Announcement Published on Leica Website

[ericperlberg]

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Here is a copy of the letter sent to the dealers in Europe yesterday morning.

Snip

We understand this is a tremendous burden to you, and would like to extend an unprecedented gesture to compensate you for the trouble we caused.

If you have purchased and paid for a new Leica M8 in full before December 31, 2006 from an authorized Leica dealer, you can exercise an option to purchase one Leica M-lens of your choice directly from Leica Camera AG at a 30% discount.

Snip

Very truly yours

Steven K. Lee

 

Today I went into the Classic Camera in London and asked about this 30% discount. I was/am ready to pay for my M8 in full to take advantage of this offer. I was told that this rebate only applies to cameras manufactured before whatever date they stopped shipping them in Nov. The above letter seems to contradict that and say that Dec 31 is the cut-off. I could see a motive for being told the wrong thing but want to believe that a reputable dealer would not stoop that low. Can anyone defintitively clear up the 30% discount situation here in the UK (if anyone is still tracking this thread)?

[Riley]

has to be said i dont know a dam thing about it but,

would not the intent be to placate owners of pre-fix M8's ?

 

Riley

[wattsy]

Today I went into the Classic Camera in London and asked about this 30% discount. I was/am ready to pay for my M8 in full to take advantage of this offer. I was told that this rebate only applies to cameras manufactured before whatever date they stopped shipping them in Nov. The above letter seems to contradict that and say that Dec 31 is the cut-off. I could see a motive for being told the wrong thing but want to believe that a reputable dealer would not stoop that low. Can anyone defintitively clear up the 30% discount situation here in the UK (if anyone is still tracking this thread)?

 

I think there is sufficient room for misinterpretation to give Classic Camera the benefit of the doubt but it is clear that the 30% lens discount does not benefit them (apart from the profit on the M8 sale). I think the situation will be clarified after December 6th when the online registration process is meant to start. All I know is that, being an existing M8 owner, I should be entitled to a 30% discount voucher (which, incidentally, I'll probably end up ebaying).

[Dominic Morris]

has to be said i dont know a dam thing about it but,

would not the intent be to placate owners of pre-fix M8's ?

 

Riley

Not necessarily. I would venture to say that sales are well below expectation because of the growing pangs and they are very anxioius to boost revenues for their fiscal year end. It will not help this year's management bonuses much if sales don't take off until say Q2 of 07 hence the push to get revenue in the door before year end 06.

 

If / when it is confirmed that the offer applies to any M8, with or without glitches, I for one will be lining up cash in my grubby little hand. This will be my first Leica and thus I am lensless and 30% is no small consideration.

[Dominic Morris]

I think there is sufficient room for misinterpretation to give Classic Camera the benefit of the doubt but it is clear that the 30% lens discount does not benefit them (apart from the profit on the M8 sale). I think the situation will be clarified after December 6th when the online registration process is meant to start. All I know is that, being an existing M8 owner, I should be entitled to a 30% discount voucher (which, incidentally, I'll probably end up ebaying).

Depends entirely on their intent, of course.

 

The wording could have been slightly more specific but "If you have purchased and paid for a new Leica M8 in full before December 31, 2006 . . . " sounds pretty uncompromising and very clear. There is no limitation in this sentence on which cameras are covered. Any possible confusion can only be implied from the preceeding sentence - and that's logically very dodgy.

 

Besides, the business reasons for extending the offer to all new purchases are to my mind so compelling that I cannot believe this is being limited to the courageous early adapters.

1. placate and keep existing customers

2. win new customers

3. make up some of lost ground on 06 sales by moving some of the early 07 revenue stream back into 06.

4. within the corporation the photography profit centre, indeed possible within the photography business, the M profit centre, may well be engaged in a take-no-prisoners competition with other profit centres for scarce corporate capital & possibly other resources. Those with results win more support, without get less.

5. sell more lenses in 07, most likely at a higher than wholesale price thus bringing back some of the 07 revenue that had been moved to 06. (I think dealer mark up is likely consderably more than 43% (the inverse of 30%) perhaps closer to 100%. In effect they will be sellin to us at $0.70 on the retail dollar instead of to dealers at $0.50 on the retail dollar.

6. salvage something for management bonuses in 06 - based on sales performance, of course.

 

As a strategy it is a thing of beauty and while its necessity is regrettable they nevertheless have my admiration and respect. Very astute.

 

Unless of course it is limited to the early adapters in which case they are hopeless.

[Peter41951]

LEICA M8 Registration

[ho_co]

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Can anyone defintitively clear up the 30% discount situation here in the UK?

Eric--

See the thread http://www.leica-camera-user.com/digital-forum/10982-popflash-update.html.

 

If still in doubt, contact Solms.