We understand that there are some concerns regarding this decision. We would like to assure you that Spyderco did not make this decision lightly. Following numerous lengthy discussions we felt that becoming a small part of the worlds largest retailer would provide a great benefit, not only to Spyderco, Inc., but also to our Dealers and Distributors. This new relationship will not only introduce Spyderco to a new end line user (ELU), but we believe it will create a new wave of Spyderco enthusiasts that will seek out other offerings from Spyderco that are not available in Wal-Mart. We felt strongly that we did not want to change our quality to introduce a knife to the Wal-Mart customer but rather introduce a Wal-Mart customer to Spyderco quality.
We notified all of our accounts (both Dealers & Distributors) of the fact that we would be supplying Wal-Mart with the Native (C41PBK). This notification was given to them prior to ANY Wal-Mart store offering the knife. It also included new pricing information that was effective 1-Nov-2005. Because of the quantity Wal-Mart ordered from us, we were able to obtain discounts on the materials used to make the C41PBK. We passed this discount on to all of our accounts. The MSRP also went down and our own site has been revised. There is the same difference between Dealer cost and MSRP as all of our other models.
There are probably some (a small number according to our sales records) Dealers/Distributors who are still selling the C41PBK at the original MSRP because they purchased their stock prior to the price change.
From a corporate perspective (meaning I cannot speak for transactions with Wal-Mart directly with individual stores we are speaking only from doing business directly with Wal-Mart at a Corporate level), Wal-Mart does not force vendors to take merchandise back. Prior to becoming an official Wal-Mart vendor there is a lengthy process in which both sides learn a great deal about the other. There is actually a written agreement between the two detailing how business will be conducted. It is in this agreement that such details as returns, etc. are addressed. In fairness to Wal-Mart if a vendor has to take back any unsold product it is only because they agreed to, prior to actually shipping anything.
The change to the Knife Boards is a rolling change; our understanding is that the updates will be complete by January/February. Currently, we are in just over 1400 stores in the US (HI & AK included). We understand that we have been placed in the heavier traffic stores (traffic specific to the knife counter). We apologize for not being able to tell you exactly which stores, but we encourage you to call ahead, as it seems to vary greatly. We know that the 3 stores closest to Spyderco all have the Native in stock.
As to what other product may be found in Wal-Mart. We are only selling the C41PBK directly to Wal-Mart at a corporate level. The reality of the situation is this, we are a small company; we have no intentions, nor do we have the ability to offer mass quantities of all of our models.
The truth is, every retailer (every business), be they worldwide or next-door approaches their business from a competitive angle. Years ago, there were only brick and mortar stores. These stores competed with each other but from the perspective of the shops within a close geographical area. Then the Internet came. This changed everything. Soon, several of those brick and mortar shops started selling their goods online. This of course dramatically increased their competition, now they're potentially competing for the same customer as someone around the world. Prices began to drop. Online outlets in fact, took the selling of knives (not just ours) to a whole new level. We watched and weve always done what we could for as long as we could to protect our brick and mortar stores, especially the Mom & Pop shops who could not start their own online outlet. We wouldnt allow an online-only retailer to purchase directly from Spyderco, we tried to negotiate fair retail pricing with our customers who started their own online outlet (some agreed and adjusted their pricing, others did not stating that they needed to stay competitive or that their pricing was based upon what was best for the ELU) and weve never sold new product on our own site at anything less than MSRP. The only discounted product on our site is discontinued product that has been offered to our entire account base first.
In respect to this move hurting our Dealers/Distributors, it can only do so if you, the ELU stop buying from them. We dont foresee that happening any time soon. Wal-Mart is NOT a knife dealer or a knife shop. This is one small item in an almost infinite sea of items offered by Wal-Mart. Wal-Mart doesnt wish to become a knife dealer or a knife shop. Our understanding is they do however wish to offer a quality USA made knife within their Sporting Goods departments at a fair price for their ELU. What we do is and always has ultimately been for our ELU.
If we were trying to do anything less than ethical we would have never notified our account base of the addition of this customer, Wal-Mart. We did so, because it was the right thing to do, not because were required to. Spyderco is still a privately owned and operated company. So to imply that weve done something behind the backs of our loyal customers is false.
In fairness to Wal-Mart, we probably should have warned them of the throws of Knuts who would be coming there way to play. Spyder Drops are fun. Hopefully, in time well teach some of their clerks how to do them too!
Time will tell what becomes of this decision. You can rest assured of one thing though. Were watching (with all of our Spyder eyes).
