Price Increases 01 April 2021

[LD_50]

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SL prices are going up almost across the board.

Surprising to me is the big increase on the SL2 in the US. I can’t see that as a good idea for sales. The rest are small enough that I don’t see much impact. 
 

https://www.reddotforum.com/content/2021/03/leica-price-increase-coming-april-1-2021/?utm_source=Leica+Store+Miami+Mailing+List&utm_campaign=36926ee900-2021_03_16_price_increase&utm_medium=email&utm_term=0_936a8848e0-36926ee900-417862921&mc_cid=36926ee900&mc_eid=924a27e74c#SLcameras

[Photoworks]

yeah!

Leica Price Increase Coming April 1, 2021

Leica has announced an upcoming price increase going into effect April 1, 2021. 

While impacting nearly every current product, the increases are not uniform across the board. The amount will vary on a per-product basis, averaging about 2-5% for most items. This translates to a $100 to $200 price bump on the majority of M, SL and TL lenses. Some items will see larger jumps, like the SL2 and M10-R, which are going up $600 and $700 respectively. 

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[Jeff S]

1 hour ago, LD_50 said:

Surprising to me is the big increase on the SL2 in the US. I can’t see that as a good idea for sales.
 

 

Weak US dollar, coupled with exclusion from earlier tariff related price bumps that applied to other gear. Must be a compelling financial basis, given competitive nature of this market segment. 
 

Jeff

[hellobrandonscott]

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.

Edited March 16, 2021 by hellobrandonscott

[LD_50]

9 minutes ago, Jeff S said:

Weak US dollar, coupled with exclusion from earlier tariff related price bumps that applied to other gear. Must be a compelling financial basis, given competitive nature of this market segment. 
 

Jeff

I’m sure they have a reason for increasing the price, but I’m concerned that reason may be short sighted and not the best strategic move given where this camera is in its lifecycle and where the competition pricing is. I obviously have no insight into Leica’s financials though so I may be way off. 

[RMF]

And for the US specifically, the tariff from last year which impacted German optics imported into the US was recently suspended by President Biden. This now suspended tariff (which was about Boeing and Airbus but hit EU luxury items) was the reason why Leica introduced the made in Portugal Leica lenses, as well as the rational behind Leica’s last price increases for their optics here in the US. 

[Jeff S]

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28 minutes 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.

The SL market is different than the M market, which is essentially without direct competition.  I’ll trust Leica with their financial strategy; one of very few companies surviving in a declining industry.

Jeff

[hellobrandonscott]

3 minutes ago, Jeff S said:

The SL market is different than the M market, which is essentially without direct competition.  I’ll trust Leica with their financial strategy; one of very few companies surviving in a declining industry.

Jeff

Whatever they have to do to guarantee their own survival, I'm all for, haha.

[ravinj]

38 minutes ago, RMF said:

And for the US specifically, the tariff from last year which impacted German optics imported into the US was recently suspended by President Biden. This now suspended tariff (which was about Boeing and Airbus but hit EU luxury items) was the reason why Leica introduced the made in Portugal Leica lenses, as well as the rational behind Leica’s last price increases for their optics here in the US. 

Curious to see the source on suspension of tariffs for German optics. I know certain EU food items had their tariffs recently suspended.

[RMF]

14 minutes ago, ravinj said:

Curious to see the source on suspension of tariffs for German optics. I know certain EU food items had their tariffs recently suspended.

Here is an AP article. German optics were included in this tariff, along with Scotch whiskey and others items. https://apnews.com/article/joe-biden-europe-global-trade-ursula-von-der-leyen-united-states-ebdc9cba8d92d57e8cee140754971ce8

Edited March 16, 2021 by RMF

[RMF]

45 minutes ago, Jeff S said:

The SL market is different than the M market, which is essentially without direct competition.  I’ll trust Leica with their financial strategy; one of very few companies surviving in a declining industry.

Jeff

It’s somewhat akin to Rolex.. very high demand which outpaces production, low inventory, annual price increase, small dealer network. At least the grey market is not invoked for artificiality increasing prices like in Rolex’s case.

[sebben]

I think the difference is that the demand for Leica is going down like the rest of the photo industry. So they have to keep putting up the prices to keep there profit margins up 

[ravinj]

29 minutes ago, RMF said:

Here is an AP article. German optics were included in this tariff, along with Scotch whiskey and others items. https://apnews.com/article/joe-biden-europe-global-trade-ursula-von-der-leyen-united-states-ebdc9cba8d92d57e8cee140754971ce8

Thanks, didn't see German optics called out specifically, but it does say "all items". I paid 25% import duty last year on two SL lenses, when they weren't available here in the USA. Maybe time to get a few more before the price increase takes effect.

With this tariff suspension, Leica's price increase in USD is strange.

Edited March 16, 2021 by ravinj

[darylgo]

Take a look at other brands, they're raising prices for their flagship models on introduction.  The competition may be there but if prices are too low the company may not survive.  Leica, from what I hear, has robust sales so an increase may not have much impact on it's sales numbers.  As a consumer I'm not happy with this increase, albeit small on lenses but fairly hefty on some bodies, the workaround is finding good used equipment and there's an abundance of everything available within easy reach of the internet.  The 75mm noctilux new is in the upper $14k range but used it's less than $10k....not cheap but that's a significant discount for a three year old lens.  If Leica is looking at the inflation picture as indicated by bond rates they might be trying to get ahead of the curve.    

Edited March 16, 2021 by darylgo
clarity of thought....if it exists at all

[LD_50]

38 minutes ago, darylgo said:

Take a look at other brands, they're raising prices for their flagship models on introduction.  

I don’t see an increase in prices with other brands. What I do see is various model lines at various price points, including some that are not in competition with the SL2 or SL2-S. Who else has a SL2 competitor anywhere near Leica pricing? Or who has increased prices with a competing camera that would cause Leica to do the same? This isn’t Nikon and Canon matching price points we’re talking about.  

Sure, Sony A1 is priced higher than A9 and the other models, but it’s in a different category. It’s now in the D6, 1DXIII category and those cameras have been priced similarly going back many years. Leica doesn’t compete in that category.

Fuji came in at a high price with the GFX100 but its competition would be other MF (X1D, Phase One, S3). The GFX100S is at SL2 price, but again it is undercutting MF pricing, and is actually lowering prices for Fuji to do so. 

Panasonic had the S1R but it has been around a while and was always much cheaper than the SL2. 

Canon has their normal pricing based upon where each camera falls in their range. Nikon is the same. Not much has changed with these two. Both will have their high end action cameras (Sony A1 competitors) soon enough and they’ll be at SL2 pricing or higher but they’ve always been priced that way. 

43 minutes ago, darylgo said:

Leica, from what I hear, has robust sales so an increase may not have much impact on it's sales numbers.  

I see this “from what I hear” notation about sales regularly on this forum. Most of the time it’s in reference to poor sales, sometimes, as in this example, robust sales. What is the source?

 

[Tailwagger]

2 hours ago, RMF said:

And for the US specifically, the tariff from last year which impacted German optics imported into the US was recently suspended by President Biden...

 

1 hour ago, darylgo said:

. ...As a consumer I'm not happy with this increase, albeit small on lenses but fairly hefty on some bodies...

Which essentially means that in the US the increase in lens price is huge, as large as the bodies.  Before any other increase in US prices they've tacked on, the 25% tariff on lenses and optical components is now going to them not the US Govt. I had hoped with the tariffs rescinded we'd get back to more reasonable pricing on some lenses. Not to be. Disappointing. Glad I'm pretty much full up on glass already and nine month into 10-R ownership. 

[ravinj]

1 minute ago, Tailwagger said:

Before any other increase in US prices they've tacked on, the 25% tariff on lenses and optical components is now going to them not the US Govt.

+1.

[GFW2-SCUSA]

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. 

[Chuck Albertson]

53 minutes ago, Tailwagger said:

 

Which essentially means that in the US the increase in lens price is huge, as large as the bodies.  Before any other increase in US prices they've tacked on, the 25% tariff on lenses and optical components is now going to them not the US Govt. I had hoped with the tariffs rescinded we'd get back to more reasonable pricing on some lenses. Not to be. Disappointing. Glad I'm pretty much full up on glass already and nine month into 10-R ownership. 

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

Edited March 16, 2021 by Chuck Albertson

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[bags27]

4 hours ago, Jeff S said:

Weak US dollar, coupled with exclusion from earlier tariff related price bumps that applied to other gear. Must be a compelling financial basis, given competitive nature of this market segment. 
 

Jeff

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.