Thinking of starting a Knife company

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You could always ship the blades back to the US and finish the handle and packaging in the US so you can always say "made in USA with foreign components" lol.

There are many things to consider though. I was thinking of doing the same thing you're thinking of doing but in Mexico. But in the case of Mexico I know the way things are down there. Imagine spending all the money in tooling, etc. only to have it stolen and have no government backup or guarantee of recoveing everything plus who knows if over there any insurance will cover any loses. Not sure how the security thing is in Thailand but it is third world after all. Plus the freight costs that will be added to the price of manufacturing the knives if you do it over there. What is worst is that the western world(potential customers) is becoming more and more hostile towards knives so you face import restrictions and prohibitions, etc. The knife market, in my opinion, is also very saturated. It's not really easy to produce something very unique nor would a small company such as the one you or I would be able to create could likely produce something particularly cutting edge. So you're essentially entering a market where there are already too many choices and I don't see how that could lead to high profits or any at all. Honestly I don't see how a small company can enter the game at this point. Maybe I am wrong.
 
Seems like your "Entry Level" at $400 is equivalent to Chris Reeve Knives and your the high end at $1200 is equivalent to Shirogorov production knives. Both of these are Knife Makers \ Designers first. The market for production knives in those price ranges diminishes quickly.

Between $400-$1200 there's lots of Custom Knife Makers with very compelling designs and materials available. So many that I can't imagine being interested in a production knife from Thailand at the same price points.

There's more to a knife than manufacturing ability. Being made in Thailand might not hold you back but it doesn't add anything when trying to sell to the American Market.

1) Identify the current players in each market segment. Identify what they're offering at each price point. Can you actually compete against these offerings?
2) Identify the current offerings at incremental price points and look for gaps in coverage. Is there a price point or need being left unfulfilled?
3) Partner with a skilled \ known knife maker \ designer to bring his ideas to fruition on a larger scale.
4) Marketing? Were you thinking of selling through Dealers or trying a direct approach via social media etc?
5) Watch the For Sale Forums here on Bladeforums- See what's selling, what's not, the price vs what's being offered.
6) Scour Instagram etc and see what the buzz is, what's moving, price points, interest levels and markets- What geographic areas are active and buying.
 
I feel like there is already a decent amount of competition around the $400 mark, and would probably start with something simple around the $100 - $200 range to begin with. People are willing to buy from a foreign manufacturer, but your quality and especially your customer service must be exemplary. The factory knife market is very competitive now that China has demonstrated a high level of competency when it comes to knife manufacturing. Best of luck.
 
Some really good advice given here. I think the market for such a product will be limited at that price range, and with costs of premium materials as you are suggesting, you would have too much overhead, and shipping could be a problem. I would suggest a lower Price point with a bigger market segment. I think there is a market for designs that are based in traditional Thai patterns Or other Asian patterns. I think of Citadel knives, there are unique enough and different from the other knives and they offer good materials. Would offering just a few patterns in folders and fixed help, until you feel out what the demand for certain styles are in that segment? I wish you all the best in your efforts and i think it is admirable and courageous to explore your ideas. 👍 Lastly, is there a market for such knives in Asia? Or at least in your native Australia? Knives you can depend on for outings and also for general everyday use? I have read the laws in Australia can be restrictive, so would you need to ship eventually to the US?
 
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How are you going to heat treat the knives? Have Definitely will need distributors and/or partners in the EU and USA. I think you will be better served by producing knives in the $150 to $300 range initially. Maybe some boutique or special runs with higher level materials and higher prices.
Legendary_Jarl said:
You could always ship the blades back to the US and finish the handle and packaging in the US so you can always say "made in USA with foreign components" lol.

There are many things to consider though. I was thinking of doing the same thing you're thinking of doing but in Mexico. But in the case of Mexico I know the way things are down there. Imagine spending all the money in tooling, etc. only to have it stolen and have no government backup or guarantee of recoveing everything plus who knows if over there any insurance will cover any loses. Not sure how the security thing is in Thailand but it is third world after all. Plus the freight costs that will be added to the price of manufacturing the knives if you do it over there. What is worst is that the western world(potential customers) is becoming more and more hostile towards knives so you face import restrictions and prohibitions, etc. The knife market, in my opinion, is also very saturated. It's not really easy to produce something very unique nor would a small company such as the one you or I would be able to create could likely produce something particularly cutting edge. So you're essentially entering a market where there are already too many choices and I don't see how that could lead to high profits or any at all. Honestly I don't see how a small company can enter the game at this point. Maybe I am wrong.
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I'm not sure that would qualify as made in USA
 
Maybe not say made in the USA with foreign components, but say Assaembled in the USA with foreign parts, more accurately reflecting the process.
 
How about taking a few baby steps and starting the brand off as a low volume custom producer. Let’s make a few knives and introduce some of your designs ideas to see how they fair. If the brand gets accepted, you would always have the option to produce your own or to collaborate with an established manufacturer.

n2s
 
With $400 as entry level price - I'd never buy any of your knives.

Why?
Because I'm not willing to spend that much on a knife, and I can get premium steels like M390 or CPM 3V, from manufacturers like Lion Steel, MKM... and so on.

Then there is a company called Varusteleka, they make Terava knives. They use good old 80CrV2 and their knives are basically indestructible, and prices are... starting at 40€, and maxing out at 104€ with better sheath, which is about 10 times cheaper than your pricing. And it's made in Finland.

My advice would be - make something different, some unique design, use a decent steel, plain carbon and some stainless like Sandvik would be good options, and price your knives reasonably. At least for entry level.

I'm not saying this to bring you down, this is just my opinion as a consumer, and we all know that majority of the market aren't knife nuts. Those people will mostly care about price, country of origin and if they do or don't like design you're offering. Finally there's steel, as large amount of people won't buy mystery metal, and they will google the steel you're using even if they aren't knife nuts.
 
Thanks again everyone for the feedback, was really informative

It seems concensus is we should be looking much further downmarket. Was doing this project as a passion project making knives I would want myself as a collector. My taste may also be different to the majority of the market, hence my request for feedback.

I have 2 passions for collecting, knives and watches but know my limitations in trying to make my own watches. Not interested in farming out the work as I want these to match my desire for precision engineering with hand finishing.

Based on the feedback, I will discuss with my partner if this is a worthwile venture as although we could certainly make knives that could compete with what is coming out of China, it would just be another manufaturing business and not a passion project

cheers everyone and hope to see you all at Blade show West
 
Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose.
Steve Jobs.

Why do people love $700 knives?
How did other makers get there to make $700 knives and be in business still?
Do it because you can and the journey is the reward and not the bottom line.
Do you want to make knives for amusement or for profit? If it is for fun or for profit, grow in economy of scale.
Does going to blade shows and talking to people who love $700 knives seem fun to you?
Make sure this dream is worth sacrificing other dreams and you will be ok. If other dreams are more important, make boundaries that will protect those dreams.
 
unwisefool said:
How are you going to heat treat the knives? Have Definitely will need distributors and/or partners in the EU and USA. I think you will be better served by producing knives in the $150 to $300 range initially. Maybe some boutique or special runs with higher level materials and higher prices.

I'm not sure that would qualify as made in USA
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It was a sarcastic start to my comment. But isn't that what Buck doesn for example with many folders? "US made with foreign parts".

Here are the actual rules:

 
No way I am spending anywhere near that amount on a knife made anywhere but the US, Japan or Europe. There are so few buyers of knives over $200 anyways. If you are already rich and want to make knives then this will work. I don’t see it paying your bills.
 
DMG said:
No way I am spending anywhere near that amount on a knife made anywhere but the US, Japan or Europe. There are so few buyers of knives over $200 anyways. If you are already rich and want to make knives then this will work. I don’t see it paying your bills.
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It may work or it may not. We don’t even have a concept for these knives. Why don’t we start at the beginning. Do you want to produce fixed blades, folders or both?

n2s
 
A knife in that price range needs to be a lot more than just a well engineered and crafted knife. Those prices are for knives that are art, not practical use.
A few other things I didn't hear mentioned, marketing and distribution.
 
OP, if you are considering making folding knives it might be worth your time to utilize less prevalent lock types or innovate new lock types in some of your designs. The Chinese frame lock/liner lock niche seems to be pretty filled by Kizer, Reate, WE and the like. Something a little different might help differentiate your company from the crowd. Just a thought. Andrew Demko’s knives are great, but what really creates the high demand for them is the locking mechanisms he uses.
 
ohen cepel said:
IF it turns out that China created covid in a lab and lied about it then I see a LOT of room for you as those makers will take a hit for a long time.

If not, I agree with others, $500 knives I want to be custom made.
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Regardless of if Covid came from a lab or nature, there is already a push to move supply chains from China in a lot of industries due to collapse of supply chains from China. Great opportunity for India, Vietnam, Thailand etc

The bigger issue for me is if US consumers want to continue to support Chinese companies given Covid, Taiwan and the treatment of ethnic monorities
 
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jstn said:
OP, if you are considering making folding knives it might be worth your time to utilize less prevalent lock types or innovate new lock types in some of your designs. The Chinese frame lock/liner lock niche seems to be pretty filled by Kizer, Reate, WE and the like. Something a little different might help differentiate your company from the crowd. Just a thought. Andrew Demko’s knives are great, but what really creates the high demand for them is the locking mechanisms he uses.
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This is a really good point thanks. We have something different but still based on the same principal as used in the Aerospace industry.

Hope to share some designs in the next few weeks with everyone here

Cheers
 
EngrSorenson said:
reading this and I had to comment. That’s a great idea. “Made in Thailand” with some “Thailand native knife inspired” modern take would make the country of origin a feature. It could give you something that sets you apart and makes the product’s origin feel authentic.
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We did look into this, I am big into historical blades, mainly European though. Not specific to Thailand (all SEA) there is a machete type they use for cutting coconuts

Most traditional Thai daggers tended to be ornate Indian blades, there were some distinctive Thai swords and pole weapons though.
 
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