Depreciation?

[nicholasyeo]

Do not be offended if you own a Mont Blanc. I try my best to be objective.

 

"Depreciation is the reduction in the cost of an asset used for business purposes

during certain amount of time due to usage, passage of time, wear and tear, technological outdating

or obsolescence, depletion, inadequacy or other such factors."

 

In the process of my task of selling Mont Blanc pens, I have encountered people who are just

shocked at the prices which I have quoted, saying that the pens are simply too expensive.

It is however my knowledge that these Mont Blanc pens are also extremely expensive when new.

 

Say,

A Boheme Noir was purchased in 2005 brand new from a MB boutique at 640USD.

In 2010, five years later, DESPITE THE FACT that it was unused, and has a box and manual,

offers come in ONLY near the range of 324USD, a 50% decrease in value.

 

This leaves me with no conclusion other than that the Mont Blanc pens are like an Audi car.

 

Now,

Let us try to pinpoint the cause of massive depreciation.

Just some suggestions:

 

Worthless or NON-PRECIOUS materials used.

Eg: RESIN. RESIN IS NOT PRECIOUS. RESIN IS "ORDINARY". IRONIC, CONTRADICTORY.

[www.richardspens.com - Montblanc's name for the material of which it makes pen bodies, reputed variously to be either a relatively ordinary acrylic or a proprietary ...]

 

Bad marketing strategy.

Eg: Wow, I'm an 85 year old pen. Oh wait! It's not 100 yet!

[FPN user writes in his topic about " How dumb Montblanc thinks we are? "meisterstuck 149 turns 85" this only is embarrassing.]

Refer here: https://www.fountainpennetwork.com/forum/index.php?/topic/148495-how-dumb-montblanc-think-we-are/ http://stories.montblanc.com/2009/11/meisterstuck149-turns-85/

 

Quality control issues.

Eg: Converter leaks, Meisterstucks and humidity. Boheme leather range, will the leather last? - NO! WHY?

Refer: https://www.fountainpennetwork.com/forum/index.php?/topic/150701-mb-622-converter-leaking-badly/ https://www.fountainpennetwork.com/forum/index.php?/topic/150084-boheme-leather-range-will-the-leather-last/ https://www.fountainpennetwork.com/forum/index.php?/topic/46506-montblanc-149-review/

 

Authenticity and validation problems.

Eg: We aren't able to distinguish between good fakes and true pens, other than the lucrative prices for the latter.

Refer: https://www.fountainpennetwork.com/forum/index.php?/topic/150474-mb-144-clip-authentication/

 

They are just crudely ostentatious.

Eg: WHAT? REALLY? "Montblanc pens - the epitome of promiscuous wealth?"

Refer: https://www.fountainpennetwork.com/forum/index.php?/topic/143621-montblanc-pens-the-epitome-of-promiscuous-wealth/

 

WHAT ARE WE TRULY PAYING FOR? I guess it is the branding and marketing...

Edited April 10, 2010 by nicholasyeo

[Iskender]

I get it, you don't like Monblanc. Good for you. But apparently you think so highly of yourself you have to stroll into the Montblanc forum to enlighten us. This same old same old is getting a little tiring.

[BrandonA]

I think you're being unfair to MB. Hardly any pens hold their value, obviously there are exceptions such as the Hemingway or the Proust which have more than doubled in price.

 

To me it is simple supply and demand.

 

Not many people in the general scheme of things collect pens. Not many pens are truely "limited" in that they are sold in large numbers. This means that you are always able to find someone selling the pen you want, this means that there is competition in price.

 

An object is only worth what someone is willing to pay for it.

[ruud2904]

If you look at FPs as an investment, you don't pay for the fun part which is called use. Writing, filling, that sort of things.

Shares, estates, ferrari GTO's, oil etc may be better subjects for financial gain. At least they used to be. Sorry, but I am not at all interested in making profit on pen and neither do I have concerns about depeciation of a FP.

 

Be happy, have fun, buy a FP

[Wael El-Dasher]

There really isn't much to say on the subject. Everything we buy new depreciates. The few exceptions are known to most are real estate (in the long run) and few particular luxury items (classic Ferrari's, antique furniture, Rolex Daytona stainless, MB Hemingway, Proust, Medici, original first edition comics, books...etc), generally everything loses value. Hence I am firm believer in the rule, you make your money in the buying, not the selling.

 

You can't hold MB to a different standard, in the end they make a product and it depreciates like everything else.

 

cheers

 

Wael

[Yurigia]

Than the other members said... pens are not a good investment excluded some rare and exceptional cases.

 

And the depreciation is normal when you consider a normal Montblanc pen like a Boheme... it is a unlimited pen and probably there are million of pieces arount the world, ìt is impossible that it save his list price...!! If you think that sometines the boutiques do a sale and discount his new pens at 35-40%, why a buyer must buy your pens if it can buy another one from a boutique with a 2 year warranty too..??

 

The conservation of price can be thinking about the limited edition pen, but usually about the really limited pens under 888 pieces of production (in my personal opinion), or some rare case where the market request increase the retail price of the year of production...!!

 

Another discourse is in my opinion the vintage pens... usually the rare vintage pens already have a stablòe quotation market value today, and if you buy one at a right price and in good condition, is difficult that this pen loss value during the years, and maybe it can raise up too if you are lucky...

 

But I'm agree that pens must be for the first thing a passion... if you don't have this passion don't buy it and invest on Wall Street... :roflmho:

 

Juri

[Fuddlestack]

Personally, I wouldn't pay for an MB simply because that kind of money can buy something I'd value more, e.g. a new pair of wheels for my bike, but I will say this in their defence: they're a pen company and always have been, in contrast to luxury companies who have simply diversified into something that writes. I'd far rather have an MB than a Dunhill, a Dior, a Cartier or whatever. But above all I'd rather judge function, taste and quality for myself rather than relying on mere names. And since that's what I want - a good instrument whose appearance pleases me - I wouldn't worry about depreciation, since I'd be buying it to use.

Edited April 10, 2010 by Fuddlestack

[sunnerd]

To the OP, I fail to see how a Boheme Noir has particular high collectible value - it's not their flagship line, it is not limited edition (although MB's LE is quite a joke, but nonetheless), not extremely appealing, and is it still in production?

 

Seriously, 50% isn't too bad after 5 years. There is currently a solid platinum 149 at forsale forum for $11.5k, rrp is $24k. Pity the guy who paid full retail!

 

Last, why did you purchase it from the boutique at full rrp?

 

P.S. Wael, I've seen ADs selling new SS Daytonas with discounts.

[nicholasyeo]

Personally, I wouldn't pay for an MB simply because that kind of money can buy something I'd value more, e.g. a new pair of wheels for my bike, but I will say this in their defence: they're a pen company and always have been, in contrast to luxury companies who have simply diversified into something that writes. I'd far rather have an MB than a Dunhill, a Dior, a Cartier or whatever. But above all I'd rather judge function, taste and quality for myself rather than relying on mere names. And since that's what I want - a good instrument whose appearance pleases me - I wouldn't worry about depreciation, since I'd be buying it to use.

 

 

I'd have to agree, well, that what you say is true.

So the only reasonable conclusion we can make is that - they are meant to be permanently yours.

Now, I do not have any kind of bias towards Mont Blanc, but seems like the ones that my aunt

has told me to sell, the Boheme, the Stainless Steel Amethyst and Noir ones, are not worth selling.

 

No, I mean no disrespect.

Don't forget I am in the boat. Trying to sell them.

This isn't a smear campaign.

[nicholasyeo]

If you look at FPs as an investment, you don't pay for the fun part which is called use. Writing, filling, that sort of things.

Shares, estates, ferrari GTO's, oil etc may be better subjects for financial gain. At least they used to be. Sorry, but I am not at all interested in making profit on pen and neither do I have concerns about depeciation of a FP.

 

Be happy, have fun, buy a FP

 

No, I do not mean to see them as an investment.

I just find it impossible to try selling off the Mont Blanc without

lowering the price to a level where one might as well give it away free to

a friend or perhaps, giving it to me for use.

 

It was perhaps, in hindsight, impulsive.

[NABodie]

".........where one might as well give it away free to

a friend or perhaps.

 

If it gets to this point friend, I'll send you my shipping address.

[nicholasyeo]

".........where one might as well give it away free to

a friend or perhaps.

 

If it gets to this point friend, I'll send you my shipping address.

 

Imagine, I'm selling it off for someone else and it's already so frustrating.

If it were mine, I'd happily oblige! HEHE!

[nicholasyeo]

I think you're being unfair to MB. Hardly any pens hold their value, obviously there are exceptions such as the Hemingway or the Proust which have more than doubled in price.

 

To me it is simple supply and demand.

 

Not many people in the general scheme of things collect pens. Not many pens are truely "limited" in that they are sold in large numbers. This means that you are always able to find someone selling the pen you want, this means that there is competition in price.

 

An object is only worth what someone is willing to pay for it.

 

Does this mean that there is an over-supply?

When the numbers become so limited that the prices jump sky high?

The strange thing is that the actual same thing is still sold today

in the shops, as brand new. We'll never know, but maybe it's not

doing really that well as a product.

Edited April 10, 2010 by nicholasyeo

[nicholasyeo]

To the OP, I fail to see how a Boheme Noir has particular high collectible value - it's not their flagship line, it is not limited edition (although MB's LE is quite a joke, but nonetheless), not extremely appealing, and is it still in production?

 

Seriously, 50% isn't too bad after 5 years. There is currently a solid platinum 149 at forsale forum for $11.5k, rrp is $24k. Pity the guy who paid full retail!

 

Last, why did you purchase it from the boutique at full rrp?

 

P.S. Wael, I've seen ADs selling new SS Daytonas with discounts.

 

HA! Well, I guess that the "passing of time" factor weighs in here.

24K and losing half is just.... sad. Belittles this situation here.

 

I cannot answer the question of why the buyer had purchased it from a boutique.

However, we can only say, --- impulse.

Somewhere in the head, must have not been functioning, for that to be done.

[sunnerd]

I cannot answer the question of why the buyer had purchased it from a boutique.

However, we can only say, --- impulse.

Somewhere in the head, must have not been functioning, for that to be done.

 

Well, then you can't expect a rational person, buying with their cold calculated minds behind the computer, for not demanding 30-40% discounts, or lowballing on such merchantise. :roflmho:

[PigRatAndGoat]

WHAT ARE WE TRULY PAYING FOR? I guess it is the branding and marketing...

 

Sigh. If you don't understand it by now, after owning a few on their pens, you never will. If MB pens are as bad you've outline in your original post, we (MB owners) must all be fools that have too much money. No company that makes utter rubbish could survive in today's competitive luxury market. I guess the ultimate determinant of worth is why you bought a MB pen in the first place. Care to share with us your reasons for buying several MBs?

 

My reasons in no particular order: excellent customer service, gorgeous classic design, easy to obtain repairs if necessary, reliability, self manufactured nibs, heritage, and the fact that it writes nicely. Concern about depreciation: 0%. They're all keepers!

 

PRAG

[BrandonA]

I think you're being unfair to MB. Hardly any pens hold their value, obviously there are exceptions such as the Hemingway or the Proust which have more than doubled in price.

 

To me it is simple supply and demand.

 

Not many people in the general scheme of things collect pens. Not many pens are truely "limited" in that they are sold in large numbers. This means that you are always able to find someone selling the pen you want, this means that there is competition in price.

 

An object is only worth what someone is willing to pay for it.

 

1 = Does this mean that there is an over-supply?

2 = When the numbers become so limited that the prices jump sky high?

3 = The strange thing is that the actual same thing is still sold today

in the shops, as brand new. We'll never know, but maybe it's not

doing really that well as a product.

 

1 = Surely you can appreciate when an item is mass produced and appreciate what that means? Companies such as MB make enough pens to ensure that when someone wants one they are able to get it without having to wait on an order list for months for an item be become available. These items are not over-supplied as if they were the companies would not make any profit as they would have too much revenue tied up in unsold goods.

 

2 = A number of factors govern price, they are supply and demand. If demand is higher than the supply then the price will increase. Demand can not always be computed, the Hemingway and Proust pens for example are liked by more collectors than some of the other pens in the writers edition range - it doens't manner why this is, it is a fact - as the supply of these pens is equal to the others in the WE range the price is therefore higher. Similarly if MB brought out a stinker of a pen which no one wanted then the price would drop as people would be desperate to offload the unwanted items to anyone who would take them.

 

3 = Not sure what you're getting at here. As others have said, if you can buy the products you are selling in the shops then you will have to sell your product at a significantly lower price. Why? Because people like me would rather buy from an authorised seller as we'd buy with confidence and know that we have a legitimate product, it is not damaged, it comes with all the correct paper work. I only buy from individuals if the price is very low or I have no other option i.e. the product is no longer sold as new.

 

Maybe you should give us some examples of items you're trying to sell. Maybe you are ignorant to the type of prices sane minded people are willing to pay. Maybe you are buying too high and therefore it is impossible for you to make a profit. With specific examples the educated, knowledgable people on this forum might be able to assist you.

 

Remember though this is not MB. This is an economical problem which means you have to source your products at a lower cost than others are willing to buy them from you at. This is where your profit comes from.

[David H]

I like to buy from the boutiques because I put an emphasis on being an original owner. I substantiate this increase in cost over preowned pens because I intend to own the pen for life and I plan to use it nearly daily. A 1,000 USD pen over, hopefully, 30 years is something that appeals to me.

 

Also, if no one buys from the boutiques, then there really isn't any profit motive for the company. Someone has to do it.

[Blade Runner]

1. Other high end brands' pens are comparable in price to MB but with less pen manufacturing knowhow, worse QC, poorer customer service

 

2. All pens depreciate when you sell them.

 

3. But if you enjoy a pen enough to keep it, you don't lose money, but gain a great deal in enjoyment.

So an expensive pen that you really enjoy enough to keep can be more cost effective than buying several pens that are cheaper and don't keep one's interest, and are sold at a loss. If cheaper pens satisfy you, then more power to you, but the choice depends on personal taste and experience.

Edited April 10, 2010 by Blade Runner

[fuchsiaprincess]

I think fountain pens are kinda like cars.

 

I know that if I spend $$$ on a luxury, high-performance vehicle, I will never get my money back when/if I sell it. However, I would enjoy driving it. On the other hand, if I'm worried about cash flow, then I would just purchase a relatively cheap little runabout car, right? Better resale value, and less cash to lose.