooter, but he has the power to knock me down when I get to cocky (not a bad thing to have, let me tell you). Anyway, we spent last night with a bottle of Havana Club and some good conversation. At one point it turned to Leica talk, and he made some joking remarks about the prices. So I replied that Leica had been offering quite decent rebates in this pre-Christmas time. After listening to me for a while, he asked: "But does these really help the dealers?". He then ellaborated:

Here are some prices that we have seen in December on different gear:

- Leica M8: 2140 GBP (=2200 EUR or $3100)
- Leica 50mm Summilux-M ASPH: 1555 GBP (=1600 EUR or $2250)
- Leica 35mm Summilux-M ASPH: 1840 GBP (=1890 EUR or $2660)
Prices above are from Ffordes.

At the same time, the prices for these items in the Euro zone were:
- Leica M8: 3195 EUR
- Leica 50mm Summilux-M ASPH: 2450 EUR
- Leica 35mm Summilux-M ASPH: 3000 EUR
Prices above are from Leica Bei Meister.

What about the US?
- Leica M8: $3995
- Leica 50mm Summilux-M ASPH: $3295
- Leica 35mm Summilux-M ASPH: $3895
Prices above are from B&H.

Sorry about the numbers galore These are all "best price", and for some there are mail-in rebates to be processed, etc. But the prices are, in the end, real.

But living in the Euro zone, getting those three items would cost you 5690 EUR if bought from Ffordes. Compare that to the 8645 EUR you would have to pay at Leica Bei Meister (2955 EUR saving). Or for you US chaps, there is a $11185 - $8010 saving of $3175 if you spent the cash at Ffordes instead of B&H. Of course, the savings would be reduced due to shipping costs, but there was still some serious savings to be made out there.

I know that this is the result of the currency situation at the moment, and that it will look different after the price hikes in the UK, come Jan 1st.

BUT: How did the US or EUR dealers sell Leica gear at all this month? I know a couple of friends in Germany ordered up big time this month, but none of this went to German dealers - UK dealers got the lot. Did these rebates actually play out the way Leica wanted? Did someone walk into a Leica dealer in Germany and handed over 3200 EUR, when they could have saved a whopping 1000 EUR taking their business to a UK dealer? I have talked with UK dealers that were helpful having the mail-in rebates processed, so if you were able to hang in there for a month or so, the cashback is quite substantial.

Thank you for reading through all this. After last night, I was left with the feeling that this whole thing benefitted the UK dealers, to the point of killing off sales for US$/EURO dealer's sales.

[delander]

Companies often do not react to currency fluctuations but this recent reduction in the value of the Pound is not going to reverse quickly. European Leica dealers must be pretty unhappy about this and we already suspect (even know) that the situation will equalised by Leica very shortly.

The rebates offered through Leica Camera UK can you also not get them in the Eurozone? If not then this is a decision of Leica UK which may have an operating freedom in this area. At some time the MD of Leica UK will have to sit down with his parent company bosses and show that this tactic or strategy was an overall success financially and in bringing in new Leica customers, hopefully for the long term.

Jeff

[patashnik]

Originally Posted by delander

Companies often do not react to currency fluctuations but this recent reduction in the value of the Pound is not going to reverse quickly. European Leica dealers must be pretty unhappy about this and we already suspect (even know) that the situation will equalised by Leica very shortly.

The rebates offered through Leica Camera UK can you also not get them in the Eurozone? If not then this is a decision of Leica UK which may have an operating freedom in this area. At some time the MD of Leica UK will have to sit down with his parent company bosses and show that this tactic or strategy was an overall success financially and in bringing in new Leica customers, hopefully for the long term.

Jeff

I've been in contact with two dealers in the UK (I'm in Norway), and they both were able to offer solutions to get the rebate.

My guess is that Leica overall sold a lot more due to these offers, but that a lot of it sold through UK dealers.

[delander]

Originally Posted by patashnik

I've been in contact with two dealers in the UK (I'm in Norway), and they both were able to offer solutions to get the rebate.

My guess is that Leica overall sold a lot more due to these offers, but that a lot of it sold through UK dealers.

Sorry I meant can you get a rebate ie 15%/lens if you buy in the Eurozone or is it confined to stuff coming only via Leica UK?

Jeff

[patashnik]

Originally Posted by delander

Sorry I meant can you get a rebate ie 15%/lens if you buy in the Eurozone or is it confined to stuff coming only via Leica UK?

Jeff

At least in Germany, there is a 300 Euro rebate on "selected lenses".

[Hel-Stampes]

I contacted Ffordes and they confirmed the rebate was available to non UK customers.
I will check this with Leica directly in Solms monday.
Anyone has fresh news about this ?

PS : Differences in prices are huge :
Ffordes has the 50 Lux ASPH for 1789 £ excl. rebate (= 2000 €).
Leica bei Meister Berlin has the same lens for 2700 €.

[abrewer]

My take on rebates is they only weaken the brand's credibility as far as its pricing structure

Better, in my opinion, is adding value by supporting a dealer with a Leica Day, or an educational seminar they can offer customers free of charge--things that add incentive for customers to come through the door

[Bernd Banken]

Originally Posted by Hel-Stampes

I contacted Ffordes and they confirmed the rebate was available to non UK customers.
I will check this with Leica directly in Solms monday.
Anyone has fresh news about this ?

PS : Differences in prices are huge :
Ffordes has the 50 Lux ASPH for 1789 £ excl. rebate (= 2000 €).
Leica bei Meister Berlin has the same lens for 2700 €.

it works:

http://www.l-camera-forum.com/leica-...s-england.html