If even 5% of the $203 million in sales (2008 numbers) gets returned, and if it costs an average of 30% of sales price to repair, replace, and ship these items that comes to over $3 million that needs to be covered somewhere. This is just for items sold and returned in 2008 and does not count all the items sold in the previous 60 years that got repaired or replaced in 2008.
The costs of their warranty are not insubstantial even if these numbers used are purely speculation. These costs are passed on to the consumer.
The fact that they stand behind their product is laudable but it does cost.
I'm not faulting your logic here at all..
But indulge me here.
Lets' say it's a given and those service costs MUST be passed on to the consumer..
And lets DIRECTLY tack that on to the sales of all Leupold products across the board.
3 million dollars is about 1.5 PERCENT of 203 million ..
OK lets argue the point that those Leupold sales figures are based on WHOLESALE prices roughly half of retail..
So, in order to show what the RETAIL consumer will likely pay to subsidize that generous service policy,let's double that amount ..
So a whopping THREE percent of the retail price.
Still, not that much, in the big scheme of things..
Less than half of the state SALES Tax on each retail Luepold purchase.
And, probably money much better spent than some of the advertising/marketing Leupold does.
Just a thought.
Last edited by jim62; 03/19/10.
To all gunmaker critics- "It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena.."- Teddy Roosevelt
