chap Posted July 22, 2010 Share #1 Posted July 22, 2010 Advertisement (gone after registration) Would someone kindly explain why a 15% increase in the value of the US dollar against the Euro has not translated into a 15% reduction (generally speaking) in the price of Leica products? In this situation, would it be true that it would be cheaper for those in the US to order Leica products from Europe than to purchase them domestically? I grant you there are warranty considerations, existing inventory acquired at higher prices and etc that keep the US domestic price high (temporarily). But, one must also acknowledge that when the Euro rose against the dollar, Leica prices went up correspondingly. Why have they not fallen, too? Link to post Share on other sites More sharing options...
Advertisement Posted July 22, 2010 Posted July 22, 2010 Hi chap, Take a look here Dollar to Euro Exchange Rate. I'm sure you'll find what you were looking for!
jaapv Posted July 22, 2010 Share #2 Posted July 22, 2010 Maybe better ask Leica instead of getting unfounded speculations from the forum? Link to post Share on other sites More sharing options...
Muscardino Posted July 22, 2010 Share #3 Posted July 22, 2010 They are many problems in the prices of the products of North American origin sell in Europe. Usually, the prices of all software of Adobe (made in the USA) have the same figure in dollars that in euros. Eg $200 = €200. This situation persist only when the dollar is under euro level. In this time that euro currency have more value that dollar one, is very striking this situation. I think that the fluctuation in dollar/euro change is a problem for all traders and, of course, for buyers. Only consolidated dollar/euro rates of exchange are translated to the prices of products. Link to post Share on other sites More sharing options...
adan Posted July 22, 2010 Share #4 Posted July 22, 2010 Would someone kindly explain why a 15% increase in the value of the US dollar against the Euro has not translated into a 15% reduction (generally speaking) in the price of Leica products? Sure. First, because there is, for the moment, overwhelming demand for both cameras and lenses. Cutting dollar prices would only exacerbate the demand, which is already more than Leica can meet. If the US market is (literally) standing in line to pay $6,995 for an M9 body or $4,995 for a 35 f/1.4 lens, why would Leica charge less? Dr. Kaufmann has several hundred million Euros in investment in Leica to recoup at some point. Second (at least for the M9) a significant amount of the camera cost is parts priced in yen (Seiko shutters) or dollars (Kodak sensors). So the decrease in value of the Euro means these parts cost Leica more (in Euros). I would expect that - IF the Euro stays low (it is creeping back up this past week) and WHEN demand begins to slacken - we will probably see rebates in non-Euro regions. A local shop here in Denver is having a Leica Day later this month, and it was suggested (not yet certain) that the 10% Leica Day discounts may be reinstated. So we may be getting close to that tipping point in demand vs. price that allows for discounts in some form. In this situation, would it be true that it would be cheaper for those in the US to order Leica products from Europe than to purchase them domestically? Probably - if you can find them. Demand (and waiting lists) are high world-wide. I believe some people saw european M9 prices equivalent to under $6,000 US this spring sometime. I don't know whether anyone actually self-imported any products, though. Link to post Share on other sites More sharing options...
Xmas Posted July 22, 2010 Share #5 Posted July 22, 2010 Hi The waiting lists for M9 in Eu seem to be getting longer, perhaps they are sending them all to US, and cashing in on the 15% windfall? But if you do come over be sure and pack a high powered hunting rifle, as there is an open season on Unicorn, bag a few of those for the wall of homestead. Noel Link to post Share on other sites More sharing options...
henning Posted July 22, 2010 Share #6 Posted July 22, 2010 Sure. First, because there is, for the moment, overwhelming demand for both cameras and lenses. Cutting dollar prices would only exacerbate the demand, which is already more than Leica can meet. If the US market is (literally) standing in line to pay $6,995 for an M9 body or $4,995 for a 35 f/1.4 lens, why would Leica charge less? Dr. Kaufmann has several hundred million Euros in investment in Leica to recoup at some point. Second (at least for the M9) a significant amount of the camera cost is parts priced in yen (Seiko shutters) or dollars (Kodak sensors). So the decrease in value of the Euro means these parts cost Leica more (in Euros). I would expect that - IF the Euro stays low (it is creeping back up this past week) and WHEN demand begins to slacken - we will probably see rebates in non-Euro regions. A local shop here in Denver is having a Leica Day later this month, and it was suggested (not yet certain) that the 10% Leica Day discounts may be reinstated. So we may be getting close to that tipping point in demand vs. price that allows for discounts in some form. Probably - if you can find them. Demand (and waiting lists) are high world-wide. I believe some people saw european M9 prices equivalent to under $6,000 US this spring sometime. I don't know whether anyone actually self-imported any products, though. Some stores here in Canada are shipping off the M9's they receive as fast as they can to China. The demand there is very high as well, and they are willing to pay much higher prices. A couple of months ago a friend from Beijing visited and said that the cost of an M9 was about $10,000 at various outlets in Beijing, but they were readily available as well as experiencing good turnover. Henning Link to post Share on other sites More sharing options...
andybarton Posted July 22, 2010 Share #7 Posted July 22, 2010 Advertisement (gone after registration) I am wondering how often the OP would like Leica (and presumably every other European manufacturer of anything - say BMW, Porsche, B&O, Miele etc etc) to adjust their prices due to currency fluctuations. Monthly? Daily? If the disparity between your home currency and one abroad is too much, buy what you want from abroad. Leica have a worldwide warranty and any warranty items almost inevitably get sent back to Solms anyway, so that shouldn't be a problem. If you're from outside the EU, you don't pay any VAT (so if looking at UK prices, divide by 1.175 to get a VAT free price - divide by 1.20 after 01/01/11...) Link to post Share on other sites More sharing options...
pico Posted July 22, 2010 Share #8 Posted July 22, 2010 The USD goes up against the Euro, and therefore the cost of the Leica goes down if you have USD. So purchase from Europe if you can. What more do you want? Thank gosh you don't have to pay VAT! Link to post Share on other sites More sharing options...
pico Posted July 22, 2010 Share #9 Posted July 22, 2010 They are many problems in the prices of the products of North American origin sell in Europe. Usually, the prices of all software of Adobe (made in the USA) have the same figure in dollars that in euros. Eg $200 = €200. [...] Correct me if I am wrong, but some European countries have more strident guarantee requirements than the USA. For example, if an Adobe product breaks and causes the customer a significant financial loss, the European customer has greater recourse. Might that be a reason the prices are higher in Europe than the USA (if it is true) ? Link to post Share on other sites More sharing options...
andybarton Posted July 22, 2010 Share #10 Posted July 22, 2010 I don't know about that, but Adobe prices are far higher in the UK than they are in the US. And we don't have their lawyers... Link to post Share on other sites More sharing options...
glenerrolrd Posted July 22, 2010 Share #11 Posted July 22, 2010 If you test the currency exchange rates at Robert White s site you will see that the majority of the photographic suppliers have price normalization. Zeiss for example is about the same in the Uk (less VAT) as they are in the USA. If product was in stock (as it was a few years ago) buyers would flow to the lower prices . But in an out of stock situation most would rather back order locally . It is really no big deal for Leica to change prices up or down ..they just have not been forced to do so . Link to post Share on other sites More sharing options...
StS Posted July 23, 2010 Share #12 Posted July 23, 2010 Companies selling or sourcing from different currency areas set "corporate exchange rates" for a given period to avoid daily changes of calculations. Professionally, I'm sometimes dreaming of having the same currency spread in the customer distribution as in the cost distribution. Of course, this would never be achieved... Thinking about it, once there was a time, when we had fifteen currencies more in Europe and no computers.... Stefan Link to post Share on other sites More sharing options...
tdtaylor Posted July 23, 2010 Share #13 Posted July 23, 2010 I preordered (and prepaid) at Robert White from the US when the British Pound hit $1.20, and saved $900 off buying it in the US. 18 months ago, I believe I remember it was reversed. If you are on the low side of the equation, don't mind prepaying for an item that is not in stock, go to a stand up retailer, it can have advantages. Did the same thing with the new 35lux, but in Austria with the Euro. Once again, as long as you trust the retailer. Plus, I don't have a good local source in my area, or I might think differently. Link to post Share on other sites More sharing options...
pico Posted July 23, 2010 Share #14 Posted July 23, 2010 I don't know about that, but Adobe prices are far higher in the UK than they are in the US. And we don't have their lawyers... I appreciate that. It's a shame. The Adobe prices, that is. -- Pico - With Billingham Hadley Pro full of dead fish. Link to post Share on other sites More sharing options...
Jeff S Posted July 24, 2010 Share #15 Posted July 24, 2010 Plus, I don't have a good local source in my area, or I might think differently. Ace Photo in Virginia. They may even become a Leica boutique at some point. Jeff Link to post Share on other sites More sharing options...
christer Posted July 24, 2010 Share #16 Posted July 24, 2010 If Leica do things right, then they are not subject to short time exchange rate up and downs. They would have entered into (rolling) contracts with their bank(s) to buy and sell the relevant foreign currencies at fixed exchange rates for (probably) the next 12 months. This is not very different from entering into contracts for buiyng goods. What good is it to have a contract with Kodak to buy sensors for the next 12 months at a fixed price of x dollars per unit if you do not know how much it will cost you in the currency most relevant to you, in Leica's case the euro. Sometimes such foreign exchange contracts will be favorable compared to the spot rates, sometimes they will be unfavorable. But the offer one thing: a firm base for planning your business. Not using the facility of forward foreign exchange contracts is equal to speculating. Link to post Share on other sites More sharing options...
tdtaylor Posted July 24, 2010 Share #17 Posted July 24, 2010 Ace Photo in Virginia. They may even become a Leica boutique at some point. Jeff Thanks, Jeff. Unfortunately, I am north of Baltimore, so during rush hour it would be an hour and a half trip of a bout 80 miles. The good news is I am in the area on business every so often, so I will make it a point to stop by next time I am in the area. Link to post Share on other sites More sharing options...
Jeff S Posted July 24, 2010 Share #18 Posted July 24, 2010 Thanks, Jeff. Unfortunately, I am north of Baltimore I'm well aware (at least your work), Terry, given our various posts and your PM to me...as well a past forum exchange...Morris & Ritchie Associates, Inc. and Geo-Technology Associates, Inc. Ace is the place...especially on a weekend. Jeff Link to post Share on other sites More sharing options...
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