KansanTim
Established
Hi,
Quote " if they went for lower prices they would probably lose some customers... "
I have wondered for a week or two how that applies to the CL when it first appeared and the M2 which was another cheaper one, or the model 1 (or standard) in the 30's.
In each case Leica or Leitz produced a cheaper version and they sold. Gaining more customers and starting them on the path to better or more complicated or dearer models: I'm guessing repeat orders were/are important to them and they were/are after them.
I think 'cheaper' is not the right word to use in this argument as it carries a lot of baggage that we don't need.
Regards, David
Reading your comment made me think that I may have misinterpreted the intent of the original poster who said "if they went for lower prices they would probably lose some customers..."
If the statement was meant about prices being lowered while the good itself is kept more or less the same, then my earlier comment applies--I have seen in the past claims that Leica would actually lose sales on an item by lowering that item's price (i.e. being a Veblen good), which I think is unfounded.
If the intent was the type of offering you are talking about, I think it's an open question. When a manufacturer known for a certain high quality offers a cheaper version, there is the possibility of diminishing the brand, and there is also the possibility of cannibalizing the market of the more expensive product, but often it works out just fine for the company (certainly the M2 is an example, not as sure about the CL--Was it very successful?). The M-E seems to have been a good way to offer a camera at a lower price, as most of the initial investment was the creation of the M9, so stripping it down and cutting prices wasn't a huge risk for Leica. The quality is still pretty much all there, so no damaging the brand, and they had a newer camera to offer at the same time to tempt any who could afford more.

