Viability of dealer only sales?

H

HallHandmade

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Jun 5, 2012
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Nevermind, have to type this out again, yay. Guess this one will be shorter.

I've had severe enough health problems lately, that they are preventing me from giving good customer service and making enough knives to live off of at the same time.

Have any of of you gone to dealer sales, either partially or wholly, and does it seem a viable alternative to direct sales?


I've been approached by a couple of dealers already from my sale listings, so that is pretty much already on the table, I'm just wondering if anyone has any experience with this. All of the makers I know well enough to ask personally, do direct sales.

I've heard that there are very reputable dealers, and that some makers do go this route, but I've never personally spoken with one.
 
I'm curious, for personal knowledge, how it usually works with dealers. Do they usually take your products on consignment or do they purchase them? If they purchase them at what % do they buy it at in comparison to your normal asking price? 75%? I'm quite curious how it all works and i hope someone weighs in. It may the best knowledge someone has gotten in the future. Thank you.
 
I know at least one well known and highly respected maker who told me he used Arizona Custom Knives to market and build his name for three years. I talked to the guys from Arizona Custom Knives at the Blade Show and thought they seemed pretty solid. I know it's been said before but, you should be getting more for your knives. Maybe they can help you out in more ways than one.

Bob
 
Brian.Evans said:
Talk to Andy Roy. I bet he could tell you a thing or two about dealer sales.
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I may do that, he may also chime in, I know he pops up here once in a while.

viral said:
I'm curious, for personal knowledge, how it usually works with dealers. Do they usually take your products on consignment or do they purchase them? If they purchase them at what % do they buy it at in comparison to your normal asking price? 75%? I'm quite curious how it all works and i hope someone weighs in. It may the best knowledge someone has gotten in the future. Thank you.
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From what I understand, 75/25 seems the industry standard. It seems each shop handles things differently. I've had a couple approach me and try to purchase direct, whereas another said I'm not nearly famous enough for that.

RangerBobTX said:
I know at least one well known and highly respected maker who told me he used Arizona Custom Knives to market and build his name for three years. I talked to the guys from Arizona Custom Knives at the Blade Show and thought they seemed pretty solid. I know it's been said before but, you should be getting more for your knives. Maybe they can help you out in more ways than one.

Bob
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Yeah they did seem pretty solid. I just don't know enough about it to really know one way or another.

The main reason I'm even considering this is that my blades are starting to top out to some degree, so I actually am beginning to have enough sales power to make a buck even with the dealer's cut taken. Many of my sales for my hidden tang hunters are reaching into the $400-500 range, but once you creep towards $1000, it had better be something truly special unless your name alone is worth big money. I've pulled in $700-800 on some large pieces, but without going fancy, that seems about what the market will bear.

When my hidden tangs are going for $375-450 no problem, customers have quite a few options of pretty big names just outside that price range. Over $500 for a small hidden tang, with strong sales, is approaching big boy territory. My prices are pretty close to maxed out for an "unknown" maker. There are some quite well known names selling in that price range.

edit: just to clarify, my blades have always focused on "high end user" type market. $400 for an EDC sized user-type blade is really pushing it on what the market will bear, anything past that and that sucker had better have some embellishments. You get into the $600-700 range and I've even seen some knives that could go on museum display, it's rare, but still.
 
I think that the cut depends on the selling price of the knife. 30% might be the case for an inexpensive piece, but I would be hesitant to give any more than 20% for something expensive. Understand that with the standard whoesale price and normal "discount" that most retailers give in knives these days, dealers are gong to typically retain about 20% on any factory knife they sell. Wholesale is usually 60% of MSRP and selling price is usually about 80%. it may get a little fuzzy when you can't tell a wholesaler from a distributor or retailer like with some of he big internet dealers, but I think that general 60-80 rule applies in most cases. As for buying versus consigning, a dealer is gong to want to do the consignment thing if they can get away with it. However if you are hot, then they will buy, I'm sure, especially if they can get stuff at 80% or so of YOUR selling price, not what the "secondary" market will bring.
 
Many dealers have conditions very different one to another. Most are set up for consignment sales but will purchase at shows and on line when prices are particular lower on a knife they feel could be in demand.Some are very open about it all and will publish for all to see. Arizona Custom knives is one of these. They have as well recently brought in more freedom for the seller on his own within their site to adjust prices. Some dealers will blow a lot of smoke as to how they will present your knives for sale at this and that show to extend buying opportunities but do not necessarily follow through. Certainly many dealers will allow you to sell for low prices rather than promote at higher ones.
I would advise against just a one dealer situation or encourage you to be involved selling as well. Certainly you will still have custom orders drifting through from the dealer. He has to be always looking for sales in order to continue. Most often these dealers are good people who hope they can fairly represent you and do a good job of selling your knives. I believe you can control sales through your own efforts by stating you are not taking orders now or placing the name on a list with a few details. The person is then contacted when a knife perhaps to their liking is completed and then may be passed on to the next person waiting if not accepted. Certainly, if your completions are to be very limited in numbers, I'm sure a dealer will be pleased to represent you once they acknowledge your work is certainly saleable in a certain price range.
Frank
 
Several of the makers I know deal with Epicurean Edge. I have seen both Mastersmiths as well as newer makers dealing with them. While I have not had any business dealings with them the knife makers say that they are great people. I don't know any details but it might be worthwhile getting in touch with them.
Here is a link to their About Us page.
 
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