Have you ever wondered how Leica chooses its pricing for its high-end cameras? J Shin has written up a great post over at Leica Rumors that offers a geeky and lengthy explanation of the economics behind the company’s pricing decisions:
Every time there is any kind of a product-related announcement here and elsewhere, there are a number of invariable comments complaining about and/or defending Leica’s price strategy. In making these comments, people make references to various economic and noneconomic reasons why Leicas are priced the way they are. This essay is an attempt to show that, basically, almost everybody is right, at least when it comes to Leica’s profit motives. Rather than nefarious greed, devious psychological warfare, and, as some often mention, Dr. Kaufmann’s ignorance of Leica fandom, Leica prices are basically a function of mathematical inevitability.
The Mystery of Leica Pricing Explained [Leica Rumors]