- Joined
- Dec 21, 2015
- Messages
- 1,232
By Spiraling up, I mean that we must figure out ways to increase wages so we can afford to purchase without seeking the lowest price. We pay our staff as much as we can, rather than as little as we can. We provide good bennies and as much security as possible. I believe we need to do this as a nation. It does mean less profit, which we have to accept.
Not sure of the question? I don't think you will find many knives produced with high cost steels selling for under $50. A lower cost steel will be much less expensive to purchase the raw materials. But the processing costs can be considerably more expensive. Stamping vs laser cutting for example. The stamping equipment is much less expensive and can punch 5 pcs per second. the laser is much more expensive and may take 10-20 seconds to cut out a blade. That's a 50 - 1 difference in processing time not counting the cost of the laser. The same ratios will be evident in heat treat, grinding, drilling, reaming, polishing, sharpening, etc.
I can't speak too much of European manufacturing, as they don't have to show country of origin. When I did some investigating in some European countries, I found much less manufacturing that I would have guessed, and much more importing that I thought. Importation of both completed products and parts. Far more traders and services in Europe.
If you are going to compare knife manufacturers, especially with high cost steels, There are not many knife manufacturers in Europe making knives with high cost steels of which to compare. Of those that we do work with, I find their costs to be similar to US costs.
I personally question the quality of healthcare from single payer systems over what we provide for our staff. But that's just my opinion. I think that our education systems here could be improved quite a bit, but again, that is just my opinion. We have some great schools here, but not all get to experience them. In my opinion,, "whatever the problem, education is the solution".
Most currency swings are workable, It's the Chinese Dollar /Yuan difference that is too great of a variance to compete against.
I would tend to agree, but I have few facts to be sure. Gail and I began Spyderco with $250 in 1976. We were living in and working out of a converted bread delivery truck. I think it would have been very difficult to do that the same way and be successful anywhere but in America.
"Knives this Good" is a relative value. While I have much respect for Victorinox, Opinel and Mora, any of their knives produced in CPM-S90V would cost 10 times as much, assuming they had the equipment and knowledge to be able to process the steel. It's the cost of the exotic steels and processing same that carries the high mfg cost. Remember, these materials are very obstinate and resist change, so they are more difficult to convert from a raw blank to a finished blade. Also quality and close tolerance becomes more of a challenge. On our locks for the Native, we are holding .0005 requiring a wire EDM for production. I don't think that the above mentioned companies could match that.
I think all countries have lessons to learn. We've learned a great deal from the countries with which we do business. In the end, it all gets down to the end line goals.
sal
Hey Sal,
First off thank you for having a presence on this forum and actually interacting with us. I am very impressed with that. I do have a question. Based on the information that you listed regarding cost of production in various countries, what makes Spyderco choose to build certain knives and models in your Taichung Taiwan factory instead of the US? Many of your models from that factory use S30V and other American made steels that would bring the cost close to what it would cost if you produced the knife here in the US (based on the information provided by you). What goes into that decision other than cost of manufacturing?