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What if...... (1 Viewer)

jan van daalen

Well-known member
Ok, this has been a while�� but for the record, the following in not in my native language so bare with me please:

The “What if” scenario.

First of all it is important to understand that my business is work and not just a hobby. Work that next to the wellbeing of 7 staffmembers and a workethic of 10-12 hours a day, also an investment requires of 500.000,00 euro which is not by any way financed by Leica or any other company. Decisions like giving Leica the boot are very well overthought and made in consensus with the Optics Team.
What I’m gonna write down will give you an insight in how business is done in my optics world, from my perspective only and has to been seen in that light.
How we got into this business is allready written down by Lee in the interview section, how Leica got into this current mess will become clear below.

Leica is present in our shop for about 20 years now and from day one in the top 4 best sold brands. They contributed a lot of Point of Sale material to us as did the other brands. We visited the Leica plants, both in Solms and Wetzlar on several occasions as we did at the locations of the other brands. We don’t have only the good selling products of them in stock but all of them, like we do with the other brands. With the launch of the Noctivid it seemed to be a good idea to wrap our event car with a cutaway print of this model. Our goal is when people enter our shop they enter the optics paradise. We have a optics “museum” going from 1850 to the present time. We show the original optics trade catalogue from Japan which David Bushnell personally used to purchase optical equipment up to the original Minox Spy camera James Bond used in one of his movies. The road to collecting things is much more interesting than the possession of them��.

Since it is work and not a hobby, we take signals from the market seriously in order to be able to indicate where we will stand over five years. Bushnell is a sub brand in our shop from the beginning and compared to the sales of the big guns it is penny work, but……. Bushnell models in the USA cost 179,00 dollar on Amazone where in Europe 479,00 euro has to be paid within the normal margin rate. Amazone will come to Holland and will dominate the prices of the sub brands. So, where will these brands stand over five years in our shop?

Leica’s management has changed completely several times in the last five years and the current one seems not to show any respect for their authorised dealers who invested a lot of money in Leica stock. Not only decided Leica to sell the Retrovid exclusiv through their own channels, they didn’t inform us in any way about their plans while on every optics trade fair they kept yepping that the Retrovids were to be sold through dealers network. Untill 14 days before launching the Retrovid in their Leica stores. By then the Dutch Leica rep was forced to confirm to us what already was known on several Forums. Leica’s move on this has several benefits for them. They keep the trade margin for their country reps and for their dealers to themselves. Normally such a move would lower the consumer price since margins disappear. Direct sale from manufacturer to end consumer would be a cost effective tool. I did not see this happen with the Retrovid. It is in line with one of the Leica reps sales talks during our last meet in Wetzlar: “the higher the price we ask for it the harder the customer runs”.
Where does this leave us, the optic dealers? Where do we stand over 5 years when Amazone rules over the sub brands and A-brands starts to sell exclusive to the end consumer with or without full margin. For me, there is only one answer to that. Not on my watch. I can not and will not speak for fellow traders but if we do not give a signal……….
Trust is earned and it is short term vision against long term vision. Spreadsheetmanagers are not interested in long term, only in bonus and their next job. They seem to have no interest at all in the product the company is producing. But when they think they can roll over this dealer……think again!

Or, this is just the beginning of a new way of doing business in which case the future of the independent dealer is gone and brands start to sell through exclusive channels direct to the end consumer to reduce the cost price for them, using public fairs/own stores to show them the products in real life. If so, so be it, But no way I’ll accept to be kept in the dark and being mislead like Leica has done by yepping A and doing B in full disregards for the interest of their authorised dealer and seemingly purely for their own benefits.

This was the one and only reason we gave Leica the boot.

Jan
 
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Jan,

You have my fullest respect for your decision.

Trade in general, and optics trade in particular, is a tough business. How it will evolve is not certain, but when everybody, from manufacturers to sales offices, is managed more and more by spreadsheet managers, leading to slashed inventories, laid-off employees and completely outsourced value chains, I fear for the worst. Of course, customers buying everything online are not helping, either. But they sometimes don‘t even have much choice.

The optics business has already undergone enormous changes over the last 30 years. You are now one of a rapidly shrinking number of shops which still carry a sizable inventory and provide a value-adding service to people looking to buy optics equipment. You are carrying a flag that many others have dropped years ago. So, your decision must have been a very tough one indeed.

Again, my fullest respect.

Canip
 
Jan, this is a decision, I fully understand.

I wish, you will not loose too much customers (they will find fine glasses from Zeiss, Swarovski, etc. in your store).

I wish also, that many of your colleagues will follow, so Leica will feel, that this is the wrong way.
 
Thank you for clarifying things Jan. I was mystified but now I understand. And I think you decision is right.

I hope you have a fine future without Leica.
 
Thanks Jan for writing this.

I have been in business for fifty years and things have changed a lot over that time.

Personally, I don't buy from Amazon, Ebay or the internet.

I think it is unethical for people to browse stores and then buy cheaper on the internet.

But people nowadays seem to have different values, at least, many of them.

They are addicted to mobile devices.

But this is the world they choose.

I do use the internet, but mainly as I would an old fashioned letter writing forum.
I do get information from the internet but try to back it up with my own knowledge.

I was a rep for thirty years. It is a hard life, but I enjoyed it.

I fully support your decision.

Happy Holidays.

Regards,
B.
 
Sad news. Your shop sounds awesome. Good luck to you. And thanks for giving us who are strictly consumers a little window into how things are working on the retail side.
 
Many thanks for sharing this story, Jan. If I'm ever in the Netherlands, your store will be on my itinerary! I hope Leica come to their senses, and will be found there once again.

But it's a weak hope. That remark "the more we charge" really rankles me, as a longtime Leica user (cameras also). The world seems to be changing in ugly ways, following only the bottom line or the biggest ego. The signs are everywhere. One story I've followed lately in amazement is the catastrophe of the Boeing 737 Max, an airplane designed by overpaid executives and accountants instead of engineers. Any normal sense of responsibility or pride in quality seems to vanish... and society was built on that. It will be hard to restore.
 
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Jan,

Thank you for the explanation of the Retrovids, and clarification on the decision by Leica, which in turn led to your decision.
If any company that sells higher end merchandise, has a reduction of stores where the client can actually see what he or she is buying, their sales will drop since most will opt to buy the cheaper items online.( I would think rather than spending $$$ on a higher end product). I wonder how many high end glass Amazon sells as compared to their cheaper Chinese glass.
This sort of move by Leica will only hurt them in the long run IMO, eventually their products will only be available at their own stores, and I don't think they are going to open up anymore in this era.

Regards,

Andy W.
 
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Jan,

Your decision, reasoning, and rationale for the decision to remove Leica are completely understandable, reasonable, and justified, in my humble opinion. I will always support people who have their values in order and are willing to stick to them.

I personally think Leica has done themselves more harm than they know, but may soon realize. I suppose we can hope they can come to their senses and move to calm the waters. I'd be pretty ticked off if I was a Leica dealer.
 
Jan,

Your decision, reasoning, and rationale for the decision to remove Leica are completely understandable, reasonable, and justified, in my humble opinion. I will always support people who have their values in order and are willing to stick to them.

I personally think Leica has done themselves more harm than they know, but may soon realize. I suppose we can hope they can come to their senses and move to calm the waters. I'd be pretty ticked off if I was a Leica dealer.

As usual Steve, you put it succinctly and accurately. I hope, against hope, that Leica come to their senses and reverse their decision.

Lee
 
Jan,

Thanks or this full explanation of what’s going on. I now fully understand your reasons to give Leica the boot. Profit making is one thing but disrespect to a long time dealer with misinformation and even downright deception is another. I know that Leica keep an eye on this forum (or at least they did several years ago, but perhaps that’s changed?) and hopefully they will realise the degree of alienation towards themselves that they are creating by this action and line of management thinking.

All the best for continued success with your business and please do keep us informed of developments. This, sadly, is a black mark against Leica. Let’s hope that they rectify the situation.

Michael.

Leica.........?
 
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Hello Jan,

I fully understand why and what you have done.

You are SO RIGHT about the "Whizz-Bang Spreadsheet Managers".


Voorspoed , en mag die son op jou winkel skyn , (translation--Prosperity , and may the sun shine on your store).

Cheers.
 
Thanks for the explanation Jan.
I can't add much to what's already been written in response except to say I agree with them.

Best of luck with your shop and business going forward.
 
Thanks Lee,

A quote from C.J.Langenhoven:-

"O die Wereld hy draai , maak staat op sy draai
Die een dag so vriendelik , en die ander dag so kwaai".

Have a nice holliday season.

Cheers.

Or "everything to prevent the loonies to run the asylum" a quote I received from a dear friend recently;)

Hi guys,

Thx for the remarks and support.

Merry Christmas for you all and your love ones.

Jan
 
Welcome back Jan. It's hard to understand why Leica would undermine it's retailer's in this way.

David

Hi David,

I don't think you can see it as Leica as a whole.
It's their spreadsheet management that puts bonus before the well being of a company they are gonna leave in the future anyhow.
Personally I don't think for a second that the committed Leica's Sales/Marketing department and their reps worldwide are pleased with the way they were forced to go.
It's the culture clash between the department that actually respectfully handles the product they make and the "higher level" that only looks at figures.
I've witnessed the Leica loyalty of the working Force during plant visits. They are Leica. Not some hired guest with an academic degree in economics who's gonna leave anyhow.

Jan
 
Greeting Jan!

It's good to hear from you. I've actually tried to PM you a few times to see how things are going. You've certainly helped me with a few issues.

Enjoyed reading your explanation. Owning your own retail business while fulfilling comes with it many, many decisions to make along the way. This whole Trinovid thing has been a weird journey for sure. I was personally looking forward to calling one of the guys at Cameraland or Sports Optics and ordering the new Trinovid. Now, not going to happen. I had much prefer an independent retailer of ANYTHING vs. a company store. Retail exclusivity leads to a decrease in all things customer service and an increase in price.

The last couple of mouths I had been thinking about a new 8x30-32. Basically thinking about a Trinovid HD 8X32. Then all this came out about the new Trinovid. Long story short I am the owner of a new CL B 8x30!

There's not much you can't match or better with a Swarovski, Zeiss, or Meopta product that Leica offers. The only one IS the 7X models. Probably nothing a nice FL 8X32, SV 8X32, or CL B 8X30 can't fix.

Nice hearing from you Jan!
 
Greeting Jan!

It's good to hear from you. I've actually tried to PM you a few times to see how things are going. You've certainly helped me with a few issues.

Enjoyed reading your explanation. Owning your own retail business while fulfilling comes with it many, many decisions to make along the way. This whole Trinovid thing has been a weird journey for sure. I was personally looking forward to calling one of the guys at Cameraland or Sports Optics and ordering the new Trinovid. Now, not going to happen. I had much prefer an independent retailer of ANYTHING vs. a company store. Retail exclusivity leads to a decrease in all things customer service and an increase in price.

The last couple of mouths I had been thinking about a new 8x30-32. Basically thinking about a Trinovid HD 8X32. Then all this came out about the new Trinovid. Long story short I am the owner of a new CL B 8x30!

There's not much you can't match or better with a Swarovski, Zeiss, or Meopta product that Leica offers. The only one IS the 7X models. Probably nothing a nice FL 8X32, SV 8X32, or CL B 8X30 can't fix.

Nice hearing from you Jan!

Hi Chuck,

Long time no speak:t:

Do we need a 7x35? No.
Do we need a Icon 35? No.
Should I want one? Absolutely!

So do yourself a favor and get one.
Believe it or not, but I'll do the same. Amsterdam (Leica store) is just 20 km from my place and after Christmas I'll walk in, get one and walk out.
It's an icon from my youth. This baby can't help her bosses sucksB :)

Merry Christmas Chuck
 
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