The Leica M9-P is an $8,000, 18Mpixel digital rangefinder camera. At that price, it’s already almost an order of magnitude more expensive that competing cameras with similar resolution. However, Leica knows its customer base and what people will spend on Leica equipment. Leica also knows how to boost the selling price of the camera by 3x to 6x and still appeal to its base. Make it a piece of fine fashion by working in association with fashion house Hermes. The result—introduced just yesterday—is the Leica M9-P »Edition Hermès« that sells as a kit with one lens and a camera case for $25,000 or a special limited edition with three lenses priced at $50,000.
Here’s how you do that:
In a world of more than 7 billion people, only 300 will be able to own the one-lens version of this camera and another 100 can own the 3-lens version. The lesson here is that it’s not all about the electronics or the lowest cost in certain markets. It’s the value you provide and the psychology you use to present that value.