Kai USA and our Kershaw, Shun, and Zero Tolerance brands have very high standards of quality. Every Kai USA product—whether it's made in our Tualatin, Oregon factory, our Japanese factories (for Shun products), or our Chinese factories—is closely inspected to ensure it meets those high standards. Sometimes, products don't quite live up to our highest standards, yet they're perfectly okay in every other way. For example, a scratch on the handle can disqualify a knife from being "first quality," but there's nothing wrong with it functionally. This type of product is considered a "factory second," that is, second quality, rather than first quality. A product like that may go into our annual Warehouse Sale. Other types of products that qualify for our Warehouse Sale are discontinued items and items that we have too many of: "overstocked" items.
Shoppers get a truly awesome deal on some truly great products; we clear out our warehouse space. It's a win-win.
There are a couple things you should know about these factory seconds. First, you can recognize them by the "XXXX" lasered onto the blade. Second, these products DO NOT carry our Limited Lifetime Warranty. However, we will still be happy to sharpen your knives for FREE for as long as you own them. In fact, you can also bring any non-serrated Kershaw, Shun, or ZT knife with you to the sale and we'll sharpen up to two of them while you shop. (If you have more than that, please leave them with us and we'll sharpen them and have them ready for pick up later in the week.) Also, please understand that all sales made during the Kai USA Warehouse Sale are final and there are no refunds or exchanges.