ncrockclimb
Gold Member
- Joined
- Nov 20, 2014
- Messages
- 2,378
I've spent time with DBK in Holland. They are good guys, and I suspect they are only looking at the quality of the knife in isolation, knowing there is not a path to get suckered into a preorder anymore.
As much as Survive! had dubious business practices and ethics, they did produce a good knife (on the occasions when they delivered one). Actually (hours before the announcement of going out of business), I went to a store and purchased a Survive! knife. It was an EDC 4 in K890 (a steel I am interested in) it was $239.
Frankly, it is a really good knife. I hardness tested it (62hrc), sharpness tested it (180 on the bess- not as sharp as mine ha ha), disassembled it, and evaluated the overall fit and finish which was excellent. The truth is it is a $350 knife being sold at $239 (probably why so many risked preorders). Besides all the mismanagement and dubious ethics the fundamental business model was broken, the knives were underpriced to sustain a profitable operation. The longer they operated, the further behind they became, about a million-dollars in unfilled orders.
Just to punctuate how bogus the claims of Survive! as it relates to Magnacut were; Survive purchased a total of about $35,000 of Magnacut and claimed to lose 20% due to voids (also a dubious claim, but lets assume that). So we are talking about a maximum loss of $7000 in material, which, again, there was no evidence that the loss was 20% (from voids). If we triple the material costs to account for work put into the material until the issues surface, we are talking about $21,000. Now, let's consider they have recieved an advance of nearly a million dollars in preorders and they can't handle a 20k issue??
Any issues with Magnacut should have been a standard production challenge, and to suggest that this was a show-stopping issue was a total fabrication. It probably had more to do with 50k a month in overhead and 4k a month in sales.
One of the HST video outcomes is to clarify that Magnacut was not the major problem at Survive! IMO- Magnacut vindicated.
These two posts are so spot on!!It sounded like 30 or 40 parts. So you guys sold them 1240 pounds of Magnacut, if we figure 2 parts per pound on average that’s about 2500 parts, let’s say their loss was 50 parts, that would be an actual loss rate of 2%. The conclusion is loss because of any sort of inconsistency in the steel matrix was pretty minimal, and would not have had a meaningful effect on manufacturing operations.
The ultimate effect (according to guys own estimate ) was a 2% increase in the amount of material needed. So that illustrates what we all already knew which was Magnacut was not actually that big an issue, and that video proves as much.
2% of the amount of steel that they purchased comes out to about 24.8 pounds, or about $800 worth of steel. When you consider the scope of a $1 million backlog and $50,000 a month overhead, blaming an $800 issue for your demise it’s just crazy.
Just to put it into perspective, every pound of magnacut they purchased (from NSM), all 1240 pounds of it cost less than one month of their overhead. I’m not saying they didn’t have issues with Magnacut, heck we were all on a learning curve there’s early days with the new steel, but the idea that those issues were ruinous to the company is just preposterous.
If there was an issue (and i am still not convinced that there really was much of an issue), it could have been resolved by grinding .002 off the 30 or 40 parts. The demise of S!K was not decarb or "VoIDs iN tHe stEEl", it was Guy and Ellie not knowing what they were doing. Because of their incompetence and deceit, AT LEAST 3500 people got ripped off.