In your opinion, what warrants an above $400 MSRP for a production pocket knife?

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What do you feel are arguments or requisites for someone having to pay $400 and above for a factory produced pocket knife. While I'm not going to pretend to think any knife is objectively worth that, I am willing to hear arguments that may change my view.
 
My first answer was subjective. But



material and processing costs can make it objectively worth that and much more.
I think that’s probably what he’s looking for. Labor, materials, scarcity, overhead costs, etc, but the reality is that items are worth whatever anyone is willing to pay for them. That’s pretty much it. The actual number is whatever number it sells at, which is subject to change at any time with the next sale.
 
The term factory is vague. Does it mean mass produced or small batch?

Sure, prices are set by a willing buyer and seller, but why a knife sells for over $400 is a more interesting discussion.
 
What do you feel are arguments or requisites for someone having to pay $400 and above for a factory produced pocket knife. While I'm not going to pretend to think any knife is objectively worth that, I am willing to hear arguments that may change my view.
Many, many knives are worth it. Either you see the value in a high end knife or you don't.

If you view a knife as simply a tool that needs to accomplish its task in as cost effective a way as possible don't bother looking at +$400 knives. Many knives at a quarter of that will do everything you need a folder to do.

If however you strive to own something special and uncommon made in an exceptional way then $400 can just be a starting point. It's up to you to decide if your choices are about good enough or as good as you can get.
 
material and processing costs can make it objectively worth that and much more.

That's precisely what I'm questioning though. The objective worth is the cost of production per piece measured against the number of expected sales. If I initially produce 10.000 pieces and want to shield myself from the cost of just selling 8.000 pieces the price will have to include the cost of the 2.000 unsold pieces just to break even. So I understand the cost of a knife isn't simply an addition of the materials used and overhead on that piece alone. That said, factors like materials bought in bulk, and in some cases even oversees production, should be reflected in an MSRP in my opinion and we're seeing too little of that with some major brands.

I get that "what someone is willing to pay" is the end all be all answer. I mean if folks are willing to pay $10 for single orange why sell it at $0.50 but it still doesn't fully make sense to me why more people aren't voting with their wallets when it's so obvious you're overpaying. Just my 2 cents.
 
So you think that makers like Hinderer, CRK, Mcknees, George, etc. are over charging? Yeah, sure, I wish their knives sold for half what they go for, but they all probably want to make a living wage. I’m pretty sure they all charge about the least they can to keep things going. Value wise, you either appreciate their products and see the worth or you don’t. If you just want to cut stuff you can get a utility knife from Walmart.
 
Objective worth becomes subjective pretty quickly after the 2nd or 3rd knife. We can add it all up in terms of labor, materials, etc... and most of us will say the total doesn't come to $400 in most cases until you add that extra subjective something that has no standard dollar amount or practical value attached to it...

Sometimes it's fancy boxes, swag, a challenge coin, atypical steel (as long as it's Magnacut, these days), an added blade swedge, different colored handles, etc... I've seen normal knives with decades old stale designs go for crazy money, just cause one famous guy turned the blue anodized titanium screws and polished the blade. None if it means a whole lot as far as objective value or component cost per se. Different people respond to different things.

I just think it comes down to personal appreciation... There's nothing wrong with that at all, but we sort of need to acknowledge that on Maslow's hierarchy, a great many $400 knives are a luxury most need to rationalize subjectively on some level. Again, having a demographic of fans with cash and free time to dedicate to expensive hobbies goes a long way towards sales.
 
That's precisely what I'm questioning though. The objective worth is the cost of production per piece measured against the number of expected sales. If I initially produce 10.000 pieces and want to shield myself from the cost of just selling 8.000 pieces the price will have to include the cost of the 2.000 unsold pieces just to break even. So I understand the cost of a knife isn't simply an addition of the materials used and overhead on that piece alone. That said, factors like materials bought in bulk, and in some cases even oversees production, should be reflected in an MSRP in my opinion and we're seeing too little of that with some major brands.

I get that "what someone is willing to pay" is the end all be all answer. I mean if folks are willing to pay $10 for single orange why sell it at $0.50 but it still doesn't fully make sense to me why more people aren't voting with their wallets when it's so obvious you're overpaying. Just my 2 cents.
The part you’re missing is that they actually are “voting with their wallets”, you just don’t like the way the election is going.

I say that jokingly, but it’s also the reality of the situation. When something is found to have a certain value to a certain group who can afford it, that given value will naturally bump it up out of the reach of those who can’t. It’s been that way since the beginning of time. It’s simple market economics.
 
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Start a small business and make a high quality product and you will see where all the money goes. I have a small business and it's not just about materials and direct labor costs. Sales, customer service, accounting, quoting, invoicing, purchasing, marketing, insurance, rent/lease, vehicles, R&D, maintenance, warranties, etc.

Yes, $400+ is crazy expensive for a simple tool like a knife. I pay it and dont tell anyone that I know.
 
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