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P. Cha




PostPosted: Fri 25 Jun, 2010 11:12 pm    Post subject:         Reply with quote

Craig Peters wrote:

I would be curious to see if there's been a noticeable decline in sales of Next Generation swords from the various price increases over the years, or if no such decline has occurred.


That is a good question. For me, personally, I won't be getting another albion if this price increase is the same or larger then the last one. At the current price I can justify getting the talhoffer or sheriff...but at another $100 more? That chimera line looks much better. Which is a shame since I love albion swords. But hey at least there is the bare blade option...and customizing is a lot of fun Happy .
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Julian Reynolds




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PostPosted: Sat 26 Jun, 2010 12:26 am    Post subject:         Reply with quote

Not many European voices in this discussion. You try buying an Albion in Europe? Time to sell a kidney, I think!

I guess they've written off us consumers over the pond, particularly considering the number of excellent smiths over here who are considerably cheaper and hungry for the work.

On a more general note, I've tried commissioning custom pieces from some US makers - they are all (assuming they bother to respond) more expensive than European makers. Cost of living is usually used as the excuse, but here in the UK for instance, cost of living is way more expensive than in the States so that argument doesn't wash......

Over 15 years of collecting custom arms, I do get the distinct impression that we Europeans are seen as a bit of a cash cow for US makers - we rarely get a bargain.

Just my 2p worth.....

Julian
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Leo Todeschini
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PostPosted: Sat 26 Jun, 2010 1:33 am    Post subject:         Reply with quote

Nathan Quarntillo wrote
Quote:
if Albions price is justifiable when you can snag this (discussing cheaper swords) for less than 200, then Albions R&D must comprise of a team of NASA engineers and scientists, GOD, Tony Stark, a group of Dwarven smiths, and Chuck Norris)


I have no involvement with Albion, but I do make things and this is from my perspective. I know next to nothing about the specifics of how Albion goes about making swords so this is really about how I view the direction this thread is going in, which is 'what is cost of quality and can it be justified'

Quality is an expensive business. lets look at the blade as an example and making some assumptions that are off the top of my head. The blade is cut and ground to very tight limits, heat treated to very tight standards and polished to a very uniform level, on top of very accurate research. The critical point here is 'very'. If for example you make a blade and the rockwell has a margin of 2 points either side of the optimum that may cost say $50 to do. If you decide you want your product to be made to tighter standards and the rockwell either side of optiumum will be within 1 point this doesn't cost the same to execute or even $10 more, it may cost 2, 3 or even 4 times as much. As a purchaser are you likely to notice the difference? Most will not, but you have an item that is better quality. Stretch this philosophy across all the sword components and the price of the finished piece will be significantly higher than if all the aspects were a little looser in quality. Overall the impression of 'correctness' will be much much higher.

Superficially and from a distance will you notice the difference between a $200 sword and a $1000 sword?, possibly not. Look up close and most importantly get it in you hand and use it and you most certainly will notice where your money has gone. Every aspect of this sword will be right and the whole package will be massively better for it. Even if you cannot identify why this sword is better than that sword, you will know that it is and feel it in your bones.

Albion has made a choice to make fantastic swords, not average ones and you may not see where your money is going, but you can be assured it is being used wisely and effectively to deliver a product that is special. Not all will see (or feel) that this is worthwhile and that is fine, we cannot make one product or range that appeals to everyone, but they do appeal to many.

Yes they are expensive in that they cost a deal more than 'similar' swords. Are you getting value for that money? Yes absolutely. It is a pity that we cannot all go out buy an Albion at the drop of a hat, but if they were cheap enough for us to do so...................they would not be Albions.

Howard, I apologise if you feel it is inappropriate for another maker to comment on your pricing.

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David Spencer




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PostPosted: Sat 26 Jun, 2010 3:30 am    Post subject:         Reply with quote

Hi All
As a new member to these forums I would like to say thanks I currently own one Albion, a Svante. It was little bit of a gamble on my part as I have never viewed or held an Albion in person before. All i had to go on was other peoples opinions on forums such as these, all I can say is that I will never own another Svante, because I will never part with the one I have. If I only owned one sword it would be this one and i am very grateful that albion made it and that your opinions of them led me to buy it .

ps
will I buy from Albion again , Yes

Dave
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PostPosted: Sat 26 Jun, 2010 5:26 am    Post subject:         Reply with quote

If there is a price raise of ten percent, which is the number everyone seems to be using, then a sword that costs 1400 will now cost 1540 (1000 is now 1100, 800 is now 880, you can do arithmetic) dollars, is there anyone who can afford to spend 1400 on an item with absolutely no practical uses but can't spend 1540? Now if they increased prices by 50 percent I would get this debate but really is it that big a deal? If you want a cheaper sword and there are many beautiful cheaper ones out there, buy it, you want the best save up for an albion, I doubt this will move it out of anyone's price range.
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Luka Borscak




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PostPosted: Sat 26 Jun, 2010 5:31 am    Post subject:         Reply with quote

I agree. When I spend $500 on a Del Tin, I wouldn't need that much more time to save another 100$, but there is nothing better than Del Tins and Hanwei Tinkers here in Croatia. Cry
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PostPosted: Sat 26 Jun, 2010 5:54 am    Post subject:         Reply with quote

Nicholas Rettig wrote:
If there is a price raise of ten percent, which is the number everyone seems to be using, then a sword that costs 1400 will now cost 1540 (1000 is now 1100, 800 is now 880, you can do arithmetic) dollars, is there anyone who can afford to spend 1400 on an item with absolutely no practical uses but can't spend 1540?


Speaking for myself, it isn't one price increase that makes it hard, it's the cumulative effect of all the price increases over the years. Like a price increase of 47% (averaging more than 6% increase a year, though price increases have not been occurred yearly) on the Regent from its introduction in 2003 to now ($950 to $1400). Not counting what it will go up to August 2nd. The Sovereign is up 46% in that same time. The Baron is up over 31% (over 4% a year). The Prince is up less: only 15%. So it varies by model. One price jump may not kill people's ability to buy them, but several price increases might.

You can look back on this forum to its beginning and see how people (like me) have been concerned with every price increase since Albion moved from their original Albion Mark stuff to the Next Gen stuff in 2003. They have consistently been pioneers in engineering, design, level of accuracy, and price points.

I still love their stuff and think their pricing isn't out of line for the quality. It has just moved beyond what is easy for me to justify. My income hasn't gone up by the same percentage during the same time. Happy

Happy

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Allan Senefelder
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PostPosted: Sat 26 Jun, 2010 6:16 am    Post subject:         Reply with quote

Quote:
I do get the distinct impression that we Europeans are seen as a bit of a cash cow for US makers - we rarely get a bargain.


I'll remember that when I lower my prices by 35% to be even with European smiths and loose my house and close my business because at that rate i'm not close to breaking even. Are you seriously asserting that the cost of living in former Soviet satalite countrys is anything like that of the US? Really? After hearing my moms tales on her return from an archeological dig in Rumania two years ago i'm pretty sure thats not the case.

If you want to be hacked off at some one, get out the pitch forks and torches for your friends in government who extort you so badly with that brain cramp VAT. Adding what is it 17%? 22%? to everything you buy to pay your customs bribe to get your stuff, thats for the birds! I'd be hard pressed just on principle to order from the US based on that insanity alone. I'm gratefull as all get out for the international customers we have, getting and extra 20% crammed up , just to buy something outta country is a pretty big discouragement to buy.
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PostPosted: Sat 26 Jun, 2010 8:10 am    Post subject:         Reply with quote

the quality over quantity has been beat to death, but I'd rather my 3 Albions than 10 lesser blades. I just wish I could decide on 3 blades, I don't know how many swords I've bought that I peddled soon after because I hadn't really researched what I wanted and merely bought the du jour deal beacuse 1. it was available, and 2. it was priced at a point I would pay. I see myself buying a Chevalier, but I can wait until I raise the cash or someone offers one for a price I'd pay or for a sword I'm looking to move
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Michael Edelson




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PostPosted: Sat 26 Jun, 2010 8:13 am    Post subject:         Reply with quote

If Albion is raising prices, it's because their profit margins are shrinking. So in that situation, they have three choices. Fold up shop, raise their prices or cut back on the quality.

I think I can safely say none of us want them to close or cut back on the quality. So why complain?

Even if some people can no longer afford an Albion, they should be happy that they are still around, and still uncompromising on the their quality, so that at least some people can still get them, and then sell them to you in the classifieds for less. Happy

I am proud to say I have never sold an Albion. I've traded a couple of them(for other Albions), but never sold one, and hopefully never will. Ccertainly not if I have any choice.

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PostPosted: Sat 26 Jun, 2010 8:35 am    Post subject:         Reply with quote

Chad Arnow wrote:
Nicholas Rettig wrote:
If there is a price raise of ten percent, which is the number everyone seems to be using, then a sword that costs 1400 will now cost 1540 (1000 is now 1100, 800 is now 880, you can do arithmetic) dollars, is there anyone who can afford to spend 1400 on an item with absolutely no practical uses but can't spend 1540?


Speaking for myself, it isn't one price increase that makes it hard, it's the cumulative effect of all the price increases over the years. Like a price increase of 47% (averaging more than 6% increase a year, though price increases have not been occurred yearly) on the Regent from its introduction in 2003 to now ($950 to $1400). Not counting what it will go up to August 2nd. The Sovereign is up 46% in that same time. The Baron is up over 31% (over 4% a year). The Prince is up less: only 15%. So it varies by model. One price jump may not kill people's ability to buy them, but several price increases might.

You can look back on this forum to its beginning and see how people (like me) have been concerned with every price increase since Albion moved from their original Albion Mark stuff to the Next Gen stuff in 2003. They have consistently been pioneers in engineering, design, level of accuracy, and price points.

I still love their stuff and think their pricing isn't out of line for the quality. It has just moved beyond what is easy for me to justify. My income hasn't gone up by the same percentage during the same time. Happy


I hear you, Chad. This is the problem I have with the "10% price increase is manageable" idea. If it were an isolated event, that is true, but the cumulative effect of 10% every two years makes it less attractive. Case in point, one of my hobbies is Warhammer 40,000. Games Workshop, the makers of these 25mm plastic miniatures, raised their prices 7 to 25% recently on many of their products in North America, the United Kingdom, and Australia. This was the second such increase in as many years. Their reason was the same as what Albion claimed, cost of production, as well as the added bogey of the falling Euro (the company is based out of the United Kingdom, so I'm not sure how the falling Euro would affect the price in North America or Australia as I am no financial expert by any stretch). This means the box of five plastic miniatures an inch and a half tall which cost $25 USD two years ago is now $29.75, and the starter box which two years ago was $60 is now $90. It is even worse for Australia. As a result, my budget won't allow me to buy as much as I have in the past. My income didn't go up 10% a year each year, so my budgeted outlay won't go up. Same as with swords. If I budget $50 a month to buy a sword costing $600, I can buy that sword after a year. If the sword costs $1200, that means two years at $50. Now I am good at delaying gratification, but two years is pushing it.

As far as what it takes to make a sword at Albion, they released a video of how they make swords that was on the History Channel, I think. Shows the folks at Albion making the Knight. Essentially, they cut the blade out of tool steel using the CNC machine, then heat treat it with hot salt. Then, they grind and polish the blade and the furniture (the most labor intensive portion) and assemble it. Done. It's not like they are smelting iron ore and making steel ingots or beating on it for hours with a hammer. It is pretty much production line assembly where a single sword could be done in hours instead of days.

Of course there are the losses due to sabered and twisted blades, misground hilt parts, physical defects, shipping losses (bent points from careless shipping companies that get sent back under warranty), as well as overhead (their building and utilities), cost of labor, the ever-rising price of insurance, the price of materials, and the level of quality that Tod spoke of. However, my original argument of how long until Albion prices themselves out of the market remains. In 2014, assuming the current rate of increase and period remains constant, the Regent will cost just under twice as much (196%) as it did in 2003.

"Think not that I am come to send peace on earth: I came not to send peace, but a sword." - The Lord Jesus Christ, from The Gospel According to Saint Matthew, chapter x, verse 34, Authorized Version of 1611
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PostPosted: Sat 26 Jun, 2010 8:36 am    Post subject:         Reply with quote

Michael Edelson wrote:
If Albion is raising prices, it's because their profit margins are shrinking. So in that situation, they have three choices. Fold up shop, raise their prices or cut back on the quality.

I think I can safely say none of us want them to close or cut back on the quality. So why complain?


In these situations, business have two main choices: make your money by going for low margin on a high volume of sales, or go for high margin on a low volume of sales. Increasing prices generally doesn't increase the volume of sales. Happy Perhaps Albion is at capacity for production or they're not getting the volume of sales they need to make the current margin work. So they've chosen to increase the margin and are probably hoping the volume doesn't drop off too much. What some people (like me) are saying here is that they're likely losing some sales because of the price increase. I'm sure they anticipate a certain level of that and doing what they can to ensure the price increase is not larger than it needs to be.

No one is advocating them closing or lessening the product; no one has said that and no one probably will. People are "complaining" because they see their dreams of owning all the Albion swords they want growing more distant, not getting closer.

Price increases are an unfortunate reality in business. To expect people to accept them without complaint is not reality. Happy

Happy

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Felix R.




PostPosted: Sat 26 Jun, 2010 8:54 am    Post subject:         Reply with quote

Chad Arnow wrote:
Michael Edelson wrote:
If Albion is raising prices, it's because their profit margins are shrinking. So in that situation, they have three choices. Fold up shop, raise their prices or cut back on the quality.

I think I can safely say none of us want them to close or cut back on the quality. So why complain?


In these situations, business have two main choices: make your money by going for low margin on a high volume of sales, or go for high margin on a low volume of sales.


Amen, this is it. Now it is just the question of wether the higher margin will make up for the lower volume. This way several restaurants and shops in our area went bankrupt.

But this is up to the buisness operator.
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Julian Reynolds




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PostPosted: Sat 26 Jun, 2010 8:57 am    Post subject:         Reply with quote

Allan,

As you say, trying to compete with developing nations is economic suicide. And a 20% VAT rate + customs duties pretty much kills any hopes of Brits ever purchasing a US-made product at a cost that you guys enjoy. It's truly frustrating, as there's plenty of US products I would spend my hard-earned pounds on, if there weren't so many disincentives. In practice, it forces us to look inward, and use that money to push European makers to produce products that are edging closer and closer to Albion standards but not cost. We're not there yet by a long chalk, but it's pretty much a given by the inevitable forces of supply and demand that it will eventually happen.

China, for instance, has made enormous advances compared to when I first started collecting 15 years ago. Please don't misinterpret that to read that they are anywhere near producing Albion standard products, but all that is needed is a few hundred dollars difference for someone to take a second look at a 'second best' product, especially considering that swords are not essential to anyone's needs except a tiny minority. Not everyone needs the 'best', especially if the sacrifices needed to get it become ever greater in these difficult times.

Look at what's happening in your own country - there are more and more custom manufacturers that are snapping at Albion's coat tails. As long as their prices remain high, so do the margins for other makers who come along to fill the space just behind Albion.

What's the answer? Don't ask me. Albion seems to have weighed up the pros and cons - shrinking customer base against increased revenue from those that do want to buy their products whatever the cost. They have an enviable reputation for quality, and that's money in the bank in a competitive world.

But the way the world's economies have evolved over the past 20 years should tell us all that you cannot ignore the developing world. Many, many, many manufacturing companies in the developed world have learned that to their cost (Britain used to be the 'Workshop of the World', now we have practically no manufacturing economy of our own).

It's sad but inevitable.

Julian
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PostPosted: Sat 26 Jun, 2010 9:16 am    Post subject:         Reply with quote

I think you guys are also forgetting that raising prices may increase their sales. There is a group of consumers that buy things just because they are expensive because of the perceived prestige.

I know a fairly wealthy guy once who bought a Range Rover and, when he had people working on his house, he complained that they should finish repaving his driveway quickly because he didn't like to park on the street (the driveway was rough dirt at this point). A friend of mine, who was the contractor doing the work, was confused. "But you have a Range Rover," he said. "It's a very capable off road vehicle. Why would you not park on the dirt?"

"It is?" asked the man. "I didn't know that." So my friend asked him why he bought it. He said, "Well I wanted the Porsche Cayenne, but there are two models, and the less expensive one only costs 60K, whereas the Range Rover has only one model (at the time there was no Sport) and starts at 80K (or was it 90?). So I got that because I didn't want people to think I was poor."

This is the kind of guy that, assuming he was into swords, would never buy an Albion until they crossed the 10K mark for their cheapest model. Then they would be appealing to an entirely different group of consumers, and with proper marketing, might even be more successful. There are many, many more such people than most of us realize.

Many people buy the Svante because it's a neat sword, but I think that many more buy it because of how much it costs. When you walk into a training hall with a 3.5K sword, people take notice, and some people thrive on that kind of attention.

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PostPosted: Sat 26 Jun, 2010 9:25 am    Post subject:         Reply with quote

Michael,
I haven't forgotten them. But I can almost gaurantee you that the group of people willing to buy swords just because they are expensive is smaller (probably much smaller) than the group of people who would like to buy Albions but can't afford them. And the buy-it-because-it's-expensive crowd in the sword world (and I've met some) generally have little knowledge or appreciation of that they own. I wouldn't try to build a sword business around that. If I did, I would skip the expensive R&D, ship the labor overseas, and maximize my profit. Happy

If you put in the time, research, and money to make a quality product, why would you target an audience whose primary concern would be the item's price, not its features? Happy

Happy

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Marcos Cantu




PostPosted: Sat 26 Jun, 2010 9:30 am    Post subject:         Reply with quote

ideally they could try and offset some of the loss of customers by expanding their line to include other time periods and regions. i would love to see albion tackle some falcatta's, xiphos, celtic/la tene, etc
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PostPosted: Sat 26 Jun, 2010 9:43 am    Post subject:         Reply with quote

Look at steel prices over the past 3 years..... Albions increasing their prices to make a larger profit.... not to make the same profit because of "rising costs"


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PostPosted: Sat 26 Jun, 2010 9:58 am    Post subject:         Reply with quote

Zach Gordon wrote:
Look at steel prices over the past 3 years..... Albions increasing their prices to make a larger profit.... not to make the same profit because of "rising costs"


I'm sure there's more to the prices and margin than just the price of steel. Even though it has gone down, perhaps their property tax has risen, or labor costs, or utilities. Maybe they had to spend a bunch of money on a machine that could handle the longer blades. Etc., etc.

Happy

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PostPosted: Sat 26 Jun, 2010 10:08 am    Post subject:         Reply with quote

Chad Arnow wrote:

If you put in the time, research, and money to make a quality product, why would you target an audience whose primary concern would be the item's price, not its features? Happy


People who buy a Rolex or an Omega don't always understand what makes them better than a Seiko or a Citizen, they just know that they are, and they are right. If you hold an Albion next to a Hanwei or a Windlass or a Del Tin, you know it's a superior product, even if you don't understand why.

Before the first time I held an Albion, I was a huge fan of Angus Trim swords. I had been subjected to all of Albion's marketing hype and I knew what, in theory, made them better swords. I had also been subjected to the anti-Albion hype (weak blades, poor performance,etc., which was all utter BS spread by its detractors, a fact I can confidently attest to since I use my Albions extensively) and was a bit antogonistic towards them for daring to charge such high prices for such pretty things I didn't think I could afford.

Then I held some of them at the 2006 blade show.

I was floored. Asbolutely stunned. I bought two right away, to hell with affordability, and couldn't stop myself from accumulating more. You just *know* when you hold one or see it up close that it's something special. I felt like these things had just been carried through a time portal. It was an incredible experience, one I wish I could repeat.

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