Online knife business

[Jeff4]

650 knives for under $2000 is under $3.08 per knife- sounds like junk. Look, there is not a lot of meat on the retail knife sales bone in regards to profit. The way the blade HQs of the world make it is with massive volume. Someone talked about the possibility of selling them cheap to generate interest, but your desirable brands have map pricing which sets the minimum advertised price. I wouldn't touch it with a 10' pole. This is a tough game in a saturated market.

What if they are Gerber knifes I forget other names but one alone is worth 150 and it's on site for 95? So idk man thanks though

 

[Jeff4]

The biggest issue I see is this; oversaturated market...

You'd be competing with not only the big river site, but a dozen other well reputable knife companies (who are also listed on the sponsors section of bladeforums; knifecenter, bladehq, knifeworks, usamadblade, collectorknives, etc), and at least 2 dozen other non sponsoring sites, some which also have well known branding, massive inventories, exclusives, some with niche holds in the market, and most with reasonably fair prices...
Then there's still the local brick and mortar market which some people prefer where available because they can handle the knives in person.

Plus there's the 2nd hand market like here on BF, over in the Reddit community, the sw desert state site, that big auction site, etc...

So how do you intend to compete in that market and stand out and remain relevant? How do you intend to keep prices competitive and/or hold a niche? Do you have hard to find rare gems that are well sought after to sell? If it's web based, how do you ensure you show up towards the top of the web searches so customers are led to your brand instead of the others, and not falling on page 3,

No they

Agreed. Super low prices usually means "Imported counterfeit/clone knives", at least to me.

Are legit knifes
Gerber and all

 

[Jeff4]

There is nothing simple about running an online business. For one thing I wouldn’t spend a dime on anything you sell, and it doesn’t matter how cool your site name, how glossy the presentation, how desirable your knives or how low your prices. I have no idea who you are and we have no indication that you know anything about knives. How would any of us know whether you are representing your wares correctly, and not selling stolen goods, factory seconds or outright fakes. You need to develop the right reputation and it will take a lot of slim years to get there.

Further, what’s your plan for dealing with unreasonable customers or outright scammers? What happens when Joe Smith buys 50 knives from you, and 30 days later you find out that he has been using stolen credit cards? Care to guess who is out inventory and funds.

n2s

Makes alot of sense just wouldn't sell more then 4 knifes at a time lol

 

[Jeff4]

Makes alot of sense just wouldn't sell more then 4 knifes at a time lol

Also nothing is stolen nothing is fake all legit knifes

 

[Silent H]

The plural of knife is knives. You aren't going to get much interest if you can't even spell the name of what you're selling.

 

[Jeff4]

I helped build an online store a few years ago for a retiree that wanted something to do. The biggest expense was web design, because the packaged templates were not very good.
So if you're buying a running site with inventory for $2000 is not too bad. The site we built cost about $8K without any inventory.

Also the payment platform charges fees on every sale.

He has a third party that handles all logistics ( packaging and shipping), he just handles purchasing product. So if you handle logistics , its a job in itself.
As far as book keeping , most sales platforms provide sales reports, inventory management and light book keeping.

Sales were very low at startup, but using social media and paying for search engine placement directed more traffic to the site. He uses couponing from social media and pays to have site-links placed on other web sites.
He also markets his products on other platforms like Amazon. His average sales are $15K per month from the site only. His average product sells for $10, I don't know what his cost is.

Shipping to customers is expensive for a low volume dealer, he now has a volume discount contract with FedEx ( their cheapest service).
But in the beginning shipping was more than the sales price in a customer's cart and that was a problem, he was losing sales.

Translating this to knives, yes it's possible to run a profitable business,. But you need to be very committed and it will consume most of your time. So you're not going to be sitting back watching the cash flow in.
You'll have to open accounts with suppliers/wholesalers and constantly shop for closeouts/specials. Also you have to contend with MAP pricing and know when a supplier offers a MAP holiday ( so you can run a sale).
And you probably won't get payment terms early on, so you'll need to pay suppliers before they ship to you.

You'll have to be creative with your product line/pricing and not try to directly compete with the big sites.
If I was going to do it, I'd start with a wholesaler that carries all the major brands and sell higher quality knives , avoiding junk.

I really appreciate this

 

[Jeff4]

Im 2

This is sound advice, especially the part about learning a trade. Tradesmen across the board are in high demand, there just isn't enough of us (HVAC, electricians, plumbers, welders, mechanics etc). You get some schooling and work for a company for a few years and learn on their time, then you can branch off on your own if you feel like you're able to. And you can make all the money that you want. I've been in hvac since I graduated hs in 95. It was the best decision that I've ever made. Nothing was given to me, I had to put in lots of hours and miss out on holidays etc but it's paid off. I've been on my own for about 10 years now and I don't pay a single dime in advertising. You treat people fair and do the best job that you can and you'll always have plenty of work. I wish I would've went on my own sooner. Not sure how old you are, but you're never too old to learn and change career paths. Best of luck man

I'm 27 and wow man I do hvac as well been doing it about 4 years now I'm not the best but I know my stuff I do it all and one day yes want to be on my own for sure I'm glad we met lol I'm jeff by the way obviously but the knife store online would just be a side thing till it picks up the my fiance would run it idk

 

[Hashishiin]

Gerber? Eh... I'd buy a Strongarm.

Don't forget the best knife ever

 

[Hvactech]

Im 2

I'm 27 and wow man I do hvac as well been doing it about 4 years now I'm not the best but I know my stuff I do it all and one day yes want to be on my own for sure I'm glad we met lol I'm jeff by the way obviously but the knife store online would just be a side thing till it picks up the my fiance would run it idk

Keep on grinding then brother, 27 years in and I still learn everyday, but you get some more years under your belt and it will become like second nature. Are you an installer or service tech ? For some reason in the trades you are usually one or the other. I recommend learning both sides, that way you gain all the knowledge that you can and can apply what you know to all situations. Best of luck Jeff and you can message me and I'll give you my number if you ever need to ask a question or whatever, I'll do my best to help you out.

 

[dirc]

No they

Are legit knifes
Gerber and all

While gerber might have some brand recognition, it's actually not a very high quality brand (plenty of threads here talk about some of the pros & cons)

most of their knives are from china, & the few of them that are made in the usa are on the expensive side (while also being generally a tier down in steel)

it's also difficult to beat pricing vs established online stores like knifecenter or bladehq which also carry gerber


imho, your best approach would be to find a niche which isn't covered by the large established online knife stores listed above
much like FortyTwoBlades has done at https://www.baryonyxknife.com/, his shop has a great curated selection of really smart choices

 

[catspa]

And he offers additional services.

Parker

 

[midnight flyer]

You know J Jeff4 , if you are that young and have the itch, why not scratch it? $2K isn't chicken feed, but it is NOTHING to start a business. You can run this one out of an apartment, bedroom or garage as at least one well known and loved vendor has done that works this site.

You could accurately look at the $2K as tuition to the school of business (again, cheap!) to learn how much time to allot to different processes, what the processes are and then again, decide if you think it is really worth the time you put into it. If it is a side job (a future point of employment for your fiance) you don't have much exposure but could use it as an opportunity to hit the rhythm of the vending business; trade shows, vending shows (like gun shows, camping/hiking shows, etc.) and all the bookkeeping and tax collecting chores. Trust me, you need some basic accounting skills (I have read that over 80% of all businesses fail due to poor cash management) and understand taxes and taxation, but you will learn more by doing things hands on in the first 18 months of being in business that any business degree you can get.

And again, $2K is cheap, really nothing to start a business even if it is a hobby. And if the purchase gets you some inventory, all the better. Sure, you will get lectures on what knives to carry and what brands certain folks like, but remember Blade Forums is a tiny microcosm of the knife world. Most people buy knives based on the cool factor! To really drive that point home, search BF for the "tacticool" threads. I cannot imagine who would make the blades on that thread or worse, who would buy them, but they are the extreme versions of some cutlery of some sort, and lesser extreme examples are everywhere. The point is, that stuff sells or they wouldn't make it.

One more thing to think about, if you don't like what you are doing after a year or two, dump the inventory for cash and sell the website lock/stock and barrel. Sure, you will be out your time and no doubt another grand or so, but if you can recover any of it by selling remaining inventory or the site itself, it even lessens your exposure.

I don't know you (caught mention of the fiance, though), but you should do this before you have PTA meetings, soccor games to go to, basketball practice, softball team fund raisers, music lessons, bike rodeos, peewee football, parent's day at school, car pooling, family holidays, family get togethers (grandparent's birthdays, etc.), band recitals, days out with the family, etc. And of course, face the fact that the $2K could be a downpayment for a set of braces for teeth. Or to fix a broken leg from a playground accident.

It will be a lot easier now to establish your interest and develop your processes before other interests come along that demand your complete attention and your money!

Robert

 

[AlexDam]

You know J Jeff4 , if you are that young and have the itch, why not scratch it? $2K isn't chicken feed, but it is NOTHING to start a business. You can run this one out of an apartment, bedroom or garage as at least one well known and loved vendor has done that works this site.

You could accurately look at the $2K as tuition to the school of business (again, cheap!) to learn how much time to allot to different processes, what the processes are and then again, decide if you think it is really worth the time you put into it. If it is a side job (a future point of employment for your fiance) you don't have much exposure but could use it as an opportunity to hit the rhythm of the vending business; trade shows, vending shows (like gun shows, camping/hiking shows, etc.) and all the bookkeeping and tax collecting chores. Trust me, you need some basic accounting skills (I have read that over 80% of all businesses fail due to poor cash management) and understand taxes and taxation, but you will learn more by doing things hands on in the first 18 months of being in business that any business degree you can get.

And again, $2K is cheap, really nothing to start a business even if it is a hobby. And if the purchase gets you some inventory, all the better. Sure, you will get lectures on what knives to carry and what brands certain folks like, but remember Blade Forums is a tiny microcosm of the knife world. Most people buy knives based on the cool factor! To really drive that point home, search BF for the "tacticool" threads. I cannot imagine who would make the blades on that thread or worse, who would buy them, but they are the extreme versions of some cutlery of some sort, and lesser extreme examples are everywhere. The point is, that stuff sells or they wouldn't make it.

One more thing to think about, if you don't like what you are doing after a year or two, dump the inventory for cash and sell the website lock/stock and barrel. Sure, you will be out your time and no doubt another grand or so, but if you can recover any of it by selling remaining inventory or the site itself, it even lessens your exposure.

I don't know you (caught mention of the fiance, though), but you should do this before you have PTA meetings, soccor games to go to, basketball practice, softball team fund raisers, music lessons, bike rodeos, peewee football, parent's day at school, car pooling, family holidays, family get togethers (grandparent's birthdays, etc.), band recitals, days out with the family, etc. And of course, face the fact that the $2K could be a downpayment for a set of braces for teeth. Or to fix a broken leg from a playground accident.

It will be a lot easier now to establish your interest and develop your processes before other interests come along that demand your complete attention and your money!

Robert

That makes sense to me. When you just start on the low budget, you don't need necessarily to spend huge amount on marketing and the communication.
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