Leica Prices going up?

Hi

 

I just came back from Hong Kong. Many retailers have started to sell Leicas for 10% more citing the

reasons of the increased Euros? I was just checking ebay and it seems to lack the usual sellers in the past

few days? Have you gotten your beloved Lecias yet?

Greg-- Simple Reagenomics tells us that a seller can charge whatever price you are willing to pay. If you think it is too much, don't buy it!

The US dollar is weak and it looks like it will remain that way for a very long time. That is not

all bad news. In our little town in the Midwest USA employment is so competitive that we

have a labor shortage - because so many businesses are working with European and

Canadian customers. Sales are booming. And one company even moved some manufacturing

from Canada to the USA in order to cut labor costs. It seems a bit ironic (to this old man)

that the USA could become a center for highly skilled, inexpensive labor.. compared to

certain European and Scandanavian centers.

10% seems a bit too high for an exchange rate difference but is not unreasonable. Given that many currencies are pegged against US dollar and since dollar is weaker than usual it makes sense that some sellers are charging more in their domestic currency. Purchasing power parity implies that the prices of a product should be the same everywhere in the world once we account for inflation and exchange rates of the countries in question.

Dollar is down and Leica always has a price increase after the 1st of the year when the dollar is weak. What else is new these days.

There is a small Leica USA price increase scheduled on January 1st for a few (not all) of the lenses. That's it.

 

However, there is some talk of a sweeping Leica USA price increase for early summer 2007 if the Euro continues its rally upward.

The Euro isn't going to "rally upward" as it has no independent existence. It only exists in the context of Dollar, Yen, Yuan et al.

 

However, I think the dollar's going to sink Vs Euro due to Texas intellect etc.

 

The dollar is the benchmark, whereas the Euro is the currency of a set of Asian/American/Middle Eastern colonies.

 

Further, the Euro doesn't adequatey represent each Euro colony. Look for Germany to be an isolated drag on Euro Vs Dollar in Q1/2 due to labor difficulties.

 

Beyond that, I'd expect "Leica" prices overall to drop due to the draw of superior Asian craftsmanship (Panasonic et al) and 4/3.

No matter what the Euro does, Leica will continue to experience price hikes. Inflation will guarantee it.

Today's best Leica digital camera costs about $2000.

"However, I think the dollar's going to sink Vs Euro due to Texas intellect etc."

 

A silly drive by pot shot. You need to get an education about the factors that go into the exchange rate. That comment says more about you than anything else.

Mr.Rosen, Dollar Vs Euro, assuming European political stability, depends for the short term largely on the confidence the world has in one symbolic executive.

 

Later: Due to strengthening domestic economy, Yuan will inevitably de-link from the Dollar and China will stop propping up the US Bond market. US interest rates will have to go higher to keep Treasuries competitive: think consumer debt, variable rate mortgages, home ownership, personal bankruptcy, employment, family life etc. This is far bigger than the Fed.

 

Germany may be a drag on the Euro in Q1/Q2, which could help Leica continue M8 at current prices.

 

IMO of course.

You really don't have a clue as to what affects the strength of one currecny relative to another. It is certainly not the opinion of the left about the intellect of the US President. Why don't you do some reading and get back to us with what you have learned rather than spouting your own silly opinions.

Mr. Rosen and Mr. Kelly, will you please leave off the political/financial sniping and stay with Leica/rangefinder topics? I would be very grateful to you both if you can honor my request. In return, I promise to avoid both topics, and moreover, I will never write anything that suggests that anothe forum member is ignorant, etc.

 

Thank you very much, and may you both have a happy winter holiday season and a safe and healthy new year,

 

Joe Stephenson

Mr. Step[henson,

 

Just to be clear, my sniping was in response for an uncalled for comment about the President;s intellect that was not only irrelevant to his point but also wrong. If someone else brings politics into these threads, I will comment. Just in case you didn't understand why I wrote those comments before coming in with yours.

 

Anyway, happy holidays to all and to all a good night. :-)

Santa, please put a M8 in my Christmas socks quick before the next Leica hike.