Benchmade Pricing - update

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Apr 26, 2007
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Here's what I heard from a reputable dealer.
Benchmade no longer distributes to THIRD parties - no middle man.
If your store buys from Benchmade and they advertise the MAP price, they're good.
If your store buys from a distributor, you're SOL.
Maybe that's old news, if so I didn't look too hard. And really, it doesn't sound all that bad.
 
I guess it all depends on what the MAP is going to be. Chances are though, its going to be a bit higher than what we could have gotten them for not too long ago.

Whatever happened to eliminating the middleman, and getting lower prices?
 
I guess it all depends on what the MAP is going to be. Chances are though, its going to be a bit higher than what we could have gotten them for not too long ago.

Whatever happened to eliminating the middleman, and getting lower prices?

There's already a MAP. Some websites make you add the item to your cart to see the actual purchase price.
Also, on the two websites I frequent for knife purchases, I don't see any price change and my orange Grip is $62.50 plus shipping.
 
Prices of Spyderco and other companies knives have also gone up.. I am not to worried about my future with purchasing BM products!
 
If new Benchmades become available only at their current MSRP then I won't be purchasing any more of them.
 
i have never paid MSRP and i never will for anything....for benchmades or others. and i damn well love benchmades
 
Middleman = Drop-ship.

They don't stock or touch the merch. They just take your money for placing your order. At least that's how I understand it to be. I'm sure it gets more involved than that but...

Gibby
 
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a BM Rant DPT I was looking at getting at $46 just went up to $56. after shipping, id rather just save a little more and get something better.
 
Here's what I heard from a reputable dealer.
Benchmade no longer distributes to THIRD parties - no middle man.
If your store buys from Benchmade and they advertise the MAP price, they're good.
If your store buys from a distributor, you're SOL.
Maybe that's old news, if so I didn't look too hard. And really, it doesn't sound all that bad.
sure, less competition is always good
 
The fact that there will be no middleman will not bring prices down. Benchmade are doing this so that their brick and mortar stores will not have to compete with internet pricing. B&M stores have to charge more to cover overhead, so in my opinion, prices are going to got up and availability is going to go down. Time will tell.
 
I think the B&M's were already having a problem with BM's policies. My local store can always meet internet pricing, and makes it a point to do so. The problem has been to buy Benchmade or Spyderco, they have to buy into the whole line. A toe in the water to get their market started without taking a bath on thousands of dollar's in locally unwanted merchandise stalls a lot of storekeepers from buying in.

That policy keeps BM's pricing up a lot, too - if you do want to buy one local, you pay, no discounting, and not so close at all. My nearest BM dealer is Bass Pro in Springfield, a good 65 miles away. Same for Spyderco. I used to get them here from my knife dealer, but he won't be coerced into it anymore if it's all or nothing.

So, BM not offering thru distrubutor's is just more market consolidation to me. They were already doing it long before.
 
First - I too am a Spdyerco follower, only own 2 Benchmade knives with no plans for a third.

I think Mr. De Asis believes by eliminating Dealers (and that is exactly what the ultimate gaol of these changes are) he will;
- Increase future profits for his "loyal" Dealers
- Drive more people to his own door (I don't believe this but maybe he does)
- Increase Long term value of BM knives (secondary market)

Here are some some other criteria that BM will most likely put into place for those that hope to remain Dealers - this might include but would not be limited to;
- Large Minimum Order requirements
- Stocking requirements (must maintain at least $XX amount of Stock)
- Minimum purchasing of each "Class" of knives (Must purchase so many Gold Class when ordering - not just Stock Red Class, etc)
- Minimum Annual or semi-annual purchasing requirements (purchase at least $XXX amount semi-annually or you're out)


The policy of forcing "Minimum Advertised Pricing" (again to eliminate Dealers) eludes to more profits for the remaining Dealers. However, some Dealers will also find ways around the MAP pricing policy. This might include;
- FREE Shipping
- FREE (lower quality knife) when you purchase a Benchmade at MAP
- Discount on additional Knife purchase when purchasing a BM at MAP
- Receive a LOWER than MAP price when you "Register" with that Dealer (thus the Lower than MAP is not really ADVERTISED)

BM may also reduce production (further) until they feel that the market has accepted the changes.

When companies do these types of things they are trying to take control of the "Supply and Demand" equation - swinging the pendulum back into their favor. Some do well with this strategy (Busse, William Henry, Microtech) others not so well.

Overall this will decrease sales for the company (short and long term) and only the "Core" Collectors and high end knife buyers will follow them. However, the Company will then only have to introduce 1/2 of the new models they used to have to come out with and possibly charge more for them.

I guess we will have to wait and see if BM sinks or swims. One thing is for sure, this should increase the sale of Spyderco knives as those seeking a Quality affordable alternative are driven away from BM.
 
It is still obvious that a lot of the larger volume internet knife shops will still carry the Benchmade line since many already have the new models listed and the prices seem to have only gone up slightly. I just bought the orange BM grip 551 for $67.95.
 
I will not pretend to know what kind of profit margins are in knives, but it can't be to high. And any one selling knives would have to sell a huge number to pay the bills and stay in business. Just think about the costs in doing business. All of them. No one gets into business just to pay the bills, you have to make some money. Personally, I'm glad to see BM making a bold step toward tightening their ship and eliminating dealers that want to whore their product out. Seems alot of people want something for nothing. You simply can't buy a quality product and expect to get top service if there is nothing in it for a dealer. Period! When a company eliminates non-authorized dealers and dealers ruining it for others by whoring product out, it makes dealers look at brands they can make more money on.

If people like to buy from small dealers that offer that more personal feeling in a transaction, then they must understand this will only help those dealers out more by evening out the playing field a little. I run a small locally owned bedding store. I do not compete with the shear volume of business that a chain operation does, so I have to make up for it in offering a much more complete package. Better service, free delivery, free sheet sets or pillows etc. My store has been in business for over 50 years. But we are surely feeling the mess with the market. Don't think your favorite places like New Graham, PVK and many other smaller dealers are not being effected as well. This, can only help them.

Hopefully, other manufactures will follow suit and the whole " Can't beat our price" mentality will fade.Then, people will look to being concerned with the whole buying experience. Today, it seems we have gone to mostly disposable goods and this is due to dealers who really do not care what they sell products at. That also encourages importing some, not all, but some crap made in 3rd world countries instead of taking care of legitimate manufacturing. Whether the companies are in the US or elsewhere, we need to be concerned where its coming from.

I look at the thread here asking the ? about who is concerned with morals and remember also about how people were all about supporting the slightly higher prices of AG Russell. I don't mind spending a little more for everything I expect to get in a transaction.

If you would like another example. When I ran an Audio/Video Retail store, I seen profit margins fall on TVs and the like. Much of it was due to the internet and places like Wal-Mart driving the margins down way below 10%. And that is before you calculate in freight and advertising as well as other expenses. I seen many businesses fall within the last several years including 25+ store chains.

If pricing becomes more normal, not gauging or slashed to bits, but fair pricing for all involved, its only going to help stablize the market and save jobs. We just have become so sensitive to pricing.

mnyshrpknvs
 
Don't think your favorite places like New Graham, PVK and many other smaller dealers are not being effected as well. This, can only help them.
New Graham hasn't been able to buy from BM for quite some time. BM was rather miffed at the great prices NGK offered on their products (so much so that de Asis walked away from Mike Dye when Mike approached him about it, IIRC). Michael Dye has been doing what he can to keep BM knives in stock, but now that he can't get them from a distributor, and was already unable to order direct, I don't see how this move is helping him unless he agrees to change his business to suit one manufacturer.
 
New Graham hasn't been able to buy from BM for quite some time. BM was rather miffed at the great prices NGK offered on their products (so much so that de Asis walked away from Mike Dye when Mike approached him about it, IIRC). Michael Dye has been doing what he can to keep BM knives in stock, but now that he can't get them from a distributor, and was already unable to order direct, I don't see how this move is helping him unless he agrees to change his business to suit one manufacturer.


I wasn't aware of that. But the example was meant more to get people thinking of how some of these seamingly unpopular business practices can help out their favorite small dealer.

Each person really needs to look deep and ask themselves if they want the ma and pa stores to survive this mess or would they like all the retail markets to be owned by these buying/selling giants like Wal-Mart thet have no customer service, very little to no ethics all in place of price.
 
Makes no sense to me. By cutting out distributors, forcing each dealer to work directly with the manufacturer, BM has eliminated the New Grahams who used to be able to help out a customer. BM also eliminates the dealer who only wants a distributor to supply them with the few models they know they can sell. Big Brother is never watching you for your own good.

I'm not sure we've gotten the real word on what's going on and what it will mean to us, but it doesn't sound encouraging at this point.
 
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