SDouglas,
Actually in my earlier post I did say that not all custom knives are better than all factory knives.
This increase in quality is due directly to an increase in price. Some factory knives are retailing for the same price as custom knives.
A limited run for a factory is usually around 1,000 knives. For most makers that is from 3-6 years worth of work.
I have been selling custom knvies for 15 years. Yes, many of the knives I sold have deprciated in price.
One thing you have to understand about depreciation, is that it only exists because people need or willing to sell their knives for less money. If every person who bought a custom knife would not sell their knife for less than retail, the knives would never depreciate.
I will tell you that any knife I have sold since I started my trade in policy 7 years ago has only depreciated, because it's owner chose to depreciate it.
Unlike other dealers, I do not have "sale" pages or run "specials". Also, I do not sell for less than the makers price. Even if it means losing a sale once in a while.
I feel I owe this to the makers who I work with and the clients who buy knives from me.
Too many custom knife buyers approach re-selling with the wrong attitude. I see knives from makers for sale on this forum and others that have 2 or more year waits (or are not currently taking orders). They are selling these knives for less than retail. I shake my head every time I see this.
As once they sell this knife they may not be able to replace it and more than likely will have to pay more than what they sold their original knife for.
Factory knives are like any other manfactured product are only limited by the amount of product they can produce. Either by Captial, manufacturing capability (including skilled labor force) and strategic forecasting.
If a particular factory knife becomes so hot the company can't keep up. They can get loans (to generate more capital), lease manufacturing space and depending on the skill level needed find labor in short order.
Near term, they can take both the materials and machine time from less profitable or less in demand models and divert them to the new "hot" model.
It's not as easy as it sounds, but it can be done in a timely manner.
Obviously the most difficult part is to determine when the knife will no longer be "hot". This is almost impossible to predict. As such, there is almost always excess ineventory. This will be cleared out at years end (so as not to increase inventory with unwanted product). As such, you will see these once "hot" knives now on sale across the Internet and Gun Shows for what seem to be incredible prices.
In this instance, the collector has no say in the depreciation of the factory knife. The factory decides (though it's distributors) when it will be depreciated not you.
Makers, can never produce enough knives to be the ones responsible for the depreciation of custom knives. No, this falls soley on the custom knife buyers (and a few dealers who will lower prices if times a little slow or the knife has been hanging around to long).
If this is done in a public forum such as a web site. The dealers are putting everyone in a lose-lose situation.
The dealer loses as he irritates the maker and possibly those who bought a similar knife at a higher price.
The maker loses as his knife is devalued publicly. This may hurt the maker in future sales as well. Example, "you know anything about ABC Maker? All I know is that XYZ Custom Knife dealer "dumped" several of their knives they had". After hearing this, do you think that collector is going to buy a knife from that maker.
The collector who sees the same dealer who wouldn't give him a discount, is now selling knives at a discount to anyone. This is especially irritating to long term clients.
Don't get me wrong. Everything I am talking about here are proven strategies for manufactured products. Products that have built in obsolenses. Ever wonder why when you get a 3 year extended warranty it ends about 3 months before the product breaks? Manufacturers know how long something is going to last with average use. They find out, say it is 3.5 years. They then offer warranties for 1,2 and 3 years. Statistically, they know approximately how many products will break per thousand per year. If enough people purchase this "insurance" it will more than pay for any products that become defective during the 3 year period. After that, the company knows the products will start to fall apart at an alarming rate. This is why there is not a 4 year option.
Custom made products may fail as well. However, because of the additional attention to detail, the use of better materials, better tolerances and perhpas most importantly a person directly responsible for the production of this product.
When you buy a Ford, if something goes wrong with it, you do not get to talk directly to Mr. Ford. Not the case with the custom knife maker. You can find them, talk directly to them and find out how they are going to fix any problem with their knife.
So SDouglas, you are correct in your assumption that not every knife I have sold has held it's value. However, I will also tell you that any knife that was bought from me in the last five years that has not kept it's value is due directly to a customer devaluing his/her knife.
If you buy a knife from me, and then trade it back in for another. The absolute worst you do is break even.
As you can see there are many reasons I don't sell factory knives.
Some of the other reasons I post as I do here is for business reasons.
More and more people are transitioning from factory to custom knives. Years ago I had to explain almost daily why I wouldn't take several factory knives for one custom. Why I wouldn't take a Randall or other semi-production knife.
By explaining myself on these forums (at length) It has been years now since someone has offered me a Randall, Busse, Sebenza or knives from factories.
So to that end, it saves me a lot of time and in some cases hurt feelings.
It has worked the same with Mokume and Jigged Bone. Everyone knows I hate it, so makers no longer ask me to consider a knife with that material.
Are ther good factory knives out there? Yes. With the prices they charging they should be good.
For every person out there who spends $120 for a factory knife, there are hundreds of people looking at them shaking their heads. Thinking you could have got a Lightfoot CRKT model for $35, WHAT WERE YOU THINKING?????
How about one of those Pakistan knives at the flea market for $3.50.
Even that much money for a knife is to much for some people.
My point is this. For those of you out there who buy customs and use or loan factory knives. Why did you buy the custom knife in the first place?
Trust me these knives in the hunting and "tactical" markets are built to be used. So what if you scratch it. You should send your knife back to the maker every 18 months or so for a tune up anyway. Earlier, if you use it every day.
Don't worry, you won't lose it. I jumped out of Airplanes, Rappelled out of Helicopters, Snow showed and cross country skied at Northern Warfare School, conducted numerous patrols in the Jungles of Panama, Helo-Casted out of a Chinook, did STABO Operations under a Huey and even a little SERE Training. Guess what I never lost a knife! Oddly enough when you have a knife that costs several hundred dollars, you always know where it is at.
So you probably won't lose it going back and forth to work. I know for myself even now, it's Wallet, Knife, keys and sunglasses, and out the door.
When someone comes to borrow a custom knife, trust me if you loan it to them, you'll make sure you get your knife back.
Factory knives have actually been very good for custom knives. They have introduced thousands of collectors to custom knives, that may never have discovered them on their own.
The factories work with well known makers and take their best designs. Saving them hundreds of thousands on R&D and pay the makers about $5.00 per knife. Of course they just add the $5.00 to the cost of the knife and let the customer pay that part.
For many of the makers they get a lot of free advertising, they get brought to trade shows and get to meet thousands of potential customers for both the factory versions of their knives as well as their custom knives in the near future.
Factories are of course 18 - 24 months behind what is happening in the custom market. This works out well for many new custom knife buyers. As they can move from a factory version of the knife to a custom version of the knife. Because most of these custom knives have been out for years already, the new custom buyer can pick up the "custom" version of the factory knife for less than retail.
This eases that move into a new custom knife.
So there is a synergy with factory and custom knives.
Perhaps if when I got into custom knives the factory knives were better quality, maybe I would have stuck with them longer. However, for me, there was a little more sense of urgency.
SD, I hope this clears up any confusion.
Man I love looking at the big picture!