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Dealers Discount

A

Ang_Panday

Joined
Jan 10, 2006
Messages
574
I have been receiving inquiries from dealers concerning dealership. How much appropriate discount can be given by a knifemaker to dealers. and what is usually the minimum order required? :confused:
 
I give a 20% to a really top deader such as Knifelegends.com etc. On the other hand if you are a sought after maker, these same dealers will mark up beyond retail.There is nothing wrong with that, as it can take years to get a knife from a sought after maker. Most dealers give me full retali for this reason. Depends on where you are, and where you want to be. Mike http://www.lovettknives.com/
 
Most dealers will only give you 70% of what your asking if they think they can sell what you have for the price your asking.
 
I dont know knives BUT I do sell leather from time to time through a dealer..

He get's 10-20% depending on what it is...Me and him discuss it before hand and he sends me the money...Works for me

btw...

10% is for budget or seconds

20% is for normal stuff


yea I know this doesnt help much, BUT I am watching a David Blane rerun:p
 
Most reputable dealers demand a 30% discount if they are buying outright, and 20% if they are taking a knife on consignment. Dealers also have other costs they sometimes tack on such as a handling fee, photos, etc.

I personally operate off the following guideline for selling to dealers outright (I don't like putting things on consignment):

If the dealer purchases one knife: 15% discount
If the dealer purchases two knives: 20% discount
If the dealer purchases three OR MORE knives: 25% discount

That is the guideline I have established for myself. It is flexible, and dealers may get more or less depending on our history and business relationship.
 
Why give your profit to someone else? Just because they want to make money? What makes them deserving of your money? If you are willing to mark down a knife for a dealer why not just mark the price down for everyone and sell it yourself?

The only way I give a discount is if they buy several knives at one time - three or four or more, or if they are a consistent buyer of knives over a long period of time. Don't give discounts based on promises of future purchases.

I suppose giving a discount on one knife is a good way to sell if you just can't sell any knives. Maybe there is an advantage in that you'll get some exposure - but how much exposure, and is it worth what you paid?

At shows I have had dealers try to talk me down on the price of a knife that was already underpriced. I sometimes think they'd try to talk me down if I was giving knives away for free.

I think that some dealers already have a buyer in mind when they want buy a particular knife. They know that a specific customer will most likely buy the knife that they are wanting the discount on. They have to turn knives over to make money. So by talking you down they are just increasing their profit margin at your expense.
 
R.Coon-Knives said:
Why give your profit to someone else? Just because they want to make money? What makes them deserving of your money? If you are willing to mark down a knife for a dealer why not just mark the price down for everyone and sell it yourself?
Click to expand...

Because you might suck at marketing or taking photos, or communication and the dealer does all that for you. Dont think of it as a discount, think of it as a commission and commission is the best bill you ever have to pay :)

Maybe you are losing $50.00 on a sale, but if you are getting 10X the number of orders,economy of scale will give you back some of that profit anyway.
 
You are exactly right Temp! This is how capitolism works. Its the way buisness works. R. Coon, If thet aren't buying multiples, this isn't a maker dealer transaction in the first place. Just some one wanting a discount. Even if they are a dealer, This isn't a dealer maker deal. There is a huge difference! Mike Lovett http://www.lovettknives.com/
 
Phew! Glad someone agrees, I thought I would catch a laod of 00 in the ass for that. :)

Nice work Mr. Lovett your designs would probably go down well here. :thumbup:
 
Like I said, multiple sales (10x the number of orders - see above) or regular and repeat business. You have to get something back for what you have given up. It makes no sense to just give up profit for no return just because someone says they are a dealer. That is the way capitalism works.
 
R.Coon-Knives said:
Like I said, multiple sales (10x the number of orders - see above) or regular and repeat business. You have to get something back for what you have given up. It makes no sense to just give up profit for no return just because someone says they are a dealer. That is the way capitalism works.
Click to expand...
Yes Sir! THAT Is the way it works. And Thanks Temp! Mike
 
R.Coon-Knives said:
Why give your profit to someone else? Just because they want to make money? What makes them deserving of your money? If you are willing to mark down a knife for a dealer why not just mark the price down for everyone and sell it yourself?...
Click to expand...

There are good points on both sides here, but for what it is worth I am glad to see Mr. Coon's stance in order to balance things out a bit. If more folks would look at all sides of this, some gross improprieties in our business may be eliminated, or at least better understood.
 
Not to be argumentative here, but the same could be said of Michel Angelo. If everyone was the same as him then you would be in the same situation :)
 
Well, it's happened again. A dealer gets all pissed off because I wont give him a 20 - 30 percent discount on a knife*. As usual, the right response finally comes to me - days late. I should have asked him if I were to walk into his store and ask him if I had a buyer for a knife he had, would he give me a 30 percent discount on it so I could sell it and make more money? It's the same thing he's asking of me. I should give up my profit so that he can have it and I get nothing in return? What really sort of irks me is that he's already doubling the price on the knives that he gets from makers.

Too bad because he's a nice guy otherwise.

*I do some dealing on three or more knives at a time.
 
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