3Guardsmen said:
Manufacturers build things, whereas marketing firms market things. Can you at least sort of understand?
From the prospective of a broom pusher type, this makes sense. Broom pusher wants a fried egg. He could cook the egg, or go the diner. Broom pusher goes to the Diner and orders an egg. Life is simple. Broom pusher has no idea of lifecycle management. From concept, design, production and support.
Life in the Kitchen is a lot more complicated, and the Guy managing the Diner has to order commodities, train the staff, pay the staff, pay the rent, balance schedules, ensure that everyone is working and coordinating, and plan for tomorrow. New recipes, worn out equipment, anticipate the market. Broom pusher never sees this. Broom pusher just orders an egg, and gets an egg. Life is simple, an egg, sunny side up.
So why should everybody own their own knife factory? There are risks in owning and operating your own little factory. Capital equipment, safety, human factors, zoning, transportation, environment, crooked politicians, material, local laws and labor unions that may go on strikes. And then there is the cost of buying your own factory. Broom pushers can understand the $3.00 for that egg, but how many can dig down into their pocket and come up with 20 or 30 million dollars to spend before their first knife is made?
Then there is the learning curve. Why build your own knife factory when there are cutlery manufacturers out there who have skilled people and an enormous amount of money invested in equipment. ? Building fine knives is a skill, and it is a different skill than, lets say, building brooms for broom pushers. Why not start out with someone who knows what they are doing?
What a Broom pusher type does not understand either is that there are risks in subcontract management. Many a better man than a Broom Pusher has gone bust because the subcontractor could not fulfill the contract. To attempt to describe what it takes to build a successful subcontractor relationship would be tiresome, but even if you have a successful design, getting it built is a very difficult endeavor . You really have to scope out the skills, facilities, understanding, past, present and future of your subcontractor. And then, you have to bring big, big, dollars with you. More money than any Broom Pusher could ever take to Vegas, and once it is down on the table, well just hope the wheel comes up your color.
As we have seen, Cold Steel had a skilled subcontractor, Camillus, and that manufacturer went bust. If you read the press reports, Cold Steel had several million dollars of their equipment in that factory when it shut down. Equipment is not free, and when equipment is not making money, you are losing money. The tax man still wants taxes on the unappreciated value of the equipment, and the bank still wants their loan money, and all that money in raw materials, finished materials, was just sitting on the docks.
Make or Buy, that is a business decision.
But what really is shown in this thread is that no matter what Cold Steel does, the Clan of Cold Steel Haters will revile and hate Cold Steel. They simply manufacture their own reasons to justify their hate. I suspect their biggest problem is that Lynn Thompson does not get down on his knees and kiss their little derrieres every day. Well it ain’t going to happen. They will have to live out their insignificant lives as howling voices on the internet. :yawn: