- Joined
- Nov 17, 1999
- Messages
- 3,061
First - I too am a Spdyerco follower, only own 2 Benchmade knives with no plans for a third.
I think Mr. De Asis believes by eliminating Dealers (and that is exactly what the ultimate gaol of these changes are) he will;
- Increase future profits for his "loyal" Dealers
- Drive more people to his own door (I don't believe this but maybe he does)
- Increase Long term value of BM knives (secondary market)
Here are some some other criteria that BM will most likely put into place for those that hope to remain Dealers - this might include but would not be limited to;
- Large Minimum Order requirements
- Stocking requirements (must maintain at least $XX amount of Stock)
- Minimum purchasing of each "Class" of knives (Must purchase so many Gold Class when ordering - not just Stock Red Class, etc)
- Minimum Annual or semi-annual purchasing requirements (purchase at least $XXX amount semi-annually or you're out)
The policy of forcing "Minimum Advertised Pricing" (again to eliminate Dealers) eludes to more profits for the remaining Dealers. However, some Dealers will also find ways around the MAP pricing policy. This might include;
- FREE Shipping
- FREE (lower quality knife) when you purchase a Benchmade at MAP
- Discount on additional Knife purchase when purchasing a BM at MAP
- Receive a LOWER than MAP price when you "Register" with that Dealer (thus the Lower than MAP is not really ADVERTISED)
BM may also reduce production (further) until they feel that the market has accepted the changes.
When companies do these types of things they are trying to take control of the "Supply and Demand" equation - swinging the pendulum back into their favor. Some do well with this strategy (Busse, William Henry, Microtech) others not so well.
Overall this will decrease sales for the company (short and long term) and only the "Core" Collectors and high end knife buyers will follow them. However, the Company will then only have to introduce 1/2 of the new models they used to have to come out with and possibly charge more for them.
I guess we will have to wait and see if BM sinks or swims. One thing is for sure, this should increase the sale of Spyderco knives as those seeking a Quality affordable alternative are driven away from BM.
I think Mr. De Asis believes by eliminating Dealers (and that is exactly what the ultimate gaol of these changes are) he will;
- Increase future profits for his "loyal" Dealers
- Drive more people to his own door (I don't believe this but maybe he does)
- Increase Long term value of BM knives (secondary market)
Here are some some other criteria that BM will most likely put into place for those that hope to remain Dealers - this might include but would not be limited to;
- Large Minimum Order requirements
- Stocking requirements (must maintain at least $XX amount of Stock)
- Minimum purchasing of each "Class" of knives (Must purchase so many Gold Class when ordering - not just Stock Red Class, etc)
- Minimum Annual or semi-annual purchasing requirements (purchase at least $XXX amount semi-annually or you're out)
The policy of forcing "Minimum Advertised Pricing" (again to eliminate Dealers) eludes to more profits for the remaining Dealers. However, some Dealers will also find ways around the MAP pricing policy. This might include;
- FREE Shipping
- FREE (lower quality knife) when you purchase a Benchmade at MAP
- Discount on additional Knife purchase when purchasing a BM at MAP
- Receive a LOWER than MAP price when you "Register" with that Dealer (thus the Lower than MAP is not really ADVERTISED)
BM may also reduce production (further) until they feel that the market has accepted the changes.
When companies do these types of things they are trying to take control of the "Supply and Demand" equation - swinging the pendulum back into their favor. Some do well with this strategy (Busse, William Henry, Microtech) others not so well.
Overall this will decrease sales for the company (short and long term) and only the "Core" Collectors and high end knife buyers will follow them. However, the Company will then only have to introduce 1/2 of the new models they used to have to come out with and possibly charge more for them.
I guess we will have to wait and see if BM sinks or swims. One thing is for sure, this should increase the sale of Spyderco knives as those seeking a Quality affordable alternative are driven away from BM.
