We should probably talk about that last pre-order. The K20 do-over

Nathan the Machinist

KnifeMaker / Machinist / Evil Genius
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The K20 pre-order is done and set in stone. For the folks who wanted one and didn't get one, I'm sorry.

but I have developed a plan...

Firstly, I kind of screwed this up a little bit, I guess, (pre-orders aren't supposed to be a madhouse) though I'm not entirely sure what I should have done differently. To the armchair quarterbacks, hear me out.

Initially, I didn't really like pre-orders but we had enough good customers who don't happen to be keyboard ninjas struggling to get the kit they need from us that we started doing pre-orders to relieve the Friday sales. At first this started out with something like a Field Knife where we would make a pattern and if the Friday sales were bananas we'd re-release it with a pre-order where we would take the money from that pre-order to buy the materials and then we'd make them. This is not a bad model but it involves setting up and re-running a pattern and as some of our patterns have become more complex and some of the manufacturing processes have evolved it becomes problematic setting up and tearing down a pattern multiple times. Patterns like the Shiv and the OG FK were probably set up over and over again 5 times in their short lives. They lacked some of the complexity of the newer patterns and they were run as side work while we were primarily a machine shop running knives on the side and running a knife production shop this way would sink us today. So, it is helpful to set up and run something one time and be done with it. So, sometimes, with something like the K18 and the DEK1-2-3 we did a pre-order and then bought the material for that pre-order. But the K20, I bought that material in advance. Like the K18, the K20 is a sword, so I had the material rolled differently with less cross rolling in order to draw the billet out along the length of the material in order to maximize certain properties I want in a sword. So instead of developing a plate or a normal sheet, we rolled the steel into long narrow strips which only yield a few pieces across its width. This needed to be piggybacked onto a heat which I did back when we got the material for the Utility Fighters. If I would have known I was going to need more material I could had added some to the DEK1-2-3 but I didn't do that. So, in order to get more material I'll need to add it to our next steel order. We buy steel in billets and we won't be buying any more steel this year, we already have the material in house for all of our upcoming projects. We'll order steel for the special production run of whatever knife our special customer orders for delivery in 2024 (2023 is already in process) and the Shiv is on the table for that. wouldn't that be exciting. But it's going to be a little while before we can run more material for a sword.

I'm rambling...

Long story short, if we would have done a regular pre-order where we take the orders and then order the steel, that material would need to be added to something else in order to get the full billet. Unless we sold 300-500 swords and that would probably do an entire billet by itself. And, because it's an experimental pattern for our particular process, that sort of thing could result in a lot of losses. If we lose half of 100 swords we'll be fine. But attempting 300 swords (which is where that pre-order was heading) would sink us if things go sideways. That's not a risk I want to take. So, given the inherent limited quantities and the difficulties in getting a little bit more material, I really couldn't accommodate more orders. I could have charged $2,500 and reduced the numbers that way but that runs contrary to our bang-for-the-buck sales model. This was a no-win situation where I couldn't satisfy everybody. You could argue "Nate you should have limited it to one per person", and perhaps I should have, but this is a pre-order and all other pre-orders in our company history a person could have as many as they want, implementing a limit of two was unprecedented and I though good enough. It's not a Friday sale! (although it sure felt like one didn't it?)

So here is the plan. I will attempt 145 swords from this batch of steel. Based on some tribal knowledge using the Delta protocol on swords I'm estimating an 80% yield which will allow us to fulfill the pre-order with some margin for error. And, in order limit potential price gouging and to address those who wanted one but didn't get one (and assuming this run is successful) I'm announcing that we will have another K20 pre-order next year when it's time to order another heat and those who were on the original pre-order on the first day will be given first consideration, in the order that they posted. Unless there's a big problem with production, the K20 is not a one time run-and-done pattern, we will come back to it and those of you who were there last Friday are first in line on the next run if you still want it.

I apologize to those who were expecting a normal pre-order and got the Friday mad-house treatment instead. It's a problem and I don't have a good answer for it but we're working on it and Jo, Mark, Bo and I appreciate your patience and your support.

(Sadie dog doesn't)
 
The K20 pre-order is done and set in stone. For the folks who wanted one and didn't get one, I'm sorry.

but I have developed a plan...

Firstly, I kind of screwed this up a little bit, I guess, (pre-orders aren't supposed to be a madhouse) though I'm not entirely sure what I should have done differently. To the armchair quarterbacks, hear me out.

Initially, I didn't really like pre-orders but we had enough good customers who don't happen to be keyboard ninjas struggling to get the kit they need from us that we started doing pre-orders to relieve the Friday sales. At first this started out with something like a Field Knife where we would make a pattern and if the Friday sales were bananas we'd re-release it with a pre-order where we would take the money from that pre-order to buy the materials and then we'd make them. This is not a bad model but it involves setting up and re-running a pattern and as some of our patterns have become more complex and some of the manufacturing processes have evolved it becomes problematic setting up and tearing down a pattern multiple times. Patterns like the Shiv and the OG FK were probably set up over and over again 5 times in their short lives. They lacked some of the complexity of the newer patterns and they were run as side work while we were primarily a machine shop running knives on the side and running a knife production shop this way would sink us today. So, it is helpful to set up and run something one time and be done with it. So, sometimes, with something like the K18 and the DEK1-2-3 we did a pre-order and then bought the material for that pre-order. But the K20, I bought that material in advance. Like the K18, the K20 is a sword, so I had the material rolled differently with less cross rolling in order to draw the billet out along the length of the material in order to maximize certain properties I want in a sword. So instead of developing a plate or a normal sheet, we rolled the steel into long narrow strips which only yield a few pieces across its width. This needed to be piggybacked onto a heat which I did back when we got the material for the Utility Fighters. If I would have known I was going to need more material I could had added some to the DEK1-2-3 but I didn't do that. So, in order to get more material I'll need to add it to our next steel order. We buy steel in billets and we won't be buying any more steel this year, we already have the material in house for all of our upcoming projects. We'll order steel for the special production run of whatever knife our special customer orders for delivery in 2024 (2023 is already in process) and the Shiv is on the table for that. wouldn't that be exciting. But it's going to be a little while before we can run more material for a sword.

I'm rambling...

Long story short, if we would have done a regular pre-order where we take the orders and then order the steel, that material would need to be added to something else in order to get the full billet. Unless we sold 300-500 swords and that would probably do an entire billet by itself. And, because it's an experimental pattern for our particular process, that sort of thing could result in a lot of losses. If we lose half of 100 swords we'll be fine. But attempting 300 swords (which is where that pre-order was heading) would sink us if things go sideways. That's not a risk I want to take. So, given the inherent limited quantities and the difficulties in getting a little bit more material, I really couldn't accommodate more orders. I could have charged $2,500 and reduced the numbers that way but that runs contrary to our bang-for-the-buck sales model. This was a no-win situation where I couldn't satisfy everybody. You could argue "Nate you should have limited it to one per person", and perhaps I should have, but this is a pre-order and all other pre-orders in our company history a person could have as many as they want, implementing a limit of two was unprecedented and I though good enough. It's not a Friday sale! (although it sure felt like one didn't it?)

So here is the plan. I will attempt 145 swords from this batch of steel. Based on some tribal knowledge using the Delta protocol on swords I'm estimating an 80% yield which will allow us to fulfill the pre-order with some margin for error. And, in order limit potential price gouging and to address those who wanted one but didn't get one (and assuming this run is successful) I'm announcing that we will have another K20 pre-order next year when it's time to order another heat and those who were on the original pre-order on the first day will be given first consideration, in the order that they posted. Unless there's a big problem with production, the K20 is not a one time run-and-done pattern, we will come back to it and those of you who were there last Friday are first in line on the next run if you still want it.

I apologize to those who were expecting a normal pre-order and got the Friday mad-house treatment instead. It's a problem and I don't have a good answer for it but we're working on it and Jo, Mark, Bo and I appreciate your patience and your support.

(Sadie dog doesn't)
Well said Nathan. I'm sure a lot of folks are disappointed but no one is mad at you personally. Personally I believe the 'small' run on a project you seemed concerned with executing is a
smart move. None of want to see you get financial hurt. That would be bad for you and bad for all of your devotees. The health and happiness of your family supercedes the wants of a bunch of knife nuts.

Mark
 
I apologize to those who were expecting a normal pre-order and got the Friday mad-house treatment instead. It's a problem and I don't have a good answer for it but we're working on it and Jo, Mark, Bo and I appreciate your patience and your support.

(Sadie dog doesn't)

It just means your prices are too low, Nathan. Not kidding.
 
It just means your prices are too low, Nathan. Not kidding.

Unless the cost of steel and consumables miraculously goes down, the second run is going to cost more. I happened to buy this steel for this batch of k20s before things went really insane. I left my crystal ball at home today, but I'm guessing future material orders are going to be worse.
 
Damn, I didn't even know that there was a pre-order. I wouldn't have bought it anyway, because then my wife would be in jail for homicide and my son would be raised by the dog and cat. I hope I don't miss the folder pre-order, been looking forward to that.
 
Nathan, you did absolutely the right thing on the K20 preorder, and given everything and how you ordered steel in advance on this one, there was no way to predict demand in time to order steel or to accommodate the demand once it became apparent, which was really not up until the thread went live for certain and not really evident at all until a couple days beforehand. It wouldn't have made business sense to risk that much, and I think a second preorder is probably a great way to go - a lot of people will be much relieved, whether they missed the preorder entirely or missed the cutoff or will miss the cutoff depending on the blank failure rate for heat treat. And even those of us who did get in will also be relieved that all orders are being fully honored.
 
While I totally understand and appreciate the reasons for the 1/2 downpayment requirement as a starter and then balance due after your stamp of approval following heat treat (some may have misunderstood it as balance due upon actual fulfillment) it is my humble opinion that this alone caused the never-seen-before stampede during a CPK preorder! Honestly with your reputation and credentials, you ought to stick to the tried and tested past model and require 100% of the dues upfront. I know that by saying this aloud, I will be cussed under their breath by of some folks but that 1/2 down precondition exacerbated the mad rush. I think that your benevolence and bang-for-the-buck ethos while very commendable, actually accelerates the secondary market prices because your products are underpriced.

#matthewgregoryforcpkconsiglieri
 
I don't think there was anything to be done differently this go around - I really hope you're not beating yourself up over it. The fact of the matter is, swords are cool as hell, and after the mad scramble that ensues every time there is a hint of a possibility that a K18 might be offered up, it is not surprising at all to witness what occurred with the K20 pre-order. Word spread of CPK sword awesomeness and with that, the legend and scarcity of it drives demand.

Besides, I suspect there isn't an outfit out there that is manufacturing swords with the capabilities that you guys are imbuing into them. I ordered a $3500 custom sword a few years back - it was a rather careful reproduction of an early 18th century Scottish basket hilted sword. Your swords would 100% obliterate my expensive wall hanger - my sword is still a sword and acts and feels like a sword but it wasn't make to cleave droid skulls after Skynet takes over, it was made to historical specs and in these times, that amounts to... well, an expensive wall hanger.

Your reputation as a shop, coupled with the word getting out with regards to your swords, is going to continue to drive demand in a way you aren't fully anticipating. These sorts of things are going to continue to happen now and then because you guys are awesomely humble. No sweat though, you can correct course accordingly and due to you transparency and the general goodwill you guys generate ALL THE TIME, I would be surprised and more than a little disappointed to hear that folks were upset at you for anything.

Seriously, no sweat. The folks that missed out this go around get a second chance in the future and that just speaks to your awesomeness yet again.

Love you guys, you make Bladeforums an infinitely better place with your active presence here.
 
While on the subject, another preorder or possibly preorders down the road for this pattern to satiate demand will be an interesting proposition. By all metrics, a recession of sorts is expected soon and if you dismiss the academic description of a recession, by all accounts based on the current foul mood displayed by consumers, we are already well there! How will this affect future steel orders (a need) vs future sword orders (a want) should become an interesting dance. If I had to bet, I would still wager that because of the very high quality of your products, your unparalleled designs (subjectively) combined with your own personal and business integrities, which all culminate in healthy and robust demand, you should still fair much better than others but perhaps you should not overshoot the runway on the next one just because things went totally crazy on this one?
 
Your thoughtful explanation is much appreciated Nathan. It's obvious that you care deeply for your customers. I'm sure that are many who are excited and relieved that there will be another chance to grab one of these special swords!

The pre-order system is wonderful I believe. This one was a little crazy, but in general it is very nice from a customer's perspective. I hope you will continue to do these occasionally.

Price is the variable that balances supply and demand. I'm sure it's difficult to estimate demand for an unusual project like this. We all appreciate your bang-for-the-buck philosophy. Don't sell yourself short though. Your reputation as a craftsman is well earned.
 
I think that your benevolence and bang-for-the-buck ethos while very commendable, actually accelerates the secondary market prices because your products are underpriced.
I don't think that the Carothers products are underpriced, I think the demand is just very high.
While on the subject, another preorder or possibly preorders down the road for this pattern to satiate demand will be an interesting proposition. By all metrics, a recession of sorts is expected soon and if you dismiss the academic description of a recession, by all accounts based on the current foul mood displayed by consumers, we are already well there! How will this affect future steel orders (a need) vs future sword orders (a want) should become an interesting dance.
Anyone that can afford to spend money over 1K on a sword isn't likely going to be terrified of a recession.
 
^ don't wish to derail but I used the term underpriced because CPK definitely delivers more value than what they charge for therefore making the term technically correct. I am not oblivious and know that there are some folks in here who are very fortunate who can afford tens of CPK knives in any given pattern and yet there are also other folks on much tighter budgets who at times struggle to scratch enough just for one. I think that Nathan caters more toward the latter camp which is awesome as he is expanding the CPK tent.

As for the second statement, my own personal cutoff is circa $3K and under 3 years fulfillment period for one sword or really anything with a sharp edge and a pointy end. This is why I never looked at other customs including Keffeler caliber swords from other sources, including Dr. Dan himself. I am very happy that Nathan took the plunge for his customers. YMMV.
 
The way the preorder went is an affirmation of the CPK team and the products being created. If you read that big disclaimer with respect to anything else it would be laughable.
I'm glad people will get another crack at it.
I will admit it was pretty exciting. After I refreshed I could see at least 50 posts... madness.
 
I don't think that the Carothers products are underpriced, I think the demand is just very high.
Those two things are one at the same. CPK obviously uses a cost-based pricing model, and god bless them for that. However, this knife (and most of my knives, BTW) are luxury goods and could easily be priced as such (i.e., cost independent, say like a Louis Vuitton hand-bag). You can check on the Exchange amd on ebay how used CPKs easily fetch factor 2 or more compared to new price.

Anyone that can afford to spend money over 1K on a sword isn't likely going to be terrified of a recession.
Consider that some might be the same people than those over-mortgaging their house. Not talking of any K20 buyer, of course, 1k+ luxury good buyers in the more general sense :)
 
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