Leica prices and profit margins

Started May 14, 2012 | Discussions thread
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Daedalus2000 Veteran Member • Posts: 7,721
Leica prices and profit margins

I have see all these discussions about Leica being expensive etc and although I think we all agree that the prices are high, I thought it would be interesting to see Leica's profit margins to decide if the prices are expensive because Leica is a small company and can not produce at huge numbers (so it has to charge more to make any profit), or if they just try to use their famous name to charge huge profit margins. I am not an accountant but when I looked at this:


I saw that the profit margins (using EBT over Revenues) were:

2008 6.2/157 = 4%
2009 -3.8/139.6 = -3%
2010 4.4/163.7 = 3%
2011 38.5/249.2 = 15%

So we can see that Leica only started having some "healthy" profit margins in 2011 and it looks to me that their pricing is reflecting their costs and is not an effort to take advantage of their clients. My opinion is that we should give them a break, and whoever likes their products and can afford them can buy them, the rest we can ignore them or buy them at the second hand market.

Also, we should not compare Leica to Fujifilm, Nikon and Canon as we are talking about companies that are at least 10-20 times as big!

If you care, my personal view is that the prices are too high, and I am not prepared to pay them. I have invested in second hand Leica lenses and bodies but at the moment I only have the lenses.

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