Benchmade Inflation

[GronK]

You are absolutely correct. I calculated profit margin instead of markup. Old habit

Them percentses can be tricky. An old boss of mine manufactured light industrial machinery. When asked he would say he worked on 10% mark up. He spent $4k building them and charged $40k each.

 

[rajincagin]

Ten years ago, I bought a benchmade 42 for $180, last year I shelled out over $300, what the heck BM?!?!?!

 

[GronK]

Ten years ago, I bought a benchmade 42 for $180, last year I shelled out over $300, what the heck BM?!?!?!

As long as you are willing to pay it they will charge it!

 

[SaintlyBrees]

Thanks - I actually don't have any trouble seeing that work there. Hand-work items tend to be more unique and harder to compare. Production knives are a little more commoditized, I think? You can more easily compare materials, features, etc., and when you do, I have doubts that Benchmade can move the marque up-market.

We sure agree on that point. I think BM is trying to apply marketing techniques that won't translate well in this particular market. But it may take quite a bit of time to see the full effect since we aren't privy to BM's financials.

But I'm wrong about things all day long.

Heh. Me too. I'm old enough that I passed the "I'm always right" attitude long, long ago.

 

[blame it on god]

Have to be careful making comparisons. These two knives are very different. There is a reason why the 940 has been consistently sought after for at least a decade I believe. Great designer, super fit and finish, nearly a 3.5" blade, axis lock, and all that at 2.9oz! It's a pocket carry dream and MADE in the USA. I'm not knocking the Domino, but it's another leaf blade in the mix of many while the 940 is absolutely unique.

Good point, see below.

Yeah but I could have the full titanium zt 0801 for 12 bucks more or the aluminum zt 0770 for 35 bucks LESS!

Or the 700 for only $100.

You certainly can and that list would go on & on. I only paid $125 for my NIB 940 and admittedly would not likely pay $178. I was only referring to the quality & uniqueness of the knife.

Let's hope when the bean counters at Benchmade come up a few beans short, they will make some adjustments. :thumbup:

I paid about the same for mine. And it's a stunner for that price. But now at $178. I just don't think it's there. And only time will tell about what this does to their business.

But their current offerings that I don't already own don't really compare to the competition after the price hike to us.

 

[anthony cheeseboro]

I am disappointed by Benchmade's policy, but as long as other maker's allow discounts on knives of similar quality, I live without buying anymore Benchmades because full MAP is something I won't pay for a factory knife anymore.

 

[Wolverine666]

I don't like it.

 

[dkb45]

My question is simply who thought this was a good idea? You can buy a Spyderco or Kershaw at around half MSRP, but you can usually only get a Benchmade for a little under MSRP. How is that a good business model? Why would I buy a BM 710 when I could also look at a Spyderco Paramilitary 2 or ZT 350, both of which are significantly cheaper with roughly the same MSRP?

 

[RamZar]

My question is simply who thought this was a good idea?

Perhaps it was decided by a committee of one!

Regardless, what's done is done and unless/until Benchmade sees the financial repercussions of this "decision", to enforce MAP pricing, I'll remain on an indefinite standby except for some exclusive / limited edition runs like the Contego 810-1401.

 

[cncpro11]

Benchmade will be fine I imagine, once people get over the initial shock.

Look at Emerson; one blade steel, one handle material, one lock type, considered overpriced and yet they sell a few hundred thousand knives a year and many are extremely hard to come by. Benchmade has a (imo) superior lock, larger variety of materials, and (again imo) better fit n finish to go along with the high price.

I may be wrong, but I doubt that a few people on a forum threatening to quit buying Griptilians is going to affect their bottom line.

 

[Mannlicher]

I have sworn off benchmade since all this happened. Their attemtps at making more money has only made them lose customers, not 'brought the value of their product up'. Theres thousands of quality knife companies, theres no reason to be swindled by a multi mullion dollar company.

What ya bet that BM is also facing price increases. Damming them for trying to stay in business is childish.

 

[kreole]

Benchmade will be fine I imagine, once people get over the initial shock.

Look at Emerson; one blade steel, one handle material, one lock type, considered overpriced and yet they sell a few hundred thousand knives a year and many are extremely hard to come by. Benchmade has a (imo) superior lock, larger variety of materials, and (again imo) better fit n finish to go along with the high price.

I may be wrong, but I doubt that a few people on a forum threatening to quit buying Griptilians is going to affect their bottom line.

Emerson is polarizing because of that, because they cost a lot for their fit/finish/materials. A lot of people don't buy their knives for that reason. That previously wasn't as true with Benchmade.

Also, Emerson is a smaller company. Benchmade can't live on an Emerson number of sales. To a degree it's like saying to improve perceived value, Ford would be ok marking their cars up to Lamborghini-level prices because Lamborghini does well--when Lambo only makes like 2000 cars a year (not an apples-to-apples comparison, but hopefully you get what I'm trying to say).

Maybe it won't affect Grip sales because it's still on the cheaper end of their spectrum, but once you push that $100+ mark, you're looking at people who in general know a thing or two about knives or research purchases beforehand (else they don't know why a $100+ knife is worth its price vs a $20 knife). That's where the trouble will come in, and if Benchmade is trying to push up their prices to improve perceived value, then if the value isn't there, the consumers in that section of the knife market are going to be what gives them trouble. That's my guess anyway

 

[cncpro11]

Emerson is my favorite knife company, but did you actually just call them the Lamborghini of the knife world?

 

[fetzer85]

My only guess is that they think they're making enough sales at retailers charging full MSRP that the hit they'll take from this will have an insignificant impact.

 

[kreole]

Emerson is my favorite knife company, but did you actually just call them the Lamborghini of the knife world?

Nope, that's not how I used it in the metaphor

 

[sunandsteel]

They do what they have to do to stay in buniness, and I do the same to keep money in my pocket. They charge more and I compensate by waiting longer to buy while saving, and just not buy as many knives. I can live with a few less knives if it means more money in my pocket.

 

[kvtcomdo]

When I began "accumulating" knives I really liked the BM products and felt them to be a great value due to the discounts.

Their value has definitely changed with the change in pricing strategy.

It will affect my future purchases.

 

[Scurvy092]

Benchmade will be fine I imagine, once people get over the initial shock.

Look at Emerson; one blade steel, one handle material, one lock type, considered overpriced and yet they sell a few hundred thousand knives a year and many are extremely hard to come by. Benchmade has a (imo) superior lock, larger variety of materials, and (again imo) better fit n finish to go along with the high price.

I may be wrong, but I doubt that a few people on a forum threatening to quit buying Griptilians is going to affect their bottom line.

Emerson sells a few hundred thousand knives a year without being in any big box stores???

Is that a guess?

 

[fatheadhill]

What ya bet that BM is also facing price increases. Damming them for trying to stay in business is childish.

But Mannlicher, the new pricing edict Benchmade has enacted will not make them more money. They're simply telling dealers that they can no longer sell to consumers at discounted prices. They're not charging those dealers more for the inventory they buy from BM. This policy does not/can not equate to more money in BM's pocket. It does, however, alienate a large portion of their base customers IMO which could, and probably will, actually end up making them less money.

I don't think any of us would be complaining if BM would've raised prices slightly due to increased production costs, but this simply is not the case. I don't know if they're trying to artificially inflate the value of their brand, or if this is an odd strategy to even the playing field among their retailers, but in the current economy where money is tight it seems like a bad idea, or piss poor timing at the very least.

 

[anthony cheeseboro]

But Mannlicher, the new pricing edict Benchmade has enacted will not make them more money. They're simply telling dealers that they can no longer sell to consumers at discounted prices. They're not charging those dealers more for the inventory they buy from BM. This policy does not/can not equate to more money in BM's pocket. It does, however, alienate a large portion of their base customers IMO which could, and probably will, actually end up making them less money.

I don't think any of us would be complaining if BM would've raised prices slightly due to increased production costs, but this simply is not the case. I don't know if they're trying to artificially inflate the value of their brand, or if this is an odd strategy to even the playing field among their retailers, but in the current economy where money is tight it seems like a bad idea, or piss poor timing at the very least.

I think that this is more about Benchmade trying to maintain some sort of image than anything else. I don't buy the bit about protecting brick and mortar dealers. I would be willing to bet that Benchmade makes more from internet dealers than little gun shops or hardware stores. My guess is that even stores like Cabelas make way more money from their under $40 knives than Benchmade.

More to the point, dang near everybody can sell online these days with a little effort and investment.