Editing The Pen Addict 411/transcript (section)

== Business Model Discussion ==


'''Brad Dowdy:''' I like it. I like it. So, yeah. Thank you. We're done there. So, now, we're back to platinum. With our manufacturing test, our little Business 101 we had there, there was a distributor in the middle. And I believe in distributors. I am pro-distributor because of a lot of things in our market in the U.S. They put in the work to give us access to products. They also put in the work to support products, which we're going to talk about very much here in our next topic. Right.

'''Myke Hurley:''' So, they're like the distributor, again, just we're going one-on-one here, is effectively like the middle person who has the ability to take in lots of products from many manufacturers and through existing relationships sell them through to large retailers.

'''Brad Dowdy:''' Right. Right. And they're okay. So, just back to our little example before. If they're buying the pen for $200 and selling it for, excuse me, they're buying the pen for $100 and selling it to the retailer for $200, they're making $100 while they're allowing the retailer to make $200. They're okay with that because they have 1,000 of the pens to sell to make $100 off of and the retailer has 20 to sell to make $200 off of. Right. So, it's okay. Right. That's why that math works. All right. So, the problem is, Myke, when you get, you have regional pricing issues. Because now, I have to tell all of our listeners that you can buy this off the shelf in Japan, the Platinum 3776 Shiyun for $325.

'''Myke Hurley:''' Right.

'''Brad Dowdy:''' This is why Platinum has to say, this is why we increase the price. Because now, everyone goes, why is that? Is it because there's no distributor in Japan? Is it because the margins are much lower? You know, I don't know.

'''Myke Hurley:''' Economic headwinds? Currency exchange fluctuations? Like, these are all the things that happen with big tech companies and stuff.

'''Brad Dowdy:''' Yeah, exactly. The willingness of the American market to pay a premium for a limited edition. Right? Yeah. Let's not discount that. I think that's fair. You know, well, if they're going to pay for it, let's charge them for it. But it's a weird look. Right? And I think it's fair to ask Platinum, why is there such a big price increase? Especially when the Japanese shelf price is so much lower. Even if it was the same. Like, even if in Japan it was $470, the currency, you know, rate made it $470. I would still ask the same question. Why is it so much than the last one? But then to have a discrepancy between the two markets, that's when it gets weird. Like, this is... Like, when Pelican did this in the past, and they're very guilty of doing this, having all these regional prices, they laid it out. Like, you know, our gold costs went up this much. And, you know, this is why we're selling it for this year. And this, that there. Yeah. They told everyone kind of how it worked. Platinum. I guess, I don't know if they're not interested, or they don't think it's a big deal. And I'm going to be clear. Again, they're going to sell every one of these pens. There's 376, 3776 units. It will sell out. I would bet that it would sell out. Because if for some reason, the U.S. market balks, which I don't think they will because they get a small percentage of these pens anyway, they'll just go back to Japan and sell them. This will, this pen will sell out because the price at $325 is now back to reasonable. That's where the Raka was sold, the last pen. So, that's what I've been thinking about on this pen, is we don't know why the price has increased. If you think it's because rhodium spiked, that's a fair theory, but it's not based in anything that Platinum has said, right? It's just the story we're telling because it's convenient. And maybe it is the case that rhodium spiked and they got caught not having enough and they had to pay a premium and that gets translated to the customer. But then when you're saying that and then pricing the pen that drastic of a difference between two markets, I don't know if that holds up as well, that statement. So, interesting pen, interesting price. I know a lot of people are upset at the price and rightfully so. Other people will be jumping all over it because it's a pretty cool pen and if you have the money to pay for it, you should.

'''Myke Hurley:''' And also, I guess, really, you know, there is the thing that used to be said is they can do whatever they want and they don't have to want to see you or anyone.

'''Brad Dowdy:''' 100%. That's the very first thing I said is Platinum can do, they can charge whatever they want and they do not owe me an answer. I'm also allowed to ask the question, right? So, that's where we're at. And like, we may never know. Like, it may just be what it is and we all pretend that it was the rhodium spike that drove the price through the roof. Okay. It is what it is. We may never know. And they don't owe us an answer. Completely fair. No one owes us an answer to the pricing. Yeah. But that doesn't prevent us from asking the question and say, hey, this looks a little weird. Why is that? And that, you know, that's how you build relationships between companies and customers is that openness. So, we'll see. All right, Myke. We're not done with Platinum yet. Oh, boy, are we not done with Platinum yet. This is a... This one's a little bit harder to talk about because it's so strange. I've never seen anything like this. And this is the case. The curious case of the Curie Doss cracking, Myke.

'''Myke Hurley:''' Oh, so good.

'''Brad Dowdy:''' I just... I didn't even write that down. This has been like...