Busse Business Model Question

J

Jagged

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Aug 15, 2001
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OK I have a business degree and have collected knives for a few years now. I also understand supply and demand and all that. As one who bought a Busse Steal Heart long ago for about $325 and traded it off for other knives worth maybe $450 some time ago and now sees the very same model selling for $1,200... I'm thinking I should have bought several cases of them and put them in storage. They've done much better than my customs.

Other than kicking myself, I'm also asking myself from a business perspective why Busses have appreciated in value like they have. I realize Busse changes the knife models fairly often so there is a limited number of each edition. I realize that they are a good knife and that the knives have a solid well backed guarantee. I realize that Busse has a strong internet presence.

All that said, I still can't understand why the Busses (or the Striders) generate so much passion among the public or why the selling price has appreciated as it has. I'd like to be able to replicate it so that all of my customers (health field) have the same passion about getting services from us as Busse customers have about the Busse knives.

Can someone help explain to me the whole phenomena?
 
There is a mystique around the knife's material - "infi" - because of it's secret origin and mysterious heat treat process.

It's because of this mystique that everyone wants more of these knives.

That's my take.
 
IMO Jerry Busse is a genius of design and marketing. And the INFI really does perform as advertised, which helps immensely!
 
i think you answered your own question. but:

1. the ways to purchase a busse knife are unique to the industry. it frustrates some, but most of us enjoy the chase.

2. customer service is second to none. many companies have good, or even great, service. none i have found compare to busse combat.

3. the overall number of available knives is somewhat limited. they are basically made to order. yet one has so many variations in handle material and finish to choose from, that the number of combinations for an individual style is unmatched by any other company.

4. there is a comraderie here that you are unlikely to find anywhere else in the knife world.
 
Grimspoon said:
There is a mystique around the knife's material - "infi" - because of it's secret origin and mysterious heat treat process.

It's because of this mystique that everyone wants more of these knives.

That's my take.
Click to expand...

infi is proprietary, but the make up of the steel has been posted many times. no secret there.

the heat treat is kept under wraps, and it is this that truly makes the steel proprietary.
 
They're all right so far.

I think the majority is the marketing and design. People want what they can't have, then when the gates are opened they pay the price. Then you order one and you have to wait, so you grab one off of Ebay and are willing to pay whatever price because you want what you can't have.

Plus, they look good. Probably the best looking fixed blade knives on the market.
 
Jerry Busse is a genius. He's developed a business model that never ceases to amaze. Every aspect of what he does, from the knives themselves, to the sales, the customer support and the community that has grown around his company, is tailored to make and retain a rabid customer base.

To replicate the success that Jerry currently enjoys would take a similar level of understanding of your customers. I don't think you could take his business model and apply it directly to anything other than his product and expect similar success. But a smart business owner would be wise to look at how he runs his operation, and more importantly, the philosophy that underlies it. Jerry is very good at giving customers what they really need- not what they say they need, or what they think they need, but exactly what they need to become his customers, and to keep them happy once they "enter into the fold", so to speak.

And what Jerry DOESN'T do is of equal or greater importance to what he does do. There is a reason why he doesn't make sheaths. There is a reason why he doesn't produce the folder, even though people are screaming for it. And there is a reason why he chooses to interact with his customers in such an interestingly cryptic manner.

On top of his amazing business instincts, Jerry is an extremely gifted designer. He has an eye for restrained, purposeful line that is unmatched in the knife world today, IMO. As an artist and a designer as well as a knife knut, I am very interested in knife design. It is a lot harder than you would think to design a truly beautiful knife. And Jerry is the best fixed-blade designer I have ever seen. The only equivalent production-knife designer who is even close to matching Jerry's skill would be Spyderco's Sal Glesser. And Sal mainly designs folders. If you have great design, great materials, great customer support, and an honest desire to provide your customers with an enjoyable experience, you will be successful. People always mention "marketing" as key to Busse's success. But if you think about it, how much "marketing" does Jerry really do? How many ads do you see him buying? He has a strategy, obviously. But at this point, his company seems to market itself.
 
The reason why values are so high is because of the following:

Demand is greater than supply, especially true for the past lines.

Product performs as expected which is unusual in this industry full of hype and BS.

The new designs aren't as much improvements as they are variations, hence the older knives are just as or even more desireable.

The steel is no mystery. It's chemical analysis is well known, it's the way the steel is made and HT'd that is kept guarded.

The old line is especially desireable, because it is the line that made the INFI reputation. The early INFI made it's name in public demonstrations.
 
First, if you could warranty your health care like Jerry or Jennifer does their knives that would be a big start.

BUT !!!!!! Before that happens, you have to show that your stuff rarely if ever needs such a warranty.

If I could treat my RA or heart problems like a Busse or Swamp Rat with only coating wear as a concern, I'd jump on your stuff like white on rice.

Whatcha got?

Rob
 
good points moonporker!

the most notable things jerry does not do:

he doesnt bash other makers or their products. there are no comparisons. he never says "buy ours, not thiers".


the products and company stand on their own merits, not on the failures of others.
 
My fleabrained opinion -

Busses fire off the pleasure center in some folks' brains, for whatever reason or combination of reasons - the look, the marketing, the performance, the difficulty in getting one, the online network of groupies, etc.

It seems nutty to some, but I enjoy seeking people enjoy life. It beats sitting there on the couch watching Sports Center, counting away the days to the boneyard.

Arc flashlights do the same thing for me, as nutty as that sounds too. I've spent hundreds of bucks collecting and using them. The look, the build quality, the performance, aesthetics, etc. So though I am waiting on my first Busse (and may grab another at Knob Creek in April), I can relate to the kind of neurosis that infects one when it comes to collecting and using such things. Arc collectors look for darkness. Busse collectors look for things to chop. Its all good.

JMO. :thumbup:
 
MORIMOTOM said:
good points moonporker!

the most notable things jerry does not do:

he doesnt bash other makers or their products. there are no comparisons. he never says "buy ours, not thiers".


the products and company stand on their own merits, not on the failures of others.
Click to expand...

Very true:thumbup:
 
MORIMOTOM said:
good points moonporker!

the most notable things jerry does not do:

he doesnt bash other makers or their products. there are no comparisons. he never says "buy ours, not thiers".


the products and company stand on their own merits, not on the failures of others.
Click to expand...

That's absolutely true. I totally agree with that.
 
That is one of the reasons why I love where I work...


As a Customer Service person I know each and every one of you...


If it was a company that massed produced tons of blades and someone calls up and orders from a catalog....I really do not think I would work there. I feel that each blade that is ordered is a custom(we only produce what is ordered) and I think it is why Busse is what it is.

My 2 cents but we really try to make each and every one of you HAPPY:):)

and how many places do that...really...Just saying:)
 
Oh another thing....


We really do have the best Customer service in the world:D:D:D
 
BUSSE provides! Let me elaborate on this:

1) Busse knives come with a warranty that is second to none.
2) INFI is a steel with phenomenal overall performance!
3) Busse knives are unique! How many knives have you seen that are so much different in their appearances from others as a Busse knife is?
4) Handle them! Their handles, regardless of the type are like nothing you will find on the market, either production or custom made.
5) It is a company that makes production knives that can put to shame many custom made knives costing much more.
6) Although Busse knives are mostly production made knives (vs. custom-made knives), customer have the ability to order them with the blade finish and the handle type they prefer.
7) They come in limited runs. That increases their rarity and of course their value over time.
8) One can have a completely custom-made knife the way they want it.
9) Jerry Busse, The Boss (he truly deserves that title) is as solid of a person as his knives are. How many times would you find successful businesspersons of the caliber of Jerry's to pick up the phone and talk to their customers in person?
10) Jerry Busse listens to his customers. Period!
11) They have more value over time than JWB! Who can beat that :D?

I collect Busse knives for all the above-mentioned reasons. I own quite a few, let alone the Swamp Rat's. As I am sure you realize, there have to be good reasons for which you will people with repetitive purchases. That means something.

You mentioned that you are in the health field. I have worked there for quite some time (you see, my first degree is in Biology). How many times have you encountered these qualities? I think one needs to ask what their core competencies are. Once you find that, everything else will follow. One also needs to be humble and down to earth and honor the faith their clientele has in them. You need to be good at marketing (that's why I got an MBA too :)). Look at the list that I put together above. You will find that everything is there:
Core competencies: knowing what their business is. Busse business is making knives. In fact, some of the best knives money can buy. What do they need to do that? They need a fantastic steel with the proper heat treatment. They need ergonomic handles suitable for the knife's intended purpose. They need solid handle scales. They have scored extremely high in all these fields.
Jerry and all other people at Busse Knife Company will talk to you and will treat you like friends, not like cold-hearted businessmen. They honor the money we give to obtain their knives by making it right if need be. And yes, their marketing kicks @$$! If you take into account all these factors, you will see that one should have only wondered in case Busse wouldn't have enjoyed the success they do.

My $.02.
 
To appreciate knives in general and Busses in particular requires a large component of customer input. Knives are changed, improved, used, destroyed and, not unimportantly, replaced if they fail;which they do not often do. I don't see how this could be replicated in a field dealing with services or many other products. And Busses are COOL!!!
 
Hear is my observation
1) Quality
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20) Quality
21) Customer services
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30) Custmer services
31) Demand generation (Ganza, let customers know what would be next released model, HOG society, Bladeforums....etc.)
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40) Demand generation
 
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