Pricing practices

[Chiro75]

There's a heated discussion in another forum about part-time knifemakers underselling professionals and screwing them over. I'm curious how knifemakers figure out their pricing. Do you have a per hour charge, then factor in materials? Do you scan similar knives in the market and price accordingly? I'm curious what others are doing, especially the pros.

 

[ddavelarsen]

This is one of those time-honored discussions that never seems to be resolved. I'd like to check out the other thread, if you'd PM me with the info.

Personally I don't see how a part-timer, unless very well known or rising like a star, could seriously undercut a pro - they're just not the same product. In my experience serious collectors have only moderate interest in the work of the 'average' maker. Let's face it, there are hundreds - maybe thousands - of knifemakers out there. Collectors are really only interested in those knives that are of exceptional quality and can be expected to hold their value over the long term. Any purveyor will tell you, there are only a few dozen "names" that would fall into this category; and their work is priced accordingly. The rest of us tend to charge what people will pay, and that's, speaking very generally, considerably less.

All that being said, I believe that I don't charge enough for my own knives because I can't keep them around. As soon as one is done, someone is hounding me to sell it. This is not bragging, don't get me wrong. I put what I think is a fair price on my work as measured against the standards I've set for myself. I'm just nowhere near where I think I should be. I compare my prices to similar work available on the forums or at auction and I think I'm a bit higher - because I can get it. But I'll never charge more than I think a knife is worth just to capitalize on someone else's foolishness.

I also believe there's a significant pricing point at about $300. I can sell everthing I make under that price instantly; over $300 takes a while. Of course, no one in the wider world has a clue who I am and that makes a huge difference. I'm not very prolific and I cannot afford to go to shows even if I could stock up enough knives to present. So I don't expect to gain the name recognition that is the other half of the price formula. I do however expect to attain the skills I aspire to and when I do I'll edge my pricing up to where I want it to be. Most of my normal work sells for $250 - $400. If they were well made a little more elaborate I'd triple that and expect to get it. But not today. Not yet.

 

[jhiggins]

There's a heated discussion in another forum about part-time knifemakers underselling professionals and screwing them over.

Sounds like a case of jealousy/envy? Unless a part-timer has an extremely undemanding schedule and seriously lax responsibilities in his personal life, and he would also have to be a human dynamo as far as stamina to work all the hours needed to make decent knives... then and only then could a part-timer be prolific enough to compete head-to-head with a full-timer.

I'm a part-timer, but I'm close friends with several full-timers. I think many of you agree with me, that if you aren't making knives, you aren't getting paid. Kind of like a dentist - If he ain't fillin' and drillin', he aint gettin' paid!

So this is why I say its probably a case of the full-timer needing to mind his own store. Granted, there are a lot of full-timers out there whose knives simply aren't as good as some part-timers out there, and this may be the case as well.

 

[Chiro75]

The discuission actually started with a guy who started by making kit knives and now uses kits with some handmade components and said he sells them, rountinely, for $500-$800. I charged $175 for this knife:

I feel like that is a very reasonable price for the knife. He said I was undercutting full time makers, whose prices are still in the 1980's and who are struggling to make ends meet.

Anyway, I basically look at what's out there in similar materials and construction and go from there. My points were this:

1)95% of my work is done with hand tools. That means VERY slow going, which means it takes a lot more time to make a knife. I can make $450 an hour if I really try and my office is really humming. So, knifemaking is a hobby. I usually trade, or I sell to save money for equipment and materials. I can't charge $2500 for a knife that took me a few hours to make just because I am slow at what I do.

2) I got my start by making kit knives, too. My first was a Rob Simonich Cetan Tanto kit. It cost $40 and it was an ATS-34 blade ground by Rob. I got rob's pin material, instructions and Micarta, too. So, literally, with the exception of the quality of the finish, my finished knife was the same in almost every way as one of Rob's. I would never have been able to sell mine for what Rob sold his for because it's still a different maker and that's where a lot of the value comes from.

 

[Mark Williams]

So if someone works a 40 hour week at one job and 60 hours a week making knives. Which job is part-time?. Some guys just work two full-time jobs.

 

[L6steel]

Dave, excellent Post!!

 

[blgoode]

I have very little experience with paying customers at this point. I am willing to sell a knife at my skill level with similar knives being my priceing guage. I figure if it takes me twice as long.....when I get faster...thats when I get a raise. Part timers ,like Mark said, could compete with full timers if there putting in the hours needed. They just dont pay their taxes based on knife work...i.e. a ligitimate job does that.....Just kidding. Hell, I'll make knives if no one buys them..........thats why I consiter myself a partimer.