Dealers get discounts ????? Whoa
Dealers get 40% off ???? LOL
2, someone has been pulling your leg.
The "Standard" dealer discount is in a state of flux right now. Due in large part to the makers having their own web site.
If a dealer is going to merely take a picture and put the knife on their web site. They really aren't helping the maker that much. However, if the maker does not have a web site, then it could have a huge impact.
Some makers view a dealer discount as the main part of their marketing plan. As such they view the "dealer" discount as their advertising budget.
Much like makers, dealer have specialties. It only makes sense that a maker would work with a dealer who carries their type of knife. Then again if they are looking to move into new markets they may want to work with a dealer who can introduce their knives to a new collector base.
Makers have a lot to consider. Just because a dealer sells some custom knives does not make them a custom knife dealer. Those who sell both factory and custom knives are knife dealers. Its tough enough to have your custom knives competing with the other custom knives. When you throw in the factory knives, it can get real tough.
Here is an example from the "real world". Accura and Honda are made by the same company. However the Accura is a more expensive car with more upgrades. You will note that Accura and Honda dealerships do not share the same lot? Where I live they are on opposite sides of town. Why is this?
Because the temptation would be if the sale of the Accura is not going well, the salesman sensing a "price point" problem would then walk the customer over to the Honda cars.
In other words the dealer could be tempted to show the client a less expensive knife.
Next, attending shows and setting up at shows are two different things.
Part of the discount a dealer receives should compensate the dealer for taking the makers knives to shows they don't normally go to. This saves the maker both time and money while at the same time having their knives put in potential new clients hands.
A dealer just walking around the show will not have the same impact as they are not putting knives into collectors hands.
As with makers, dealers have positions in different markets. This position is enhanced by that dealers ability to influence that market. This can be done by the shows they attend, the amount of makers they work with in a market sector. Then there are intangibles, such as doing seminars for collectors, judging at major shows, writing articles for magazines and or being interviewed by the magazines because they are viewed as a "SME" Subject Matter Expert. Develop their own line of knives and write a book on collecting custom knives.
The question for the maker is simple in theory and more difficult in execution. Each maker has to decide how much the dealer can influence their sales in a particular market and/or help that maker move into new markets.
Do makers give deals to special customers....YES. Do they fit them into a schedule ahead of others....YES. Why, because they are consistently buying knives year after year.
A new customer costs 20 times more than to keep a repeat customer.
Just like makers will sell knives prior to the show opening? Contrary to popular theory, no one forces them or makes them do this. They do so because they understand that nothing is guaranteed at a show. Consequently, if they can recoup some or all of the "show expenses" they will do this. Remember, only a maker can make the determination to sell one of their knives before a show opens.
Individuals selling knives can find the after market a daunting place. You have a lot of factors working against you.
1) Most buyers don't know you...maybe your screen name...but not you personally.
2) Many sellers want a MO sent to a PO Box before the knife ships. Now see rule #1.
3) You are probably not set up to take credit cards. Paypal can help, but not everyone uses that...I know I don't. I only need to be screwed once to learn my lesson.
4) Most buyers expect you to sell the knife at a lower price. They have been trained right here on BF. Watch a knife put up on BF For Sale Forum. Now unless it is something hot like a Hinderer XM-18 or an RJ Martin Q36. You will watch the price slowly come down. Everyone has learned you never pay the first price, or you immediately counter offer.
Dealers will take knives on consignment with a 20 - 30% fee.
It is up to each knife owner to determine if that is fair.
Hope this helps,
Les Robertson
Custom Knife Entrepreneur
www.robertsoncustomcutlery.com
