How do makers, and Smiths, arrive at a cost for a knife.

Design time involved
overhead for shop and tooling
Materials needed for the knife
costs for external dervices (heat treating for example)
labor needed to make the knife
profit ( ha ha ha )

I don't think supply and demand plays a role. Because if you sell your products below cost, your gonna go broke, so you might as keep the knives and you'll have something to play around with.

I've recently been trying to do some halfway real cost accounting for my knives and man is that a downer. I don't really see how the full timers make a living at it. Hats off to those gents!
 
This is a question that I deal with all the time.It seems that if you are to high you wont sell and if you are to low you wont sell.
As a basic no namer I have had to keep my prices lower than the actual market value could be so people will take a chance and buy my knives.Since each knife is done one at a time there are things that can happen so I can't really figure the time invoved because if I did I would probably cry.It is a tough world and the only answer I have is:
"What you are selling is only worth what the customer wants to pay"

And to find this you just have to feel out the market.A beginner cant charge Loveless prices but yet a named maker cant really charge a begginner price or people will wonder why.Good luck on this one and please let me know if you figure out the secret.
Bruce
 
The only way to figure out where you are in the great scheme of things is to make a couple of "special"(name maker quality and materials) pieces, you know high value items and price them at what you feel a name maker would get for an equivalent knife. Then you put them on the table and wait, the market will establish what the true value is for them and you will have a base line to work from.

Name recognition is important to being able to sell. You can make a great knife but if nobody recognizes the name they will be reluctant to part with the true value of the knife.
 
I agree with George, but would add that it all ultimately depends on how well the knife is made and how well it performs. Repeat buyers are the true measure of your knives.
 
I agree with George and Jerry.
Maybe that's why I do many of the same models, year after year. Keeps me from going thru the pain of trying to figure it out.
 
You must log in or register to reply here.
Back
Top