Posts: 1,422 Location: Minneapolis, MN, USA
Thu 09 Oct, 2008 9:00 am
Thank you Vassili
Thank you for your response. I think we are dealing with some very different parts of the market place. In the terminology you use I would describe the custom and small shop sword industry in these terms, a very low volume marginal markup industry. Sad but true.
As Peter so aptly described swords made in country or by small shops in Europe would probably start in the range of 4000.00 US and up using that kind of pricing structure. The medium to high quality items easily going into the 8000.00 to 15000.00 range, then the custom items would start about that level and move up from there.
This of course begs the question why the hell are we doing what we are doing? Good question. Most makers ask themselves this a couple times a week. No one goes into swords to get rich. The money to support such an endeavor is just not there. Our pricing is a struggle to ride a knife’s edge of making enough to keep going and still sell in a market place that is dominated by foreign producers (both for the US and Europe). If some one can get a relatively sword like object for what I have to spend on just materials it is difficult to compete against that type of environment. You cut out as much as you can, leverage yourself to the eyeballs and hope to open your doors in the morning.
Even in the cases of bringing in imports to resell. You are marking up 100%, which is very average for most imports, some more some less (don’t even look at what garments wholesale for it will drive you nuts) I would guess that most sword resellers are doing a markup of 40% at best. I know some are working on much, much less for certain items.
Now add the additional costs of marketing, customer service and admin, which most sword makers do not put into their pricing formulas, they just do it around the edges and hope it does not become to big a toll on the system.
Now I know some out there will not believe what I have written above. That is their choice. But I would suggest you query any crafts people you know and ask them about these types of issues. My guess is you will be surprised by their answers and may even aquire a greater appreciation for those that have chosen a different path than those who so recently worked at investment banks. :)
To quote Peter again
Quote: |
Making swords in this time and age is an anachronism. It is about making available in physical form something that is the stuff of dream and myth. It will always be as much an art form as it is a business, even if you go about it very seriously and professionally. |
This is something one does inspite of modern day structures, we do it for something other than monetary gain. Most would probably have a specific point they can point to when they were first struck with the love for the past but it is something more important to us than even profit. :)
One of the most important things to think about in this conversation as a consumer is to realize the great deal that many swords have been up to this point. What the economy will do to this I do not know but I doubt it will continue in the same way it has.
Best
Craig