How much do you think it costs CRK to make a Sebenza?

The only way to work it out regarding costs versus sale price are simple.
Marketing and what the market will take versus output.
If you can market a product that many want and will pay a lot for, then market it as a commodity that is not mass produced and in limited numbers. Voila come in margin.
It is the same with any product.
I do not believe for a second about blade grinds or going further blade materiels.
Give the specs to a reputable Chinese company and monitor the QA and how much then?
Perceptions are a strong element in marketing.
Nothing wrong with it.
It is "Market Forces"
I have bought several knives recently that I thought were USA or Japan made to find out they are Taiwan or Chinese.
If the quality is still there, does it matter?
 
I agree with with greenstuffs, most (if not all) high end products have very healthy profit margins and I would be very suprised if CRKs didn't.

As for NIB comments; facility costs, power, labor, marketing, etc, are all rolled into the cost of the knife. So the cost of $100 to make a knife would have already taken that into account. As for Chris's living expenses, that's what the profit is for and I bet he is living quite comfortably. Which he should be since he has built a very successful respected business.
 
Slightly OT,

Danno4017 said:
Give the specs to a reputable Chinese company and monitor the QA and how much then?
Click to expand...

And that is why reputable American and Canadian valve manufacturers that used to cast, forge, machine, market and service their valves are off-shoring their production and people in industry are being injured and killed from sub-standard process valves. It's that or go out of business. And yet I often operate valves daily that are over 45 years old, made the old way in North America. Falsified x-rays and QA documents often accompany valves that have been attempted to be salvaged when they were excellent scrap metal and that is all.

Cheaper is not always better. Chris and Anne are doing a great job for a fair price. I don't get chiseled on payday and neither should they.
 
Danno4017 said:
Give the specs to a reputable Chinese company and monitor the QA and how much then?
Click to expand...


In China, employers don't need to pay for workman's comp, health insurance for it's workers and a salary in China is about equal to $4 a day depending where you work at. Let's not forget that a lot of the Government owned Chinese factory's use prisoners for it's labor. Both criminal and political prisoners who have done no more than speak out against the Chinese Government.

I remember Ernest Emerson mentioning in another message board his dislike for knife companies going to china to have their low end knives built there. According to him they don't pay per knife but rather by the pound of knives.

For the record I stay away from anything made in China if I can help it.
 
jimbo@stn23 said:
Slightly OT,



And that is why reputable American and Canadian valve manufacturers that used to cast, forge, machine, market and service their valves are off-shoring their production and people in industry are being injured and killed from sub-standard process valves. It's that or go out of business. And yet I often operate valves daily that are over 45 years old, made the old way in North America. Falsified x-rays and QA documents often accompany valves that have been attempted to be salvaged when they were excellent scrap metal and that is all.

Cheaper is not always better. Chris and Anne are doing a great job for a fair price. I don't get chiseled on payday and neither should they.
Click to expand...

You are right cheaper is not always better.
I have no problem with a knife maker that makes a premium product and sells it for what the market will pay.
That is business and life.
I do not own a sebenza, I would like one but can not afford one or justify the cost against the need for one.
Mr Reeve can make and market his knives to the public for whatever price he desires, that is his perogative and I respect that principle.

To your other point.
The way the world is going nearly everything will come out of China soon.
It will not matter what the user wants to buy, the American companies will decide it for them by sourcing offshore manufacturing.
Look at the retail sector and how a big retailer squeezes the American companies into bankcrupcy by leveraging the Chinese pricing against them. They start with W.

Money makes the world tick over and the Asian markets will be the downfall of the Western economies.
 
greenstuffs, try buying a Dozier blade sometime as a dealer.I was told they start you off at 10% and go to 20% off.I do not think 40% is universal amongst manufactures.The companies I carry in high end bedding for instance,will vary 25 points.Some of the lower end shit I do not carry you only have a 10-12% markup.I also seen this trend when I worked in electronics(HomeTheater).If he has had the knife for a while and is looking at year end ##s,this will effect the price.Also,he does pay a tax on all inventory on hand not sold to someone.If he has 20-30 thousand in inventory,he probably wants to move it ASAP.I've seen the CRK DVD and could see why Chris charges what he does.Alot of labor and R&D.I just can't imagine what it costs to make a $50-$100 knife.

MPE

MPE
 
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