Well first off this knife is advertised as a neck knife and for that the supplied sheath sucks.
With this I partially agree. Being that I made a lot of custom kydex sheaths and spoiled myself with what I know they can be, I'm not satisfied by the factory sheath. However, for the average user, they do seem to break in and a lot of people have absolutely no problem with them. For the people who are unsatisfied, there are plenty of custom kydex makers out there than can make you whatever you want.
It may cost them $5 to produce a factory sheath but its going to cost you about $16 just like it probably costs about $15 to produce a machine sharpened bar of inexpensive tool steel. So why do I want want to spend an extra $16 for something I wont use.
I'm a little confused by this statement. Would you mind saying this in a different way? Not trying to be a dick or anything. I'm just not reading it correctly.
If I'm reading this correctly, you're implying that the knife itself only costs about $15 to produce and therefore, the added price of the sheath and markup comes out to quite a bit higher, making your point, why do we have the added cost of the sheath that makes up over half the total cost. If this is correct, then my rebuttal would be to examine further the other overhead involved in the business. You have the cost of labor to run the business in its entirety, the cost of advertising, etc. This is where your extra money is going. The sheath still isn't greatly impacting the final cost to the customer and wouldn't significantly lower the price if it were removed from the product package.
how many of us buy the knife and sheath as opposed to to the kit for example. I consider these knives inexpensive commodity hard use items, buy em cheap use em hard.
Again, the whole kit is not a selling point for me. The only one I got with an entire kit was a giveaway knife. The kit is currently sitting in my drawer, waiting for it's orders to come through. As far as I'm concerned, you are correct. This is an inexpensive, hard use knife, and it is already priced accordingly.