Keys to understanding secondary market prices?

2knife

2knife

Joined
Mar 13, 2002
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What are they? ... there is no "blue book" guide for values in knives.
Thanks,
David
 
2knife said:
What are they? ... there is no "blue book" guide for values in knives.
Thanks,
David
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They are whatever price the buyer and seller agree upon. For the most part knives are not spot commodities that can be easily crammed into a price guide. The variety is far too high and the market and quantities far too small to establish a reliable price point.

n2s
 
Surely there are some ways to provide a reference:
Current retail price of a makers work, past sales history on forum "searches", or website listings..

Giving one scenario, i have two knives listed on a dealer website. They are priced at full retail, of current comparable price. They have remained unsold for the period of a year. Pulling them, i would incur the photography fee- @ $50 per photo, so $200 each knife. The dealer recommends waiting.. Not dropping price.
I dont mind waiting, but the thought occurs to me this is becoming like fishing for the right buyer. Do i wait, pull them, or drop the prices?
Thanks,
David

*also, full retail is at twice the price i paid on these, so there is some leverage.
 
Les Robertson has covered this subject at various times in pretty good logical detail. Your given scenario seems to indicate the knives were priced too high from the start given the amount of time they remain unsold. The number of views they have received on this particular dealer's web site could be another major contributing factor. Demand for a particular style or maker is also a major factor in both pricing and velocity of sale.

I would say from my perspective that a price reduction or another sales venue or probably both would be in order. You would be in the best position to decide since we don't know the style or the maker, and therefore cannot give an opinion on just how big the demand would be.

I have noticed from experience that very few knives (comparatively speaking) will return the original investment in the after market, particularly if they have the added cost of engraving or scrimshaw.

If it were me I'd seriously consider moving them AND reducing the prices.

Paul
 
David IMHO the market will speak to you

In my line of work which is real estate if something is not moving it is usually priced to high or not getting the right type of exposure

Sure there are always certain things that need a certain buyer and you have to wait for that certain buyer to come along but it is my expierence that if something is priced right and is getting the right marketing it will move

Good luck on your sale I hope they move for you
 
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Davd, what Joe said is right on target.
IMO, at a knife show, if something does not sell the two basics are price point is not right or you are not offering to THAT public what it wants.
There are to me many sub-catagories under those two headings those are the two bascis.
Also, Joe mentioned his real estate.
In selling real estate, they say first, location, then something else, I forget what it is, then location again. Placing your knife for sale is like that too. Where it is for sale at or to.
 
This dealer has priced them at a point which they haven't sold in a year, and will take a profit of some form if they do sell. As they should.

But he's going to CHARGE you $200 for (4) website photos even if it hasn't sold? Overpriced hostage.

Walks away scratching head... :confused:

Coop
 
David,

Over the course of my life I have learned that penalties, fees, etc. such as you mention are worth paying if it will get you away from a deal that you are dissatisfied with. Sometimes it’s just a situation of “you can have the cheese, I just want out of the trap”.

I'd agree with Fisk as to why the knives have not sold.

Bill
 
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Supply. Demand. That's all there is.

All other factors are subcategories of supply / demand.

Pete
 
Update on the two knives i mentioned. I called the dealer. I was wrong about paying the full photo fees on these knives, they are being waived after staying unsold a yr. on the site. And, i was pleased that he has decided to purchase these from me outright, for close to my purchase price. Not too bad.. (10% loss)
 
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Custom knives, like many collectibles, has an "intrinsic value" of the salvage value of the materials it is made up of.

It may also have added value as a functional item...ie a custom knife is still useful as a knife and a rare beanie baby can still be a toy for a child.

Any premium above that is almost exclusively due to demand for the item. Supply has a role, but many extremely rare knives have little value and some very common knives have lots.

There are lots of places to look for ideas. Shows, dealer sites and private party sales like on the forums. People used to catalog emerson prices, not sure if they still do.

I do find it interesting that many forum sales ads and dealer sites delete prices after the sale is made.
 
bandaidman said:
I do find it interesting that many forum sales ads and dealer sites delete prices after the sale is made.
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Yep. That one gets me, too. Never seen that done in anything other than custom knives. Not real estate. Not other collectibles like coins. Nothing that I can think of. Of course there is nothing that could stop someone from saving all of the pre-sold web pages on sites like this and various purveyor sites to build a database . . . Maybe someone has been doing that for a long time. Maybe.
 
The two sites that come to mind as references that may have some beneficial archives are "worthpoint" and auctioneers such as Bruce Voyles, posting a list of realized prices.
 
The more i think about it i agree, that is what is missing, having an online database to compare past sales of makers A-Z. Maybe this could be a future aim of the CKCA, or would there be objections from dealers from copying images and/or sales information?
What is the legality of such an idea?
 
Custom knives are most often sold at less than initially paid. However, if one purchases or commissions the right knives* by the right makers** @ the right prices*** they will usually be successful in selling them for more than paid, sometimes substantially more. It's just like anything else, you have to do your homework to be successful.

*Right Knife - quality knives which have time-proven classic designs that stand out among others over time.

**Right Maker - makers who possess excellent design and knifemaking skills, are good business people and promotes themselves and the custom knife community in general.

***Right Price - knives purchased at knifemaker price or below. Avoid paying inflated prices. The "right" makers will have usually maintained stable pricing structures that have appreciated modestly over time. I have found the only pricing guide is experience and knoweledge of the knives and market.
 
Kevin Jones said:
I have found the only pricing guide is experience and knoweledge of the knives and market.
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I've been trying to think of the proper response to this thread, but had way too much to say, and chose to remain silent. However, Kevin, you've found the right words in a single sentence.

Bob
 
Lets hear some stories, Bob? Anyone? I know you guys can speak of some experiences selling knives. Surely not every one is sold at a profit. What bumps in the road have you experienced? I have taken a few losses, more often in trades than anything else. I must say i do not prescribe to a formula such as Kevin has. "Appeal" to me is the thing. Nothing will convince me it is a worthwhile purchase if i do not like it, or love it first.
- Selling used knives is sometimes a losing proposition.. Or refurbished.. But, not always.
 
2knife said:
Lets hear some stories, Bob? Anyone? I know you guys can speak of some experiences selling knives. Surely not every one is sold at a profit. What bumps in the road have you experienced? I have taken a few losses, more often in trades than anything else. I must say i do not prescribe to a formula such as Kevin has. "Appeal" to me is the thing. Nothing will convince me it is a worthwhile purchase if i do not like it, or love it first.
- Selling used knives is sometimes a losing proposition.. Or refurbished.. But, not always.
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David, I'm a collector, not a buyer and seller of knives. The primary focus for me is to love what I buy.

Bob
 
2knife said:
Lets hear some stories, Bob? Anyone? I know you guys can speak of some experiences selling knives. Surely not every one is sold at a profit. What bumps in the road have you experienced? I have taken a few losses, more often in trades than anything else. I must say i do not prescribe to a formula such as Kevin has. "Appeal" to me is the thing. Nothing will convince me it is a worthwhile purchase if i do not like it, or love it first.
- Selling used knives is sometimes a losing proposition.. Or refurbished.. But, not always.
Click to expand...

David, where did I say appeal was not important? I have never purchased a knife that I did not absolutely love and I don't believe that my collection or my bank account has suffered from my formula. Certainly not saying it's for everyone, just that it's possible for collectors to purchase knives that appeal to them without loosing their shirts if at some point they want or need to sell them.

As Bob, I'm a knife collector first who just happens to also get enjoyment from the investment aspect.
 
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