Astonishingly upfront and frank about things.  I'll definitely continue to support you, I'll move my 10mm projects to the fore.

All the very best

Thanks for the open communication

As others have said do what you need to do to make sure Pendraken is still going strong in 20 years and all involved are getting a reasonable income

Good to hear that the sculptors will be ok during the pause

PS I'm very glad you included the quick summary early on, it was all sounding very bleak

Quote from: sultanbev on 02 August 2023, 05:34:33 PMRegarding insurance companies, Craig Murray recently posted a fascinating blogpost about his experience: (ignore for the moment any political views you may have of him):

https://www.craigmurray.org.uk/archives/2023/08/modern-life/

Wow, that's a lot worse than ours!  Thankfully we've got a friend as our broker so he took the lead on most of the dealings with Ageas and kept on at them for us.

Quote...I don't know what it's like in other countries but it seems to me that central and local government in UK just sees businesses as a cash cow to be milked for all they are worth.

The same attitude by government exists in the United States as well.    

Leon, its been a while between orders but joining those who appreciate the forthright and transparent overview you've laid out of current pressures and future plans. Obviously, here's hoping that the stars align in Pendraken's favour, with a little help from the 10mm community of course!

Best,
Bartek
Canberra, Australia

Well done Leon for a very transparent statement.  I think the bulk of customers won't blink at the price rises given current circumstances.

Sounds like a larger Colours order then 🙂, as well as a Warfare one. 

Edward

Leon I know we spoke about a number of these when I was down at gaming central that is your new premises. You do not want to get political, so I guess I have to.

The government is not fit for purpose - and that is putting it politely. If they came out of their Ivory Tower (very posh indeed), they would immediately see 5 shop fronts of which 3 are shuttered. Fleecing the remainder will not make up for the shot we took at our own feet. I am probably preaching to the choir about Brexit as a concept as well as how it has been implemented and yet some people deny the reality that surrounds them....

I am in the unbelievably lucky position that I landed on an express career elevator when I came back to the UK, BUT I am not representative at all.

The price increases are very, very mild all things considered and more than understandable even under normal circumstances. I remember my first order of the OLD SciFi range was 1.20 or 1.50 a pack, so the current 2.20 quid is nothing to write home about. Especially considering other companies price points and price development since 2008.

It makes me sad and furious how incompetent and stubborn people can cause so much damage. However, this would not be Pendraken without:

QuoteI made him climb up on the roof with me...

Better yet if you had asked him to hand you the tools while you explain how stuff works to him. 

Thank you Leon for sharing.  Not much I can do on the other side of the pond except to keep buying product to support you.
Really seems to be heading into a "dark" period for the hobby in England. First Arrowhead Miniatures then Magister Militum closing up shop.

I know most of the companies we deal with are 'mom & pop' shops that come and go but for some reason this seems different.  Hope I'm wrong.

Dale

Leon, I would definitely look at the "rebuild" valuation the Insurance company has decided to give you. Usually the Rebuild valuation is LESS than the market valuation of the property (as the market valuation includes the cost of the land the property is on). The actual rebuild valuation of the property should be shown on the deeds.

Quite often Insurance companies will sell you a "package" which is unsuitable and overvalued (for example my 70 year old Aunt was paying for a £5000 bicycle insurance as part of her property insurance even though she doesn't own a bicycle...nevermind be able to USE said bicycle).

It my be worth contacting them again, or another Insurance company (in fact it's probably worth contacting every Insurance company you can and asking for a bespoke Insurance policy (quoting the rebuild valuation found on the deeds if you are happy with that valuation (sometimes a more recent quote from builders in the area is needed). The Insurance company CAN NOT dictate the valuation on the policy, if you want to under-insure then that's your lookout if you own the property and said property is detached and doesn't run the risk of a claim being made against the property if damage could occur.

If you rent I'm surprised the Landlord doesn't have Landlord Insurance on the property (although I've absolutely no knowledge of how Business policies operate). It should declare if there is on the rental agreement (if so the Landlord is passing the costs onto you as part of the rent). If this is the case, then the Landlord should be the one organising the rebuild valuation and would need to be contacted if you feel the rebuild valuation is way too high (and they would need to be able to validate the valuation to you) 

Anyhow definitely worth challenging the rebuild valuation by the insurance company if you feel it's WAY over valued (don't worry the insurance company will assess the rebuild costs again should you need to make a claim). For example we halved my Aunt property insurance payments by challenging the insurance package (and what additional coverage had been added unasked for over the years) and we dictated the rebuild valuation for the property (and they were charging about 100K over the £200K market valuation for a modest Bungalow). Quite often the first agent you talk to in the call centre is "pushed" to maximise profits rather than finding a product that is right for you (and will swear blind that's the best that they can offer you). However speak to a different agent (sometimes in the complaints or retentions department) and it's a different story.

The practice isn't illegal, but it certainly falls within a moral "grey" area when it comes to insurance companies overcharging for coverage which you haven't a hope in hades of claiming the full amount (eg a 70 year old lady claiming £5000 for a non-existing bicycle) because it's all shown in the small print that everyone either signs (or clicks on the accept button) without a double check.

Lastly when all else fails, as a "Hail Mary" it's always worth contacting your MP about the situation. It's highly unlikely that they will change the laws and challenge things in Parliament, but as a matter of course they will throw a few letters about to the involved parties in an attempt to poke them into reviewing things.

Thanks Leon an honest and helpful insight into the realities of running a family business - thank you.

Leon

Thanks for sharing. You have identified the issues which is half the battle, as they can be divided into those you can respond to directly - ie price rises to cover increase in materials/wages/rates- and those that will take time via third parties.

Shipping; A lot of mail order using RoyalMail are now manditory signed for. The wargame customer profile is most likely to be retired, free nester with disposable income. You have also a brand loyality and the current customer base will accept the need for you to retain your margins if Pendraken is to survive.

EU customers. IOSS is the long term answer. Suggest your website/shop window displays nett costs. N Ireland is spared via the Windsor Framework from customs decs.Republic of Ireland being in EU is not. I need to check the new EU rules about UK firms attending shows in Europe with trade samples. Might be worth checking if the cost and time could be recovered in sales?

US market? The current low on Sterling should make Pendraken good value - even with shipping? Does the forum have any leads/intelligence on how this lucrative market can be cultivated? perhaps we need to inflitrate US wargame forums and do a bit of promotion for Pendraken??

Rates:Have you considered getting your MP Andy McDonald involved via a Private Office Query ? Costs nothing, but prompts an instant review. It is not unknown for a query over small business survival to appear at PMs Questions.

And for us in the Forum- keep wargaming Pendraken.

Re posting, dunno if this is relevant:
Was talking to another trader yesterday, they said that when RM 48hr tracked service was automated, their damage rate went up dramatically. So they've switched back to 24hr tracked service which is still manually sorted, and their damage rate has gone down again.

Quote from: Phaid_Knott on 05 August 2023, 01:12:50 PMLeon, I would definitely look at the "rebuild" valuation the Insurance company has decided to give you. Usually the Rebuild valuation is LESS than the market valuation of the property (as the market valuation includes the cost of the land the property is on). The actual rebuild valuation of the property should be shown on the deeds.

Quite often Insurance companies will sell you a "package" which is unsuitable and overvalued (for example my 70 year old Aunt was paying for a £5000 bicycle insurance as part of her property insurance even though she doesn't own a bicycle...nevermind be able to USE said bicycle).

It my be worth contacting them again, or another Insurance company (in fact it's probably worth contacting every Insurance company you can and asking for a bespoke Insurance policy (quoting the rebuild valuation found on the deeds if you are happy with that valuation (sometimes a more recent quote from builders in the area is needed). The Insurance company CAN NOT dictate the valuation on the policy, if you want to under-insure then that's your lookout if you own the property and said property is detached and doesn't run the risk of a claim being made against the property if damage could occur.

If you rent I'm surprised the Landlord doesn't have Landlord Insurance on the property (although I've absolutely no knowledge of how Business policies operate). It should declare if there is on the rental agreement (if so the Landlord is passing the costs onto you as part of the rent). If this is the case, then the Landlord should be the one organising the rebuild valuation and would need to be contacted if you feel the rebuild valuation is way too high (and they would need to be able to validate the valuation to you) 

Anyhow definitely worth challenging the rebuild valuation by the insurance company if you feel it's WAY over valued (don't worry the insurance company will assess the rebuild costs again should you need to make a claim). For example we halved my Aunt property insurance payments by challenging the insurance package (and what additional coverage had been added unasked for over the years) and we dictated the rebuild valuation for the property (and they were charging about 100K over the £200K market valuation for a modest Bungalow). Quite often the first agent you talk to in the call centre is "pushed" to maximise profits rather than finding a product that is right for you (and will swear blind that's the best that they can offer you). However speak to a different agent (sometimes in the complaints or retentions department) and it's a different story.

The practice isn't illegal, but it certainly falls within a moral "grey" area when it comes to insurance companies overcharging for coverage which you haven't a hope in hades of claiming the full amount (eg a 70 year old lady claiming £5000 for a non-existing bicycle) because it's all shown in the small print that everyone either signs (or clicks on the accept button) without a double check.

Lastly when all else fails, as a "Hail Mary" it's always worth contacting your MP about the situation. It's highly unlikely that they will change the laws and challenge things in Parliament, but as a matter of course they will throw a few letters about to the involved parties in an attempt to poke them into reviewing things.

Thanks for the info, the whole insurance side of things is an overly-complicated nightmare to be honest.  I'll have a check on the deeds and see if it shows a rebuild cost there. 

We're lucky that our insurance broker is a friend of ours, so I spoke with him about the rebuild value when we took out the policy.  He said it's largely due to the clearance costs so if the building burnt down tomorrow then there'd be a significant amount of money needed to clear the land and dispose of everything, potentially put in new drainage and power lines, replace foundations, etc before you were able to start rebuilding the place.

We've reduced the general insurance policy almost down to the bare basics required by law, so public and employer liability, basic stock and equipment valuation, things like that.  We were limited a little in what we could do on the building insurance aspect as it's a requirement of the commercial mortgage so we had to send the full policy off to the bank before they'd even agree to lend to us. 

There's also limitations when it comes to simply finding insurance cover as the majority of the companies won't touch anyone who is exporting toy soldiers to the States (due to the lead content, the small parts and the general US enthusiasm for litigation) so we've found for years now that we always end up with the same few options. 

Quote from: Sunray on 06 August 2023, 11:52:24 AMShipping; A lot of mail order using RoyalMail are now manditory signed for. The wargame customer profile is most likely to be retired, free nester with disposable income. You have also a brand loyality and the current customer base will accept the need for you to retain your margins if Pendraken is to survive.
Questions.

I'm tempted to insist on Tracked only options for our international packages as that's where things are going missing.  I might leave it until we get IOSS sorted out first and see if that remedies anything.  From talking to other companies there's a bit of a conspiracy theory that some countries are treating non-IOSS packages a little 'differently' shall we say.  We've had dozens of German parcels returned to us as 'no fees paid' but the customers have never had any contact from their customs people.

Quote from: Sunray on 06 August 2023, 11:52:24 AMI need to check the new EU rules about UK firms attending shows in Europe with trade samples. Might be worth checking if the cost and time could be recovered in sales?

When we last spoke to the Department for Trade the amount of paperwork required for us to take any type of show stand onto the continent was ludicrous.  One declaration for of all the stock and another for all of the non-sale stand equipment on the outward journey, then the same again for your return trip. Sales statements for what was sold while in the EU and the VAT to be paid before leaving, the option for the customs people at any of the borders to insist we empty the entire van at the roadside, etc., etc.  Just not viable in the slightest.

Quote from: Sunray on 06 August 2023, 11:52:24 AMUS market? The current low on Sterling should make Pendraken good value - even with shipping? Does the forum have any leads/intelligence on how this lucrative market can be cultivated? perhaps we need to inflitrate US wargame forums and do a bit of promotion for Pendraken??

US orders had gone up slightly since the £ nose-dived so that helped to offset some of the initial EU losses (11% of orders in 2019, 13% of orders in 2022, 11% of orders currently in 2023).

Quote from: Sunray on 06 August 2023, 11:52:24 AMRates:Have you considered getting your MP Andy McDonald involved via a Private Office Query ? Costs nothing, but prompts an instant review. It is not unknown for a query over small business survival to appear at PMs Questions.

If I can't get any joy with a surveyor and a challenge then we'll have to try our MP, yep.  Ours is Jacob Young though (Conservative) so I'm not sure how much he'll be wanting to rock the boat.

Quote from: sultanbev on 06 August 2023, 01:56:48 PMWas talking to another trader yesterday, they said that when RM 48hr tracked service was automated, their damage rate went up dramatically. So they've switched back to 24hr tracked service which is still manually sorted, and their damage rate has gone down again.

That's interesting, our local sorting office is still entirely manual so we've not seen much damage in transit thankfully.

Good points Leon. You are on top of the game. Forgot you were Redcar- Don't discount Jacob Young as a boat rocker. He has working class roots, a social conscience, AND anxious to keep his seat in what used to be the Labour Red Wall.
I would counsel that you involve him via POQ sooner rather than later as a very senior council official always has to sign off in person the local governmnet reply to such a question. If there is any error in your rates, it will be spotted.

But its your train set. Your call.

Hi Leon,

sorry to read your news but thanks for posting, like the others have said.
The whole EU VAT thing is a real nuisance and has really curtailed my purchases. As you say, I don't want to order £50 worth of miniatures and then pay almost the same in VAT and 'admin charges' - this seems to be the way it works in Luxembourg, where I live.
Even ordering for delivery to my UK address is not that simple, as the local post office seems to do its own thing. This Easter I found  delivery note on the mat saying the posty had been, but not leaving any details of the package. A trip to the office was fruitless as there was no code indicated so they had no idea what they were looking for.  I was finally contacted by the manufacturer about two months later and informed that the package had been returned as 'refused' by recipient. Maybe just easier for the postman?

Do what you have to do and hang on in there.

Very sorry to hear this. I am planning on getting an 1859 Austrian army, 1864 Danish army and an 1866 Hannoverian army. I will hold on until the new website kicks in with IOSS. Meanwhile I am continuing to work on the 1866 Austrians and Bavarians and unpainted winter campaign FPW armies. Unfortunately a combination of Covid and Brexit seems to have killed off the Crisis show in Antwerp, just when I would have been able to get to it easily. Wishing you every success in the future and that things begin to turn around after the next general election.

As already posted, your openness and honesty are to be commended and once again show your commitment to we the customers.

I share the view that your price increase is a reasonable one and completely justified.It's good of you to give such a long notice period and much appreciated.

We all want to see the company succeed and for people to keep their jobs and support you in doing what has to be done.

Thanks again.

Thanks for the info, Leon, and sorry to hear of your frustrating challenges. I'm a big fan of Pendraken, and you've given a huge amount to our hobby. I'll be sticking with you, for the duration, which I hope will be a long time!

Thanks again for all of the positive comments!

Quote from: Malbork on 08 August 2023, 02:17:28 PMThe whole EU VAT thing is a real nuisance and has really curtailed my purchases. As you say, I don't want to order £50 worth of miniatures and then pay almost the same in VAT and 'admin charges' - this seems to be the way it works in Luxembourg, where I live.

Quote from: Leman on 10 August 2023, 02:19:52 PMI will hold on until the new website kicks in with IOSS.

Hopefully we can get the new site up and running quickly as we've got dozens of EU customers in the same boat and it's a real shame that these new processes have made it so difficult.  We'll need to do an extensive promo run when we get IOSS activated so that we can try and tempt some of those customers back.

Quote from: Malbork on 08 August 2023, 02:17:28 PMEven ordering for delivery to my UK address is not that simple, as the local post office seems to do its own thing. This Easter I found  delivery note on the mat saying the posty had been, but not leaving any details of the package. A trip to the office was fruitless as there was no code indicated so they had no idea what they were looking for.  I was finally contacted by the manufacturer about two months later and informed that the package had been returned as 'refused' by recipient. Maybe just easier for the postman?

That's not good to hear, the Royal Mail level of service has taken a real hit with all of their strike action and ongoing disputes.

I regularly receive 'signed for' packages left at the front door with no signature given. I know they changed the requirements for Covid and went to photographs of abandoned packages as 'proof' of delivery but that can no longer be an excuse.

And I used to get the same treatment before Covid when I was running a business and books delivered were abandoned willy nilly in bins, behind flowerpots and at random neighbours with no note through my door.

I was also a Chair of Governors of a School and 'tracked, signed for' letters from the Local Authority that people's council tax were paying for were dumped through the door with no attempt to get a signature. I frequently reported the latter as a waste of tax payers money but nothing happened as far as I know.

This has all been in the lead up to privatisation and subsequent to the sell off. I know there have always been problems but it is much worse now.

I must say that the new private delivery companies are a damned sight worse and regularly adopt US style delivery of hurling parcels from vans at the drive, or attempting to smash 8inch parcels through a four inch slot, and unfortunately succeeding on occasion.

Anyway - best wishes for the future despite the current delivery systems. I remain happy to buy Pendraken.