Cam, I must have spent that easily on knives and steel and kit since starting seriously about 5 or 6 years ago. I've only actually sold about 8 knives, but have made many more. I currently have about 15 or 16 I've made myself, some from scratch, some I've put handles on bare blades. I've given away a fair few as presents. I think if you consider the money I saved by making rather than buying a present, it doesn't seem as bad. I will put up more knives for sale, but prefer to sell a complete package including sheath and I have a large backlog of sheaths waiting to be done. The knife show season is just starting up, so I have enough items to have my own stall if I want. The equipment and kit I don't consider as a loss and I have a lot of cash "invested" in materials etc. Eventually I will make money from it, but at present it's like very slow moving stock. Considering the replacement costs of some the equipment today, I'm glad I bought it when I did and the material "worth" is more than I paid for it. With inflation running so low, I don't consider these things as losses, just a very low return on a longer term investment. As a commercial venture it would probably be viewed as a bit of a failure, though. I recently got a makers subscription so I can sell on here, but haven't yet followed it up by actively marketing. This is partly because I can't decide how seriously I want to do this. I enjoy making knives and have done a few commissions, but to me a full book and a waiting list of orders would remove most of that enjoyment. I like the fact I can wait for inspiration/enthusiasm to take hold and then "go for it". I suspect that the prospect of turning out the same knife, daily, for the next 3 years would not be attractive at all, hence my backlog of sheaths.
I guess what I'm saying is it's best to decide how you want to approach your knifemaking, either as a hobbyist (in which case do just what you want when you want and justify it economically by telling yourself you could have gambled/drunk your money away) or do it as a commercial venture (in which case don't undersell your labour and account for all your costs within the price).