Knife Markups?

50% margin is the norm for resellers buying from manufactures sometimes more sometimes less. There is a lot of overhead as a reseller especially with a brick mortar.
 
SkyStream said:
The knife dealers sell for higher prices than they should on some of the higher end knives in my opinion. I understand that some of the manufacturers control the retail prices that knives are sold for but when I know a dealer is making $150+ on a $400 knife, I naturally feel ripped off.
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Do you have an amount in mind that the knife dealers should be making? Is it a % of what the knife sells for, or is it based on the time and energy spent by the retailer to sell the knife? Is there some kind of factor that includes how many manhours the retailer spends marketing and selling it, plus the overhead expense of operating a business that includes the duration a knife may stay in inventory? Some of these “higher end“ knives might sit in inventory for a year or more. Is the insurance, workman’s comp, payroll taxes, property taxes, power bills, website hosting fees, etc. factored into what profit is OK for the retailer to make? Can you buy the knife directly from the maker for the price that you believe is fair?

I get tired of seeing threads like this that say people are ”price gouging” or are “making too much profit.” That is bullshit. We are extremely fortunate that we are able to enjoy our hobbies in a free market economy. Whether you like the pricing or not is irrelevant, the pricing is what the market will bear. If the retailer puts their time and money into marketing a knife that they acquire from a maker, then they are able to ask a “marked up” price for that service. The market ultimately decides what that markup can be. If the retailer is asking too much, people will not buy from them. If they ask too little, they will sell out and the knife you are trying to buy won’t be available at any price. If they sell for too little for too long, they will go out of business.

We are fortunate to enjoy capitalism and the free market it provides. You are free to choose what you spend your money on. Price gouging does not exist in our hobby world. Enjoy what you can afford, there are plenty of great knives in every price range.
 
SkyStream said:
Lol! You must be a reseller
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You laugh, but please give an example? Nobody is forcing you to buy any knife, so price gouging can not exist. Price gouging can only exist where you are required to buy something at a price that is controlled by factors that are outside the control of the people who must purchase the item. Examples include health insurance, property taxes, car insurance, and other things where the government is heavily involved. Our hobbies are not included. We are not required to buy knives, or any other hobby items. Pricing is 100% set by the market and what people are willing to pay.

For the record, I am not a reselle. Feel free to check my history in the knife exchange if you like. I simply believe in capitalism and a free market.
 
jdraizor said:
You laugh, but please give an example? Nobody is forcing you to buy any knife, so price gouging can not exist. Price gouging can only exist where you are required to buy something at a price that is controlled by factors that are outside the control of the people who must purchase the item. Examples include health insurance, property taxes, car insurance, and other things where the government is heavily involved. Our hobbies are not included. We are not required to buy knives, or any other hobby items. Pricing is 100% set by the market and what people are willing to pay.

For the record, I am not a reselle. Feel free to check my history in the knife exchange if you like. I simply believe in capitalism and a free market.
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I also believe in a free market. Part of the problem with the markup issue that I was talking about is that some manufacturers force dealers to sell knives for set prices.
 
unwisefool said:
It's the choice of a true connoisseur
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I enjoy sticking my finger in a hole...
Danke42 said:
Isn't there a pound where you can pick up cheap knives that ran away from home?
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Yeah unfortunately TSA doesn't have that. My poor mini copperhead got lost and was picked by the stray knifecatchers at O'Hare.

Ok to be serious, there is a knife for every budget and need. For me, I usually can find what I want for less than $200, unless it's an OTF.
 
K.O.D. said:
Ok to be serious, there is a knife for every budget and need. For me, I usually can find what I want for less than $200, unless it's an OTF
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I'd say there and lots of knives that are decent quality and functional for under a hundred dollars. Both fixed blades and folders that work fine for the more essential tasks.
This silly argument is like saying a liquor store is price gouging because they are selling a rare limited production or just sought after product for more markup than Budweiser.
Another example is that you don't need to buy a Rolex to keep track of the time or pay the mostly fixed markup they require of dealers.
 
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220-9er said:
I'd say there and lots of knives that are decent quality and functional for under a hundred dollars. Both fixed blades and folders that work fine for the more essential tasks.
This silly argument is like saying a liquor store is price gouging because they are selling a rare limited production or just sought after product for more markup than Budweiser.
Another example is that you don't need to buy a Rolex to keep track of the time or pay the mostly fixed markup they require of dealers. A Timex works just fine at a fraction of the price.
Should they be required to sell their products at someone's version of a "fair" price?
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220-9er said:
Clearly some people have never run their own business and don't understand how the free market works.
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Couple weeks ago at a swap meet I bought 2 pocketknives and a hatchet for 25 bucks total. And half an hour of my life talking with this old boy about knives we’ve had/lost/given away (which I found pleasant). And I touched up his Gerber with my pocket stone. If anything, I gouged him.

But we didn’t see it that way, we were just two codgers talking knives on a sunny Saturday morning.

I’m with jd, it’s not gouging unless it’s coercive. The vendor wants to sell a knife to somebody, but it doesn’t have to be you. You want a knife, but it doesn’t have to be the one he’s selling. Y’all are both free agents, maybe you got what it takes to make a deal - maybe you don’t.

I wonder if it’s knives that are too expensive, or your expectations of certain knife prices that are too low. Either way, buy what you want, don’t buy what you don’t want, and step aside so the next guy can take a look. Thanks for playing.

Parker (not a reseller, but sometimes make my own knives)
 
SkyStream said:
I'm fairly new to the hobby and I'm really starting to realize that some of the price markups are so high that it's really making me lose interest in the hobby. Obviously dealers have to make money but I'm finding some of the markups are so high that I feel ripped off and it's really making me lose interest. It's as if some of these companies are just trying to appeal to collectors instead of reach average knife users. Anyway, I think I'm done paying more than $200 on a knife.
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I agree. The markups are insane. I am actually about to bow out of the hobby for a bit. It's just too expensive anymore. A friend blessed me with a brand new Spyderco (will post about it later with pictures) but that is going to be my last for a long time.
I'm not picking on Spyderco, I love their knives- I'm just saying they have priced themselves out of my range. Like a lot of other brands have in the past three years.

Not said with menice, just saying.
 
I bought my Kershaw Launch 1 two years ago for $99 and change. I just got an email from Blade HQ a while ago with them on sale for $119. I guess they've gone up about 20% in two years. I spent about that much filling my gas tank a couple of weeks ago. I guess it depends upon your perspective, but knife markups may not be that bad if you compare them with other things...
 
000Robert said:
I bought my Kershaw Launch 1 two years ago for $99 and change. I just got an email from Blade HQ a while ago with them on sale for $119. I guess they've gone up about 20% in two years. I spent about that much filling my gas tank a couple of weeks ago. I guess it depends upon your perspective, but knife markups may not be that bad if you compare them with other things...
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That isn't too bad of a hike compared to a others. There are some model knives that have literally doubled.
 
I save money on knives and cut out the middleman by bidding on knife lot auctions from TSA seizures.

Last lot I scored a Sabanza 13, a couple of Cool Steels and a sprint run Spoderco.

I don’t think any reputable knife dealer is making bank off knife sales. They provide a true service to us enthusiasts and I’ve never minded paying the markup. They help keep the Spodercos in the TSA bin.
 
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