Are Knife Prices Increasing Rapidly?

D

duller

Joined
Apr 14, 2007
Messages
242
Hi!

I was pricing a fixed blade knife on Google Shopping and I noticed the prices seemed to come in two tiers. The lower priced tier seemed to be out of stock. Only a few in the higher priced tier, but the prices were MUCH higher.

Are we about to see a massive increase in knife prices?

Maybe in the range of 50% - 75% more expensive?

FYI - I would guess I was looking at a knife made by slave labor in Red China. I realize the Dollar buys about 17% less Yuan than it did a few years ago, but that wouldn't account for all of a larger price increase.

Opinions?
 
When there's inflation, the prices go up.

When there's deflation . . . the prices go up.

It makes no sense to me, but you're absolutely correct.
 
duller said:
Are we about to see a massive increase in knife prices?

Maybe in the range of 50% - 75% more expensive?
Click to expand...

Maybe a little increase in proportion to the economy. Still have to make a profit. But I think in the end when the economy straightens out, we'll see a big decrease in prices because the technology to make certain things is more common.

Look at the Spyderco Native. Years ago when S30V was new and expensive, that wasn't a cheap knife. Now (if you can still find it) it's $40 at Wal Mart, I paid $25 for an S30V Buck Hartsook at New Graham. The materials are getting cheaper because they're more common, and in the end the final product will get cheaper.

50+% increase? No. 10 to 15 maybe, and probably not.

Are you sure you're not just looking at more expensive knives to begin with ;). "Awww damn, honey look, the price went up but I still have to have this one... I swear it was only $25 last week."
 
Historically, knife companies will increase their prices to dealers in January. Some companies, but not many, will hold prices for a year. In my experience, a 2% to 5% increase is not uncommon. I don't recall any company increasing dealer by 10% in one year (well....this may not be totally true). A 5% increase to me would be about 6% to the ELU, as profit would go up a bit on the increase to the dealer. We increased a lot of our prices the last week of February, holding 2008 pricing as long as we had stock that was purchased at 2008 prices. Just my 0.02. Your mileage may vary. Consult an attorney before investing, etc etc etc.
 
Fallkniven passed along a 30-35% increase on their product Jan 01 of this year. They identified a weaker Swedish Krona against the Japanese Yen, as well as general increases in labor and material costs as the reason.

World steel costs have been skyrocketing over the past few years. Super heated economies in China, India, North America, and others had pushed demand well ahead of supply.

With the global downturn slowing world economies, demand for steel will soften, and that should push prices lower.

In theory, prices should drop, or a least hold steady, over the next while. Manufactures and resellers will need to become more competitive to coax consumers to spend fewer disposable dollars, steel costs should be lower, and as employment figures rise, that will cause downward pressure on wages and earnings.

However even if all that comes to pass, it will still take awhile for the effects to trickle down to the final product. So you may not see immediate price drops.

Also, depending on where products are manufactured, or materials are purchased, you may actually see increases in price if regional currencies lose strength against other currencies. (i.e. if the US dollar was to lose strength against the Euro or the Yen, prices on products manufactured in Europe or Japan may actually rise in the US)

This example is based on very basic economics, and there are dozens of other factors that can come into play, so there is no guarantee.

Kevin
 
The materials are getting cheaper because they're more common, and in the end the final product will get cheaper.
Click to expand...

knifemaking materials are far from getting cheaper , priced titanium lately ? blade steel ? belts ? G10 ?

It ain't getting cheaper.... unless I am buying supplies at the wrong places :)
 
I see quite the opposite. Even though Fällkniven has increased the prices many retailers are reluctant to increase their prices for the same percentage, at least here in Europe. The economy is pretty bad and getting worse still, and I am sure the knife prices will drop but not dramatically.
 
Yes, prices are going up. Except for the companies whose quality is going down to compensate.......I won't mention the butterfly brand. Oops...
 
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