Question on the elasticity of knives?

[shootist16]

Curious if Spyderco has done any research in to the economic elasticity of knives. I was wondering what the degree of elasticity is? Would you consider knives to be relatively inelastic or elastic. As the price of knives goes up how much does the demand go down?

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Dennis Bible

 

[dogboye]

Hey Dennis, getting a little esoteric there, aren't you?

Feeling better today?

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I've seen a look in dogs' eyes, a quickly vanishing look of amazed contempt, and I am convinced that basically dogs think humans are nuts. -- John Steinbeck

iktomi

 

[Sal Glesser]

Hi Dennis. Good question. rather esoteric, but we can handle it.

There seems to be a direct correlation between price and volume. It seems to go in "groupings". under $50 (MSRP), 50-80, under 100 vs over 100. at 150 things go down fast.

sal

 

[Carlos]

It brings to mind the Ferrari business model: They sell street cars so that they can afford to build race cars.

The under $50 and under $80 knives are probably the "bread and butter" of the company, which keeps them in business and allows them the build the much smaller volume $100 to $200 knives for us knifenuts.

[This message has been edited by Carlos (edited 01-19-2001).]

 

[shootist16]

Thanks for the responses. This is my last year for getting my B.S. in organizational management. I am taking economics this semester. I am trying to make it more interesting by thinking about subjects I like. Like it isn't hard enough going back to school after a 7 year break.

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Dennis Bible

 

[dogboye]

Hey Dennis, I figured it was something like that, even before i read your post over in General. But, I just couldn't resist.

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I've seen a look in dogs' eyes, a quickly vanishing look of amazed contempt, and I am convinced that basically dogs think humans are nuts. -- John Steinbeck
Dog does not eat dog. - Juvenal

iktomi