Some things Sal Glesser (owner of Spyderco) had to say on the matter:
Originally Posted by Sal Glesser
Well, I cannot speak for Chris Reeve Knives, but I will offer an opinion.
I've known Chris and Ann for many years. We worked together when Chris was in South Africa.
A CRK knife is not a custom knife, nor is it a production knife. They are in a class by themselves. They've taken many years to develop their reputation.
Each piece is custom made by skilled custom makers. CRK tolerances and standards are the highest I've seen in processes like surface grinding and heat treat. There is a limit to their production capacity.
Chris is pretty anal on quality. "Quality is time. = Time is money". He pays his craftsmen a fair wage, and he charges a fair margin, he gives the world a product like no other. Chris and Ann work hard and they make a good living. "Enormous profits" is an inside joke that Chris and I laugh about. Frankly, I think they'd feel guilty if they made too much money.
The "Market" will determine if his business strategies work, regardless of what they are. If they don't work, adjustments are made....that's how businesses survive.
BTW, the flip side of a "bargain driven" market is manufacturers are forced to import product (export jobs) from China to compete in the need for the "lower price". More complications.
sal
Originally Posted by Sal Glesser
Hi Dulleddown,
More profit is usually associated with higher price. That's normal. Profit is usually a percentage of sales price. To think that a high priced auto should garner the same proft as a low priced auto is not in accord with business. It might be the same percentage, but being more expensive, it will be more profit.
Unless you are a manufacturer, familiar with close tolerance manufacturing of heat treated steel & Titanium parts, you are not likely to be able to see all of the differences between one of Chris' knives and others. For example; CRK keeps 0.0005 tolerance on surface grinding. That's one sixth the thickness of a hair. Do you have the knowledsge and equipment to discover that tolerance?
In the end, it's all about trust. CRK took many years to build and maintain their repuation. Built with consistent focus. Even those trying to make a "cheaper" version must "leave out processes" or "soften their tolerance", or they will cost as much.
Rarely do you pay for the "name". That's a bullshit sales pitch made up by the ignorant claiming to offer the same for less. Money valuation between countries might offer a "deal" for a while until the money value balances, but all in all, you will get what you pay for.
sal
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Just because you can't see the difference doesn't mean it isn't there, it just means you can't see it.
Originally Posted by Sal Glesser
Hi GWLee,
The benefit of tight tolerances is usually for long term durability as well as smooth function. Long term durability is difficult to determine in a short term decision. That's why reputation is important.
sal
Originally Posted by Sal Glesser
Nice video.
High dollar knives are high dollar because they cost more to make. It might be materials (Titanium, unubtanium, etc.), it might be tolerances (Chris' has lotsa zeros after the decimal before hitting numbers), it might be labor (carving, engraving, etc.).
Sometmes those differences are difficult if not impossible for even the trained eye to detenct, generally impossible for a new student.
Just because you can't see the difference, doesn't mean it isn't there, sometimes it just means you can't see it.
sal