glenerrolrd
Workshop Member
Kaufmann indicated in one of his interviews that they would be using an all at once conversion strategy and compared it to the Munich Airport conversion (shut down old and start new on the same day). This is the least expensive approach to conversion ..if as you say they believe they can pull it off.
Two big constraints for Leica . One is the all new equipment with significantly higher capacity and two is the historical bias to increase the number of technicians gradually . The same technicians in short supply are required to test and learn the new processes and also train additional new technicians . So a piece of the production capacity is lost to the conversion. This capacity loss will occur primarily in the first quarter of 2013.
Not all Leica Stores are company owned (like Apple) . There will be a gradual transition of product allocations to favor the company stores and the capacity constraints should be overcome in 2013. I do see some dragging of the feet on getting the new stores operational and this may be to avoid the empty shelf problem .
The pricing on the M9P will depend on whether its a limited edition or a full commitment to a monochrome version. I can only guess that they will go will limited edition pricing because they can . Then the m10 could be offered in two versions .
It would be out of character for Leica to introduce a lower priced version in order to increase demand . This would just create a surge beyond their capacity . Better an over priced but unique object of desire . They will get a lot of press and forum coverage due to the unique aspects of a monochrome product .
IMHO this strategy seems to hang together ....but I am guessing .
Two big constraints for Leica . One is the all new equipment with significantly higher capacity and two is the historical bias to increase the number of technicians gradually . The same technicians in short supply are required to test and learn the new processes and also train additional new technicians . So a piece of the production capacity is lost to the conversion. This capacity loss will occur primarily in the first quarter of 2013.
Not all Leica Stores are company owned (like Apple) . There will be a gradual transition of product allocations to favor the company stores and the capacity constraints should be overcome in 2013. I do see some dragging of the feet on getting the new stores operational and this may be to avoid the empty shelf problem .
The pricing on the M9P will depend on whether its a limited edition or a full commitment to a monochrome version. I can only guess that they will go will limited edition pricing because they can . Then the m10 could be offered in two versions .
It would be out of character for Leica to introduce a lower priced version in order to increase demand . This would just create a surge beyond their capacity . Better an over priced but unique object of desire . They will get a lot of press and forum coverage due to the unique aspects of a monochrome product .
IMHO this strategy seems to hang together ....but I am guessing .