I've been learning by mistake for the past seven years and last year I finally decided that it was time to start selling online so I wisely paid for the knifemaker membership here. I posted three neck knives for sale in November, which sold out in the first hour and immediately got orders for more. Since then (Nov 2012), I've made and sold 67 neckers at $60 or more each and have orders for ten more.
Now I know that $60 isn't much for a custom knife, but I did it on purpose. I recall Loveless saying (at least I was told that it came from him) that you should see what your knives are selling for then charge 15% less than the market price. I also learned this by watching my good friend/teacher Dan Graves, who often sells his works of art for pennies on the dollar. He says that it gives him some quick cash and gets his name out there.
Here are some observations that I've made that I'd like to share:
1. Remember what it is that you're selling. We make and sell knives. These aren't cars. Unless it is an order, don't be angry or blame it on the economy when people won't buy your $300 knife. Buyers are out there, many just choose not to spend their fun money on an overpriced knife. Some knives are meant to be used and some knives are meant to be looked at and locked up. Set your price according to what the item actually is, not according to the work you put in it. Don't make other people pay for your inexperience.
2. Know your customers. A very small percentage of people actually want a $200-2000 knife. Right now, I am selling to the average Joe. I personally decided that I can spend $60 on a knife without breaking the bank, so that is where I set the price.
3. Buy low and pass the savings. A while back Alpha Knife Supply had very small pieces of stabilized maple on sale for .50 per piece. They were .25x1x4 and I got enough for 30 knives. I wish I had bought them all because I am running out. They are top quality pieces of wood but I only have 4 sets left. So I decided to raise the price. If want stabilized maple, it will cost an extra $20. Today I noticed that someone ordered one knife rather than two because they didn't want to pay the extra $20. I think I'll keep offering that wood at same $60 price in the future until it is all gone. I don't make a profit on it unless it leaves my shop.
4. Some people will pay for extras. I charge an extra $15 for jimping and $10 for mosaic pins. These don't cost me that much to do since I make my own mosaics and can add jimping fairly quick.
5. Some people won't pay for extras. Don't assume that since they'll pay $60 for a knife that they'll pay $80 for one. Buyers generally have a set price in mind. See #3.
6. Let others promote for you. I haven't done anything to promote these knives other than post a link in my sig and do a destruction test on one. Bend over backwards to make people happy. It will be worth it in the end because they will tell their friends. Right now I'm paying to have a knife shipped back to me that I just shipped out this week because the customer wasn't happy with the kydex retention. That means I'll pay a total of $16.20 to ship this $60 knife three times to the same customer. But I think it is worth it to have happy customers.
7. Quality or Quantity? I don't think it is a matter of either/or but both/and. I've done pretty well selling these knives and know there is no way that I could make this much profit by spending 4 months to make a $4,000 knife, which wouldn't even sell. Some can get away with selling high dollar knives and some can't. Know your place in the market. For me, it is making inexpensive knives. But that doesn't mean they should be cheap. Fit and finish are king around here. My knives aren't perfect but I do pay attention to the small details. But in the end I have to remind myself that this is only a $60 knife that will be heavily used.
8. Appreciate your Bladeforums membership. So far my for sale thread has had 19,482 views and there's absolutely no way I could ever set up a store front or website for $60 and get that many potential customers.
9. Communicate, Communicate, Communicate. It's not easy to make 20 knives in 7 weeks when the only time you can work is every other night after the family is in bed. It's even harder to keep track of your records and make sure every customer knows that you haven't forgotten about them. It takes extra work but it pays off in the end.
Just thought I'd share a few things I've learned in the past few months. Please feel free to correct anything I've said or add your own observations.
Now I know that $60 isn't much for a custom knife, but I did it on purpose. I recall Loveless saying (at least I was told that it came from him) that you should see what your knives are selling for then charge 15% less than the market price. I also learned this by watching my good friend/teacher Dan Graves, who often sells his works of art for pennies on the dollar. He says that it gives him some quick cash and gets his name out there.
Here are some observations that I've made that I'd like to share:
1. Remember what it is that you're selling. We make and sell knives. These aren't cars. Unless it is an order, don't be angry or blame it on the economy when people won't buy your $300 knife. Buyers are out there, many just choose not to spend their fun money on an overpriced knife. Some knives are meant to be used and some knives are meant to be looked at and locked up. Set your price according to what the item actually is, not according to the work you put in it. Don't make other people pay for your inexperience.
2. Know your customers. A very small percentage of people actually want a $200-2000 knife. Right now, I am selling to the average Joe. I personally decided that I can spend $60 on a knife without breaking the bank, so that is where I set the price.
3. Buy low and pass the savings. A while back Alpha Knife Supply had very small pieces of stabilized maple on sale for .50 per piece. They were .25x1x4 and I got enough for 30 knives. I wish I had bought them all because I am running out. They are top quality pieces of wood but I only have 4 sets left. So I decided to raise the price. If want stabilized maple, it will cost an extra $20. Today I noticed that someone ordered one knife rather than two because they didn't want to pay the extra $20. I think I'll keep offering that wood at same $60 price in the future until it is all gone. I don't make a profit on it unless it leaves my shop.
4. Some people will pay for extras. I charge an extra $15 for jimping and $10 for mosaic pins. These don't cost me that much to do since I make my own mosaics and can add jimping fairly quick.
5. Some people won't pay for extras. Don't assume that since they'll pay $60 for a knife that they'll pay $80 for one. Buyers generally have a set price in mind. See #3.
6. Let others promote for you. I haven't done anything to promote these knives other than post a link in my sig and do a destruction test on one. Bend over backwards to make people happy. It will be worth it in the end because they will tell their friends. Right now I'm paying to have a knife shipped back to me that I just shipped out this week because the customer wasn't happy with the kydex retention. That means I'll pay a total of $16.20 to ship this $60 knife three times to the same customer. But I think it is worth it to have happy customers.
7. Quality or Quantity? I don't think it is a matter of either/or but both/and. I've done pretty well selling these knives and know there is no way that I could make this much profit by spending 4 months to make a $4,000 knife, which wouldn't even sell. Some can get away with selling high dollar knives and some can't. Know your place in the market. For me, it is making inexpensive knives. But that doesn't mean they should be cheap. Fit and finish are king around here. My knives aren't perfect but I do pay attention to the small details. But in the end I have to remind myself that this is only a $60 knife that will be heavily used.
8. Appreciate your Bladeforums membership. So far my for sale thread has had 19,482 views and there's absolutely no way I could ever set up a store front or website for $60 and get that many potential customers.
9. Communicate, Communicate, Communicate. It's not easy to make 20 knives in 7 weeks when the only time you can work is every other night after the family is in bed. It's even harder to keep track of your records and make sure every customer knows that you haven't forgotten about them. It takes extra work but it pays off in the end.
Just thought I'd share a few things I've learned in the past few months. Please feel free to correct anything I've said or add your own observations.
