Dave,
I will now have to put staff to comparing prices of all of the commodity knives on the web site. I think that maybe your estimate of "20% or more on most" may be a slight bit over the mark.
As the controller of a company that sells a large variety of items over the internet I know full well how hard it is to keep track of ones own costs, selling price and competitor prices. It does in fact require having one person being responsible for monitoring prices. This function is usually ignored until loyal customers complain.
Here is a few things for people to consider in order to understand pricing structures.
1-Wholesale costs fluctuate depending on volume purchased.
2-Wholesale costs fluctuate over time as well.
3-Determining cost figures is complicated in itself.
4-Mark ups and Mark downs further confuse pricing structures.
Unless you are business inclined You can tun out now.
Lets say you bought a batch of 1,000 knives In January for $10 each. A batch of 500 in march for 12 each. A batch of 2,000 in June for $7 each. A batch or 700 in October for $9 each. They are all the same as the new shipments come in we just add them to whatever inventory we have on hand. Now at the end of Nov we have 600 in left in stock. What should we sell them for? Should we assume we have been selling the oldest units first? The Last units first? Replacement cost? Should we just be averaging the costs and marking up from there? Does the costumer care or is he just price shopping?
This is an example of one inventory item. Now imagine thinking through this for a thousand inventory items.
This then get totally confusing as you start marking prices up and down for various sales and their termination. You might select a category and mark them down 10%. Then do a general price increase of 4% the following month. Then select another category and mark them down 4%. Later pick all the old lines mark them down 15%. The following month you may select one vendor and raise him 20%. ARE YOU CONFUSED YET??? At some point you look at your prices and realize that they are almost arbitrary. They have nothing to with what you paid for them or what your competitors are charging.
People this is the reason why prices fluctuate from one site to another. The bottom line is that you have to shop on an item by item basis. If something looks wrong, don't be afraid to tell you favorite vendor that there is a mistake on their website and ask for a better price.
Ok, the rest of you can tune back in now.
Something all you gentlemen should be aware of is the extreme fluctuation in commodities over the last 12 months. Those commodities prices greatly influence what manufactures pay for raw goods which are then pass on to the costumers. From last Nov 07 to July 08 we saw an average 50% increase in prices. From Nov 07 to Nov 08 we see a 60% decrease. That means in the last three months commodity prices have gone through the floor. I have noticed that while retailers are quick to increase prices and commodities move up, they are slow to decrease them as commodities move down. This is something consumers must diligent about in reminding retailers. A recession are not all that bad. The are a much needed function of a free market system.
The following chart should illuminate how drastic price fluctuations have been in 2008:
http://www.bloomberg.com/markets/commodities/cfutures.html