Here is how I look at this. For the sake of argument, let’s use the Zeiss Conquest as an example. This does not serve as an attempt at a statement on COE. Zeiss goes to Kamakura in Japan. Evidently they take their own design with them, but it’s remotely conceivable, if highly unlikely, even impossible, they could have purchased a Kamakura design to preserve exclusivity. They negotiate a contract. If this is done in Germany the contract would be existing company policies. Even existing company policies have a cost, so those are not free to Zeiss. Kamakura produces some samples. When they get it done to the satisfaction of the customer, it goes. into production. The ordered number of binoculars are delivered to Zeiss. Zeiss then proceeds to determine precisely how much money the delivered binocular cost them. Zeiss would do the same thing if the Conquest came from in house in Germany. Kamakura has to pay their bills, so does Zeiss, so the process is pretty much the same I’d think. Zeiss gets the bill which figures in the final cost, just as Zeiss has costs to pay their organization to put the binocular on Marketing/Sales desk. Zeiss then decides how much to mark it up for sale to their dealers. I’d bet it is not cost plus 10% either, like a whole lot more. They have bills to pay too, not to mention a reputation to maintain. The dealer gets their Zeiss order and they are priced at a level for the dealer to pay their obligations and hopefully make a little money. If Zeiss decided to forgo their dealer network, they could price the binocular to the direct purchase by the customer. How is that different if we replace Zeiss with Tract, Maven or Vortex? Maven and Tract take the direct to customer approach. We don’t know just what the markup is, but at the very least it seems there is a reasonable for a savings to customer that can be offered.
Lets take the Vortex Razor UHD as a final example here. Like the Maven B2 or the B5 in the larger objective diameters, it is a Kamakura product. It becomes pretty obvious they are essentially the same binocular when they are side by side. Yes, I have had them side by side. The magnification lenses have to be different where magnifications are different and Vortex choose to go with an excruciatingly slow focus rate which won’t find a lot of favor with birders. Coatings might be Vortex’s own prescription. Other the differences are negligible to non existent. Except for the price. I should note the Vortex UHD costs over twice as much as the B2. Or did the UHD suddenly become worth $2,400 just because it says Vortex?