TFin04 said:
Sal- I appriciate your response. I never accused Spyderco of lowering quality, just that I'm surprised you guys broke into the Wal-Mart scene.
I do have one question:
It was rumored on here that the $40 price at Wal-Mart is below dealer cost (The figure was $8 cheaper). If that is true, what do you say to those dealers who now pay more at cost then customers at Wal-Mart pay retail? Are they expected to buy from Wal-Mart at $40 (which would save them $8 a piece), and resell them in their stores?
I've been working in retail for a few years now, at smaller locally owned Paintball stores. I've seen what Wal-Mart, Dunhams, and Galians can do to small companies. I would like to hear Spyderco's side of this story.
TFin04,
Prices were lowered across the board for the Native. The higher volume created some savings which we passed on.
This is from the thread refered to by Chris;
"Actually, the Native was originally designed for Wal-Mart, many years ago. Camillus was going to make the knife, but the deal didn't happen. Hence the BRK 1st generation model. The model has gone through 4 steels and a number of variations and has now gone full circle.
The Wal-Mart deal has been in process for many months. They are testing one model in about a third of their stores. They are only carrying the Native in plain edge, S30V. I couldn't say anything here because Kelly wanted to inform our dealers first. She sent out letters last week. Very high integrity lady.
The Native suffered the same "situation" as the Caly jr. The large dealers don't want to stock more than "one plastic handled Spyderco of the same size". The Delica has always been our best seller (3" blade) so the 3" Native and 3" Caly jr. never got a shot at the "big market".
The specialty knife shops, like Country Knives, carry all of the models, for which we are grateful, but their are few of those type shops.
The original plan was for byrds, but Wal-Mart wanted a USA made high quality folder. They are difficult to work with, because of all of the details, but they are extremely professional.
Hopefully the Native will do well in the "big Market".
As far as retail goes, I understand. Many stores and industries are affected by the forward motion of business. Saddle shops were replaced by auto parts stores, Typewriters gone due to computers, many small eating establishments could not compete with the chains like Tuesdays and the Olive Garden. Home depot has not been good for the small neighborhood hardware stores, which I personally miss.
Competition has always changed retail. The car wash down the block, once successful now has 6 car wash competitors in a 2 mile area.
Spyderco didn't create this condition, we are just responding to it.
When a single customer comes along and says we'll increase you business tenfold on a model that most dealers won't stock anyway, would you say no?
I think not.
The small stores will have to specialize or go internet only in order to survive. We are a small company and we are also trying to survive.
I believe the internet is doing more to hurt the small retail stores than Wal-Mart is. Also using the lure of lower prices.
Hope that helps your understanding.
sal
