What is customary for rate and mark up?

My knifemaking partner and I make knives in small batches. For full tang knives with a 4 inch blade and micarta or g10 handles, we can make 5-6 knives in just marginally longer than it takes to make 1 knife. By working in small batches, and making every step as efficiant and streamlined as possible we can keep the labor hours per knife very low. Making knives one at a time wouldnt be worth it FOR US. There is no way we could sell them for enough to make it profitable . But by scaling up just that little bit, from 1 knife at a time to 5 at a time, the equation is drastically different. Someone asked if 2 hours of labor per knife was realisitc, and it definitely is if you are doing stock removal and have refined your process and streamlined it. But there is a lot of time and effort involved in that refining. Everything from sourcing materials in quantities that lower the per knife price, to buying the tooling necessary to work efficiently, to breaking down the materials into common sizes before the actual process of making the knife, to eliminating steps that are time consuming and add very little value to the knife. Even the process of designing the pattern can help, things like using the similar radiuses for every curve on the knife so that you can use a single grinding wheel with no tooling changes.Those are things that allow you to move much quicker when its time to actually make the knife. But for me personally, I love to know every penny that goes into making each knife. Materials, labor hours, even rough estimates of abrasives and utility costs. I'm a numbers guy, and for me figuring out how to maximize the efficiency of the entire process is as much fun as the creative aspect of knifemaking.
 
OP does not know. If your customer is happy, there's your answer
 
I don't think there is a customary rate and mark up. It's hard for me to decide what to charge for my work, and it's my least favourite thing about this craft, but once I make the decision I stick with it. I'd rather keep my work than discount it. If no one agrees that it's worth what I think it's worth, I'll make some stuff that I know will sell and that I know will put enough money in my pocket to make it worthwhile. There may be a point down the road where someone will gladly pay what I asked for something which didn't sell, and in that case I won't upcharge either.

Before making knives, I was a collector of sorts so I'm familiar somewhat with pricing in a general sense. Now that I make knives, I'm finding that the only thing relevant regarding putting a price tag on my work is what I think it's worth. I'm the only person on the planet who will make the knives that I'm going to make, and while that doesn't make me more special than anyone else in the same situation, it does put me in the unique situation of deciding what I think other people should be willing to pay for it. As it does with all of us who make what we make.

More than once I've made something for someone, and let them decide what it's worth. It's a gamble, since part of the deal for me is to not haggle, but more often than not I've been pleasantly surprised. Auctioning these things also seems like a good way to gauge what people might be willing to pay, but I haven't done that yet.
 
It seems like a good time to post a few old knifemaking saying attributed to several Old Timers:

"If you want to become a millionaire as a knifemaker, start with two million."

"After spending $10,000 on equipment. $1000 on materials, and a week of grinding and sanding, I sold a knife for $100."

It is easy to make a living making knives, as long as living under a bridge is OK with your wife."

"Fulltime knifemaking is fine if you don't mind making $5 and hour and you have a well-paid wife with insurance and a big 401K."

"Knifemaking is the hobby where you spend $5,000-10,000 to make a $100 knife."
 
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Bill DeShivs said:
Materials are going up very rapidly. When you factor in your material cost, use the current replacement price-not what you paid.
I make about $25-30 per hour when I make a knife. I make $90 per hour repairing knives. I try not to make any.
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I have done a few broken tips and sharpened many as well. It is worth it now to take it OJT and charge nothing. I am thinking really hard about upgrades for factory folders. I am mainly drawn to the beauty that a hand and intent can create or this ends up just another form of existing.
I am glad to have asked this; I feel like easing up on the forge/press builds and make some pretty things.
 
Judcargile said:
Thank you all for the sound advice. I hope to work as an electrician for the next 15-20 years, still; But, the aches and pains and idiots do not inspire confidence. 😉

I must be careful and not allow my early work to be traceable. That is fascinating. That also makes perfect sense.
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If you want to beat your electrician’s income with knife making, you really only have two choices, (1) sell single knives significantly above costs or at luxury good prices, think > $500 (at least if you work in the US). Or, (2) you make 10+ copies of the same knife and use the quantity to build them cheaper, using CNC, etc. In either case, your customers have to like your product enough.

Not speaking as a knife maker, but as a potential customer.
 
A few years ago when I read a couple of threads about material cost of making a knife and read the amount folks were saying. I thought how could a couple of belts, wood for handle, etc cost that much. Well, after looking at how much I spent in a year for steel, belts, sandpaper, drill bits, all the misc stuff I purchased for making knifes. Then looked at the number of knives made that year, divided it out and it gave a better understanding of material cost/knife. I realized the material cost/knife was much more than I expected because the materials I purchased were used very little outside of knifemaking.

If the capital costs (grinders, etc) are factored in with material costs the price sure does increase. My knifemaking is a hobby, and still cheaper than a new bass boat or hanging around bars.
 
Bill DeShivs said:
Materials are going up very rapidly. When you factor in your material cost, use the current replacement price-not what you paid.
I make about $25-30 per hour when I make a knife. I make $90 per hour repairing knives. I try not to make any.
Click to expand...
I have done a few broken tips and sharpened many as well. It is worth it now to take it OJT and charge nothing. I am thinking really hard about upgrades for factory folders. I am mainly drawn to the beauty that a hand and intent can create or this ends up just another form of existing.
I am glad to have asked this; I feel like easing up on the forge/press builds and make some pretty things.
 
Not sure how I got to duplicate that post; But, the wisdom about holding the first 20 knives seems really sound. I hope that sharing them here would keep things in context, so to speak. The critique of those who have been through and going through this is without question, priceless.
 
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