Opening a Small Knife Shop?

Jon Brand

Jon Brand

Joined
May 28, 2007
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For the past two years all I've thought about is opening up a small shop. Maybe in a mall but not ideally. I would want to use whatever I feel is the best quality production knives and sell them even if the prices are higher then the cheapo folders out there. Maybe Emersons, Spyderco, ZT, Benchmade Diskin and Chris Reeve

I want this to be based on American products as part of the theme of the store.

And regarding customs maybe just a few. Maybe a run of ten of Burt Fosters dark side knives, and ten of his CNC or water cut hunters with wood handles so that I can have some mostly handmade high quality in the store.
Maybe once in a while a full custom user type like a user grade Crawford kasper for sale.


This is a dream of mine and I may start looking to make it a reality in the future but not for some time.
Hit me with anything you got? Wisdom? Criticisms? all ok and I don't know where to start. I will first look into getting licensing.
 
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I had a conversation with a gentleman who used to have a knife store at the mall. For 20 plus years. He eventually moved to an off site location, because the mall had very strict requirements for opening and closing times, with strict expensive fines every time he was late to open the shop or left early.

He finally got out, to his own building. He had an affinity for traditional knives, and sold collections on consignment, so was always worth a stop.

Much higher foot traffic, but you also have to weigh that with the type of customers who go into a mall knife shop to look at knives. I would go in to check out knives I wanted to handle. Many people who walk into a mall knife store are looking for "mall knives"

I would love to have a local knife shop that stocked decent knives. I would definitely stop in at your shop. You have good taste in knives.
 
One of my closest friends and the guy who got me into collecting knives used to own a small shop called The Gadget Company. He sold Randall, CRK and other high end production knives as well as local and regional custom knives. It was not just a knife shop though. He specialized in anything that guys would want, from high end pens, fly rods and gear, watches, barbecue tools, and other expensive "must have" guy gadgets. I don't think he could have made the monthly rent on knives alone but that was his passion and he sold plenty. Not only did he get to buy and sell what he liked, but all the trips we took to Alaska, Montana, Colorado, etc were business trips for him. He also helped rich guys outfit themselves for various trips and helped them plan where to go. It was a heck of a business and he eventually sold it when he retired.
I agree with Bigfattyt that the clientele you are after may not be "mall" people. My friend's clientele were mostly wealthy outdoorsman who would not find what they are needing for outdoor adventures in the mall. I am the same way. If I were needing new gear or knives, I would not look at the mall. Look for a high-end plaza location where the guys will stop in your shop while wives are spending money elsewhere and where women will go for all their guy gifts. Just my opinion.
 
Jon Brand said:
For the past two years all I've thought about is opening up a small shop. Maybe in a mall. I would want to use whatever I feel is the best quality production knives and sell them even if the prices are high. Maybe Emersons, Spyderco, ZT, Benchmade Diskin and Chris Reeve
I want this to be based on American products as part of the theme of the store.
Click to expand...

Hi Jon. I think that is you are going to open a business like this you first have to be very clear about the math. Ultimately can you sell enough knives each month to cover your overhead and put some cash back into you pocket.

Go and find a good commercial real estate agent who deals with malls and retail property in the location that you are looking at and get the expense lowdown from them. They can give you rental figures, electricity and all the other fixed expenses costs relating to the property.
Then be realistic when adding in your initial set up costs like shop fitting, stock and sundries. Don't forget expenses like employee salary and your own take home.
Once you have the figures you can do a cash flow projection for 24 months and realistically see just what you have to sell to break even. Without this math exercise (which has nothing to do with knives) you cannot even begin to make a decision.

My gut instinct is to tell you not to do it.

The truth is that what you like and what will sell in a retail environment is two different things. Most people simply will not pay for expensive knives, they consider them a waste of money and the collectors/enthusiasts go to the big internet based stores for a deal. Remember that you are starting from scratch with no goodwill/reputation in the business and you have to buy all your stock.

If you were starting a high end watch shop and you wanted to carry some high end knives as an adjunct that is a different matter, I think that a new dedicated high end cutlery store in a high end location will be a very tough business to get into the black.

Please be very cautious when making this decision. It could end up ruining your hobby and love of knives.
 
"I want this to be based on American products as part of the theme of the store."

I like your idea, but MY idea of a knife-store...would be FINE products from wherever. I could hope to make a decent liviing selling just Spyderco, along with some CRK, Strider, and Hinderer for the bigger-money guys, and ZT and Benchmade to fill it out. I would NEVER consider leaving out Spyderco...that would be my biggest seller by far, IMO.
Note that there are some preceding posts which advise you to be very careful, and perhaps to locate where your basic costs would be lower. I'm certain that is good advise. The best knife-shop in my area also sells military and law enforcement products, clothing, holsters, etc. and at least is still "open."

Jon, you have a great idea and some good supporting posts already. However, on the "American" bit, please be aware that many GREAT folding knives from a wonderful American company...SPYDERCO..are produced in Seki City, Japan or in Taichung, Taiwan. Seki City gives us the great Japanese steels such as ZDP-189 and SuperBlue, and perhaps VG10, IIRC.
The Taichung Spyderco facility often uses American steel which is shipped over there...and the knives are produced under close American supervision, but you need to be aware of your definition of American products.
Of course, Spyderco is based in Golden, Colo, and great folding models come from that store also. I probably buy twenty Spydercos for every ONE of CRK, ZT, Benchmade, or custom, and MANY of my favorites, with great fit and finish, come from Taichung.

Note the wonderful models coming from the Taichung plant...this list compiled by RamZar...
Folders-made-at-the-Taichung-plant
Here's an alphabetical list of the Spyderco Taichung folders along with designations on whether UPCOMING or DISCONTINUED otherwise they're current products:
• Air by Gayle Bradley
• Cat CF (DISCONTINUED)
• Cat G-10
• Chaparral CF S30V (DISCONTINUED)
• Chaparral CF
• Chaparral Stepped Titanium
• Chaparral Titanium
• Chicago CF (DISCONTINUED)
• Chicago G-10
• Chokwe (DISCONTINUED)
• Chubby (UPCOMING)
• Des Horn
• Dice
• Dog Tag (UPCOMING)
• Domino
• Domino Blue Weave
• Frontier (UPCOMING)
• Gayle Bradley
• Hungarian
• K2 (UPCOMING)
• Navaja
• Nilakka
• Perrin PPT (DISCONTINUED)
• Rubicon (UPCOMING)
• "S" Black (DISCONTINUED)
• "S" Silver (DISCONTINUED)
• Sage 1 LinerLock
• Sage 2 Reeve Integral Lock
• Sage 3 Bolt Action Lock - Blue G-10 (DISCONTINUED)
• Sage 3 Bolt Action Lock - CF/G-10 Laminate
• Sage 4 Mid Back Lock
• Salsa Aluminum Black (DISCONTINUED)
• Salsa Aluminum Blue (DISCONTINUED)
• Salsa Aluminum Cranberry (DISCONTINUED)
• Salsa Titanium (DISCONTINUED)
• Schempp Bowie (UPCOMING)
• Slysz Bowie (UPCOMING)
• Southard Earth-Brown G-10
• Southard Black Blade / Black G-10
• Szabo (DISCONTINUED)
• Szabo Black
• Techno
• Terzuola SLIPIT (DISCONTINUED)
• Tuff
• Tusk
• Vallotton
• Zulu (DISCONTINUED
The great majority of my favorite Spydercos come from this list. I couldn't imagine limiting myself to JUST American-made Spydercos, although I've owned many great PM2's and Military models and others produced in Golden.

I wish you well in your dream and would truly enjoy visiting your store.
Don
 
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One of my good friends told me that a hobby based business is a great way to make a big pile of money into a much smaller pile.

Seriously, there are only a few brick and mortar knife shops that have been successful over the long haul. Niche markets are very difficult to capture without a great business plan, great location, and plenty of working capital.
 
if you ever wanna hit me up, Jon, go ahead and give me a call. Probably have a pearl of wisdom or two for you.
 
Jon,

I've not run exactly what you're proposing but have had a retail shop for my own knives for 9 years now. A couple of things that I would recommend are that you make your inventory something that cannot be bought at your discount houses as you'll never be able to compete in price with them (and advertise it that way). Also, I would recommend a location that has another business or two close that will attract a similar clientele so that your shop doesn't need to be as much of a destination and can get a larger walk-up trade. A typical mall won't usually do this. You need to think of what attracts males as very few of your customers will be female which is what the bulk of the mall traffic will be.

Good luck. I wish you the best.

Gary
 
I know this isn't answering your question, but ...I believe there are little known/financially strapped knife makers out there with great products, i.e., folders, who could benefit from an investor who could partner up with them in taking their product to manufactures, such as Kershaw, etc. This could, in my humble opinion, be a good way to invest, make a profit, and enlarge the knife industry. I know, I know, kind of an off the wall idea:) Sorry, I can't help with opening a knife shop, I do note though, that all of them in my area have closed.
 
This is not happening anytime soon. I'm just brainstorming. Mall is not ideal and may be an odd location and bad idea. The overhead is what would kill me and there is no doubt about that. you guys are very correct that a hobby business failing and losing money. That's why this may never happen.
 
If you like cooking, cook- but do not necessarily open a restaurant. You ought to open a restaurant if you are quite experienced in the restaurant business.

Meh, here I am, raining on a parade. Go forth. Follow your dream! Fill a need and get paid ;)
 
Jon, I know of only two purely "knife" shops. The first was STODDARDS in Boston. I believe they originally had two stores but closed the one in Copley Square a few years ago after loosing their Randall dealership. They also carried other fine knives, kitchen cutlery, razors and sissors and shears. The second was a family owned Victorinoxx store in a large mall in Connecticut. They handled Victorinoxx, Benchmade, Spiderco, William Henry and many others. In addition, they carried luggage, flashlights, culinary items and clocks. They closed about a year ago due to a family squabble.

Both shops existed for quite a while but had to diversify their merchandise a bit for cash flow. I believe eventually the mall overhead killed both of them.

A good idea but would work best in a men's mall that would include a Cabela's, a Bass Pro Shop, a hardware store, an exotic car dealership and a good bar.

Good Luck!

Kevin
 
Jon, I'm afraid any start-up 'brick & mortar' pure 'knife shop' is going to have a hard go of it these days.
Just too much overhead for too little profit, especially in a mall location.

Some success has been found in merchandising knives with outer items or INTERNET business tie-ends
such as Daniel O'Malley's Epicurean Edge and Dave Harvey's Nordic Knives.

Anyway, if you decide to take the plunge I will guarantee you one customer. :)
 
Jon, I don't have much to offer in the way of help, but this store----> http://www.srknives.com/ is located in a mall beside a Sears store in Etobicoke (Toronto area). They've been in business for years and offer a wide selection of production as well as some custom knives. Perhaps their model is close to what you envision?
Wishing you good luck!
 
Mall rent is the highest there is, however has the most foot traffic. My wife owns her own business, and I believe you would have to combine some other things like straight razors and shaving supplies or cigars and cigar cutters etc...
 
Kevin Cross said:
A good idea but would work best in a men's mall that would include a Cabela's, a Bass Pro Shop, a hardware store, an exotic car dealership and a good bar.
Click to expand...
KevinC brings up an interesting point: Your largest target audience will be males. Consider a possibility of 'renting' an area in an existing business?

KevinJ also hits the nail on the head. Probably impossible for a smaller individual to get a standalone shop up and going in this era, especially up here in the NE.

Is there a 'Weekend Marketplace' in your area which has nearly permanent vendors? While the ladies are shopping, YOU are catering to the guys. :)

Coop
 
Lots of good advice here. Ask ol Mike Snody he opened a shop.
From an ex real estate agents perspective:
Talk to reputable commercial realtor there is a difference... Realtor = belongs to and has been certified by a Licensed agency to which they pay dues and are monitored
Real Estate agent can be anybody who has passed the tests and working for a broker
Look for all those short 3-4 letter designations after there title which means they are staying current and have speciality expertise.
Then and only the check with the local Realtor board for any violations your state will have a Realtor monitoring division... Time well spent
Will save you from getting sucked into a 3-5yr commercial lease at a property they know is crap! Always have an "Out Clause" Commercial leases are usually binding weather or not you make a profit. They have good lawyers.
Next run the numbers HARD your trying to survive on the markup from wholesale to retail.
What volume will you need to accomplish that?
Be aware of all the hidden costs. If you can't fund it for two years and take a loan you are then paying Rent, electricity, fixtures, salaries, workmans comp ins, liability ins, loan pmt with enough left to then pay your bills at home.
After that you make profit.
IMO go digital all the way. Hire a reputable social media marketing firm. Get a slick website and run it from home or Sublease a portion of a commercial warehouse from someone who is already signed that commercial lease. You would be amazed at how many people who run a small business have extra space they are happy to share. Free knife or two to won't hurt.
Hope this helps
 
Jon, good info posted so far... We had a large knife section in our retail fishing tackle/marine supply store in Florida and sold more knives than any place in the south east. Family business from 1975-1989. My dad was/is a promotional, advertizing, retail genius.

It can be done, but not easy. Stay away from the malls. Start small, with as low overhead as possible. Add a online website store, it is a must these days! I would also add Great Eastern slip joints to the inventory.

Follow your dream, but do it smartly.
 
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Jon, though the odds are against you (SBA FAQ) if you are very smart about expenses and outgoing you can succeed. You have to be creative and be willing to provide the goods and services others do not (differentiate yourself).

After 36 years of a small town, family owned hardware store we closed the doors this year and my parents are now happily retired. Oh and "good help is hard to find" is appropriate now more than ever.

P.S. We carried Case, Benchmade, Kershaw and CS. Ammo and fish supplies too. MAP and min orders complicated things a bit. Feel free to PM if you have questions.
 
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