Montblanc Profit Margins

[UltraMagnus]

... what do you guys think if this? Are Montblanc ripping us all off, or are their products genuinely expensive to produce?

Obviously you haven't visited the Montblanc headquater and never made a factory tour. If you would your question would be: Why are Montblanc pens so cheap?

Or, why are they manufactured so inefficiently this side of the industrial revolution?

[georges zaslavsky]

Or, why are they manufactured so inefficiently this side of the industrial revolution?

I think MBs are well built and very reliable pens, perhaps you can explain us your statement because I fail to see any valid argument here.

[josephfabry]

 

 

But, they make overpriced products. Why are they overpriced? Not because of manufacturing or their impressive staff, but because there is a market. Obviously MB knows it can maintain these things (boutiques and a massive staff) while still making a profit. This would all turn around if people did not buy the pens and etc.

MB would be quick to cut the boutiques and factory costs if there was not such a huge market.

 

It is not the other way around, in that their products are overpriced because of the boutiques and factories. Rather because of the market for the products they can afford (no pun intended) to raise the costs and keep their customers. But, one more price jump and I don't know...

Will the boutiques start to vanish, or will MB take lesser profit? I think the choice is obvious there...

 

 

 

 

I agree completely, except I don't think I'd use the word "overpriced.". For me, something is overpriced if no one in their right mind would pay that price to have that product or service.

 

Since I have spent well over ten thousand dollars ( probably 3 times that, come to think of it ) for my Montblanc products, and there are many others in the same ship, I'd say that their products are highly priced.

 

If I were the only lunatic who had sunk that kind of money into Montblanc, then I'd say they were overpriced.

 

BTW- I was in a boutique yesterday and the manager told me that there is a big price increase coming May 1, 2011.

 

Buy that POA or WE this week.

 

Love,

 

Joe

[kareth]

thats why there is A S T O R I A & priced even higher than MB!

 

http://www.astoria-hamburg.com/about/

 

 

 

MB has hundreds working at Hamburg creating, manufacturing, testing, marketing pens, using a huge variety of materials and producing a larger range of fountain pens than

any other brand on the planet

 

[Brookzy]

thats why there is A S T O R I A & priced even higher than MB!

 

http://www.astoria-hamburg.com/about/

 

 

 

MB has hundreds working at Hamburg creating, manufacturing, testing, marketing pens, using a huge variety of materials and producing a larger range of fountain pens than

any other brand on the planet

 

 

That must be the longest gap between launching new models of pen! :roflmho:

[rockspyder]

thats why there is A S T O R I A & priced even higher than MB!

 

http://www.astoria-hamburg.com/about/

 

 

 

MB has hundreds working at Hamburg creating, manufacturing, testing, marketing pens, using a huge variety of materials and producing a larger range of fountain pens than

any other brand on the planet

 

 

Astoria pens are handmade by Max Shrage, he individually makes these pens under the vintage brand.

 

 

Back to the original post - reducing anyone's work to the mere materials is consists of, is hardly worthy of debate.

Just like Van Gogh's sunflowers is a piece of rag with a few blotches of paint on it. Not even worth $2, if you think of it that way.

 

Last, but not least - Richemont is a South African owned company....therefore Montblanc is - dare I say, a LOCAL company?? :roflmho: I know, I'm reaching a bit, but I like to think of it that way......

[Manege Master]

Some years ago, in the '90's, MB's were sold at one of the popular large office supply stores. MB apparently sold the pens direct from Germany and the office supply company sold them for less than you could find them at the boutiques or through pen store catalogues. Only the Classique series (fountain pen, rollerball, ballpoint, mech pencil) was offered and as I recall the rollerball pen sold for around $125, the fountain pen for slightly more. I don't recall exact figures but I think the standard markets were selling the same pens for around $75 to $100 more.

 

Markups on luxury items are higher than those for more pedestrian offerings. Is a stainless steel Rolex, no gold or jewels involved, really worth $5,000? Rolex sells lots of them for that and more, so yes, and the strict controls on who sells them and for how much works for them. Why does a tuneup of a luxury car cost so much more than a standard auto? There's very little difference in the work involved.

 

The office supply store lost their contract with MB, by the way, by doing some shady things with the pens in trying to avoid paying import fees- they were grinding the "Pix" off the inside of the clip and you can find pens today with obvious grinding marks on them. To do this they had to remove the cap and apparently were sometimes clumsy in how they put it back together. The pens were sold with a notice not to return the them to a local supplier for warranty or repair but the pen should be sent straight to Germany for repairs.

 

When the office supply store lost their contract they put all their MB stock on sale to get rid of them and you could (and I did) pick pens up for $85.

[Brookzy]

Some years ago, in the '90's, MB's were sold at one of the popular large office supply stores. MB apparently sold the pens direct from Germany and the office supply company sold them for less than you could find them at the boutiques or through pen store catalogues. Only the Classique series (fountain pen, rollerball, ballpoint, mech pencil) was offered and as I recall the rollerball pen sold for around $125, the fountain pen for slightly more. I don't recall exact figures but I think the standard markets were selling the same pens for around $75 to $100 more.

 

Markups on luxury items are higher than those for more pedestrian offerings. Is a stainless steel Rolex, no gold or jewels involved, really worth $5,000? Rolex sells lots of them for that and more, so yes, and the strict controls on who sells them and for how much works for them. Why does a tuneup of a luxury car cost so much more than a standard auto? There's very little difference in the work involved.

 

The office supply store lost their contract with MB, by the way, by doing some shady things with the pens in trying to avoid paying import fees- they were grinding the "Pix" off the inside of the clip and you can find pens today with obvious grinding marks on them. To do this they had to remove the cap and apparently were sometimes clumsy in how they put it back together. The pens were sold with a notice not to return the them to a local supplier for warranty or repair but the pen should be sent straight to Germany for repairs.

 

When the office supply store lost their contract they put all their MB stock on sale to get rid of them and you could (and I did) pick pens up for $85.

 

Interesting.

 

How exactly does grinding off the Pix reduce the import duty? Did they claim it wasn't a MB product, therefore it is cheaper (= less taxes) or something?

 

 

Edited to improve clarity.

Edited April 26, 2011 by Brookzy

[Blade Runner]

Where do you get this information of nefarious pen selling Menege Master? Who exactly is "they"? Someone from the top of the office supply company or middle managers, or general staff?