We should remember, however, that Kershaw manages this pricing through means other companies either aren't capable of or don't desire to use.
The primary reason that Kershaw can offer such low prices is simple economies of scale. Manufacturers like Spyderco (and Benchmade, to a certain extent) do not compete directly with Kershaw anywhere other than on these forums; when was the last time you saw a Benchmade or Spyderco at Walmart or Dicks Sporting Goods? Spyderco is a boutique manufacturer, in comparison to Kershaw. Benchmade, I'd imagine, is somewhere in between but certainly not a competitor in Kershaw's market.
Another reason is the design of most mass produced Kershaws. The vast majority of Kershaw produced in any substantial amount are liner/frame locks as they are easier, and possibly cheaper, to manufacture than many competing locks. (Why do you think that makers first custom folders are liner locks?) Or look at the finish of most of the mass produced Kershaws: beadblast. Beadblasting is cheaper and faster than the finishing competitors use (stonewashing, ect.). The simple fact is that most of Kershaw's designs are dictated by financial efficiency.
I do understand what you are saying, and I do agree to some point... but there is a huge void between the cost saving measures, and the price at which Benchmade sells, and how the brand represents itself.
What I'm saying is that there should be a bottom line quality expectation based upon modern manufacturing techniques (which I feel is somewhere around kershaw, which is why I used them as an example).
My career is in industrial automation, manufacturing, and product engineering, and I quickly recognize the features which make Kershaw able to provide quality USA made knives at a reasonable price. In fact, I think it's why I'm drawn to them in the first place. I also recognized the superior quality present in many earlier Benchmades I've seen. On the flip side of the coin, I've also quickly recognized the drop in that quality in the recent past examples of Benchmade knives I've seen.
Stonewashing... It's a fancy name for vibratory finishing, which actually can be more cost effective than beadblasting in certain situations. It cuts the finishing process of a raw part from two steps down to one. Raw parts must be deburred prior to beadblasting, whereas the vibratory finishing process performs deburring and surface finishing in one step. Additionally, it can be done in very large batches and requires very little interaction from humans as far as monitoring and quality control; it is a very predictable process.
As an owner of a succesful manufacturing business, and also as a consultant to other manufacturing businesses, I can say that materials and production processes often are only a small portion of the overall cost of business. I have trouble recently, seeing where the difference is between a Kershaw and a Benchmade in cost, other than the name which is stamped (engraved) on the blade. I do understand that part of it may be in volume, or economies of scale as you mentioned, but that only applies to a certain point. There is a bottom line cost per unit at which economies of scale becomes irrelevant, and Benchmade is far above that line in my opinion.
As far as your comments regarding markets, I respectfully disagree. I have found that as a name, Benchmade is much more well known among the folks that I've encountered. Kershaw did manage to squeak itself into Walmart due to the reasons discussed above, but only a tiny fraction of their lineup is represented there, I'd say less than 5% on average.
In high end sporting goods shops, Benchmade is pushed much harder than I've ever seen with Kershaw.
The bottom line is that there is absolutely NO excuse for the quality issues we've seen in some Benchmade knives recently, considering the price point that the knives are selling at, and the techniques used in their production versus other knife brands. Part of the allure of the Benchmade name is their supposedly superior quality, which makes a lack in stringent quality control all the more upsetting.
edit: I'd also like to add... don't underestimate the power of the internet in this day and age. I would say that at least 9 out of 10 recent first time buyers of Benchmade knives I've encountered, made their purchases because they "read on the internet that Benchmade was the best". Most Kershaw buyers are people that appreciate quality and value, but I haven't seen nearly as strong of a grass roots or viral drive to purchase the Kershaw brand as I have with Benchmade.
Obviously that viral push for Benchmade is there for a reason... historically they have offered superior quality. What this thread is about, is that lately, they continue to be selling under that reputation but not always living up to it, once the product is in hand.
This is anecdotal evidence, and a single case, but it showcases my point perfectly- my old boss purchased a Benchmade about a year ago for several hundred dollars, because he had read on the internet about how wonderful they are... and he
always has to have the best. He would NEVER consider buying a $30 Kershaw when there was a $250 Benchmade to be had, especially after what he read about their reputation for superior quality on the internet. He was thrilled with his Benchmade at first, but soon started complaining about the action degrading, and the knife's lack of edge-holding. Eventually he became disenchanted with the knife and stopped EDC'ing it. As an experiment, I bought him a Kershaw Skyline from Amazon for $30. He absolutely loves the knife and can't stop talking about how great it is, and how he can't believe the price. This is coming from a man with a similar background to mine... he's been in the precision manufacturing industry for four decades. He knows quality when he sees it.
you can't compare kershaw to benchmade its like comparing Honda to mercedes
Some of the Benchmades I've seen lately are more like comparing a Honda to a Honda with rims and spoiler.
