I know it's hard to hear but by now most Trollbeads collectors know there is a price increase coming on January 27th. This is true but the fact is 2/3rds of the line has remained the same. Unfortunately since the beginning of business, as we know it, price increases are a fact of life. When an increase happens, no matter the business, it sparks anger and disappoval from all those who will be affected by it. As in past price increases with Trollbeads this increase has set the fans complaining and asking why and while some of it is negative and not productive, it is very good to ask why. In the age of the internet we are given tools to create a dialog with the people at the head of companies we would not normally be able to easily communicate with. So I am suggesting if you keep your comments to more of an inquisitive nature you may in fact get some answers. I don't know anything more than you do on this increase but I am guessing if an insult is a part of your comment I don't think it's should get a response but that is just my opinion.
One comment I thought deserved some attention was made by an astute collector who pointed out that Pandora raised prices and has lost a lot of business and Trollbeads should pay attention to their competitors and reconsider the price increase. This is a constructive comment and I understand the source. I have been very fortunate this year to become close enough to observe some of the management of the company and I can assure you that they have adept skills at monitoring the market in respect to the bead/charm segment and know fully who they are within it. A lot of consideration goes into any decision and the price increase is no exception. It's a very challenging and disruptive thing to decide upon but to maintain the business at the present level of quality I am sure it was a decision they had to make. As for the Pandora situation I know through reading articles and business papers published internationally that Pandora's problems go a lot deeper than any price increase can take the blame for. Pandora is owned by a international multi-conglomerate that makes decisions based on what the board and investors want. Their IPO in Denmark was presented on facts and numbers not quite accurate and the stock has reached the lowest ever and has hurt all of the initial investors. In contrast Trollbeads is privately owned and the owners are the decision makers armed with industry and financial knowledge not many other small companies possess. Owners are always much more responsible to their customers where in contrast the conglomerates or publicly held companies such as Pandora all decisions are based with the profit for the stock holders in mind.
Many other comments on this price increase mention the current price of silver being down over last year's price but it is not to see the prices see below. The price of raw metals is an important factor but just one of many costs incurred to create, produce and market a product. Running a jewelry line today is like walking a tight rope never knowing what the market is going to do and there was a time when raw goods were more stable as was pricing. I personally know how the cost of doing business has increased straight across the board and more so in the last 10 years than ever before. Year after year I watch as bank charges have increased, the cost of offering payment by credit cards has skyrocketed, insurance costs which include health, casualty, autos, disability have all gone through the roof and this is just the obvious costs. For example our disposal costs for our retail stores have increased to over double what they were 6 years ago. These mounting costs go right down the line from management to the distributing companies to the representatives and finally to the store.
Silver per ounce
Oct 2010: 23
Oct 2011: 32
Jan 2012: 29
And gold:
Oct 2010: 1350
Oct 2011: 1680
Jan 2012: 1610
In processing all of the factors that goes into pricing I think we can consider the path taken by Trollbeads to be the lesser of two evils. Increase prices and continue on the same successful path or stay at the same prices and end up having to lower the quality or the size of the beads or the production. In the end we know it is your choice to buy Trollbeads just as it is the choice of Trollbeads to risk losing some of its collectors in order to stay true to its mantra and true to a large portion of its collectors.
