Leather prices and Philosophy 101

sheathmaker

sheathmaker

Custom Leather Sheaths
Joined
May 18, 2005
Messages
4,650
Toady I got a letter from Wickett & Craig announcing a $.30 PER SQ. FT. hide cost surcharge over and above the listed price of the leather, effective 5/1/11. This on the heels of an " 8% " price increase around the first of the year. I put the 8% in quotes because sides I had been paying $100 for in December now cost $119 to $126 before the surcharge mentioned. Some how that figures more than 8% according to my math. Total dollar freight costs has risen also right along with diesel prices. They tried this surcharge thing a couple of years ago and I did not like a surcharge then and I don't like it now. It was tied to fuel costs back then and now it's hide cost. I'm for just pricing the goods at whatever price they like and just roll the $.30 into the total cost per square foot and be done with it.

Now comes Philosophy 101. While Wickett & Craig has been my sole choice for the past 5 or 6 years, this was and is because I thought they had and have the best leather (USA leather) out there. I would overlook some flaws here and there and cut around some fairly large spots that didn't meet the standards I set for my sheaths. I never even considered returning leather I didn't think was quite up to par. Now with the increases and the surcharge I'm taking a whole new view. If I pay for it, it had better damned well be good and useable. The part that really pisses me off is that I have held my prices steady for the past 5 years, and now I'm faced with considering increasing my prices. I have over the recent past swallowed and absorbed just about all the increases I can, and it's not just leather all the liquids (cement, finishes, dyes etc) have doubled or more in the past 5 years. All this took a while to sink in on me because I buy in very large quantities for a one man shop and it takes a while to use it up. I'm just now faced with replenishing $20+/gal. Barge with $40+/gal. Barge. Same product, same quantity, double the price and so on throughout the shop.

Well, so much for my rant. I'd be interested in your thoughts.

4/28/11: Talked with Glenn at W&C today and the surcharge is being rolled into the quoted price so so whatever price you see will be the final price, and I like that system better for some odd reason.

Paul
 
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Hi Paul
I have found the same thing happening in Canada. I used to make hand drums, a great many of them and did quite well. That was when a bundle of 5 hides were $100 to $125 per bundle, they are now $85 per hide, I no longer make drums.

Best regards

Robin
 
Check the quantity on quarts now, I noticed they looked a little smaller and they are. And the fuel surcharge****, my steel supplier at work added $50.. fuel surcharge on my bill without saying anything until I got it. I'm sorry HIS gas prices are up, so are mine, I commute 82 miles a day, I don't think my home office would go for a gas surcharge on my pay, more like- Randy move closer. The working folks have to eat it, why can't the shareholders ? Why does the end user always eat it? AND while I'm rolling, the post office today asked if I wanted to add insurance to a package. Wrong old hippie to hit on today! I asked why I needed to pay just in case they don't do their job correctly.
Aren't they getting paid to carry it there? Can I ask my customers for insurance money in case I don't do my job right? I picked up my package and went to UPS, paid more, but insurance is included. At least they didn't tell me I had to pay extra for them to do their job.
Sorry, this old burnout is tired of financing the monsters.........Randy
 
I last raised my prices six years ago or more, cant remember now its been so long. We've been agonizing over raising our prices this past year because as Paul said prices have double across the board so its really cutting into the living expenses. We're a family business, its our only income, so it makes things double difficult.

Our local Leather Factory got hit with a cut in their available inventory of leather, not making things any easier.

Between the economy, gas prices, and supply cost's being in business for yourself is getting darn near impossible. :(
 
This whole world is going down hill! Pretty soon people will be working just to pay for the gas to get there!! Domino affect.
 
W&C sells by the hide or sides with no footage listed. Will their surcharge be by the hide? Juggling figures that are not stated can be pretty darn tricky---to the detriment of the ultimate user. I am seriously thinking of ending a long career. I have always tried to keep my prices reasonable but I am starting to realize that it is difficult to justify the prices I have to charge. I am tired of a supplier passing on his additional costs at double to triple of his material increases. Having a virtual monopoly seems to give them the edge over their consumers---and not one helluvlot we can do about it. Boycotting the firm is not the answer when they are the big boy in the industry.
 
Damn guys...such doom and gloom...
Look at the bright side....we all die and none of this will matter.

What are ya gonna do...go plastic??
 
No, the whole world is not going down hill......it just seems that way when gas, groceries, materials etc. all seem to be going up in price at the same time. Someone should think of a name for that. I know! Let's call it INFLATION! Printing new money every day and adding to the debt is the major cause of that I'm told.

Now as to the Tanneries and suppliers of other goods......I think they are caught in the same trap we are except one step up on the supply chain ladder.

Sandy, W&C is going to roll the surcharge into the posted price, according to Glenn Proud, so the price you see on the flyers and I guess the web site is the final price you will pay. I like that system better than the price posted and then a surcharge on top of that. You are certainly correct, Boycott is never an answer.....it winds up hurting both sides.

I have very reluctantly and with much thought increased my prices some effective 5/1/11.

You guys hang on tight and try to remain posititive. 2012 is coming.

Paul
 
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