got an email from a dealer saying gerber

sharp_edge said:
So it takes about $60 more to manufacture the Native than the Mini grip in the above example?:rolleyes:
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Don't know what either of them costs to manufacture. I only know what the manufacturer's suggested retail price happens to be.

And if the retailer priced each of those based on the manufacturer's suggestion, I wouldn't buy either piece.
 
sharp_edge said:
So it takes about $60 more to manufacture the Native than the Mini grip in the above example?:rolleyes:
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No, because you're failing to account for markup. If Spyderco follows typical markup practices then the difference in manufacturing cost between a Native 5 Lightweight and a standard Griptilian would work out to around $10.61, with a difference in MSRP of $24.95
 
It actually makes sense for Gerber to introduce MAP more so than any of the other brands. Considering that all of their products are sold online or through big box, if an online retailer rock bottoms their prices, larger retailers might become upset. And considering that most of their line is incredibly cheap to produce, no doubt a motivated retailer could truly 'rock bottom' many of their models.

If one big box retailer became upset and dropped their line, that could represent a massive revenue loss for the company. Whereas most of the discussion on this forum is centered around high quality, smaller brands, that are sold in smaller quantities with many small retailers rather than a handful of massive retailers (walmart, bass pro, ect.).

In full disclosure, I don't own any Gerber nor do I plan to, but it's an interesting discussion none the less.
 
FortyTwoBlades said:
No, because you're failing to account for markup. If Spyderco follows typical markup practices then the difference in manufacturing cost between a Native 5 Lightweight and a standard Griptilian would work out to around $10.61, with a difference in MSRP of $24.95
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This was actually my understanding as well. That is, MSRP does not reflect the actual manufacturing cost when comparing different manufacturers (the somewhat mysterious markups). What I was saying is that, the Native and the Mini grip in the discussion perhaps cost about the same (with maybe $10-20 difference) for manufacturing. But Spyderco marks up the MSRP much higher than Benchmade.

Not taking a shot at Spyderco because the bigger % off the MSRP makes the Native at a MAP price comparable to the Mini Grip.

This discussion also leads me to, just like most others, not pay much attention to MSRP and the discount % off it; the actual MAP is what matters the most.
 
sogflash said:
How does Spyderco and benchmade MAP policies differ?
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FortyTwoBlades said:
Benchmade's MAP is 15% off of MSRP. Spyderco's is 40%.
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Also, if I remember correctly, bm did it overnight with little to no notice. Same knife cost 30-40% more within 24hrs with hardly any warning. That and the inconsistent quality control with a price hike really was a turn off for many.
 
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Some manufacturing companies set an artificially high MSRP on their websites to steer customers to retail sales.

An example is Kabar. The MSRPs on most products on their site is much higher than the price for the same knife at other in-line sellers or even many brick-n-mortar businesses. Kabar would rather sell a ton of knives at wholesale to sellers/distributors rather than sell knives onesy-twosy to the general public but if you WANT to buy a knife directly from Kabar just so you can say you bought it from Kabar, you get to pay a premium.
 
Exactly Cray.
MAP wasn't really the issue......the accompanying outlandish overnight price increase was incredibly short sighted and turned many long time fans off.
Joe

craytab said:
Also, if I remember correctly, bm did it overnight with little to no notice. Same knife cost 30-40% more within 24hrs with hardly any warning. That and the inconsistent quality control with a price hike really was a turn off for many.
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palonej said:
Exactly Cray.
MAP wasn't really the issue......the accompanying outlandish overnight price increase was incredibly short sighted and turned many long time fans off.
Joe
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And not just that, huge price increase with continued qc issues just doesn't equate. I've had no problems the bm products I bought but too many have.

Gerber's game is inexpensive. If the get away from that with map they will lose what little of the enthusiast community that still supports them. Oh well. No big deal to me...
 
zzyzzogeton said:
Some manufacturing companies set an artificially high MSRP on their websites to steer customers to retail sales.

An example is Kabar. The MSRPs on most products on their site is much higher than the price for the same knife at other in-line sellers or even many brick-n-mortar businesses. Kabar would rather sell a ton of knives at wholesale to sellers/distributors rather than sell knives onesy-twosy to the general public but if you WANT to buy a knife directly from Kabar just so you can say you bought it from Kabar, you get to pay a premium.
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That's not "artificially high." That's just how MSRP's work. MSRP's are set as a benchmark (usually as a standardized markup based in whole or in significant part by manufacturing cost) from which retailers set their discounts. It's in the best interest of the company not to undercut their retailers, as the whole point in having retailers is to increase your volume of sales despite the decrease in marginal revenue that you get from wholesale orders vs retail.
 
Since I never really look at suggested retail versus store price on Gerbers, I'll never know the difference. The last Gerber I purchased was a Gator folder prior to 1990 (and pre-buyout). It honestly was purchased to replace my Schrade 250T (Buck 110 type knife) and use while hunting. It was an okay knife overall. Still have it somewhere.....

It may well impact sales of the hatchets and folding saws from a competition point of view (assuming MAP will apply to them as well).
 
22-rimfire said:
Since I never really look at suggested retail versus store price on Gerbers, I'll never know the difference. The last Gerber I purchased was a Gator folder prior to 1990 (and pre-buyout). It was an okay knife overall. Still have it somewhere......
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those were the good Gerbers...:thumbsup:

lwU1ndF.jpg
 
Your Gator looks brand new. I honestly don't remember when I bought it for sure, but I know I owned it by the mid-90's. It was not a milestone in my life if you know what I mean.
 
22-rimfire said:
Your Gator looks brand new. I honestly don't remember when I bought it for sure, but I know I owned it by the mid-90's. It was not a milestone in my life if you know what I mean.
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I do know what you mean,
and what I meant is that even back then the Gators were nothing jaw dropping, just the antecessors of the Paraframe and such.

TP0GrO9.jpg


Cheap but widely sold folders that you find at most shops and big brands, so many people have or had them hence they seem so awesome and iconic :thumbsup:
 
So, bottom line what's this mean for the prices online from discount retailers? Staying the same or going up?
 
The whole MSRP trick retailers use drives me nuts. Whenever I get an email that a dealer is having a "sale" (You guys gotta get them too.)
"Special this week! 60% off Cold Steel" or some such.
I check the price, and after comparing it to the competition, that "discount" is more like 5-10% off actual retail. Most times it equates to a just few dollars in savings, if that.
Which is why I never bother to look at MSRP. I always compare RETAIL prices.
 
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