I think some people don't realize that most on-line vendors already are selling not to far above dealer cost. Alot of times there is not a huge margin of profits, basically quantity is how they make a living. The only exception is like my local brick and mortar kitchen cutlery, culinary supplies carries a small selection of benchmade and spyderco at msrp and then would beable to offer a big discount for a black Friday deal and still turn a profit.
THis.
People often quote wholesale as the cost of a knife on this board. The biggest online dealers sell at 50% markup, and MSRP is usually 100% markup on production blades. If you add free shipping, Paypal costs, overhead, it doesn't leave much on the bone when you set a 15% markup just to be competetive.
To make it worse some distributors undercut retailers by going through Ebay or setting up front stores, and many knives DO get sold at the price that retailers pay for them.
I would have been a retailer a long time ago if you could sell at MSRP, and if that was the case I would have given 40% discounts on certain items for Black Friday.