Makers, how do you decide how much to charge for your knives?

Keith Montgomery

Keith Montgomery

Joined
May 9, 2000
Messages
29,205
While posting on a great thread started by RL about how long it takes to make a knife, I began to think, how do makers decide how much to charge for a knife. I know that the cost of materials and time spent making the knife are major considerations, but what else goes into the equation?

I have seen many knives that I think the maker is asking too little for the knife and wonder how he can survive with those prices. There have also been cases where I thought the price was too high.

I would imagine that a makers reputation and the fact that thet have paid their dues also is a consideration. Please, I would really like comments from makers of all levels of experience. This is of great interest to me.
 
I also want to add that I did not intend this topic to be limited to makers. I would love to hear from all members that have an opinion about this subject.:)
 
You are correct in factoring in the materials, but it is different for everyone's time. I would guess that some guys charge by the hour and keep exact logged hours on each knife. While others like myself enjoy the art, and it relaxes them so they don't mind charging a little less. I can spend countless hours in my shop, just working on a knife to make it work wright. It can be frustrating but the satisifaction of knowing that I made something from nothing and that someone else will appreciate the time and effort that went onto it by buying one of my knives makes it worth while. Sometimes you are just paying for a name.
Chuck
 
Hello.
I find that I charge for the materials and the type of knife as well as what speacial fetures the knife might have.
Most of the charge come from my Time.
I also have to include the price of belts ,electric, what I have for lunch that day. Maybe Gas if I have to travel for speacial tools.
There are alot of things i could consider.
I also base it on what is in the market .
Just some thoughts.
Brad

http://www.duncanknives.com/
 
The simple answer is, in the long run it's not the makers that determine the price it's the Buyers (market). A maker can ask any price he wants, but the buyers get the final vote. If a maker makes a quality knife and the price is too low there will come a time when he'll have a waiting list with a time frame that he's not happy with, the solution is to raise his prices to keep up with demand. If a maker is charging too much for a knife it won't be too long before he comes to the conclusion that the sales just aren't there. Another indicator is the secondary market.

Of course there are anomalies, where a false value is placed on a knife due perhaps to adverstising or limited production or that their customers are idiots. :D
 
Phil is exactly right. That's the best reason I know to strive to get better. It's the only way you're going to get a raise. :)
 
Hi KWM,

Thanks for your kind words...

I would imagine that "marketing" has to be factored into the equation as well (especially for production knives!)...I was surprised by the response in my thread about how it takes just as long to sell the knives as it does to make them...given the long waiting times of most custom makers, I would have thought that the knives sell themselves...but I do see the point about "administrative" type selling costs.

Oh yes, I suspect that there must be some portion of the cost allocated to any work that is subcontracted out (e.g. heat treating, scrimshaw, sheath etc.).

RL
 
For me, it is something reasonable for a newbie (market driven), taking into account material variations and bolster/no bolsters, less a bit to encourage buying "Aussie". By the hour costings don't figure for me yet, it's a paying hobby.
 
Today, I went to my VERY FIRST knife show. I cannot count how many breath taking knives I saw and I also cannot count the times I heard "you are not just buying a knife, you are buying a NAME". I ASSume that means that when you have made it in the knife world, have a name Known by all, and your work is stunning, the price is reflected. BUT, if your name is still a relative unknown, I can grab one of your GORGEOUS, absolutely supremely made, Giraffe Bone, eye-popping Damascus fixed Blade for $500.00, and NO ONE would say that the knife was not a show stopper, just "who is this Guy John Doe, the MAKER??????(I go for the quality, NOT just the name).....This is NOT a STATEMENT, it is just a NEWBIE opinion, and some guy who drooled all over many new guys who do supreme work.....wolf
PS...Good Luck striper on your NEW venture;) ;)
 
Hey Wolfmann601
I'm a bit off subject here but.
I was glad to have met you and your boy
at the Mass. show today,
I just got back it's a 5 hour drive one way.
It's always nice to have a face to put with the e-mail.
let me know when your ready for the 601,
the show was a good one..
time to go to bed been up since 2:00AM
Dan:)
 
"you are not just buying a knife, you are buying a NAME"

I have never heard that said at a knife show. Not once...
 
Just ta add my two cent and adding to the rest of the answers and very true ones
I seem to be in the category of a back log , it's about 8 months + now
and right as rain I maybe charging to little but this depends
 on if your making a full living
from it or not I'm 80% + full time and having a blast at it.
Some knives I lost my shirt on but others go very well
 a lot can depend on Say that one scratch
that you need to get out,
you can't take it out...you take
 the surface down past the defect if you will,
 sometimes you may have to start over on a blade
time time more time

 Time is fiction in this business I think because
you can make  2 knives of
 the same model and have two different times in
 them if you want to know time involved
in a knife
 see if you can spend some time with a maker
 first hand you will be enlightened by the experience and
 come away with a different view of time in this art form
 and craft is worth more than time because if you can't
 make a good knife the time is worthless.
 you may want to give it a try yourself after getting you fingers in it.
 I love to see guys get into the trade..Dan;)
 
Thanks for all the replies so far. I am learning a lot about this topic. Maybe I should spend time with a maker while he is working on a knife. I think that most makers would think that I would be in the way and I wouldn't blame them for having this opinion.
 
Keith, come on round to my place, we'll wrestle crocs and have some tinnies round the barbie after :D
 
Keith, there's an idea. I bet we can arrange that. Depending on the day, it may be boring, smelly, or slightly dangerous. Handle fitting day will be laced with obscenties and the odd flying pin. Give me a call.
 
Dan, the PLEASURE is all mine. Nice to meet you. Jerry, I mean no disrespect at all sir. That was not a NEGATIVE statement. But there ARE a few knives that are simply georgeous works of art that do not grab the same dollar amount that, well a Jerry Hossom would!!!!!Yesterday was my VERY FIRST knife show. I have NEVER seen many of the knives except here in the Gallery or in magazines. But I did talk to people on my low-rung ROOKIE level and just like a Rolls Royce, the NAME commands RESPECT, the product is a work of art, and IMHO, there is added cost to owning the NAME and not just the car. I apologize if you thought I meant ANY disrespect. non intended, I remain in AWE..........wolf
 
Keith
 I hope you know my answer wasn't directed towards you,
 it was for the original post
I think you were referring to,
 It was to add to the post for the over all viewer and
 future maker or buyer that may visit the
archives at a later date..
 I didn't think about the first posting in this thread.
 but your as welcome in my shop as well as the guy that's just starting out making, along with one that may
have started before I in the early 70's. 
 If we all can't learn from one another,,
then we'll know all there is to learn,,,
or at least think so,,
  in this business... NOT..  
...Dan:)
 
No problem Wolf. I know there are names which command higher prices than some better makers with lesser reputations. I was simply commenting that I've never heard a knifemaker actually tell a customer that he was paying for his name. I'd be kind of offended by that if I heard it from a maker. I just never have heard that said. We're OK.
 
Hello Keith, nice thread: I tried the stop watch thing, figuring on charging by the hour, but kept forgetting to start and stop the watch, then there was too much involved with a knife to time. I finally decided to keep track of how many knives I made in a year and then charge enough to keep me going and subsidize my experiments and research. I have found that there is no limit to the quality of the knives we make. I absolutely want that last knife I make to be the cream of all my knives by emperical evaluation as well as yes it looks nice. When I see others selling my knives for more than I charged for the knive it is a little confusing, but highly complimentary. I have a base price, then add and subtract for what I feel needs consideration. We have not even scratched the surface in achieving excellence, the future is for those who want to know.
 
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