Rumors began to circulate late last year that Pelikan was considering increasing their European prices. It was unclear at the time as to what such an increase would look like but details have steadily emerged from the European Union over the last few weeks. It is well known that European pricing has long been cheaper than that of the USA and some other regions. US consumers have been able to save hundreds of dollars by shopping from overseas vendors. Pelikan broke routine and caused some consternation regarding the direction of their US pricing strategy when they reduced the US MSRP for their last two releases. The M605 White-Transparent and the M805 Ocean Swirl were priced well below what prior, comparable models commanded. The strategy that Pelikan seemed to be working towards was to level the playing field across the globe. Select Pelikan products from many overseas vendors are about to see a rise in cost. Unfortunately, these newly announced price increases come at the same time as the company’s 180th anniversary which will be marked by the release of many new special and limited edition pens. While this would usually be cause for celebration amongst enthusiast, the price increases could certainly dampen enthusiasm for the new products.
On June 23rd of this year, a referendum was held to decide whether the UK should leave or remain in the European Union (EU). With a turnout of 71.8% of eligible voters, leave won by 52% to 48%. The reasons behind the vote were multifaceted with those voting to leave citing a lack of sovereignty and an overly controlling EU that imposed far too many rules in addition to a large fee for membership. The issues run much deeper than this oversimplification and the full ramifications of Brexit itself are well beyond the scope of this post. I suggest anyone even remotely interested in this topic seek out reliable outlets for additional information on this historic and world changing vote. While it will be many years before all of the consequences of this motion are realized, one of the more immediate results has been a significant decrease in the value of the British Pound. The Pound has dropped by 18% against the US dollar and Euro compared with one year ago and hovers near a 30 year low. What this means is that British buying power is reduced and the costs of imported goods inevitably must go up. Inflation is also a real concern though this has relatively been kept in check to date. Many experts don’t expect the full economic weight of the vote to come to bear until 2017.
The new year has brought with it the welcomed news of several upcoming and promising releases. Unfortunately, not all news is good news and on Monday, February 15th, we will be forced to contend with price increases across most of Pelikan’s lines. Nobody likes to read headlines of a cost increase but I think that this round of new fees in particular won’t sit well with the community at large. It is unclear to me whether or not these new prices will be effected globally but I do know that the U.S.A., already historically priced above overseas vendors, will be sure to see the fares outlined below.