Jump to content

Price Increases 01 April 2021


Recommended Posts

Advertisement (gone after registration)

2 minutes ago, bags27 said:

Actually the dollar is pretty strong. As of today, it's .84 euros, which historically puts it toward the upper end

https://www.macrotrends.net/2548/euro-dollar-exchange-rate-historical-chart

Leica is taking advantage of the stock market, the expectations for an even bullish market, and the general robust desire for luxury goods. I don't think Leica considers competition. The more expensive it is, the more a select group of people want to own it.

Weak vs initial pricing vs Euro... down over 10%. Leica had surely priced the SL system differently (relatively) than the M system, given the competitive SL market segment.

Jeff

Link to post
Share on other sites
  • Replies 40
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

For better or worse, I think Leica demand is pretty inelastic, so they can raise prices without any material decline in sales. In other words, very few people, once they decide they want a Leica, won't not get one because of a price increase.

$9000 American is starting to get into NFW territory just a bit. If the M10 variants are going to cost $8995 USD starting April 1, I shudder to think how the M11 that everyone is salivating for will be priced; it could easily end up being Leica's first 24x36mm digital M that goes for $10,000 USD. 😳 Make that $9995 in Leica dollars.      

I have no idea behind the reason for the price increase but it was high enough that today I ordered from Miami a new SL2. Perhaps I used as a justification that I  "saved" $600. by getting it today... In any event it will be here by the weekend which is exciting. I'm not sure my wife think's I'm all that wise, but my dog does. I look forward to using it with my M lenses and my long Nikon ones. 

Posted Images

Posted (edited)
11 minutes ago, Jeff S said:

Weak vs initial pricing vs Euro... down over 10%. Leica had surely priced the SL system differently (relatively) than the M system, given the competitive SL market segment.

Jeff

But virtually all Leica produces are being repriced upward. And European labor has to be cheaper now with so many out of work (not that I greet that as good news). But you're right: we choose either to believe them, that they are forced to raise prices because of currency pressure, or we don't. 

Edited by bags27
Link to post
Share on other sites
8 minutes ago, Chuck Albertson said:

The tariffs on EU products were suspended (I think for four months), not rescinded.

True, but irrelevant, at least for the next four months if not beyond. The point is that they are absorbing the Trump increase for themselves AND tacking on an increase as well for an average increase of 10-15% over pre-tariff prices. That's not a minor increase in a one year period.

Link to post
Share on other sites
10 minutes ago, bags27 said:

And European labor has to be cheaper now with so many out of work

Hardly any impact on Leica, “cheap labour” aren’t of any interest or benefit to Wetzlar or even Portugal

Link to post
Share on other sites
2 hours ago, LD_50 said:

I don’t see an increase in prices with other brands.

Yes, Olympus did this a few years back, lately Canon and now Sony.  

2 hours ago, LD_50 said:

What is the source?

I didn't reveal the source, but the source is very reliable.  I was told about sales figures that were very good during the worst of the pandemic and the product moved well.  

Link to post
Share on other sites
1 minute ago, darylgo said:

Yes, Olympus did this a few years back, lately Canon and now Sony.  

I don't see the price increases. 

Canon Flagship:

Canon 1D (2001) -- $6499

Canon 1DX (2011) - $6799

Canon 1DX III (2020) - $6499

Canon SL2 Competitor:

Canon 5D (2005) -- $3299

Canon 5DSR (2015) -- $3899

Canon R5 (2020) -- $3899

Olympus Flagship:

OMD EM1 (2013) -- $1399

OMD EM1II (2016) -- $2000

OMD EM1 III (2020) -- $1799

You could throw in the EM1X I guess, with its vertical grip but it has no predecessor to consider it a price increase.

EM1X (2019) -- $2999

18 minutes ago, darylgo said:

I didn't reveal the source, but the source is very reliable.  I was told about sales figures that were very good during the worst of the pandemic and the product moved well.  

No one ever reveals the sources and I'm not saying yours is not reliable or is wrong. I do see that the unnamed sources contradict each other and fit opposing narratives.

 

Link to post
Share on other sites
Posted (edited)

We can all speculate as micro-economists, even without sleeping at a Holiday Inn Express last night. But the macro-economic fact is that the luxury market is starting to take off globally again. In simple terms: prices everywhere are rising. The US stock market is booming on speculation of the estimated $2T in excess savings due to the pandemic and nearly the same about to be put into play by Federal spending. Bonds are falling in response because people are concerned about renewed inflation, and during inflationary periods people who have means grab whatever luxury goods they can. Leica is part of that market.

It's trivial finding economic predictions of the luxury market based on the above. Here:

https://www.bloomberg.com/opinion/articles/2020-10-16/iphone-12-apple-could-benefit-from-a-lockdown-luxury-spending-splurge?sref=UGneIVZ3

https://www.bloomberg.com/news/articles/2020-09-22/china-luxury-spend-seen-to-jump-30-this-year-in-industry-relief?sref=UGneIVZ3

and this especially

https://www.bloomberg.com/opinion/articles/2020-12-24/what-we-bought-in-2020-and-what-we-ll-buy-in-2021-another-covid-great-rotation?sref=UGneIVZ3

Meanwhile, Anita Balchandani, who leads McKinsey & Co.’s apparel and luxury work in Europe, says there’s a “huge pent up demand for glamor.”

Edited by bags27
Link to post
Share on other sites
19 hours ago, hellobrandonscott said:

For better or worse, I think Leica demand is pretty inelastic, so they can raise prices without any material decline in sales. In other words, very few people, once they decide they want a Leica, won't not get one because of a price increase.

Digital M body cameras up to 9 grand now? No thank you.

Link to post
Share on other sites
On 3/17/2021 at 10:18 AM, trickness said:

Digital M body cameras up to 9 grand now? No thank you.

I'll agree that $9 large is a godawful price; the fact remains that for the M camera, there is no realistic or actual alternative. 

If you want a digital rangefinder camera, there is no alternative to Leica M.  If you want a $2500 digital camera, there are as many alternatives as there are fish in the sea.

Sony vs. Leica M10R or Fuji vs. Leica M10R is comparing apples to oranges. 

And then we have the M10 Mono which stands alone.

 

 

 

Link to post
Share on other sites
4 hours ago, Herr Barnack said:

I'll agree that $9 large is a godawful price; the fact remains that for the M camera, there is no realistic or actual alternative. 

If you want a digital rangefinder camera, there is no alternative to Leica M.  If you want a $2500 digital camera, there are as many alternatives as there are fish in the sea.

Sony vs. Leica M10R or Fuji vs. Leica M10R is comparing apples to oranges. 

And then we have the M10 Mono which stands alone.

 

 

 

I agree but at that price range it only makes sense to wait until the new version comes out and those who have to have the latest greatest thing dump their cameras to help finance a new purchase. I can see paying 4500 bucks for a used M 10, but $9000.....? NFW

Link to post
Share on other sites
Posted (edited)

$9000 American is starting to get into NFW territory just a bit.

If the M10 variants are going to cost $8995 USD starting April 1, I shudder to think how the M11 that everyone is salivating for will be priced; it could easily end up being Leica's first 24x36mm digital M that goes for $10,000 USD. 😳

Make that $9995 in Leica dollars.

 

 

 

Edited by Herr Barnack
Link to post
Share on other sites
On 3/20/2021 at 9:57 PM, Herr Barnack said:

it could easily end up being Leica's first 24x36mm digital M that goes for $10,000 USD

Apologies for the nit-pick but the titanium M9Ti set was £20,000 on release and the 35/1.4 Summilux asph didn't represent more than half of the price.  Sure, it was a limited edition so perhaps that disqualifies it from consideration.

Pete.

Link to post
Share on other sites

Has anyone noticed that the $$$ isn't as large as it used to be?  Starting here with the Israeli shekel, we used to need 3.5 or as much as 3.8 of our little guys to purchase a dollar's worth, but recently that had dropped as low as 3.2 or so.  Since the dollar is coming back up in value at the moment (US assets are recovering faster than European), there is an arbitrage opportunity at the moment, but it will leave Leica overpriced in the US in a year or two.

Link to post
Share on other sites
Posted (edited)

The best arbitrage opportunity in the USA was last year, buying from EU if you could find a way to escape the 25% import tax due to the trade war.

SL 35 could be had for ~ $3,700 USD (before 25% import duty) from one of Leica Europe dealers. 

Edited by ravinj
Link to post
Share on other sites
Posted (edited)

I don't fully buy the exchange rationale for the price increase. The euro/dollar is pretty much at its historical average (see below chart). The closest thing to Leica in some ways is the Birkin Bag, which was initially designed for its UI (Jane Birkin offhandedly opined that she'd love a fashionable bag suitable for a young mother)  as well as its luxury, and now is intentionally made expensive and scarce to allow the buyer to rationalize the purchase as an investment. Hermes is entirely candid as to its strategy: this is how it introduces the bag: "Hermes Birkin bag prices do increase each year at the Hermes boutiques.  The price of a Birkin bag increases each year making these bags more coveted and worth more over time."

 

Edited by bags27
Link to post
Share on other sites
Posted (edited)

A slight difference being that unlike most Leica products you can’t generally actually order a Birkin nor walk into a store and simply buy one as they are not put on the shelves. (I did finally manage to buy my wife one but it took several months...)

Edited by NigelG
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...