How is price of a knife determined?

T

toad224

Joined
Jul 5, 2006
Messages
31
There are a lot of knives out there, and the prices vary a lot. However, I don't fully understand how they come up with the price. I see that the blade steel is one major factor, however I do see knives that have the same blade steel and are from the same company, but have a significant ($100) price difference. To me, the only major difference I see is shape.

When comparing knives from different companies, I understand there are larger differences. For example, what would make a Benchmade 710 cost more than 2x a Spyderco Endura 4? In general, is the price difference worth it (in actual usage, not collecting)?

Thanks!
 
There is also the handle materials, and the complexity of the grind.
The 710 has 2 grinds on it, making it more work to finish.
Also... The axis lock mechanism takes a few more parts and more time to machine and assemble. I'm sure there's other reasons too, but I think those are the big ones.
 
God, so many factors go into pricing, it's impossible to say. Take cost for example. Talk about a complicated factor. Sure, you may have two nearly identical knives, but if one sells 10x as many units, then its production costs should be way lower, other things being equal, and thus the price can be lower.

Then again, maybe it's not, because demand allows it to be priced higher. The decision on how to price it involves complex calculations and probably a lot of guesswork. Price it low and you may move more units, but you'll clear less on each item.

Then there's competition. This year, your product might have a niche all to itself. Next year, 5 me-too products might come out from companies trying to eat your lunch. Think this might affect your pricing?

And so on, ad nauseam. This is why business persons get heart attacks.
 
There is also the "snob" factor in the manner higher priced knives, as in , the fact some knives are set at a higher price point gives them percieved value that they may or may not actually have......several big names seem to do this in my opinion.......There is also retail mark up as to where you buy the item. I just bought ( yesterday) a Benchmade Apparition for $89. It is a good knife ( a little let down by it) but I saw it selling for as high as $159. At $89 I am happy with it but at $159 I would be sending it back......
 
I would say it is just how much is the market willing to pay. Reasons for this willingness may be different (fit and finish, materials, name) but manufacturing price will be only small part of the actual price for end customer. Rest of the price has to make living for the workers, managers, distributors, sellers etc. :)
 
toad224 said:
I don't fully understand how they come up with the price.
Click to expand...

The amount which produces maximum profit. This then factors into user perception of cost/worth as much as actual cost/worth. In general no, when you increase price you rarely increase performance in the same amount. Joe Talmadge was one of the first to note that the performance/price ratio is basically an exponential decline and that inexpensive knives dominate heavily in any price based comparisions.

-Cliff
 
Just wait till you start looking at customs and wonder why 6" of steel and plastic is worth $600 :)
 
Supply and demand.

R+D. If a company does a lot of testing,refining a design, experimenting with new locks, materials and so on, that cost is passed on thur the knife to you.

The more they change things means that cost is always there, old designs have long since recouped the cost.

Someone else may just copy what the other guys come up with and not have that cost.
 
GibsonFan said:
Just wait till you start looking at customs and wonder why 6" of steel and plastic is worth $600 :)
Click to expand...

Yeah.....never gonna happen.

I use my knives. I have a limit of $120. I will not buy something for more than that. Plain and simple. ;)
 
I have grown willing to purchase secondhand knives, in order o get higher quality cutlery at better prices. Right now, I am awaiting the completion of my first custom knife so I can accept or reject it.

Brand name also seems to add a lot, as does limited quantity. There is also dealer mark-up. If you are buying a custom knife, from a small smith, rmember that he does not make the quantity of Gerber, Buck, and Schrade and he has kids to feed. Chances are a lot of delicate hand work was also put into the knife. I have found brand name to play a big role as well. Also, included accessoried may influence the price as well.
 
Joe-Dirt said:
I use my knives. I have a limit of $120. I will not buy something for more than that. Plain and simple. ;)
Click to expand...

You raise a good point. We all have limits, and I wouldn't pay $600 for a knife either, no matter who made it. But obviously many people will, so makers and manufacturers alike charge what the market will bear. It's a business; as long as the product is what they say it is, there's nothing wrong with charging as much as you can.
 
Thanks for the replies, but I was really looking for differences in quality of the knives to justify the cost, not really business related reasons. That is, unless you are trying to tell me that quality differences are minimal, and that the performance of a $200 knife is usually not much different than a $50 one.
 
toad224 said:
Thanks for the replies, but I was really looking for differences in quality of the knives to justify the cost, not really business related reasons. That is, unless you are trying to tell me that quality differences are minimal, and that the performance of a $200 knife is usually not much different than a $50 one.
Click to expand...

No, almost but not quite. I think what we're all saying is that "quality" is very complicated, and so is "price," and however you may choose to measure "quality," its relationship to price is probably nowhere near strictly deterministic.

That's not quite saying that a $200 knife and a $60 knife perform the same-- althought they might. Or they might not.

In short, there's no straight answer.
 
"I was really looking for differences in quality of the knives to justify the cost"

Features (lock mechanism, materials), where manufactured, and amount manufactured are the factors involved in "quality" IMO.

Probably the where manufactured aspect is the most influential, as labor costs seem to be the largest determinant in cost. Machines (even expensive ones) can't seem to greatly offset the labor cost.

And it is the men and women putting the knives together that ultimately creates a quality product.
 
May I be so bold as to conjecture that no knife, judged strictly on it's mechanical attributes and performance, is worth $100/blade-inch or more. When you get up to the really hardcore customs, I think the extra cost comes from the craftsmanship, artistic details and certainly the maker's name. If he's well-known and respected his mark will command a high dollar because the piece is expected to retain and grow in value based on his good reputation.

(It's the same with guitars, even comparing factory made ones. A Korean-made Epiphone will never be worth as much as a USA-made Gibson, even though they're literally made from the same blueprints and materials. Epiphones are a great value, very well-built. But with a Gibson you get somewhat better woods, much better pickups, F & F, etc... plus the Gibson name. It's been said that you can set a Les Paul on fire and let it burn till there's nothing left but the Gibson logo on the headstock... and it will still be worth a couple hundred bucks ;) ) Don't even get me started on true custom guitars... you think knives get pricey?!?

If it's a user knife, I agree with Joe-dirt and Lenny_Goofoff, don't spend more than a couple hundred bucks. I doubt you'd see a real appreciable jump in performance till you got closer to the high end of price. However, if I could choose between two knives I liked at similar cost, one being a factory model and one being made from a respected up-and-coming maker, I would take the custom every time.
Because you're likely to get a lot more in the details, fit and finish, differential temper, etc. Plus it's just plain cool to have something custom-built :) That may be worth an extra $50-100 to you, or you may decide to buy another factory knife instead.
There a couple of makers here who have been highly praised but whose knives are competitive, price-wise, with the high-end factory stuff. In a few years I'm sure their prices will climb as their demand and reputation does.

Sorry this is so long, get me yappin' about guitars and knives and I'll jabber all day if ya let me.
 
You must log in or register to reply here.
Back
Top