How many makers sell through dealers?

[Justin King]

I had a knife dealer offer to buy a few of my knives to sell on his website. The discount he was asking for seemed pretty standard, it was flattering but I am not sure I can offset the price discount just by selling more quantity, there just isn't enough profit to absorb that.

I was wondering how many other makers are selling through dealers these days and what your take on it is. Is it worthwhile to lose that much on each knife, if you were not having trouble selling them to begin with? Does the exposure pay off in the long run, for a relatively unknown maker?

 

[AcridSaint]

If the discount is so high that you're losing money (actually spending more in time/materials to make the knife than you sell it for) then it may not be a good deal. Either you're spending too much time/money on your knives or you're pricing them too low.

The thing about selling to a dealer is that you get advertising. Chalk that discount up to getting your name out to more buyers and more widely spread throughout the community and on the net. Also, most dealers have some room to negotiate on their discount rates. The rate depends on how well known you are and how well they think your knives will sell.

 

[lonepine]

If the discount is so high that you're losing money (actually spending more in time/materials to make the knife than you sell it for) then it may not be a good deal. Either you're spending too much time/money on your knives or you're pricing them too low.

The thing about selling to a dealer is that you get advertising. Chalk that discount up to getting your name out to more buyers and more widely spread throughout the community and on the net. Also, most dealers have some room to negotiate on their discount rates. The rate depends on how well known you are and how well they think your knives will sell.

Hmmm, so MAYBE get a couple of designs water jetted and use them as a vehicle to get your name out to sell higher end knives with better profit.

- Paul Meske, Wisconsin

 

[Rick Marchand]

I sell through dealers... they get a discounted price, but order in batches of 5-10 blades... sweet deal. The one I know are all good people too and really get your name out there.

 

[Justin King]

Hmmm, so MAYBE get a couple of designs water jetted and use them as a vehicle to get your name out to sell higher end knives with better profit.

- Paul Meske, Wisconsin

I have been doing that, but am not ready to start raising my prices just so I can sell to dealers at a discount. I don't want to close the door entirely on the possibility, and am trying to realistically weigh the pros and cons, but just don't see how it makes sense as long as I am able to sell knives on my own as fast or faster than I can make them. If I were full time it might make more sense, and I am getting closer to that possibility, so the food for thought is appreciated.