Economy, Good for knifemakers?

I am not a moderater, but I believe this thread has degenerated to the point of complete irresposibility on a number of folks who should know better. If you want to talk politics, there is a forum for that. If you want to snipe at one another, there are AT LEAST two forums for that.

Earlier today I typed out a long response to this thread that vaporized when our system went down at work. I thought I was making some valid points as a collector of handmades for at least seven years.

I noted that Les "had a good show", and I wonder what methods he employed. Did he haggle? Bring more "mid-ranged" priced knives? Treat the customer like he was important? My guess is all of the above. Sound business strategy not only in tough times. BUT ALL THE TIME!

We know Mr. Russell is looking for new ideas and is bringing his prices on most items down to par with the rest of the internet market. I dare suggest that political discussions and customer sniping is bad for business. BTW Mr. Russell, two points for you:

1) If you're looking for a new maker, I suggest you contact Elvan Allred, a student of Dr. Carter's, who is making a pretty nice knife for $600.

2) NEVER alienate a customer. Please recall a "discussion" we had several years ago in this forum. If you would care to put me back on your mailing list, I might buy some knives from you, now that your PRICES are at parity with the rest of the market.:rolleyes: After all, I am a good Christian.

The knife market has changed dramatically since I seriously began collecting, and I believe the focal point is the internet, which has led to explosive growth in the industry for a number of reasons.

First, we have numerous purveyors that have a large 'net presence giving us 24/7 "Virtual Knife Shows". The ability to present a newcomer, or a friend with "artistry in steel" is just a few clicks away, thereby increasing the customer base.

Second, eBay has spawned at least 2 separate species of collectors, which I like to refer to as the "Bargain Hunters" and the "Auction Addicts". "Bargain Hunters" is self explanatory. The "Auction Addicts" just don't know when to stop, creating a "I MUST HAVE IT!" mentality, which has helped fuel prices higher and higher. Needless to say, if a Bargain Hunter can snatch a valuable piece that was poorly advertised, he can have an absolute freaking field day with the Auction Addicts! eBay also provides us with a searchable database to get a feel for "fair market value" readily. If you don't believe this, I'm just paraphrasing Bernard Levine, I believe the man knows what he's talking about.

Next, we have seen the introduction and evolution of the "High-end production knife", with William Henry being the prototype company. However, I'd like to point out that the Benchmade Gold Class, Skalja, Emerson, and others didn't even exist, or were in their infancy 7 years ago! These products have further fueled demand by increasing the collector base. Let's face reality, if somebody is willing to pay $700-$2,500 for a production knife, once they truely discover the custom market there is no turning back.

Additionally, forums such as these have allowed people to gain an incredible amount of knowledge in a relatively short period time, provided that one can readily sort the wheat from the chaff.

Finally, we have had the evolution of the "Weenie Wars" which is fueled by the internet engine. You can devote HOURS to photographing, posting and generally boasting about your collection, which has further fueled demand.

Now we are faced with tough economic times. We have brought this on ourselves. Sure, Wall St., the banking industry and government all share some of the blame. However, we as a group of people spent more than we could afford, and relied on optimism and intangible assets to fuel our consumerism instead of allowing common sense to rule our spending.

I look at the knife industry as a microcosm of the general economy, but there is a difference. A knife is a tangible asset that gives its owner pleasure. If only could say the same of Bank America stock!:o

Anyway, I believe there is a bright side to all of this. A market "correction" if you will. I think that knives of quality makers, like quality real estate and other tangibles, will firm up. One thing I noted among makers at the ECCKS was that I bought from people who were nice to me. I only bought one "real" art knife and, a fixed blade at that (big change for me there). But I bought, and I felt I walked away with something of value. Although Les and I often disagree, I think the most important thing a maker, purveyor or retailer can do is protect and value his customer base! SPOT ON!
 
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Severedthumbs, I had edited one of your past post and left you a message.

Here is the message again.

Stop the language and show respect!
 
BTW Mr. Russell, two points for you:

1) If you're looking for a new maker, I suggest you contact Elvan Allred, a student of Dr. Carter's, who is making a pretty nice knife for $600.

2) NEVER alienate a customer. Please recall a "discussion" we had several years ago in this forum. If you would care to put me back on your mailing list, I might buy some knives from you, now that your PRICES are at parity with the rest of the market.:rolleyes: After all, I am a good Christian.

![/B]

Thank you, please email me at agr@agr3.com and I will send you a catalog and with your permission put you on the email list.
 
There are a few observations I'll throw out based on just having read the entire thread for the first time just now.

1. I have never met a knifemaker who had a bad show say that it was his fault because his prices were too high, because he was making the wrong patterns, or because his quality wasn't up to speed. It is always the fault of the economy or of the show promoter.

2. The knife market traditionally does NOT follow the general economic trend. In past recessions the knife business has picked up. (At least the three I've lived through).

3. The knife market will change. It always does.

4. The internet has changed the way a lot of people buy knives--and in the long term it will be at the expense of a well-balanced knife. How do you enjoy the feel of good balance via a picture on a website?

5. As for my personal business, I had a knife auction in December and another in February. From the two auctions I had a 25% increase in the number of bidders--and did little different. I suspect the increase was from a lot of collectors looking for opportunity purchases, starting to devote more attention to their knife collections based on suspecting better knives long salted away in collections will be hitting the market, and those who took a stock hit but still have knives to hold in their hands.
 
There are a few observations I'll throw out based on just having read the entire thread for the first time just now.

1. I have never met a knifemaker who had a bad show say that it was his fault because his prices were too high, because he was making the wrong patterns, or because his quality wasn't up to speed. It is always the fault of the economy or of the show promoter.

2. The knife market traditionally does NOT follow the general economic trend. In past recessions the knife business has picked up. (At least the three I've lived through).

3. The knife market will change. It always does.

4. The internet has changed the way a lot of people buy knives--and in the long term it will be at the expense of a well-balanced knife. How do you enjoy the feel of good balance via a picture on a website?

5. As for my personal business, I had a knife auction in December and another in February. From the two auctions I had a 25% increase in the number of bidders--and did little different. I suspect the increase was from a lot of collectors looking for opportunity purchases, starting to devote more attention to their knife collections based on suspecting better knives long salted away in collections will be hitting the market, and those who took a stock hit but still have knives to hold in their hands.

Replies in order:

1) Agree to some extent, but most of the makers I buy from in non-recession years, sell-out to dealers, or VIPs before the show opens. I'm lucky for leftovers, NOT the case at this years ECCKS, I can assure you!

2) Only to the extent that a well made knife is a tangible asset, a crappy knife is well, worth crap.

3) Well said, and if anything that is what keeps collectors coming back. Classics however, live FOREVER! When I see true classics with knives on their tables, at a show where most of the really good stuff is gone before I get there, well there is little money to be had. The money is still out there, it is just not being spent. Hatches are battened down, people are riding out the storm. The opportunist takes the shot. Hopefully to reap rewards down the line, but passionately because he loves the product. The opportunity here is for people to go the extra mile. Establish relationships with people. Remember the guy who promoted your work and bought from you when few were buying.

4) The internet is a resource. Use it as such, and respect its power. Remember, what you say here lives on FOREVER! It is not just a communication tool like the phone, but an archival tool as well. Needless to say, I'll never use the :jerkit smiley without really thinking about it. Been there, done that, learned my lesson:eek:!

HOPEFULLY some of you who are following this thread understand this as an apology!:D

5) Refer to "tangible" assets discussion above.
 
I'm late to this, and I'm not a knifemaker, but I would like to add my remarks.

I live in Florida. I wish we had knife shows around here. We do have gun and knife shows, but it's always the typical mass market stuff-Kershaw, Spyderco, plenty of Autos, but nothing really special. As a result, I never get a chance to see really nice handmade knives.

I do like to collect knives. I'm not so enamored of fixed blade knives, but I do like folders. I like to collect unusual handle materials, or different types of knives. I like AG Russell's catalogs a lot, mainly because I can see different things int here, and I do try to buy from AG as often as I can. In fact, I did so again last night-from the KCC mailing. (AG, if you read this, for some reason I was remved from the catalog list, but not the KCC mailing list)

The things I look for in a folder, things that interest me, are unusual handle materials or designs. Then, of course, it has to be something I can afford. The upper limit for me is around $300. I like the look of the Skalja knives, but I'm a little reticent because of the price, and never having seen one in person. I know AG has the return guarantee, and one day I may go for that.

I always look for interesting materials. I've seen plenty of traditional bone, and cocobolo and micarta, but I'd love some other folder handles, in limited quantities, and of course, I like knives made in the US. I will buy knives made in Japan, Germany, Italy, Switzerland, or other places, but I won't by anything made in China. For instance, AG, in your catalog you have Wayne Hendrix's knives with curly maple handles. That looks like a neat material; I'd love to see a folder with that. Or knotty pine, or box elder, or some woods like that. I vae a Chriss Reeve with box elder and it's a nice looking material.

I would also love to see some mineral handles, such as jade, or agate or jasper, or lapis. Not a pen knife size, but a 3 1/2 knife size, especially in a slipjoint.

Anyway, I just wanted to point out what I look for. Keep up the good work!
 
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I can't make em fast enough!

I definitely heard that Don! :D LOL

… same as it ever was.

I’m glad to hear that many in the business are also still doing well.

For over the last 30 years, I can safely say that other types of hindrances and distractions can effect business more than the economy. What it really boils down to is how much “quality time” is spent out in the shop,... working. :)

So,… unless the world economy totally collapses, I think we’ll be alright. I don’t think folks are going to let that happen any time soon. It’ll probably be at least 20-30 years before what’s happening now really catches up with us…
 
I'm late to this, and I'm not a knifemaker, but I would like to add my remarks.

I live in Florida. I wish we had knife shows around here. We do have gun and knife shows, but it's always the typical mass market stuff-Kershaw, Spyderco, plenty of Autos, but nothing really special. As a result, I never get a chance to see really nice handmade knives.

I do like to collect knives. I'm not so enamored of fixed blade knives, but I do like folders. I like to collect unusual handle materials, or different types of knives. I like AG Russell's catalogs a lot, mainly because I can see different things int here, and I do try to buy from AG as often as I can. In fact, I did so again last night-from the KCC mailing. (AG, if you read this, for some reason I was remved from the catalog list, but not the KCC mailing list)

Anyway, I just wanted to point out what I look for. Keep up the good work!

G'

Email your name and address so I can check on your catalogs. thanks, A. G. agr@agr3.com
 
The only thing I have noticed in the small number of knives I sell is that one of my main sources of customers is a large firearms organization I am a member of. Since Obama came into office, I have sold very few knives to the gun guys. I honestly believe its because when given the choice, those types are stocking up on ammo and guns rather than knives that they know they'll be able to get a year from now.

Do you blame them? The ROI for certain firearms is through the roof if another AWB goes through. I know I'd like to go back in time and buy 500 stripped AR15 receivers just before the first ban. In some states like MA where the ban never expired, those things have gone up in price exponentially.

I think the economy is going to affect makers very differently depending on who they are and what they make. I think its a simple fact that the people most hurt by the economy will buy less knives. The question is who is most hurt by the economy and what kinds of custom knives do they typically buy?
 
I watch that a while back. Very interesting and sad! We have a fucked up government.

On a more positive note, the custom knife industry seem better now than when this thread was started and it was good then :D
 
Lotsa knives out there on a secondary market that doesn't seem to be doing too well, as opposed to this most recent observation above.
 
Hi Betzner,

All those knives out there for sale are not selling for 1 of 4reasons...or a combination of those reasons.

1) The price is too high

2) The wrong combination of style or materials

3) The maker did little or nothing to keep their knives "active" among collectors.

4) They are "Fad" knives.
 
Hi Betzner,

All those knives out there for sale are not selling for 1 of 4reasons...or a combination of those reasons.

1) The price is too high

2) The wrong combination of style or materials

3) The maker did little or nothing to keep their knives "active" among collectors.

4) They are "Fad" knives.


We are in total agreement. And there are alot of 'em out there, too.
 
Lotsa knives out there on a secondary market that doesn't seem to be doing too well, as opposed to this most recent observation above.

My problem hasn't been selling them, but getting the pieces I want to replace the ones I have sold. My collection is at the lowest "piece count" it has been in a long time. There's 3 extremely nice pieces I have been looking at, however the bad economy hasn't influenced the owner to drop his prices to where I'm comfortable. I find the secondary market strong!

This week's Blade, a few orders coming soon from makers and a possible deal on one or more of the pieces mentioned above should help remedy my situation.
I find these interesting times in the "custom knife world".
 
My problem hasn't been selling them, but getting the pieces I want to replace the ones I have sold. My collection is at the lowest "piece count" it has been in a long time. There's 3 extremely nice pieces I have been looking at, however the bad economy hasn't influenced the owner to drop his prices to where I'm comfortable. I find the secondary market strong!

This week's Blade, a few orders coming soon from makers and a possible deal on one or more of the pieces mentioned above should help remedy my situation.
I find these interesting times in the "custom knife world".

We are obviously talking about two different secondary markets, then, since the one I see has LOTS of availability. I am talking generally - perhaps you are thinking more along the lines of a specific segment of the secondary market, like forged, fixed blades?

EDIT: And perhaps, I am taking something of a narrow view because of the preponderance of so many custom folders that seem to be lining the "walls" of some online purveyors?
 
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We are obviously talking about two different secondary markets, then, since the one I see has LOTS of availability. I am talking generally - perhaps you are thinking more along the lines of a specific segment of the secondary market, like forged, fixed blades?

EDIT: And perhaps, I am taking something of a narrow view because of the preponderance of so many custom folders that seem to be lining the "walls" of some online purveyors?

Hi Bob.
I was more referring to my personal experience as I have been adjusting my collection lately as I do have orders incoming. So yes, specifically forged fixed blades. In addition, I display all my knives so after 3-4 years you do get tired looking at the same ones day in/day out even though they are still fine knives. So I view a little re-circulation among collectors as a good thing.

As I follow the broad custom knife market (even though not very active in it), I do agree with you and Les in that there is a lot of knives (especially folders) on the market and most are lingering because of Les' list of reasons. However, I find the exceptional knives are moving and holding prices in spite of the bad economy.
 
Kevin, you and I are on the same page when it comes to displaying the knives and "re-circulating" them. It's something I have always loved doing - just sitting back and viewing them over time. Then, it almost comes naturally that some become less one's favorites - which are ultimately replaced by new favorites. And the collection continues on.....

It's not really a process, but more a labor of love. Betcha you agree with that?

When I find that one knife to be added to the collection, I am at that point not on a search for "special value", but for THAT knife in particular, at which point price becomes secondary.
 
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