Leica prices and profit margins

Started May 14, 2012 | Discussions thread
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porrsha Contributing Member • Posts: 685
Re: Profit Margins

Economies of scale are one factor for sure. The biggest cost for any business is the charge for labor. German and Swiss workers are among the highest paid in the world. I am fairly certain that Leica is not farming out the labor to China. How would that afect the pricie of the red dot brand if and when that news ever made the business section?

The quality of the glass is another issue. There are over 5,000 kinds of glass. Do you want brown glass from a beer bottle or the best optical glass from middle europe?

Wayne

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