Montblanc Price Increase

[MBFan]

I received a newsletter from Wheelers Luxury Gifts today, it contained information about the 90th anniversary collection, and also a line about another MB price increase to hit May 1st. I'm UK based, so not sure how this affects other regions, but I think it would be safe to assume it won't be long before the increase reaches you.

 

This is the second increase in recent times. I'm sure they have their 'reasons'. Still, not cool MB. Not cool.

[Charles Rice]

Inflation. MB is hardly alone.

[KAC]

US inflation rate last year was around 1.4%

[MBFan]

I see. I didn't think of that. I've read a similar post that another manufacturer has increased their prices recently (supposedly Pelikan-not verified) so it may be in keeping with inflation.

 

Thanks for the education.

[luckduck369]

The sales rep I am working with in the boutique (US) told me this morning that the price will go up May 1.

[theverdictis]

Best get purchasing before 1st May then!

 

Ben

[KAC]

I suspect that price increases do not reflect inflation, given that it's negligible in the euro zone and nearly so in the US. Rather, I suspect it's indicative of savvy market analysis by MB. The company charges what the market will bear and also recognizes that high cost = perceived exclusivity. That's why I almost exclusively confine my purchases to vintage pens...plus, they seem to generally be better performers and they have a certain "wabi" that modern versions will likely never acquire.

[MBFan]

I suspect that price increases do not reflect inflation, given that it's negligible in the euro zone and nearly so in the US. Rather, I suspect it's indicative of savvy market analysis by MB. The company charges what the market will bear and also recognizes that high cost = perceived exclusivity. That's why I almost exclusively confine my purchases to vintage pens...plus, they seem to generally be better performers and they have a certain "wabi" that modern versions will likely never acquire.

This was my thinking initially. I believe that this is more to the core of the price increase reasoning, although I also can see how inflation can increase the price of raw materials etc.

[Faisel]

Inflation as measured (at least in the UK) by the retail price index or consumer price index is a measure of the movement in the price of constituents of a basket of goods that statisticians view as being representative of the basket of goods purchased on a weekly basis by the average household.

 

Even significant increases in the costs of manufacturing in a small sector of the economy (e.g. fountain pen manufacturing) will not be meaningfully reflected in most measures of inflation as that is not what these indices are designed to measure. Hence a very large increase in the cost of petrol / gasoline will not be reflected by a comparable jump in the RPI or CPI.

 

Accordingly, the RPI and CPI are not really meaningful means of gauging whether an increase in the retail price of fountain pens is attributable to an increase in production costs or to increased profit taking by the manufacturer.

 

I haven't enough information to assess whether Montblanc, Pelikan or Aurora are engaging in profit taking as opposed to passing on price increases they themselves are facing. However, I am not aware of any significant increase in the price of raw materials or labour that would be causative of their price increase.

 

I suspect that as fountain pens increasingly are niche products the possession of a fountain pen is being seen as a form of conspicuous consumption by the manufacturers of "luxury" fountain pens and are being priced accordingly.

 

Most people I know don't need to write by hand for extensive periods of time. As a result, the possession of a fountain pen is not a necessity but a statement. For the manufacturers of "luxury" pens the target market is not the user but the conspicuous consumer for whom a higher price is a factor that renders the pen to be perceived as more of a "luxury" commodity.

[KAC]

Inflation as measured (at least in the UK) by the retail price index or consumer price index is a measure of the movement in the price of constituents of a basket of goods that statisticians view as being representative of the basket of goods purchased on a weekly basis by the average household.

 

Even significant increases in the costs of manufacturing in a small sector of the economy (e.g. fountain pen manufacturing) will not be meaningfully reflected in most measures of inflation as that is not what these indices are designed to measure. Hence a very large increase in the cost of petrol / gasoline will not be reflected by a comparable jump in the RPI or CPI.

 

Accordingly, the RPI and CPI are not really meaningful means of gauging whether an increase in the retail price of fountain pens is attributable to an increase in production costs or to increased profit taking by the manufacturer.

 

I haven't enough information to assess whether Montblanc, Pelikan or Aurora are engaging in profit taking as opposed to passing on price increases they themselves are facing. However, I am not aware of any significant increase in the price of raw materials or labour that would be causative of their price increase.

 

I suspect that as fountain pens increasingly are niche products the possession of a fountain pen is being seen as a form of conspicuous consumption by the manufacturers of "luxury" fountain pens and are being priced accordingly.

 

Most people I know don't need to write by hand for extensive periods of time. As a result, the possession of a fountain pen is not a necessity but a statement. For the manufacturers of "luxury" pens the target market is not the user but the conspicuous consumer for whom a higher price is a factor that renders the pen to be perceived as more of a "luxury" commodity.

Agree with all of those insightful comments. Thanks!

[MBFan]

That was a comprehensive explanation KAC, thanks!

 

MB pens were hardly cheap to begin with, even the used prices are quite high. For me, it's becoming harder to justify the extraorbitant price of their pens, especially when they are not any better than other brands. I resisted the idea before, but it does appear that you are increasingly paying for exclusivity.

[Vlad Soare]

That may be so, but on the other hand it's not necessarily a bad thing in itself. After all, that's exactly why some people are willing to pay for a first class train ticket, even though first class cars will not travel any faster than second class ones, and seats are more or less the same.

As long as you can afford it, exclusivity is as good a reason as any other to spend some extra money.

Besides, Montblanc fountain pens are really awesome writers, so it's not like you were paying a lot of money for some exclusive junk. Exclusive they may be, but they're also a pleasure to use. If this pleasure comes at the price of having to buy some exclusivity too, so be it.

Edited April 18, 2014 by Vlad Soare

[KAC]

To me, the cost of current MB pens (perhaps excepting the "limited editions", most of which are just too ornate for my tastes) is excessive. Perhaps I'm overly critical, but the company now does not seem to display the innovation of some modern competitors and really hasn't matched the classic style of it's "golden years" (maybe the 1930s-1960). They basically recycle old models at inflated prices. My last modern MB purchase was a Hemingway (obtained when it was first released). I liked that pen because it was essentially an L139 with a nice color variation. Vintage MB pens, to my mind, are quite well designed and continue to perform beautifully; that's why I collect them. I also like vintage Parkers (Duofold and Vacuumatic). Of course there are others, but money only goes so far.

 

With the usual disclaimers,

KAC

[meiers]

MB is a for-profit enterprise.

[orfew]

To me, the cost of current MB pens (perhaps excepting the "limited editions", most of which are just too ornate for my tastes) is excessive. Perhaps I'm overly critical, but the company now does not seem to display the innovation of some modern competitors and really hasn't matched the classic style of it's "golden years" (maybe the 1930s-1960). They basically recycle old models at inflated prices. My last modern MB purchase was a Hemingway (obtained when it was first released). I liked that pen because it was essentially an L139 with a nice color variation. Vintage MB pens, to my mind, are quite well designed and continue to perform beautifully; that's why I collect them. I also like vintage Parkers (Duofold and Vacuumatic). Of course there are others, but money only goes so far.

 

With the usual disclaimers,

KAC

I have to disagree. The Heritage 1912 is both a throwback to the early safety fillers and an example of innovation. It combines nib retraction with the piston filler mechanism in one knob at the end of the pen. You twist the knob to retract or extend the nib and you pull out the knob and then twist it to fill the pen. In my mind that is innovative. All of this in an elegant package that recalls the history of the company.

Edited April 18, 2014 by orfew

[Bananabender]

The answer to the price increase is in the financials of the parent company. For the six months to sept 2013 writing instruments and leather goods division operating under the Montblanc Maison umbrella had a drop in sales and profit for the period .All other divisions increased . It may not be the MB pens that are losing but they can withstand a big increase.

[meiers]

I have to disagree. The Heritage 1912 is both a throwback to the early safety fillers and an example of innovation. It combines nib retraction with the piston filler mechanism in one knob at the end of the pen. You twist the knob to retract or extend the nib and you pull out the knob and then twist it to fill the pen. In my mind that is innovative. All of this in an elegant package that recalls the history of the company.

innovative and playful... i enjoy my heritage 1912. it's an amazing writer and fun to play with.

[jsolares]

How big an increase should we expect?

[bizhe]

If they don't raise prices pelikan will grab the high water mark.

[Fabienne]

I have noticed a number of high and medium end companies have gotten out of patience with the consumer for wanting to wallow in the recession, and they have declared that the recession is over. If you are not able to buy their goods, get lost. They don't want to hear any more of your poor-mouth whining.