Comparables

[Cwalker935]

While waiting to board a plane, I took a walk around the terminal and saw a Mont Blanc store. I was surprised to see that they sell ballpoint pens. Of course, they had some higher end rollerball and fountain pens as well. Based on appearance, many of the pens were comparable to what we produce yet the prices were outrageous. Some of the pens actually looked cheaply made to me. They did have some outstanding stuff that are far beyond what I can make.

 

[jttheclockman]

You pay for the name.

 

[monophoto]

You pay for the name.

Agreed!

Many years ago, my boss gave me a MB fountain pen as a thank you for completing a difficult task. It was a wonderful pen, but after a while I noted that a leak would develop around the section that got ink everywhere. I had the pen repaired a few times, but the problem always returned after 12-18 months of use. Also, it has a gold nib which writes like butter, but that very easily distorts if the pen is mishandled in any way. And in one instance, the nib became seriously misaligned for no apparent reason at all (perhaps a change in temperature?). Both problems could be resolved by the MB service center, but its an expensive overhaul, especially if it has to be done every couple of years. So now it's safely stored in a pen case where I can fondle it when I want warm feelings, but I use other pens as my EDC.

My preference is for a pen that reliable writes. I don't need an ostentatious pocket ornament.

 

[bsshog40]

Its no different than buying a fossil watch that has a cheap Japanese movement in it. Name game.

 

[Dehn0045]

I once sold a pen to a colleague from a different company that was working on a project with me. He was really interested in the pen that I was using, so I told him I would make him one. He was also really interested in the different types of wood and talked a lot about the woods that his guitars were made of. I decided to make him the Baron with HRB and Black Ash accents shown below. I normally give away pens, and wasn't really looking to make money so I told him $50. The next day he came in and showed me his Mont Blanc that he paid $800 for -- I told him that I should've charged him a little more than $50! It was a nice pen, sure, but I know he will get a lot more comments about the one that I made for him.

 

[Chasper]

I keep a Mont Blanc concealed under my high end pen display at shows. When someone mentions that our prices are high, I like to pull out the Mont Blanc and tell them is sells for $590 on the MB website. Our pens look better, write better, feel better, but they don't have the brand recognition which is expensive for MB to maintain and they are not sold in prime high rent locations.

Perhaps that "high rent locations," phrase needs to be examined closer. In a good year we attend 25 shows at about 2.5 days average show duration, call it open for business for 62 days per year; two months. The average cost of a show was $270 per day. Rent was $8,370 per month. Our booth size is always 10 X 10 which is 100 square feet, so the rent is $83.70 per square foot per month.

Typical rent in an American shopping mall is in the $50-$100 per square foot range. Typical rent in a high volume airport shopping area is $405 per square foot per month. As I remember, MB stores are small, maybe 300 square feet which comes to $121,500 per year or $10,125 per month, 3 times as much space for only 20% higher than we are paying for booth fees

Average sales for non-food/beverage stores at Hartsfield-Jackson Airport in Atlanta is $1,300 per square foot per year which is $468,000 per year, hypothetically $39,000 per month for Mont Blanc. At their prices they need to sell 1-2 pens per day to cover rent and maybe 1-2 more to cover utilities, cost of merchandise and salaries, after that they are in the profit zone. At our prices I need to sell 3-5 pens per day to cover booth fees, 3-5 more to cover travel expenses and the cost of making pens, since I don't get paid a salary, anything more than that is the profit zone.

If only we were selling pens at $1,000 per pen average price. I would be spending a lot less time making pens. Or maybe I should open a small store in a large airport.

 

[TellicoTurning]

I don't sell pens now, but did a few years ago in the Houston market... I rarely paid more than about $50 for a booth space and sold mostly at school and church events. In those days I might sell $300 to $600 per show...usually about 5 or 6 hours for the day -- $50 to $100 per hour of the show... not great money, but kept the hobby going without having to use household monies....

Today I only sell Pepper Mills, Bowls, Hollow forms, Bottle stoppers and a few other items. I sell at a local Farmer's Market that is 1 hour away from the house, Saturdays only, and for only about 5 hours each market and I pay $30 per day for the booth space..... on a good day, I'll sell about $600 worth... about $120 per hour of the show...usually one of my larger pepper mills or a larger bowl will cover my expenses for the day. Again not great money, but over the summer if sales remain steady, a nice little supplement to social security... based on these numbers, don't think I would want to run a store.... longer hours, more expense and probably not quite as much profit.

I've never had a Monte Blanc and probably never seen an actual one, just pictures...I did have a Cross desk set and a Cross twist pen from my last employer in California... it was a sterling set, slimline sized and I found it too small and slick to use comfortably. I didn't like it... I may still have it around the house somewhere, but haven't seen it in 20 years.... I have a number of hand made pens that I've received in PITH swaps that are by far more beautiful and comfortable to use....