The GetDPI Photography Forum

Great to see you here. Join our insightful photographic forum today and start tapping into a huge wealth of photographic knowledge. Completing our simple registration process will allow you to gain access to exclusive content, add your own topics and posts, share your work and connect with other members through your own private inbox! And don’t forget to say hi!

Leica dealer profit margin?

Paul Spinnler

Well-known member
Hi guys,

does anyone know what the dealer profit margin on Leica products is?

Differentiated by M/S, body/lens?

I would guess 25-30%, but am not sure?

Best,

Paul
 

Guy Mancuso

Administrator, Instructor
Regardless of brand although some maybe slightly higher its around 10 percent across the board. Its really not much. Now Leica Boutiques could possible get more because of the dealer investment with installing them. They are very nice but those costs of construction are high. I don't know for certain but they should get a incentive in percentage in my view. They take a lot of space in the stores which takes away from other products that dealer may sell.
 

Paratom

Well-known member
I wonder what is the purpose to officially discuss Profit margings of Leica Dealers on a Forum?
Do you guys wish to post the Profit margins of your Business or anyone would like to post his income and compare it to that of a photo store and the People who work there? (No , I dont own a photo store but I believe if the Internet continues to behave like that one day there wont be any photostores in our cities anymore)
 

ptomsu

Workshop Member
I wonder what is the purpose to officially discuss Profit margings of Leica Dealers on a Forum?
Do you guys wish to post the Profit margins of your Business or anyone would like to post his income and compare it to that of a photo store and the People who work there? (No , I dont own a photo store but I believe if the Internet continues to behave like that one day there wont be any photostores in our cities anymore)
Tom,

You are unfortunately pretty spot on with your thoughts!

While competition is always good, I still prefer a decent store where I can handle cameras and lenses before I buy - and send maybe back more that 50% because I do not like it. This behavior becomes unfortunately very common, but not only does it ruin local stores, it also ruins our planet long term.

Not sure how this will evolve ....
 
V

Vivek

Guest
I wonder what is the purpose to officially discuss Profit margings of Leica Dealers on a Forum?
Do you guys wish to post the Profit margins of your Business or anyone would like to post his income and compare it to that of a photo store and the People who work there? (No , I dont own a photo store but I believe if the Internet continues to behave like that one day there wont be any photostores in our cities anymore)
Since the question is posted, I would like to know how much. They do post product launches complete with their fancy dinners and such. Online reviewers become instant food photogs for a day. Why not?
 

Paratom

Well-known member
Since the question is posted, I would like to know how much. They do post product launches complete with their fancy dinners and such. Online reviewers become instant food photogs for a day. Why not?
I am not interested because I don't want to share my margins of my business and I don't expect others to share their margings. I try to make a good job and convince people that my prices are worth the money. I want good service that's why it is not my goal to reduce the margin of Stores, and I don't even want to know the margin.
But one can always ask. I doubt there would be any reliable answer anyways.
 

D&A

Well-known member
Generally in many retail businesses like camera, bike shops, ski shops etc., its the add ons and accessories that are the real money makers, not the one high ticket item to get one into the system or hobby. In bikes (bicycles), the bike itself has low profit margins but the bike accessories can often be over 30%. Same too for cameras vs. the usual accessories such as straps, memory cards, even lenses.

I agree, it shouldn't be about how low one can get a business to lower its prices or there will be no local business and that will be a loss for all concerned.

Dave (D&A)
 
Last edited:

Godfrey

Well-known member
Hi guys,
does anyone know what the dealer profit margin on Leica products is?
Differentiated by M/S, body/lens?
I would guess 25-30%, but am not sure?
Paul,

In conversation with the Leica Rep last Friday, we were talking about this subject a little bit. I made the assertion that I thought dealers made about 8% on the bodies and maybe double that on the lenses. I've known Tom a long, long time (about 15 years) and we're used to speaking candidly and frankly about the business.

He laughed. "The dealers would die for that much.. I can't even get that much discount on my own purchases as a Leica employee. They make their money on all this other stuff" ... he gestured to the bags, cards, tripods, etc on the store floor ..."and very little on the cameras and lenses themselves. I keep trying to get them more but it's very tough. Gross margins are very slim once into the distribution chain."

I've watched gross margins in my own business (computer hardware and software) fall from a high in the middle 1980s around 50% hw/90% sw to the current 8-12% both range, and sometimes even less, which is what I based my question on. So I suspect that Tom is not speaking hot air.

G
 

rich_

Member
The non-offical Leica dealers in HK were making about 20-30% on their grey imports from my understanding. But that's a different kettle of fish.

I feel the pain re: computer hardware. I managed the New & Existing Business in my previous role, providing tech services & hw to the Alternative Investment market. The arse fell out of any kind of HW margins to the point where we were barely tracked on it. Now everything enterprise level is Cloud based or similar except for networking HW. Times a changing!
 

biglouis

Well-known member
I ran a consumer electricals online retail store for a few years.

Margins in retail are thin, thin, thin for small operations. I admire anyone who as an independent can make money.

Volume is the only way to make money on commodities (which most electricals are) or by selling luxury items. Maybe Leica falls into the latter category but I'm really talking jewellery.

LouisB
 

bab

Active member
You can't work on 2-5% stocking new cameras (no business can) they make more, only way to turn a profit is in trade-ins. Nor sure why you would care what the profit margin is but anyone who tells you their cost is lying anyway.
 

aDam007

New member
You guys are naive if you think your dealer makes less then 10%. I'm sorry but all the above is just wrong.

My HK dealer would make 40% on MSRP on most M lenses (if he sold at USA pricing). He sells way below because nobody wants to pay MSRP anymore since the market is saturated with M lenses. That and in the USA right now there's a 12% discount.

Zeiss Otus lenses are (depending on the market) 40% markup (I know this for a fact). Which is why I'm always furious to hear that Zeiss charges upwards of $2,500 to fix "impact damaged" lenses. Because it means Zeiss is ACTUALLY making their full profit margin.

My dealer tells me current market allows him to make around 15-20% depending on how savvy the consumer is and the lens in question. I get REALLY good prices from him, yet he's still trilled when I show up to buy gear. So I suspect he makes more like 20-25% off most people.

That and I was told Leica dealers in Singapore run on volume kickbacks. As in, if you sell more in a given month Leica gives you a bonus. I was told this by a Singapore dealer, I don't know how true it is, but that's what he told me. Perhaps markets are different. But I doubt that USA dealers make LESS then HK dealers considering HK dealers charge a LOT less for lenses then USA dealers.

Just saying... But believe what you want to believe.
 
V

Vivek

Guest
€150 for a key chain ring gives an indication of the profit margins involved.
 

Paul Spinnler

Well-known member
I asked the question because I think my dealer is lying. I am thinking of getting a 007 plus a lens and would've thought that I get a discount to list, yes, even though it is Leica. My dealer then told me something about very, very thin margins and that he couldn't do it.

Problem is that I heard from M dealers in Germany that sell new lenses at 20% discount and even from the Swiss Leica general managers himself an example of margins around 30%.

Actually, this would be a very, very bad business to be in, if you sold Leica stuff and your marines would only be 10% or less. I just think it is a lie and wanted to know if anyone has more info on this.

Best,

P
 

anGy

Member
I'm also pretty sure the dealer margin is more close to 20% than to 5....
It could be 25% on lenses actually.
I did make a strong negociatiation for the purchase of my S-24mm, pushing my dealer to its limits.
As a result I've got a new, box sealed 24mm for 5.750eur ttc instead of the 7.500eur list price (at the moment), it's 23% discount.
I've also got 16% discount on another S lens purchased later (ps: dumping is not legal, nobody is supposed to sell stock products with negative margins, in my country you'll have to fall in bankrupty before it's authorized).

The same dealer didn't accept to discount the S007 (17.900eur), the reason invoked was: Leica is well aware of the discounts offered by the dealers - as discounts are forbidden in the Leica stores it was an unfair situation. As a consequence Leica did reduce the margins of the dealers (since june'15) to avoid further discount sales.

Unlike during my lenses purchase negociation I'm now in a weaker position as I want to trade my S2 against the S007, so I'm less than convinced that the former argument really is the naked truth...
 
Top