Thanks for the example- A cursory look at his offerings doesn't necessarily offer anything that is cheaper with materials..The cheaper lines are around ~$350- A good value for sure and I quite like the designs. They are well worth the prices I think considering everything that is involved. (the whole lineup really) Aluminum handles doesn't seem like far better materials to me for the lower priced knives. Still,..even if you do look at a comparison, take the quantity of products that Tighe sells and how long he has been around and compare to Grimsmo? Worlds apart in my opinion.
From just a few keystrokes, I see that the Grimsmo team is around 5 people cranking out their knives offered direct from them for the most part. Kindof hard to compare that to Tighe who has been around for years, but surely, his operation is just a dad bit bigger not to mention has designs with CRKT offered in many of the knife dealers.
Job shops compete in the arena of large volume but don't typically charge McPrices for short volumes. The only time I have seen this done is if the client they work with has other volume parts in that shop, then they can work on prices a bit. Time and materials are what they are so while they can do this on a limited basis, they don't make a habit out of it. Nobody can give away money to their competitors.
The post in which I took exception to was your assertion that the Grimsmo people were making "a couple hundred percent markup". I'm still not seeing the markup in which you believe is this high. It's a small operation that has a niche market; They will always get what the market will bear- No more, no less. It's a hairy fine line. They likely are not getting volume discounts in materials that larger manufacturers get, but have all the same hurdles of other larger companies.
The posts that involve manufacturing costs and the perception on how cheap this product or that product should be made are interesting to me. CNC's to most people mean that there is no real effort or cost involved..After all, all you have to do is wave the blueprint in front of the machine controller, put a piece of material in the machine, set the timer for 2 minutes and DING!! It's done. Complete. Nothing left to do than to count the money at the cash register.
Reality is, it's just not that simple.
It's a long read on my reply, but I do have one question; As a designer and owner of your own business, what exactly is too much to charge? Do you make something like the Norseman and charge 10,20, 30 or 40% over cost? What is that magic number that you have to, after taxes and costs make a livable wage from? By the way- I am not buying any Grimsmo anytime soon. Not my style, but I won't begrudge a company trying to make it in manufacturing their own product when much of it has been offshored over the last decade or two.
Unfortunately to many people think they are an expert when it comes to machining/manufacturing. If only it was that easy, to show the print to the machine and bang a perfect product appears.
HowAmI
, you make it sound so easy.
Here's some costs that aren't thought about by the joe blow experts:
Cost of machines
Cost of place to put machines
Cost of electricity to run machines
Cost of coolant to run in machines ( ours is 1000 a barrel)
Cost of machine maintenance
Cost of tooling ( iscar, Kyocera, Mitsubishi, osg, helical, just to name a few. Some are more expensive than others but all still very costly)
Cost of set equipment such a clamps, vices, parallels.. the cost a of a Kurt vice isn't a joke.
The cost of Cad/cam software, a good one costs thousands of dollars a month. (Catia, mastercam, edgecam, autocad, solidworks, to name a few)
Cost of the metrology equipment to measure the parts, unbelievably expensive. And you get what you pay for in this, hard core. Starret, mitutoyo, brown and sharp just to name a few... calipers, micrometers, view systems, cmms', height gages, just to name a few.
Cost of the persons time...
Then there is the cost of ouside services, unless you plan on buying even more equipment...
Cost of surface grinding
Heat treating
Water jetting...
I could go on... but all this adds up to a tremendous cost. In the end the product being sold has to pay for everything and then some or it isn't a viable operation. A product is worth what someone will pay. I am In the works of doing this for myself, believe me, I crunch the numbers and will charge accordingly.