Recessions impact on knife market

MikeC

MikeC

Joined
Sep 16, 2005
Messages
1,364
This recession is continuing and in our area appears to be worsening, do ya'll think the recession is hurting knife companies? I'm wondering if some new boutique steel or other material has been shelved or how many knives aren't making past the drawing table. It has to be hurting research and development of materials.

Just curious as to what if any impact everyone here thinks as that is all we can do as we will never really know, about what the real impact is?
 
I watch custom folders in the sub 1000 range and collect mostly these and high end factory knives.

This is all just my opionion watching sales for the last 18 months, so I have no data on this....but what I've noticed is:

It seems that the guys that buy the 400-600 dollar foldes have less, so factory folders in that 100-200 range are seeing a boost. The guys that buy some factory folders in this range are buying less, but the custom guys slipping down are making up for it well.

Some folders once in the 900-1200 range are back down in the 700-800 range. I have not seen a Mayo custom under 800 bucks on the secondary market for years before now.

High end stuff thats like 1800 and up are fine because rich folks are still rich....go figure.

So the biggest area I've seen impacted are those 400-600 folders, which are now dipping into the 300 range.

Again, this is all my opionion and I could be totally wrong.
 
I doubt the sub-$50 market will be effected much, folks who buy those knives as tools would still need to buy them. Perhaps a few less sales for construction workers and recreational campers.

Likewise, I doubt the $300+ market will really hurt that badly. I don't think the sort of folks who buy such knives, en masse, are really feeling the recession that much.

That leaves the price class of knives consumed most fervently by the blue-collar collector, which might be most negatively effected. What might the results be? More discontinuations, shorter production runs, or fewer new models? I seem to have noticed at least a bit of all three recently.
 
Probably high ends and customs. Doubt it has affected Walmart grade knives much, maybe 10% or so. Even in hard times, most of us can scrape up the price of a moderate knife, and some of us will buy a knife in lieu of a more expensive luxury.
 
demtek9 said:
High end stuff thats like 1800 and up are fine because rich folks are still rich....go figure.
Click to expand...

Don't know about rich folks still being rich, as I know some will argue that point, however I feel you are right about the knives as I can sell $3000+ hunting knives easier than $300-$1500.
 
As of this writing, there is an XM-18 for sale on this site for $600.
It has had over 190 views.
Nobody has bought it yet.

Yeah, I'd say the economy is effecting knife buyers.
 
Last edited:
demtek9 said:
I watch custom folders in the sub 1000 range and collect mostly these and high end factory knives.

This is all just my opionion watching sales for the last 18 months, so I have no data on this....but what I've noticed is:

It seems that the guys that buy the 400-600 dollar foldes have less, so factory folders in that 100-200 range are seeing a boost. The guys that buy some factory folders in this range are buying less, but the custom guys slipping down are making up for it well.

Some folders once in the 900-1200 range are back down in the 700-800 range. I have not seen a Mayo custom under 800 bucks on the secondary market for years before now.

High end stuff thats like 1800 and up are fine because rich folks are still rich....go figure.

So the biggest area I've seen impacted are those 400-600 folders, which are now dipping into the 300 range.

Again, this is all my opionion and I could be totally wrong.
Click to expand...

Your opinion is based off of observing the market and I think your analysis is spot on, I have been noticing similar stuff. I'm curious about how much research and development into new materials just got shelved. Whats funny your observation points to the fact that it is the middle and upper middle class that got crushed the worst and that the poor and the wealthy were unaffected.

Given that fact which proves the old adage the meat is in the middle, the largest part of the buying market has been impacted the most. So this has got to be impacting volume both sales and dollar. Which in turn has got to be slowing R&D at both knife companies and places like Crucible who make materials for the knife companies and makers.
 
The very best and the very cheapest are going to be OK. When I first started, I was kind of surprised at how cheap Randalls were in contrast with other knives. You can still get a used Sebenza for not much more than a new good ordinary knife.
At the other end of the spectrum, you can get a Mora for $10 or a Buck 110 for $25. These are great using knives. I once suggested to a Brit that was going on a mountain climbing trip that he get a couple and give them as tips to the guides at the end of the trip. His response was along the line of "Give away a Buck 110-are you nuts?. It seems that the UK doesn't have a WallyWorld.:D
-----------------------------------------------------------------
Other examples
I go to this Korean guy for my glasses

http://www.yelp.com/biz/new-days-optical-lab-chicago

He charges a bit more, but the guy is a fanatic and will spend a !/2 hour adjusting the frames, just so they fit your face perfectly. He is always going to be OK.
My vision is such that I can get by with just #250 reading glasses and when I'm in the neighborhood, I drop in the Dollar store and pick up a couple to leave around. I also buy extra shower curtain liners and such. I think the Dollar store is always going to be in good shape.
Eye glass stores in between may experience some trouble.

Anyway you get my drift
 
cotdt said:
It affected Crucible Inc.
Click to expand...

There is much more that affected them other than the economy. You can find about other things that have affected them with Google.




The recession has affected most, or all, of the manufactures i would think.
Some much more so than others.
I think its affected many handmakers also, but there will always be those with long waiting list, and some that are to busy to even take orders.
 
You guys seem to be spot on in your observations. I'll tell you from personal experience how this recession hit me. I once bought 100-200 dollar production folders for general use and chores around my property. I kept the high-end stuff (not so high-end compared to stuff I see here) for special outings. Now I buy sub-75 dollar stuff for hard use and buy a 100-150 dollar ones if they really get my attention. I keep the few customs I have in the closet now to pass on to my sons (or daughters) because I can no longer justify replacing them if they get ruined. On a brighter note my two most recent folders were a Boker Exskelibur (pro version of a custom Burger) $50 and a Kershaw Blitz (produc version of RJM) $25 and I was VERY impressed with the build quality of both for the price. So in a way it's brought to my attention a new segment of the market which I once overlooked. This is a good thing right? Not so pompous in my selections anymore, maybe you CAN teach an old dog new tricks. You guys be safe and have a good year, Smitty
 
I only bought 2 knives in 2009. It is affecting my buying decisions. I hope better days are ahead. Watching the State of the Union last night did not give me any confidence.
 
The Cutting Edge is doing great, the general catalog not so well, new designs sell well the old stuff not so well. Randalls continue to sell well at high prices.
 
mossyhorn said:
It has impacted everyone.
Click to expand...

I think that you may be surprised. More millionaires were created during the Great Depression than at any other time. (Google it.)

Businesses that follow principles of excellence will always survive and often flourish during tough times. A good product with real value will always sell in a bear or bull market. On paper last year, my Spyderco knives out performed many of my Mutual funds, where asset value is concerned. Not bad.
 
Thanks, Mr. Russell, nice to hear from someone who would definitely be in the know. I'm just afraid that we risk losing some makers and companies if this thing continues for another year or more, and judging from what I'm seeing here it is.

The middle of the road market was the largest section of the market and far and away had the most to offer. I think were seeing a reduction in overall selection which I think is ultimately bad for knife nuts and the knife market from a macro standpoint.
 
You must log in or register to reply here.
Back
Top