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Spyderco pricing policy

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Has anybody been to Discountknives site and looked under Spyderco knives? He has posted

Spyderco has instituted a pricing policy as stated below.
Discount Knives will comply with this policy.

Spyderco's Pricing Policy: Retailers May Not Advertise In Any
Retail Medium, Product Pricing Below MAAP (Manufacturer's
Advertised Price). Additional, should any price other than MSRP
(Manufacturer's Suggested Retail Price) be used, the MSRP must
be listed. Below are the MAAP and MSRP.
He has call or e-mail for his price, if this really comes from Spyderco I have bought my last Spyderco knife. I will never buy a Spyderco knife again, Do not like. I bet some dealers complaned that there prices looked bad next to fair prices so this! What do you all think. I am not overreacting am I?
 
Sounds like Spyderco is trying to turn web dealers into speak-easys.
If this is true,it goes against the free-market system and I'm also through with Spyderco.
Anyone know the facts on this matter ?
Bill
 
Sypderco and several other manufacturers have wanted their prices raised at the dealer level. This is to keep brand loyalty and quality perception high.

However price fixing is illegal.
So what do you do?
You say you have a minimum advertised pricing policy.
How do you enforce this?
Hehe good luck!

The fact is no matter what a dealer has the legal right to sell any item he wishes for any price he wishes unless he has entered into a binding contract with the maker. Problem #1: Most knives are bought from distributors, not the makers. So who is to enforce the rule or policy?
Problem #2: Distributors are not price police and could really care less what a dealer sells product for. I wont do it, although I will tell each dealer what the manufacturer has requested. I will not play policeman and force a dealer to change their prices. Not my job.....
Problem #3: Internet dealers account for very little of the actuall overall market but it seems like the manufacturers are overly concerned. However the internet is easily accessable and very prominent so the problem seems larger than it actuall is.
Problem #4: The makers sell to the marts who sell for dirt cheap and then get made when a small internet dealer posts knives for similar prices. Hypocritical I say.

Oh I could go on and I usually get phone calls from posts like this so I will digress.

------------------
Best Regards,
Mike Turber
BladeForums Site Owner and Administrator
Do it! Do it right! Do it right NOW!
www.wowinc.com





 
Spyderco's pricing policy.

The reason Discount Knives changed the policy was we were contacted by our distributors stating that unless we only posted the Spyderco's Manufacturer's Advertised Price and Suggested Retail Price we would not be supplied with Spyderco knives from that distributor.

We were also told if the distributor continued to sell the knives to dealers who advertise less than the Manufacturer's Advertised Price, the distributors themselves would be cut-off. This may be only a threat by why take the chance. In fact, one of our distributors has cut off two dealers who refused to adhere to Spyderco's policy.

Discount Knives will still sell at our low prices but we will not advertise our prices only the Manufacturer's Advertised Price and Suggested Retail Price. It will be necessary to e-mail or call for Discount Knives prices.

Discount Knives
www.DiscountKnives.com

 
See ya Spyderco.....
I don't want that Lum anymore, and my clipits aren't as pretty to me as they were yesterday.
Bill
 
Spyderco is trying to avoid going the WalMart route, and trying to avoid having so wide a spread between the storefront price and the mail order price that it becomes irrational for stores to carry the product. Spyderco is also not the only outfit trying to accomplish this.

We Net dealers will just have to offer extra value, one way or another. For instance, 2-day air at no extra charge, or a Photon Light or something thrown in for purchases over $XX. Or a discount for knives whose boxes are no longer pristine, from packing and unpacking for a couple of knife shows.

I and others will be working on our web pages in coming weeks, and we'll see how creative we can get.


------------------
- JKM
www.chaicutlery.com

 
My reaction about Spyderco's "price fixing" could be construed as an over reaction.
However, they have taken the posture to bully their delivery system on the heels of their direct presence in Walmarts.
The market will deliver a fair price for any quality merchandise-even with stout competition.
Their behavior is deplorable and I cannot support it.
Their product is no longer good enough to counter their marketing behavior. Screw them!!
Bill

[This message has been edited by Bill McWilliams (edited 21 December 1998).]
 
Bill I agree with you 110% I WILL NOT BUY ANOTHER SPYDERCO KNIFE!!! I e-mail spyderco and told them the same thing. And right now I own 15spyderco knives, I will be giving them away for xmas now! I don't even want the ones I got. Like you said SCREW THEM!!!
 
There has been similar rumblings in the realms of my other hobbies..for instance: many automotive high performance parts manufacturers have been bitten by the MAP bug too, and catalog companies have been forces to adapt. Jeg's just says "Price too Low To Show!", while Summit Racing shows the MAP right next to an "Instant Rebate".

I don't think I will be purchasing a Spyderco in the future, not just because of their "semi-legal" price fixing scam, but because of how they have treated their dealers. I have bought several knives from DiscountKnives, and have been happy with the service, and I really hate to see honest buisinessmen get screwed.....

------------------
Off in search of Knirvana....yek



 
Yep,
Spyderco got their start with thumb holes.
Now it looks like they have become ***holes.
If there are subsequent consequences like difficulty in drawing additional collaborations, then it's very deserving.
A "custom maker's" hard-earned prestige could be damaged by the association with a scummy manufacturer.
Hey Spyderco, "all God's creatures also have holes. Have you checked yours lately?"

[This message has been edited by Bill McWilliams (edited 21 December 1998).]
 
I guess I don't understand what the big deal
is.Spyderco has just changed the advertiseing
policy,not the prices.The real shame is the
way Benchmade is selling its M2 blades and
its other new models by doleing out a few to
first line dealers in order to keep prices artificially high and in turn out of most
folks hands.Oh well,all this to shall pass.
 
Don't hang me but, I think Spyderco is smart. Of course they are acting in their own self interest. I'm not saying I agree with their policy or disagree with it but, I've purchased Spyderco's in the past and I will continue to in the future. I think they make excellent knives.

Bernie

 
Doggone it! I wanna agree with most of you guys but I was planning on buying a VG10 Calypso right after Christmas. Doh! I know I`ll boycot them right after the Calypso ,honest.
wink.gif
Seriously I really do hate it when companies get pushy,Yekim`s right it`s happening everywhere <sigh>. Marcus
 
You can probably expect a reply directly from Spyderco in here over the next day or so. It seems they tried to register today but their email service is not working. Spark put in a call to them. Most likely we can expect to here from either Sal Glessor or Michelle Espinosa.

I have been contacted by several manufacturers asking me to police their polices. I wont and never will. The simple fact is that each time a maker has tried this before it has failed. Look at Benchmade, they tried it last year and went so drastic as to get rid of many distributors. The dealers simply switched to other distributors. Until a maker goes 100% dealer direct they will have a slim chance in controlling price. Don't get me wrong here. I understand what Spyderco is trying to do. The simple fact is that they will not accomplish their goals this way. The price will still be the same and their are some very creative dealers out there.

Instant rebates, autoresponders, Pearl CGI IP scripts, special email lists for Spyderco products, fake web sites .......

I mean I can think of many ways myself to do this and obviously a few have already been mentioned. The internet is too easy to manipulate and many have already mastered this art. Many ideas have been mentioned above by people who I beleive do not even have web sites. I have talked to Sal personally about the matter and I welcome any further conversation he may have on the subject.

Maybe what is needed is a get together at the Shot Show so I can educate the manufacturers on why their internet policies are not working and will never work. Here is the deal, if you can't beat them you should try to work with them.

Management (Or Control) by intimidation never works.

------------------
Best Regards,
Mike Turber
BladeForums Site Owner and Administrator
Do it! Do it right! Do it right NOW!
www.wowinc.com





 
What's a "fair" price looks different for a storefront dealer, a mail order or Internet dealer, and a customer looking for rock bottom price. As a dealer whose prices are neither the highest nor the lowest out there, I'll admit to grumbling about seeing price tags so low that I wonder how they make any money, unless they have negative overhead, or buy below wholesale. For instance, when I see Leatherman or SwissTool for sale as Mammoth Mart for a couple of bucks over or even under my wholesale price.


------------------
- JKM
www.chaicutlery.com

 


Spyderco's Pricing Policy:
Retailers May Not Advertise In Any Retail Medium, Product Pricing Below <FONT FACE="Arial">MAAP (Manufacturer's Advertised Price). Additional, should any price other than MSRP (Manufacturer's Suggested Retail Price) be used, the MSRP must be listed. Below are the MAAP and MSRP.</P>
</FONT>


If you read Spyderco's policy they don't say a dealer can't sell for less than the Manufacture's Advertised Price (MAAP), only a dealer <U>May Not Advertise </U>below the MAAP.</P>



Discount Knives' Spyderco prices are still the same but we don't advertise the prices. Customers must now call or e-mail for the price.</P>

Discount Knives
 
It seems that there is some benefit to asking the source for information in order to ensure that it is all accurate, so to all those who questions Spyderco's new MAAP pricing, I would like to share a little explanation and history.

This new policy that we have initiated was done after much discussion and many questions from both dealers and end line users (ELU's). It was not solely aimed at the WEB dealers, in fact for us it was based on input from a wide variety of our dealers who work through different marketing avenues. Spyderco believes that the true customer is the ELU and that they have the right to as much information as possible. We also believe that our dealer has a right to deal in a fair market. This does not mean creating artificial high pricing that is unobtainable to many. However, we do believe that the ELU has a right to know what the true market value is on our product when they purchase them. Equal knowledge is a valuable tool. Many other industries assist their customers by using this type of pricing and we feel that it was a good solution to an ongoing problem.

Also, Spyderco does have a strict policy as to the type of dealer that we prefer to work with. Unfortunately, in the past it was not always adhered to and the last year has been spent cleaning up the inconsistencies that were created.

We believe that price is not the only important service that a dealer can offer. In fact, many times, it is the follow-up service that makes a difference. We have purposely chosen our requirements in order to ensure that the ELU receives the best customer service possible. It is our experience, that many of the fly by night companies who are established with little overhead provide minimal to no customer service after the sale. I am sure you would all agree that many times it's the support after the sale that keeps a customer. We feel that the more investment made on the part of the dealer reflects a stronger commitment to the ELU and to the products that they are selling.

Finally, this in no way constitutes price fixing, as explained it just ensures that the customers recognize the market value of the product in printed advertising. In no way, did we feel that this was a necessary step needed to maintain brand loyalty or quality perception. Instead, it provided information that many would normally not have available when making purchases. It also ensures that the ELU recognizes that each company chooses to do business in a different way, which provides for different overhead requirements (cost of doing business).

It is Spyderco's intention to build long lasting relationships with all of our customers: distributors, dealers and the ELU's. In order to accomplish this there are things that we must put in place in order to provide each with the support that they need and deserve. This also means, that we will never be able to satisfy all the dealers. We accept that and in fact look forward to dealing with the true customer and not the fly by night business that is only interested in the bottom line.


 
"Finally, this in no way constitutes price fixing, as explained it just ensures that the customers recognize the market value of the product in printed advertising."

What generally regulates market value are the laws of supply and demand. If an item is only worth $10.00 to the consumer, then the item sells for only $10.00, even the average moron, such as I, can see that. When consumer demand for an item over runs the ability for the producer to produce, ship, and stock it's wares, then the value of the item goes up. A good example of this is Chris Reeve bumping up the price for the Sebenza. Being the sole manufacturer of a high demand item, and having limited resources to produce his knife, he saw fit to raise the price for it, and I have yet to hear of any complaints over it, and most people tell me it's worth the price.

What your company is attempting to do is artificially alter the value perception of your wares. By playing to the "if it costs more, it must be better" tendencies of the average consumer, you are falsely changing the value of your items. You are also hindering competition between dealers by making them stick to your pricing schedule for advertising purposes, a consumer has less of an idea of whom to purchase their knife from. Also, the advertised price is generally the deciding factor in any purchase, I usually do not purchase items from dealers who stick to the MSRP or the MAAP because, even here in Alaska, nothing sells for MSRP, if you look you will always get a better deal.


Companies and dealers offering poor service tend to weed themselves out, alienating themselves from the consumer by offering little or no service etc., and thus you do not need to try and cull from the herd just to up the percieved value of your knives.


"In no way, did we feel that this was a necessary step needed to maintain brand loyalty or quality perception."

This contrasts with your last statement when you said "it just ensures that the customers recognize the market value of the product in printed advertising."

Most people would agree that brand loyalty and quality perception go hand in hand with market value. A good example of this is the Yugo...I have only seen one..And I know that they don't sell them anymore..I think that this is because most people believed that the Yugo was junk...but I might be wrong.

"Instead, it provided information that many would normally not have available when making purchases."

All it tells me is that you guys are jerks, and that you have lost touch with the average consumer. If this is the case, you will soon loose touch with your market share.

"It also ensures that the ELU recognizes that each company chooses to do business in a different way, which provides for different overhead requirements (cost of doing business)."

How companies do business has quite alot to do with the purchasing decisions of consumers. I don't drink Budweiser, or goto Busch Gardens because of their company's continuing assault on our second ammendment rights. I don't like companies that use COMMUNIST tactics to artificially alter the value of their products.

"It is Spyderco's intention to build long lasting relationships with all of our customers: distributors, dealers and the ELU's."

Our relationship has become onesided, and abusive. I want a divorce.


I am glad I gave my last Spyderco away....Good riddance to socialist rubbish.
 
To One and All,
My response to Ms. Espinosa.....BS!!!!!!
Just how damn stupid do you people think we ("ELU"s)are anyway?

This is just the same kind of crap that Les over at Benchmade has been up to.

I've purchased more Spyderco and Benchmade knives for my own collection and as gifts than the amount bought by some of your dealers. But, that's history now.

To Forum members and friends...Happy Trails
Dan K
 
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