Is Benchmade as a company not profitable?

Megawatt308 said:
Nice knives but I have never been able to throw down the $$ for a benchmade knife. It’s not that I will not spend $$ on a knife. I have a hinderer sparrow, a sebenza and a few other high dollar knives. But I find spyderco to offer better models/prices when compared to what benchmade offers.
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Megawatt308 said:
Just because I haven’t spent my own money doesn’t mean that I have never owned one, smart guy.
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WUT?
You can’t just try to drop the mic and run. That doesn’t fly well around here.

Anyway, the rumors of Benchmade’s demise are greatly overstated. They’re one of the three greatest production knife companies in the world. I assure you, they’re doing OK.

I’m always amazed when I pull out my crappiest Benchmade among non-knife people and they Ooo and Ahh about me having a Benchmade. That’s brand recognition that Spyderco and Kershaw would sell their left kidney to have.

Yup, Benchmade is doing fine.
 
With revenue estimates between 25-50 million, i'd say it's doing ok. I don't think that even takes into account the other De Asis controlled companies: Athena Precision, Sentinel Capital or Mentor...
 
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ScooterG said:
Benchmade could crush their profit margins if they would just do a collab with Buck for an Axis 110.
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They soooooort of did under their Harley Davidson line with the Hardtail folder.

To answer the OP's question, I think they're probably doing fine from a financial standpoint, even if I think their vision hasn't been the most inspiring from a technology, economy, nor design standpoint. They used to be pretty hot stuff and a strong value in the premium tier comparable to Spyderco. They're kind of out in a weird "premium knives for non-knife people" territory at this point, but I don't think anyone else is really playing that angle like they are, so it's apparently a niche that's working for them.
 
Judging by the size, the number of people they had manning their booth, and the number of people surrounding that booth at the NRA Convention, it appeared to me that Benchmade's doing pretty well.
 
Hackenslash said:
WUT?
You can’t just try to drop the mic and run. That doesn’t fly well around here.

Anyway, the rumors of Benchmade’s demise are greatly overstated. They’re one of the three greatest production knife companies in the world. I assure you, they’re doing OK.

I’m always amazed when I pull out my crappiest Benchmade among non-knife people and they Ooo and Ahh about me having a Benchmade. That’s brand recognition that Spyderco and Kershaw would sell their left kidney to have.

Yup, Benchmade is doing fine.
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I haven’t heard any rumours of Benchmade’s demise.

Is their brand recognition a west half of the states thing? Seems like everyone where I live that I talk to about knives immediately recognizes Spydercos and thinks they are the best knives ever made but has never heard of BenchMade.
 
To regular folks that like modern knives, Benchmade brand indicates quality and a higher cost knife. I think they're doing just fine. Benchmade like other manufacturers are beginning to offer a "mini" line of their regular models. An example is the Mini Presidio which I consider an excellent EDC knife.
 
This thread seems a bit nonsensical and overly speculative. So I will just throw this out there - I heard once from someone who read somewhere that they make $17Billion each month.
 
Knife brand recognition is definitely regional and occupational. Midwest and on or near military installations Benchmade is well known. While I have no idea the actual reasoning, I have had discussions where it was mentioned that Benchmade's lineup is full of overlapping designs and the color class system wasn't well liked. Depending on how common those views are it could be trying to adapt. I do think they're missing out by not having anything knife to really compete with the endura/delica. Closest is the griptilian that's typically $30 more.
 
From a number of sources, you can find estimates of performance of private businesses. They appear to have annual revenues in the range of $40 to $45 million, and a staff of around 140-150 people. Currently with 25 job openings from their own web site, so they are either trying to staff up or they have a lot of turnover.

I see nothing to imply they are having financial issues. Smart business to focus on where your profits are coming from, and if that means streamlining your product offerings and focusing on the best sellers or highest return on capital, then that's just good sense.
 
I live about four miles from Benchmade and visit their company store on a fairly regular basis. I get the feeling of a company that is doing better not worse. They have increased the number of customer service people in the showroom. My impression is that they have dropped lines to make room for new lines. When you see the number of different models they carry; it is truly impressive.
 
FortyTwoBlades said:
They soooooort of did under their Harley Davidson line with the Hardtail folder.

To answer the OP's question, I think they're probably doing fine from a financial standpoint, even if I think their vision hasn't been the most inspiring from a technology, economy, nor design standpoint. They used to be pretty hot stuff and a strong value in the premium tier comparable to Spyderco. They're kind of out in a weird "premium knives for non-knife people" territory at this point, but I don't think anyone else is really playing that angle like they are, so it's apparently a niche that's working for them.
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Agree with the Harley. It’s just not that working man’s knife with 420 steel that appeals to so many of us. Maybe they could add Hickory handle scales too :)
 
As others have stated before, this is all speculative and not really all that productive. All of the moves the OP has cited can be taken as actions of a company struggling to survive, OR as a company actively maintaining and improving their core business and product lines and weeding out the low performing elements. These actions can simply indicate management guiding the company in the direction they believe to be the most profitable and likely to succeed in the future. Without access to company financials, or even reports regarding market share, dealers added, dealers dropped, or news reports about the company, there is little reliable info to go on. Even "now hiring" announcements can indicate growth or unable to retain employees.

Apart from working for Benchmade itself, there are really only 2 ways I know of to get semi-accurate info on how Benchmade is doing. One is to be a direct competitor. You both are battling for the same market share, and customers. You will hear direct feedback from your dealers, reps, wholesalers, etc. You will know if your wholesaler has dropped you and added Benchmade, which stores suddenly had more shelf space for you , and who got dropped to create that opening.

The other is be a customer and walk into their company store, as one poster has done, and get a feel for what that can tell you. Right now, every time I walk into a Guitar Center, I get the feeling of a company struggling to survive, (and they are). When you see lots of open floor space, it can only indicate a couple of things. Very high profit margins (Apple stores) or stores having a hard time buying new inventory, usually because they are strapped for cash, or their suppliers have cut them off. Same scenario applies to floor space taken up with low priced inventory items. In Guitar Center's situation, it is hardly a good sign if 10% of your floor space is dedicated to selling $5 worth of guitar strings.
 
Lapedog said:
I just thought it was an interesting topic to speculate based on some of the moves they have been making.
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A smart business cuts underperforming lines, not only failing businesses. There is no sense in continuing to make knives people are no longer buying in quantity. It's not like the dies & jigs are thrown out. If there is enough demand, they can be brought back, perhaps as an anniversary edition. A product is only evergreen if it keeps selling.
The QC problems were never enough to indicate a failing company. Contrast to Queen, for example. I've seen this across many industries.
zhyla said:
It seems to me they’ve become less relevant. 10 years ago people wouldn’t shut up about Benchmade. It’s hard to compete with the Chinese invasion. But (100% subjective, just opinion) Spyderco seems to be thriving in the same market conditions.
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Internet word of mouth is meaninless, the IKC are like teens following the pop idols - in a few years we are all enthused about something else.
The relevant part is that Benchmade is sold in big box stores, while others are not. WE Knives or Kizer certainly aren't. That is a huge, maybe overwhelming share that the Chinese companies are cut out of. Even on the internet, for the average knife buyer the Chinese companies suffer from "who dat?" while Benchmade gets recognition from being seen in the store. We know about the newest thing because we ask each other and read reviews.

As said, a failing company starts pumping out a lot of product at lower prices. QC and CS are out the window. Manufacturing is shifted to cheaper sources, next door to Frost and the like. Name brand equity is sold in a desperate attempt to survive. Sure there is hiring, but at low wages and mostly to keep the paper moving.
 
Lapedog said:
...If I saw GM close down Buick and Chevy, start using the lower grade industrial standard materials to build their vehicles and slash their line up of vehicles I would also be curious what was going on.
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Well, we did see GM close down Pontiac and Olds not too many years ago. Got a government bailout too. So did Dodge. Ford was the only American automaker that did not run to the bank with taxpayer money. Now, word on the street is that Ford's outselling both Dodge & GM.

As for Benchmade, I am not a fanboy and don't really care for most of their products. Yet it seems the few Benchmade items I own get most of my pocket time. They must be doing some things right.

I can tell you that I've tried more than once to get a Bugout 535 pocket clip through Benchmade's CS without any luck. Both times CS has stated Bugout sales are so good they can't keep up with the demand. Does this sound like a failing company?

Also, many times companies hurting for money will lower the quality of their flyers and catologs. I have found Benchmade's to be top notch. I doubt if they are really in red ink.
 
You want an higher end assisted opening folder, with the same mechanism as their side opening autos, Benchmade is the one that has it.
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boss_crew said:
This thread seems a bit nonsensical and overly speculative. So I will just throw this out there - I heard once from someone who read somewhere that they make $17Billion each month.
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Whoever told you that is very unwell. A company couldn't possibly have an estimated net worth of up to $60mil but be doing over $200bil of sales per year unless they are hemorrhaging money to an absolutely unheard of degree. That's Apple levels of sales but a company worth equivalent to a ton of companies I've never heard of (aside from Nordic).
 
dkb45 said:
Whoever told you that is very unwell. A company couldn't possibly have an estimated net worth of up to $60mil but be doing over $200bil of sales per year unless they are hemorrhaging money to an absolutely unheard of degree. That's Apple levels of sales but a company worth equivalent to a ton of companies I've never heard of (aside from Nordic).
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Dont quote me, but I think he was making a funny old sport...

Russ
 
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