RSS Subscribe Raising our Prices
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- posted at 02:54PM
- September , 21, 2009
- by: Dave Munson
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I want to take a minute to share a little with you about the our decision to increase prices here at Saddleback. I'm not always the best at communicating, but since I've been married, I've been getting much better... ask my wife. Communication is key to keeping healthy family relationships, and that goes for our Saddleback family too.
Most companies raise their prices under the cover of darkness, but since you are or are about to become part of our family, I think it's right to bring it out in the open and talk about it .... We've been praying and thinking about this for why we have raised our prices.
First, near the end of last year, we decided to make our own leather briefcases, backpacks, bags and luggage instead of having them made by someone else. In doing so, we significantly increased quality and lowered the number of defective bags we received. It was a huge step up for Saddleback. We hired an organized and structured Dutchman and empowered him to pull together a handful of artisans experienced in leatherwork. Well, he put together a diverse team of boot makers, shoe makers, clothiers, tailors and saddle makers. We pay them more than they've ever made and in doing so, have built loyalty and raised future quality. It's such a desirable place to work, that no one ever wants to leave. No one has to be trained and make the same mistakes the last guy or gal made. We are involved in their lives and even know their kids' names. They're part of our Saddleback family and therefore, part of yours.
Second, our leather and some other costs rose significantly at the end of 2008. We've been buffering you, our family, from those costs increases, but are no longer able to and continue the unparalleled workmanship we promise to you. All of that to say, in order to continue offering exceptional quality bags at a fair price, we've decided to raise our prices
Customer Comments
Daniel
09/22/2009 12:28 AM CDT
I for one am glad your production has moved in-house. The bags I own from Saddleback are magnificent and now I know why they are so exceedingly well made. If I had just one wish it would be so know just who made the bags I own - perhaps they could be initialed by the crafter.
I have few doubts that those who appreciate Saddleback will cease to do so because of higher prices. Your prices cause me to shop with much greater care than I have ever before, and I fully expect these bags to last the 100 years we've all been promised, even if we're not around to see it.
Todd
09/23/2009 01:03 PM CDT
When you say you are raising prices it is like telling someone that there is a difference between 110 degrees (F)and 120 degrees (F). Sure, technically, there is a difference, but when things are that extreme, who really can tell.
That being said, you have a loyal following and I love my bag. You really shouldn't tell a manufacturer this, but I would have paid more for it. The quality is great and I get comments on it all of the time. I even have a portion of my Facebook page dedicated to the bag and it's travels. You can't put a price on that!
Peter
09/24/2009 03:42 PM CDT
People often make the mistake of suggesting that 'cost' determines the 'selling price'.
Actually it's the market. If the market feels it is being charged too much, it won't pay that price regardless of what it cost to produce the item. If the market feels that the item is being offered too low, you'll sell out in a hurry but have likely made less profit than you could have.
Successful merchants know what they can sell an item for. If the cost allows them to meet or exceed margin objectives, they put it on the shelf. If the cost is too high, they bring it down or walk away. You can't just raise the price. If you initially judged the market correctly, you'll eventually have to put the item on sale at the original price you thought was appropriate.
Dave, your prices are fair and within market parameters. Although I appreciate your approach, the prices need no justification. That's why I've got so many Saddleback items and why I expect to buy more when new items are introduced.
Bob
09/25/2009 12:16 AM CDT
Well done Dave. While I am not celebrating the price increase (after all, what consumer would), I must applaud your honesty and straight forward approach. You could as easily have raised prices in secret and hoped no one noticed, but you chose to take the high and honorable road. There is no substitute for character, and you've shown plenty. And, your products are still a strong value particularly given your generous warranty which, based upon your demonstration of candor, I am confident you will honor long into the future.
Jonathan
09/25/2009 07:24 PM CDT
Hey Dave,
I've been a fan of your work since the first time I saw one of your bags on eBay years ago. I worked there for 8 years and always promised myself that I'd HAVE ONE OF THOSE BAGS!! Well, you disappeared on eBay and I didn't find you again until TODAY!
It may take me a few months saving, but come Jan/Feb of next year, I'll be making my order! I know you said that you're raising your prices which I think is totally fine but I hope they don't increase much between now and February!
~jonathan
Scott
09/25/2009 11:14 PM CDT
Your honesty is refreshing.
But my interest is piqued. With this diverse team, can we expect some more Saddleback products? I can't imagine what I wouldn't do for a pair of gloves made as well as you make the bags.
Adam M
09/26/2009 08:19 AM CDT
I don't think you should worry about the prices; like several who have already commented, I would have paid far more for my bag, which I consider a treasure. I get asked about it all the time at airports and in elevators. After family photo albums, it is probably the first thing I'd salvage in a fire.
I also hope that Saddleback continues to expand. A standard folding men's wallet would be an instant hit, I think.
Cyberg00se
09/28/2009 01:01 PM CDT
I know it sucks having to raise prices. You're making the kind of post I felt so bad for having to make a while back. I can feel in the post that you felt like I did.
But if your costs rise, there's nothing for it but to raise prices. I agree with those saying that you're not competing at price point where your sales are driven just by low prices.
No, you're positioned higher than that. Your product isn't based on how low cost it is, but on how awesome it is.
And you're not some jerk company or a jerk distributor for a jerk company who decides to just pick a price from the air and hike your prices 50% just because you can.
The fact that you posted about it, says you're not one of those. You just have a standard of quality you have to meet to make us all happy, and you have a cost to meet that standard.
This whole business thing should make us all happy. We get better bags, you are able to pay bills and live your life. Don't worry, it should always be win-win. :-)
PS - I forgot your twitter name. I was going to give you a (positive!) @mention, but I forgot the name. :(
French
09/29/2009 08:18 AM CDT
I'm in agreement with the other posters. I would rather pay a little more for the quality bag you produce to allow you to care for your family and the families of your employees. Based on my short experience with my bag, the price is fair (perhaps a bit low) for the quality of the bag. My bag is my work & play bag, it goes with me to customer sites, in the over head bin of airplanes, on family vacations, etc. No matter what I throw at it, the bag just takes it, and looks better. Please, price your products so that you can afford to keep running this business and producing the quality product we love.
jimmunsw
10/03/2009 10:04 AM CDT
All your bags prices are in US dollar and it is definitely better than best price in the US , but if i want to buy from Malaysia , plus the currency exchange , usps express mail charges , custom taxes etc... it will definitely be expensive to buy from you . It is already been tough now , so i hope the increase won't be so much . Still there will be hardcore leather lovers like me to buy from Sbl - jimmunsw ;)
Jim
10/06/2009 03:15 PM CDT
Dave, Raising prices is good for all of us who already have some of your stuff, it makes it that much more special, the value is still there. A friend was debating the purchase for a chestnut briefcase because of the price, I said "is that your only concern?" he said yes. I said thats easy, how many more bags do you want to buy in your life? Sold. I really dont want everyone in the world to have the same bag either!
Bart Pederson
10/08/2009 02:32 PM CDT
Dave,
I would love to chat with you about bilble covers made of similar leather and workmanship. Please contact me about this. Thanks,
Bart
Bob Lawblaw
10/11/2009 02:52 PM CDT
Dave, This is great news. I fully support your decision to push prices through the roof. Your superior product crushes the competition. I have fallen off a longboard going 95kmph and the only thing that remained intact was my backpack. I salute you and your way of life Dave. God speed.
Will Hill
10/13/2009 06:29 PM CDT
Dave,
I appreciate your taking the high road and being up front about your price increase. I have a Dark Tobacco Brown Messenger Bag and I love it! It's definitely exceeded my expectations and I am looking forward to getting a Satchel next! I am constantly asked about it and, of course, I tell them all about Saddleback Leather and then refer them to your website. I agree with all the others who have posted comments in regards to keep making an unparalleled product and we'll keep buying. It's great to hear about moving production in house. God bless you, your family, and your company.
Will
Vincent Mavilia
10/19/2009 09:04 PM CDT
The story about Blue and the closeness the two of you experienced together is absolutely
believable. I am one that would not have spent one minute thinking about how touching, potentially very sad [dogs touch every emotion one experiences]. I have three [3] German Shephards; Max, Maedchen (little girl) , Dixie (mother of Maedchen], Max's companion. Oh yes, another [Blue also] Given to my daughter as a result of a burglary in her home. Max was first and the rest followed to accomodate Max and his need for companionsnip.
Thanks for the opportunity to vent. That is, venting in a good way.
Vincent J.Mavilia
vmaviliact@gmail.com
(860)868-7400
Mike Storesund
10/26/2009 03:32 PM CDT
Dave,
As with everything else that has increased with the times, so must your product, at least to cover your added expenses. This is entirely reasonable. You still provide the best quality leather product of this category I have found, and I have looked. I have returned as a customer a few times now; I own an X-Large Dark Tobacco Brown Briefcase, a Medium Chestnut Briefcase, and a Chestnut Messenger Bag. I only wish I had purchased the Large Briefcase (I guess that will have to be another purchase later when I gift the Medium to my sister).
I still plan to buy an Overnight / Duffle bag and I look at your Dave’s Deals almost daily. I think the small idiosyncrasies from these ‘seconds’ offer that certain “unique” feature that is in its own way your very own custom brand to identify your piece while still providing an un-paralleled high quality product.
I am so glad you have shared your experiences and offer these outstanding products. Keep up the great job.
Mike
Thomas Major
10/28/2009 02:18 PM CDT
agree with all the posts that price should not be a concern. If you believe an item is worth it you will buy it.
What I have a concern/question on is the statement that we bought quality in-house and the quality significantly improved. If a product has been sold for years as the best there is how could quality improve significantly or is it that there simply are less defective products
Dennis Taylor
10/29/2009 02:03 PM CDT
Dave,
I am one of the lucky ones who has a bag from when you were storing a few of them behind your couch.
While I love my bag [and no, you can't have it back, even for a new one- ;) ] I can tell that much time, passion and care has gone into making Saddlebacks products better and better with each revision.
I've sine bought other products from you (Saddleback Leather) and have not been disappointed in the least.
While raising prices is not my favorite thing to hear, the continuation of the Saddleback Family tradition grows with each product sold and revisions being made to make the product better and better.
I look forward to a long and happy relationship with Saddleback Leather Family and look out the window like a worried parent after my orders are placed.
The delivery guy busts my chops, because I am always standing in the doorway before the truck can finish pulling around the corner and come to a stop.
There are only two companies I look forward to seeing innovations from, despite their opposite ends of the spectrum:
1. Saddleback Leather
2. Apple, Inc.
The quality that I have from my original bag is simply nothing short of awesome, the wallet and other products the same. I don't know how bringing it in house would increase that quality, but if it can be done, all the better.
By bringing it in all in-house, I am hoping that the prices will stay steady for a long time to come. I save up for each Saddleback product I buy - so, instead of purchasing one this year, I'll have to wait until Feb of this coming year. It's a wait I'm going to have to endure (So much for instant gratification, I guess it will make that much more special to me).
All the best,
Dennis
Will
11/07/2009 08:48 AM CST
They are still absolutely worth the price. I'm looking forward to buying a satchel at the higher prices in the very near future!
Francesco
11/09/2009 01:45 PM CST
Dave's reasons are so convincing that I just made an order for a Satchel. Can't wait to receive and put it to use!
Continuate cosi'!
Francesco
batteries
11/11/2009 12:16 AM CST
Raising prices do not matters for me if i get the quality improvement. And don't you think that you can't go communication well. You are doing great work with your professional work. I wish you will get success on new decision.
B Kurian
11/15/2009 07:18 AM CST
I bought my first SBL product a little over 2 years ago, first the briefcase, then the messenger bag, satchel, wallets, to say the least I am truly impressed by the rustic look and robust quality that I appreciate. Yes, these are costly but well priced items. I know I will be checking in to see if there are newer products that I could use or give away as gifts. Good Luck.
jody
11/18/2009 02:32 PM CST
i'm now trying to figure out how to justify the money, to my husband, for the medium satchel i want. i like many others, have looked several years for just the right bag. i can't wait to get the funds up to order it. i believe the prices are more than fair and i'm very excited about getting one!
Eduardo Ovies
11/21/2009 05:50 PM CST
I just received my Satchel Bag.
INCREDIBLE.
Thanks Dave for making a great bag.
Cherrs from vancouver BC.
Eduardo Ovies
Adolph Cabañas
11/25/2009 03:28 AM CST
Me and my wife are proud owners of your beautiful briefcases!
We plan to purchase some of your other products soon, all in God's perfect time!
I am happy to know that you have made really big steps in getting your production to improve and I know in doing so it will require financing and cost adjustments! It is good to know that you have chosen the logical and honest route into progression and I and most of the Saddleback Leather family members for sure would not mind your decision of not making quality suffer but improving on what is already great and perfect!
Thanks a million Dave! May God bless you and your loved ones!
All the best to Saddleback Leather!
Dave Rubin
11/26/2009 05:59 AM CST
Dave,
I agree with your other loyal posters and fans. I personally don't give a Hoot n' Hell about the price increase if it means that the fine leather bags wll continue to be made to the same exacting standards you have had for several years.
I am the proud owner of a Dark Coffee brown messenger bag, small brief case and pouch. And in good time I plan on purchasing a satchel, travel wallet, mouse pad and possibly an overnight bag.
I only wish I had know about you several years ago as I would probably have your entire line by now! LOL!
Anyway keep up the great work and glad to see that you are now "in house"!
Thanks and all the best to the family.
Bradley Herod
12/03/2009 09:05 AM CST
I love my bag and did take a lot of time looking at your web-site and wanting that bag lol they dont pay us preacher and teacher that much you know, but after I got it I just love it. My bag goes everywhere with me and people comment on it all the time. Cost go up and therefore prices must as well but when your paying for something that will last this long it'w worth it. Would love to see an Iphone case that you can wear on your belt. There are other leather companies that I know that offer them but they are not your quality work so I simply won't pay for them so think about getting one on the market for us. Thanks for all you do.
Rev. Bradley O. Herod
Mike L.
12/09/2009 03:47 PM CST
I believe Warren Buffett once said "Price is what you pay, value is what you get"
My bag could have cost $1000 and still its value would exceed the price. I know I will have this bag for the rest of my years. Worth every penny
Kirk
12/15/2009 11:22 AM CST
Dave,
I am no different than any of the other Saddleback family members. The bags are "AWESOME". Obviously, we would all love to get the same quality for a lower price, but "you get what you pay for"! That being said, people will pay for items they want and with the craftsmanship and care that you have put into your product we are getting what we pay for. I am a high school football coach and teacher so you can guess the damage that can be done to my bags. I have kids walking the halls calling my bag the Indiana Jones bag. I love it, love it, love it. By the way, did I tell you I love it???
Scott
12/21/2009 10:39 PM CST
No worries, I love my bag and I am going to be getting the backpack here in day or two. I need it for my new recumbent bike, none of the saddlebags I have seen for bicycles are are going to work, so I am coming back to you.
Scott
John
12/26/2009 10:33 AM CST
I've purchased three of your bags, the first being the large briefcase and it arrived just days before I left for a year long tour in Saudi Arabia. The bag saw some great times and two of my friends ended up making purchases from SBL. The prices have never been an issue..You make a great bag. I've since purchased the satchel which I seem to use more and I over the summer I got the backpack. I now live in Nepal and still enjoy the bags and whenever i travel one goes along. My recent trip to Thailand over the holidays got quite a few comments for the satchel, which I used to haul my camera and items purchased by my wife and daughter. Long story short...you have nothing to worry about. But your honestly is appreciated.
Christopher
01/11/2010 03:45 PM CST
I'll just take that price increase and divide it over the next 30 years or so, since that's how long I anticipate making use of my messenger bag. It is quite spectacular, and I plan on buying several more of your products as I can afford them.
Harrison
01/14/2010 10:16 PM CST
Dear Dave,
Your web site for The Saddleback Leather Company is fantastic. I try to come to your web site often. Hope you're doing well.
Bryan
02/28/2010 03:00 PM CST
I purchased a thin brief for myself as a "gift" for getting through b-school *in May*. I am very pleased with the quality. Your value proposition cannot be matched by the other products I have observed in the marketplace.
Now I just need to get my wife a thank you gift *suggestions?* for keeping the kids and the house while I worked and attended classes.
I am thinking a messenger bag would look good around her shoulder...
Chris
03/15/2010 09:16 AM CDT
Warren Buffett (quoted above) also said "Rule No. 1: Never loose money. Rule No 2: Don't forget rule No. 1". UK customs work on this principal - they added $180 (£120) to my briefcase making the SBL club fairly exclusive to join. I wonder if I'll ever see another one as I travel thru Heathrow ...
(Can't fault the quality though - this really is a 1st class bag)
Air Jordan
03/18/2010 02:34 AM CDT
The content of your blog is exactly what I needed, I like your blog, I sincerely hope that your blog a rapid increase in traffic density, which help promote your blog and we hope that your blog is being updated and placed can always be richer and more colorful.
George
04/06/2010 10:43 PM CDT
I have just recently discovered your bags and I've made up my mind already that someday I'll own one! I have lived in El Paso all my life and used to spend fifty percent of my time in Juarez.
Juarez was a shopper's mecca and there were so many artisans plying their wares in the market place, one could find goods made from copper, silver, turquoise, and of course leather. The best thing about the market was that bargaining for a better price was the expected practice! Can I make you an offer on your top of the line bag?? :b
David
06/28/2010 05:17 PM CDT
Brother Dave,
Prices smiches. So you had to raise the prices. Big deal! I know that I speak for probably about each and every one of your customers as well as myself by saying that your bags are top of the line, never disappoint and like that little bunny, keep going and going and going! So stop beating yourself up my friend! The bags are worth it, the quality is worth it and by God sir you and your family are worth it. Keep on and forward!
David