I don't disagree, but I actually think the cash angle makes MORE sense than the custom. I'm gonna be a lot less picky about my $50 custom caplifter than my $1800 production knife. That means that, if you send me one that's already been returned once, I'm going to be a lot more likely to catch any minor cosmetic blemishes or fingerprints that got on the blade, etc. That means I'm more likely to complain, causing headaches and just generally being a pain in the butt.
That's why I think it makes more sense, from a business perspective, to charge the restocking fee based on money spent, not vague definitions.
I get what you are saying also. Ideally the policy would be different.
On topic to this thread, what KC defines as a "mid tech" or "semi Custom" is defined. It says that a Rockstead is one in the description. Whether any of us agrees with their definition is inconsequential. There is no confusion as how the definition relates to their return policy.