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R D Moore




PostPosted: Sun 10 Aug, 2008 11:14 am    Post subject:         Reply with quote

Howard Waddell wrote:
"We'd love to be able to make our swords for less.
As it is, people work here for love, not money. Amy and I (and our investors) have actually been subsidizing every sword purchase even at these prices, since the business has lost money (we're talking hundreds of thousands) every year since we started. Steel has gone up and up - and is expected to more than double in price before the end of this or next year (not to mention getting harder to even get at any price, primarily because of the increased demand, just like oil, from India and China. For example: A billet - enough to make one sword - of one type of steel that we would like to use is now around $250 - $9 plus a pound - just for the piece of steel), bronze has gone through the roof, utilities have skyrocketed, shipping (materials to us) has skyrocketed, casting costs have gone up, and so on...
We didn't raise prices this year so far, even though it is killing us. We are just hanging in, trying to survive long enough for the economy to get better, and for the inflation in our costs to slow, stop, or even (dream on) reverse itself...
"More rare ? Well, okay" - think about how rare it would be if Albion went under...
On that cheery note... With all gentle respect in return ...

Best,

Howy"

There's a lot of things at play here, perhaps some of you CPA's or IRS people can elaborate, but I don't believe the price increases are designed to increase profits. And I agree with Alex's observation. I happen to think it's sound business strategy, and certainly something I've come to expect (sound business strategy and a finger on the pulse of the market) from Albion. We need them to do this to continue to be able to offer us these products we love and enjoy. This also goes for the folks at A & A, and MRL, and Darksword, and all the other makers I haven't mentioned.
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P. Cha




PostPosted: Sun 10 Aug, 2008 11:39 am    Post subject:         Reply with quote

See, if they just did a buy now for the old prices, I can see it being buisness driven.

But when they allow rather generous payment plans to buy at the old prices (which hurts because they lose out on the price hike AND inflation and intrest), I really do think that what they are doing is for the benefit of their customers and less so for the their bottom line.
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Paul Watson




Location: Upper Hutt, New Zealand
Joined: 08 Feb 2006

Posts: 395

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PostPosted: Sun 10 Aug, 2008 12:05 pm    Post subject:         Reply with quote

I didn't realise the Albions had previously not been limited editions. Before my time in this field of interest so I take that back.

What I said was I believe this information is primarily given for our benefit. Of course Albion are a business trying to create the best profit for themselves but to simply say it is marketing does not seem to fit into the spirit of how they treat their customers. To address both issues as such seemed to be missing the point, and as others have stressed, making payment plans available at old prices is not something that is often seen comparable marketing models. If this "price increase marketing" is to be compared to similar marketing strategies with the intention of drastically increasing sales over a short period of time, I would ask how many simlar marketing ploys fit this mold. Most are sales that last a few days and are usually for full payment only, not lay away or allowing for any other form of payment plans.

I do not love the bright sword for its sharpness, but that which it protects. (Faramir, The Two Towers)
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