Inflation within the knife market

G

Gideons

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Hello BF,

I was looking at old videos on youtube, among other sources of information on knives. I noticed something, how much the inflation rates for the prices are knives are immensely higher than other markets or the overall economy. I would say, in the past 7 - 8 years the total inflation is around 150% I would estimate. Why do you think that is? Personally I find it quite annoying, going through these old videos and looking at how all these sub $100 knives are all like $150. Why do you think knife companies are doing this?

- Gideons

EDIT: I am not trying to get too scientific as I really should be comparing the price of materials, labor costs etc, but just from a quick glance comparing the knife sector to other sectors of productions/consumption the prices seem to be increase much more rapidly.
 
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I think it's inflation of the us dollar but if it's worse than other industries like you say it is I have no idea why, I watched a video from 2008 of a knife that is 200+ today and they said you could pick one up for like 130!
 
Gideons said:
Hello BF,

I was looking at old videos on youtube, among other sources of information on knives. I noticed something, how much the inflation rates for the prices are knives are immensely higher than other markets or the overall economy. I would say, in the past 7 - 8 years the total inflation is around 150% I would estimate. Why do you think that is? Personally I find it quite annoying, going through these old videos and looking at how all these sub $100 knives are all like $150. Why do you think knife companies are doing this?

- Gideons
Click to expand...

Because people are paying the money for the knives.
 
Costs go up and so do prices. Supply and demand. More collectors. Limited models. Exchange rates. The only product that I have seen going down in price is televisions.
 
It is a tough business. You have to survive. Very few knife companies can achieve economies of scale like other mainstream business. In the handmade and custom markets, this is even more marked.
 
Isaacherring said:
I think it's inflation of the us dollar but if it's worse than other industries like you say it is I have no idea why, I watched a video from 2008 of a knife that is 200+ today and they said you could pick one up for like 130!
Click to expand...

The US dollar inflation (cumulatively) from 2008-2016 is approximately 110.6% meaning a $130 knife should only be $143.78.
 
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Could you do us a favor and show your work?

Pick 3 essentially unchanged models from some different companies that were in production 8 years ago and post up today's and yesteryear's prices.

Just for fun. I"ll even give you one to start with; Spyderdo Endura.
 
Danke42 said:
Could you do us a favor and show your work?

Pick 3 essentially unchanged models from some different companies that were in production 8 years ago and post up today's and yesteryear's prices.

Just for fun. I"ll even give you one to start with; Spyderdo Endura.
Click to expand...

Do you want me to actually get you some hard numbers? I am unsure how to get hard numbers from 2008 prices. If anybody has ideas on how to get that I would be more than please to crunch some numbers.
 
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Gideons said:
Hello BF,

I was looking at old videos on youtube, among other sources of information on knives. I noticed something, how much the inflation rates for the prices are knives are immensely higher than other markets or the overall economy.
Click to expand...

Gideons said:
Do you want me to actually get you some hard numbers? I am unsure how to get hard numbers from 2008 prices. If anybody has ideas on how to get that I would be more than please to crunch some numbers.
Click to expand...

This would be a good place.;)

MAP? Haven't been into knives long enough to notice any trends beyond that.
 
It depends; Benchmade and Kershaw both implemented a MAP policy and in BM's case particularly that had a huge impact on street prices. For example one could have bought a mini grip for $65 easily a few years ago, these days it's at least $20 more for the same knife if you're getting a deal. There is also a large number of high end mid tech brands that didn't exist before that do now, stuff like Reate and custom knife factory which simply didn't exist.


Sent from my iPhone using Tapatalk
 
If you are talking about the U.S. government CPI (consumer price index) it is rigged by the government to make things SEEM better than they actually are!

In addition to outright fudging the numbers, they do things like substituting inferior products or smaller quantities of the same product, without making any compensatory adjustments to balance things out for the consumer.

For example, when they calculate the inflation rate of food, they factor OUT the trend of companies consistently lowering the quantity of their products. For years, margarine/spread was sold in 16 oz containers. Then companies reduced them to 15 oz. Now many are 14 oz, 13.8 oz, 13 oz, 12 oz, some even 11 oz! So the effective price has INCREASED far more dramatically than if they factored in that "Acme Farms Spread" used to cost $2 for 16 oz, now it's 2.10 for 14 oz.

According to the government CPI, the inflation on that product is "only" 5%. But in real terms, the price per ounce has gone up 20%!! Politicians believe it is in their best interest to hide the real inflation and unemployment rates.

I'm not saying that the inflation rate is that high across the board, only pointing out that government CPI figures CANNOT be trusted.

Gideons said:
The US dollar inflation (cumulatively) from 2008-2016 is approximately 106% meaning a $130 knife should only be $143.78.
Click to expand...
 
Same as any other industry: whatever the market will bear. Enough consumers in this niche market are accepting offshore production with what was previously "Made in USA" pricing, as well as huge unreasonable premiums for man-made materials which are truly not rare at all. Enough of us are buying their marketing so why would they change?

I personally find it to be out of hand and am re-assessing. The other day it occurred to me what an incongruous pricing structure some of these knives have relative to products with many more moving parts and complexities such as power tools, home appliances, bicycles, and personal electronics (all of which also come with strong warranties). Pretty crazy -and I write this as a knife knut. :(
 
@Danke42
In 2010, the Endura 4 FFG could be bought for around $55 to $60 USD. It is currently on amazon for $65-$70. Meaning, the inflation rate in the last 6 years for the Endura 4 FFG with a FRN handle would be (using the median value) 117.4%. The USD inflation rate from 2010-2015 was 109.2% meaning the Endura should cost $60.06 - $65.52. Meaning comparing the price increase between the Endura 4 to the USD, the price increase is 189.1% vs inflation or went up 1.89x (almost double) more than inflation of the USD in the same time frame.
 
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rje58 said:
If you are talking about the U.S. government CPI (consumer price index) it is rigged by the government to make things SEEM better than they actually are!

In addition to outright fudging the numbers, they do things like substituting inferior products or smaller quantities of the same product, without making any compensatory adjustments to balance things out for the consumer.

For example, when they calculate the inflation rate of food, they factor OUT the trend of companies consistently lowering the quantity of their products. For years, margarine/spread was sold in 16 oz containers. Then companies reduced them to 15 oz. Now many are 14 oz, 13.8 oz, 13 oz, 12 oz, some even 11 oz! So the effective price has INCREASED far more dramatically than if they factored in that "Acme Farms Spread" used to cost $2 for 16 oz, now it's 2.10 for 14 oz.

According to the government CPI, the inflation on that product is "only" 5%. But in real terms, the price per ounce has gone up 20%!! Politicians believe it is in their best interest to hide the real inflation and unemployment rates.

I'm not saying that the inflation rate is that high across the board, only pointing out that government CPI figures CANNOT be trusted.
Click to expand...

I am not using the US Governments CPI, I am using numbers provided by credible private financial firms. Hence why my total inflation is must lower than 20% (at 6%).
 
Gideons said:
In 2010, the Endura 4 FFG could be bought for around $55 to $60 USD. It is currently on amazon for $110-$115. Meaning, the inflation rate in the last 6 years for the Endura 4 FFG with a FRN handle would be (using the median value) 196%. The USD inflation rate from 2010-2015 was 109.2^ meaning the Endura should cost $60.06 - $65.52. Meaning comparing the price increase between the Endura 4 to the USD, the price increase is 1043.5% vs inflation or went up 10.4x more than inflation of the USD in the same time frame.
Click to expand...

I was just looking at the "Big River" site.
The Endura lists for 66 US dollars.
Less for some colours.

So where are you getting the huge inflation idea from?
 
Currency race to the bottom, and the USD is the shiniest turd in the bowl. It's only going to get worse from here.
 
Gideons said:
@Danke42
In 2010, the Endura 4 FFG could be bought for around $55 to $60 USD. It is currently on amazon for $110-$115. Meaning, the inflation rate in the last 6 years for the Endura 4 FFG with a FRN handle would be (using the median value) 196%. The USD inflation rate from 2010-2015 was 109.2^ meaning the Endura should cost $60.06 - $65.52. Meaning comparing the price increase between the Endura 4 to the USD, the price increase is 1043.5% vs inflation or went up 10.4x more than inflation of the USD in the same time frame.
Click to expand...

BladeHQ has FRN Endura 4s with full flat grind for under $70. The only ones over $100 are the ZDP and TI damascus.

Still an increase but not all that drastic.
 
Gideons said:
@Danke42
In 2010, the Endura 4 FFG could be bought for around $55 to $60 USD. It is currently on amazon for $110-$115. Meaning, the inflation rate in the last 6 years for the Endura 4 FFG with a FRN handle would be (using the median value) 196%. The USD inflation rate from 2010-2015 was 109.2^ meaning the Endura should cost $60.06 - $65.52. Meaning comparing the price increase between the Endura 4 to the USD, the price increase is 1043.5% vs inflation or went up 10.4x more than inflation of the USD in the same time frame.
Click to expand...

you must be talking about the real rain forest amazon because right now on the website amazon an Endura 4 ffg is about 60-80 usd.
 
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