Being a Benchmade dealer takes $10k???

[bchan77]

Frankly, I can't understand the rationale of this thread.

The opening poster asked whether Benchmade requires a minimum inventory of $10,000 from its dealers. He then added that if this is true it is ridiculous.

Now I would think the only party that can answer this question with absolute certainty is Benchmade itself. Individual dealers of course can answer regarding their particular case, but they may or may not know the arrangement with others, if alternative arrangements exist. However, whether Benchmade or the dealers will answer is another matter (for example, because of non-disclosure dealership clauses etc.).

So, if the poster has a question regarding the business model of Benchmade he should directly ask Benchmade. If Benchmade answers his question, fine, query solved. If Benchmade refuses to answer because of non-disclosure clauses then the poster knows that he is not going to get answer from the parties involved. To raise this question in a public forum, and hoping to get the answer therefrom, seems to me not quite an appropriate way to deal with it.

The other posts regarding product quality and customer service can be the subject of separate threads, but they are not relevant to the original question.

 

[speedfan]

Frankly, I can't understand the rationale of this thread.

The opening poster asked whether Benchmade requires a minimum inventory of $10,000 from its dealers. He then added that if this is true it is ridiculous.

Now I would think the only party that can answer this question with absolute certainty is Benchmade itself. Individual dealers of course can answer regarding their particular case, but they may or may not know the arrangement with others, if alternative arrangements exist. However, whether Benchmade or the dealers will answer is another matter (for example, because of non-disclosure dealership clauses etc.).

So, if the poster has a question regarding the business model of Benchmade he should directly ask Benchmade. If Benchmade answers his question, fine, query solved. If Benchmade refuses to answer because of non-disclosure clauses then the poster knows that he is not going to get answer from the parties involved. To raise this question in a public forum, and hoping to get the answer therefrom, seems to me not quite an appropriate way to deal with it.

The other posts regarding product quality and customer service can be the subject of separate threads, but they are not relevant to the original question.

I just figured we have quite a few dealers here on the forum and that one of them would know.

 

[Cisco Kid]

This is nothing new. Without judging if $10k is a lot of money or not, it is common in many industries for a dealer to have to keep a certain minimum inventory to be able to carry a certain brand. It is a very frequent form of doing business for many.

 

[2brothers]

So we've got you saying it's not the case, and 2brothers saying it was 10k back in the 90s when he was selling them. This is so confusing lol.

When I initially talked with them I was told that an initial order of $10k was required to become a dealer.
I'm sure re-order amounts were/are smaller.

Instead of going the dealer route, they put me in contact with CFI (know out of business) in Dallas, TX.
This was when they still had distributors for their products.

 

[Bob W]

I don't know if all this is correct. The Cabela's here in CT only carries the D2 Griptilian. Are they exempt from carrying any other Benchmades?

I'm sure Cabela's has no trouble meeting the minimum, whatever it is. Aside from stores across the entire country, they undoubtedly have warehouses full of merchandise for their catalog and online sales. :thumbup:

 

[noname_user]

Did you know that if you wanted to sell Mary Kay that it cost $5k up front? That $5k gets you $10k worth of merchandise though. Just an observation...

 

[mmarkh]

This whole thing is horse pucky!!

I work at a local brick and mortar store and am an official Benchmade dealer. We carry 4 blue class knives and 7 red class knives (atleast did as the red class is now discontinued but we still have been getting stock). The sum of these knives in no way shape or form equals anywhere near 10k and I would be quite surprised if our annual sales on Benchmade products equals 10,000. Yes Benchmade has started the MAP policy and as a cause their prices have been raised but damn guys cut them some slack!

From reading on this forum you would think that Benchmade has the worse customer service, horrible quality and outrageously priced... But this just is not true. Benchmade is doing VERY good as a company now and has just made a huge expansion of their business. They may have raised their prices but in doing so have also made a couple very positive changes that, in my eyes, have improved their image even more:

*They have haulted ALL oversees production and are now making all of their knives here in the USA.
*They have made it so that if you want to sell Benchmade knives you must run a brick and mortar store. This GREATLY helps your local mom and pop shops and puts the ball in their court. Today many internet companies buy huge sums of knives and sell them from home or a small office therefore eliminating overhead and can therefore sell the knives for much cheaper. Now after their stocks are depleted these storeless internet sites will be no more (As far as Benchmade goes). Finally the small American stores will have a chance.

And just as a side note it is my understanding that Buck has also started making all their knives in USA this year.

Its not true the company I work for is a benchmade dealer. You get free shipping on orders if its over a certin price but I tell you its not 10000.00 $ . You do have to sell so many knives to order gold class knives . Benchmade sends us two of every new knife for the new year .

All these people stating non facts so they can bash Benchmade make me wonder about their agenda. People think if they tell the lie enough times it becomes the truth.Benchmade makes very good knives and if you don't like them or their policies please stop crying and just buy something else.:jerkit: I will continue to patronize them because I like their products and the fact that they are made in the U.S.A.

 

[Skimo]

Thats a great post mmarkh, 'cept for the jerkit.

 

[spoonrobot]

*They have haulted ALL oversees production and are now making all of their knives here in the USA.
*They have made it so that if you want to sell Benchmade knives you must run a brick and mortar store. This GREATLY helps your local mom and pop shops and puts the ball in their court. Today many internet companies buy huge sums of knives and sell them from home or a small office therefore eliminating overhead and can therefore sell the knives for much cheaper. Now after their stocks are depleted these storeless internet sites will be no more (As far as Benchmade goes). Finally the small American stores will have a chance.

*Nope. They still send a ton of money to China/Taiwan but they pulled a little product line magic and move those knives under different brand names. Still produced by the company, just a different marking strategy.
*Protectionism! The American Way! B&M knife stores are generally right up there with gun stores in regards to poor customer service, outrageous pricing and piss-poor product knowledge. Why would anyone want to support such a business? If they can't adapt and overcome they're going to fail. Why would the policies of one knife company save them?

 

[Doc Pringles]

Why does it make you think less of them? They want to know that their dealers are serious about representing the brand and customers have access to full line of BM products. I think it's pretty reasonable.

I agree. Inventory is the backbone to a reliable distributor. In addition, $10,000 for a top seller is not large. Most stores that sell knives, outdoor gear, guns etc have hundreds of thousands of dollars in inventory. It's the price of doing business and these are the businesses that STAY in business.

I have emailed Benchmade over 20 times through the years. They have returned every email. When I call, they can’t seem to do enough for me. “We’ll be happy to pay shipping both ways and while your at it send any other Benchmades you have and we’ll clean them up, tune them and sharpen them so we can ship them all back to you at the same time.” This is the response I get all the time. Not to mention the repairs they do are above warranty service. Even when I clearly state that the knife in question was mangled by my tinkering. NO CHARGE EVER!! Forget to send $5 return shipping, Get us next time, they say.

This is why antidotes with poor warranty service are puzzling to me.
As far as other issues, I feel some are more valid.

BTW: Their prices have increased about 2% this year.

 

[VR4]

I'm surprised this thread made it to four pages without anyone actually visiting Benchmade's website...

From their site:
REQUIREMENTS:

1. A "brick & mortar" retail storefront open to the public at least 8 hours per day, 5 days per week
2. An opening order consisting of at least 12 different SKU's (Stock Keeping Units)
3. Credit application and Federal Tax ID number
4. The ability to market the differences between Benchmade product and the competition

source: http://www.benchmade.com/dealers/benefits.asp

 

[Stainz]

My local pusher recently got another $10k of B-Ms - it aint many, that's for sure. Consider this year's Gold Class 551 Grip, actually, an 'entry' AXIS lock knife dolled up, is 'just' $400 MSRP - some Gold editions are much more. Figure in a 710 D2 at $165, a 760BK LTi at $270, and a new 741 at $180, and you are at $1,015 MSRP for one each. Some knifemakers have a 50% cost - plus s/h. So, if you figure $40 s/h & insurance, your bill for nineteen of each and s/h would tickle $10k - it aint much - and there are a bunch more good selling B-Ms in the 2010 catalog. It would be easy to get $10k of B-Ms in stock - and you wouldn't come close to a hundred knives, either (76 in my example!).

Obviously, I'm a Benchmade fan.

Stainz

 

[FlaMtnBkr]

I'm surprised this thread made it to four pages without anyone actually visiting Benchmade's website...

From their site:
REQUIREMENTS:

1. A "brick & mortar" retail storefront open to the public at least 8 hours per day, 5 days per week
2. An opening order consisting of at least 12 different SKU's (Stock Keeping Units)
3. Credit application and Federal Tax ID number
4. The ability to market the differences between Benchmade product and the competition

source: http://www.benchmade.com/dealers/benefits.asp

That is what I said in my first post, post #15, although I was going from memory. That is what I was told when I looked into becoming a dealer 2-3 years ago.

 

[Horizon_Seeker]

I was at the SHOT show and talked with Benchmade reps, straight from the source, most important factor:

1) brick and mortar store
2) 12 SKUS

so a 10K minimum is not required to become a BM dealer, but the B&M store could cost quite a bit to set up if you are just getting started.

 

[Bastid]

More suitable for GB&U.

Seems like a few of us need to brush up on our business knowledge.
This trial by net is proof .

 

[speedfan]

GB&U?

At any rate, glad to see the dealer was mistaken/exaggerating on BM's side of things, less glad to see that he gave me misinformation on his side of things.

 

[2brothers]

More suitable for GB&U.

Seems like a few of us need to brush up on our business knowledge.
This trial by net is proof .

No kidding. That's why I stated "I was told this back in the 90's"
That's 20-year old info.

 

[Bastid]

GB&U?

At any rate, glad to see the dealer was mistaken/exaggerating on BM's side of things, less glad to see that he gave me misinformation on his side of things.

Uh yes. This discussion is not about knives. It is about the business practices of a knife company. The General forum is for knife discussion, not trial by internet of a knife company. Huge difference. This is where the thread belongs.

 

[speedfan]

Uh yes. This discussion is not about knives. It is about the business practices of a knife company. The General forum is for knife discussion, not trial by internet of a knife company. Huge difference. This is where the thread belongs.

LOL, I wasn't challenging your statement. I don't know what GB&U stands for.

 

[dericdesmond]

*They have made it so that if you want to sell Benchmade knives you must run a brick and mortar store. This GREATLY helps your local mom and pop shops and puts the ball in their court. Today many internet companies buy huge sums of knives and sell them from home or a small office therefore eliminating overhead and can therefore sell the knives for much cheaper. Now after their stocks are depleted these storeless internet sites will be no more (As far as Benchmade goes). Finally the small American stores will have a chance.

Best post.

Power to the real DEALERS!!!!! Not these e-leeches w/ there undercutting .5% profit margin that makes REAL dealers look greedy. Its easy to offer low prices when you dont offer a TRUE service or have overhang costs. I wasnt big on BM, but this move has better positioned them in my small mind, props BM.