Damn knives are too expansive!

[cerulean]

Obviously, I need to clarify to prevent more tangential posts on the figures I gave.

If it cost $20 to make a knife that sells at $100 that company is not going to make a lot of money. After you factor in the factory, workers, managers, execs, marketing, packaging, shipping and insurance as well as other costs for development or percentages to designers I think we are talking quite a small margin.

When I said "make a knife", the term "make" related to everything that was actually involved in making the knife. In other words, the $20 to make the knife would include factory and workers but not things like marketing or packaging.

Sure, that $200 knife may only cost $20 to produce, but does that $20 include the wages of the people making it or the cost of that $50,000 milling machine, the phone bill, the sales force, electricity, rent, lawyers, etc. etc. etc.

Again, the $20 cost to produce the knife would include wages of the people making it and the cost of the milling machine, but not the phone bill or sales force.

Does it really cost $20 to make a $100 knife? Like I said before, I don't know, but that's the figure I've heard. I'd like to see some evidence though, rather than continue with the speculation. It's going to be hard to get an exact breakdown of a large knife company's financial expenses, but maybe someone who works in the industry can give us a general idea of how the money is spent.

I'm curious to see what the actual cost is to make a high-end folder, but the figure ultimately means very little. Even if a company is making a profit... so what? I can't see any reason to attack a big knife company for trying to make a profit. It's silly to expect them to be in the red every year because they're bending over backward to please you.

 

[Brian_Turner]

Some knives are overpriced at $200, and some are a bargain at twice that.

I think Misko chose an excellent example...

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AKTI Member #A000832

"A man's got to know his limitations." - Dirty Harry

 

[HUNTER3897]

Greg,
I Almost fell on the floor!!!
Phil-read the topic starter a little more closely and you will get it.

Take care,
Jim

 

[edenver]

As a rule of thumb the production cost is typically 20% to 25% of the MSRP. This applies to almost everything sold in stores. There are exeptions to the rule, of course. Why should knives be any different? With that said, always shop around. I have a friend who paid $120 for a knife I picked up for $85. He wasn't happy when he found out. Now he knows where to buy from.

Erik

 

[lifter4Him]

Gee, I thought some of you knifemakers would jump on that comment i made that if figured out at an hourly rate, handmade knifemakers dont make that much.
Shame on you mayo

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Dave (Phil.4:13)

Recent Interview with God

Questioner: God, how could you let those events take place in Columbine High School?
God: You must be confused-I am not allowed in schools!

 

[Gwinnydapooh]

Do what I'm doing--try to make your own. I've got about $5 worth of materials and maybe $10 worth of abrasives like emery cloth and a belt in the knife I'm making--but I've been working on it in my spare time since last summer. Has it really only cost me $15 to get to this point?
I understand the sentiment, there are lots of things out there that are just too expensive for me, and people think I'm insulting the maker or saying that his time isn't worth the price. Well, that's not it for me, it's about knowing what you can and can't afford.

 

[raker]

In 1972, I was fishing on the East coast and
I thought that $3.00 a dozen for blood worms was too high. I still bought some as the $0.50 night crawlers didn't work to well on the fish I was fishing for. And besides in Oklahoma, we could dig up a bunch in just a little while (except when it was dry). This doesn't have a thing to do with knives, just the way that we look at things based on what we know at the time. When I found out how the blood worms were harvested, I felt a lot better. That is a lot of work.
Just thinking about things late at night. Good night.

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Ray Kirk
http://www.tah-usa.net/raker

 

[Misko]

Guys, please keep in mind that I don't know much about knives, and am just starting out, so to me all those prices are WAY too much.

 

[e_utopia]

Ahh, there's the important point, these knives are too expensive to you. That makes all the difference. Personally, I am not bothered by how much the custom(s) me and Jerry Hossom are working out will cost (actually, he could get a lot more for his work, if he wanted to

), but simply know that 'you get what you pay for.' You aren't expected to start off by paying $1200 for a really amazing custom (right now, I don't think I could use a knife that cost that much, so I have no plans to buy one right now). Start simple with something from CRKT (or similar, I'm just impressed with my new Stiff KISS at the moment), and as you get more interested, you'll find yourself thinking 'well, it's only a week's salary; I can afford it.'

--JB

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e_utopia@hotmail.com