A question for other "Custom Makers"

[sharpeknives]

I do not take deposits or agree to make a knife I don't think I can sell elsewhere. I have had orders canceled for many reasons, the changing economic atmosphere is allot to blame. Even with that I have only gotten stuck with one knife. One that I was uncomfortable making to start with.

 

[69_knives]

I thought about starting to ask for at least 1/2 up front to start their project and the balance before I ship. What do you guys do? Feedback is sincerely appreciated, Thanks!
-Michael

We started to do this at the shop. Not a knifemaking shop but custom work nonetheless. Any job that is over $1000.00 we demand a deposit of 50% up front before we start the work.

We work on parts that people own and bring to us to do work on but after a more than a few people getting work done and not picking up their jobs and after several years later having to sell the parts at swap meets at a loss, we took these measures.

 

[69_knives]

If he can't afford it now how will he do so in the future.

This is a good point.

Our customers that bring in 2K - 4K jobs have never even blinked when we tell them that a 50% deposit is required, they just whip out the CC.

 

[Hmathews]

It doesn't make very good business sense sometimes to not take deposits, but it is not a popular thing to do in the custom knife business. I agree with Ed C. on the deposits and his reasons for not taking them are good in my opinion. We don't take them for the same reasons at Twin Blades. All it takes is one customer like Ed described and that will be the last deposit you take. It is good to be able to cut the ties with a problem customer and not have either party lose money or have any recourse.

Our policy is posted on our web site that lays out how we will deal with a customer that is evidently not going to take delivery of the knife he ordered. We try to be understanding because people’s fortunes can change over the life of the order, but we depend on these orders too and have obligations ourselves that have to be met. We have always thought that if everybody understands what is going to happen, then nobody has any right to complain when the knife they ordered gets sold to someone else.

We have the following policy posted on our web page. Thankfully we have not had to use it but a couple of times.

The knife will be held for receipt of payment for 30 days, after which time it will be offered for sale. It is solely the responsibility of the customer to provide Twin Blades with correct contact information and update this information as is necessary. We request a telephone number, a mailing address, and an e-mail address to have the best chance to deliver the notice to the customer. Several attempts at contact will be made during the 30 days, but if after 30 days we have been unable to contact the customer or not heard from the customer and received the payment, the knife will be sold.

 

[BrianBoyles]

It happens to all of us at one time or another.
I never ask for a deposit nor do I ask for a knife too be paid for upfront. I make knives to my vision with the customers input so I won't make something that I don't like or that I don't think will function as it should. I make it simple nowadays. I offer about 9 different styles to my customers and let them choose a blade design. I allow them to choose the steel and handle material and well as a kydex or leather sheath. The ordered knife is ready within 2 weeks of the time the order is placed. I do not engrave a knife until it is paid for, Once in awhile a customer doesn't have the money or has changed their mind. When this happens I move on and resell the knife, No problem, but I will never take an order from that person again though.

I also make pens, mechanical pencils, perfume bottles, letter openers, and billy clubs.

 

[Phil Dwyer]

Hello Friends,

Damn Will, that hurts just hearing about it. What a bummer. Sounds like you went the distance to make it good. Talk about a hit to one's material and shop time budget. Kudos to you for pulling it off. Or, have we now heard the real reason you sold your fancy power equipment...to finance materials to get out from under that boondoggle?! Sounds like you had a rough go of it a time or two too Ed. Sorry to hear about that!

I'm at the student/hobbyist level, so I can only empathize with everyone's efforts grappling with questions like this. Never-the less, I have had to deal with it in other ways, such as as a jeweler years ago.

I read in another thread where it was said if you can't afford the materials and time to make whatever you're selling, then you need to modify your business operations, such as scaling back, so you can. This is one (of many) reasons I got out of the custom goldsmithing biz. I never could manage it well enough to afford the insurance and/or all the precious materials or their replacements. Even if the customer gave me the money or materials, if something went wrong, I'd have to make good on it. You'd be surprised how many insanely obscure and invisible places a diamond can fly into to hide, for instance.

Of course, we worked orders a little different in that biz. It often took several sessions with a customer throughout the making of the piece. Original consultations involved sketches, then often wax models, just to make sure everyone was on the same page. Then there was often a fitting prior to setting stones and finishing the piece. Customer involvement was a pretty good assurance they'd stand behind completing the purchase.

The suggestions to involve the customer prior to commencing on the job (and probably throughout the process) seem like good ones!

To some extent it sounds to me, behind this deposit question might be for some folks an even simpler question. Should I take custom orders or not? A sister question to this might be, or should I further develop my retail outlets? For me, At this stage of my life, I am just too damn ADD to be able to stand behind a seller's commitment appropriately and follow through to fulfill a customer's expectations (whether paying up front or not). So I would categorically not go back into any custom business right now. Shoot, I can't even get a KITH done!

It sure is a pleasure and a privilege reading through all your posts. Thanks for taking the time!

All the best, Phil

 

[hellgap]

I agree with Karl . I would take a sheep , couple a ducks , maybee even some chickens or a DEPOSIT

 

[Los Angeles]

I want to say that the input in this thread has given me a lot of food for thought, including rethinking an embarrassing flake-out on a knifemaker here a little bit ago. It wasn't a done deal necessarily, but I ended up really strapped out of nowhere when a client of mine failed to pay in a timely manner on a low 5 figure invoice.

Why did it not get out of control? Because the maker contacted me just as he was returning to the project and I had the opportunity to say that I was broke for a while.


So, I also wanted to mention this:

Michael, your knives will sell. If you EVER have a custom order that ends up becoming available, you should simply email or call the people who have bought or ordered multiple knives from you in the past. Think of your 10 best customers. Now, don't group email them, that's too impersonal. Just write a note to each of them asking them how they are and letting them know that you have a special custom that suddenly came onto the market. Let them know that you've told a few people about it and you're waiting for a response.

That makes your biggest fans feel like they are on the "inside" and most people wouldn't mind that at all.

Anyway, your knives are both really well done, unique AND very reasonably priced. This should never be a concern for you unless you are making a knife that is worth at least $1000

 

[koyote]

I'm searching through stuff and catching up on some threads and a few different thread topics are coming together here-

With a very few exceptions, no order I've made in the past year or so is something that I couldn't sell elsewhere as a koyote. I know I'm not doing collectable knife styles, but I'm told that my knives are identifiable from across a room (this could be a bad thing, or a good thing). And I don't generally get orders that are for something out of my varied styles.

If I'm forging, there's a fair amount of work that goes in before heat treat, and I'll contact the customer right before quench day and say hey. If it's ground, I'll usually heat treat, then email to verify handle materials- especially if I've been left my preferred artistic license because now I have a feel for what I want to do and probably have 3 or 4 choices sitting in front of my keyboard causing my typing to suck. I'll generally work on final blade finishing while waiting for a reply, and then just get full payment.

Sometimes I do take deposits, especially if I have ot order a special material, but I hate doing it.