What makes an expensive knife expensive?

Funny, I look at most of my folders (Benchmade, Kershaw/ZT, Blackhawk, CRKT, and others) and I think to myself that manufaturers aren't charging as much as they could be. Quality and pride of craftsmanship counts for a lot to some, and when one gets to custom knives that becomes even more true and of value.

Some get it, some don't, but making assumptions as to vanity and ego is just downright silly to me.
 
I can justify buying Busse's, Kershaw's, etc. because of their excellent warranty. Even when damage occurs due to your own fault and also probably shouldn't be covered, I have never heard a complaint about Busse's customer service.
 
Gadgetaholic said:
If you are talking about 300 dollars to 400 dollars for a hand made knife then that seems expensive. But if 10 hours of a skilled craftsman's time went into making that knife then you are talking about $30 to $40 per hour of time, but that wasn't taking into account the cost of materials. Let's say that a $300 knife only cost $50 for materials and took the maker 10 hours - that is $25 per hour.

So then, are hand made knives expensive?
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No they are not. Take a custom slipjoint for example. I guarantee there is more than 10 hours in them. If they are made to high quality fit and finish they are well worth it. $30 or so an hour isn't that much money.
 
First you figure out how many units you will be making. Then the formula is something like this:

[(cost of materials to make X# of units) + (total man hour cost in putting X #units together) + (total machinery tooling cost) + (packaging cost of X units) + (cost of shipping, handling, service guarantee, any other incidentals)]/ 1000 units = cost per knife.

Assume: (1000 units); (cost of materials for 1000 units... $40,000); (labor cost of $10/hour x 1000 units... $10,000); (tooling costs of $10,000 total); (packaging for 1000 units at $2/ unit... $2,000); (shipping postage, service guarantee, other incidentals of $7/ unit... $7,000 for 1000 units).


[($40,000) + ($10,000 ) + ($10,000) + ($2,000) + ($7,000)] / 1,000 units = $69/unit. Let's call the final selling price $75... sounds like a nice price/ unit and we'll make a profit of $6,000! :D
 
My econ professors would say price is determined by supply and demand. While each manufacturer sets their own prices, they do so within the parameters of what the public will pay based on the the item offered, it's perceived utility, and the price of competitive offerings.

Chris Reeve & Strider knives sell for more than any other production folders because the buyers in the high-end production knife market continues to believe that there are no close substitutes for the products, ownership experience, and support that CRK and Strider provides. There is limited supply and high demand.
 
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mmarkh said:
No they are not. Take a custom slipjoint for example. I guarantee there is more than 10 hours in them. If they are made to high quality fit and finish they are well worth it. $30 or so an hour isn't that much money.
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If it takes more than 10 hours then my point is valid, only more so. If you spend $50 on materials and sell a knife for $250 after spending 20 hours working on it then you have made only $10 per hour. So depending on how long it actually takes per knife some of these customs may be not only inexpensive but maybe even an actual bargain. Who would want to be a knife maker?

If you don't like the high price of a custom and don't think it is worth it to you then the solution is simple - buy a production knife instead. But in that case it is not that the customs are overpriced, it is just that you decided to buy a cheaper product.
 
When it comes to handmade knives, you're also paying for the years of experience the maker has, which can often translate to higher quality. I too can tell the difference between inexpensive and cheap. It's sad that many today cannot. I say buy the best that you can afford. Find a maker that you like. Start buying things (from him). Develop a relationship. If you follow those steps, your collection will take off in a new direction. You will have knives that truly do that special thing for you.
 
Charlie Mike said:
When it comes to handmade knives, you're also paying for the years of experience the maker has, which can often translate to higher quality. I too can tell the difference between inexpensive and cheap. It's sad that many today cannot. I say buy the best that you can afford. Find a maker that you like. Start buying things (from him). Develop a relationship. If you follow those steps, your collection will take off in a new direction. You will have knives that truly do that special thing for you.
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They don't see it because they don't want to see it. ;)

They just can't get past the cost factor so there is a brain lock there.
 
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Ankerson said:
They don't see it because they don't want to see it. ;)

They just can't get past the cost factor so there is a brain lock there.
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You're right as usual. I know I keep shilling Reese Weiland here but it's for a good reason. Everything I get from him is tailored for my needs. I don't think I'll ever part with any of them. I pay for all the cool little tricks and lessons he has learned throughout his career. I pay so he can take a production knife and turn it into something amazing.

It is very true that if you want nice things, they will cost you some money.
 
Charlie Mike said:
You're right as usual. I know I keep shilling Reese Weiland here but it's for a good reason. Everything I get from him is tailored for my needs. I don't think I'll ever part with any of them. I pay for all the cool little tricks and lessons he has learned throughout his career. I pay so he can take a production knife and turn it into something amazing.

It is very true that if you want nice things, they will cost you some money.
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I look at really nice things as a treat to myself and if I really want something I will save up or do what I have to do to get it. :)

If a person has a $50 knife and that's all they can afford then fine, that's great. :)

But just don't try and tell me that that $50 knife is the same as a CRK or Strider or that $100 fixed blade is the same as a Busse because I will laugh in their face and walk away. ;)
 
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Warranty is also very expensive. Say you have a profit margin of 10% on every knife you make. This means that for every knife you have to replace you need to sell 10 just to break even. IF you inflate the price to 20% Profit you will need to sell 5 to break even because an asshole thinks that because it has a no questions asked warranty he can destroy a knife and get one for free. This is also an important factor to consider. A great warranty is always paid by the other customers who don't take advantage of that warranty.
 
I would believe that the materials, tolerances, quality of workmanship and man-hours involved in producing the knife pretty much sum up the basics. Add artistry and the cost/value climbs.
 
Myself I think you pretty much get what you pay for. Be it binocs,guns knives ect.ect. Myself I'm looking for a RJ.MARTIN Variable, do I think its worth the price I'm probably going to have to pay if and when I run across one. Sure if you want quality,design,craftmanship, attention to all the little details. That takes time and experience, its not just run off by some computer program or robot. So if you've got the money get the best you can afford. You can always get your money back if you need to. Or make money on them if you hold on to them for a few years. So what more can be said. Well thats my 2cents worth, good luck with your decision. :)
 
I don't really see the big deal on expensive knives, the cost i mean. If one cannot afford the expensive knives then buy a cheaper one. I have knives of all dofferent costs, they all cut, they all do the job I bought them for. Many things go into making any product expensive and most have been discussed here already. Buy as good a knife as you need or the best you can afford.

Many things go into making a certain knife the BEST as well. One thing is PRICE, the best knife on earth does the average working man no good what so ever if he can't afford it.
 
I just saw one bid on a collector maybe user (depending on if the buyer will use it etc.) knife. $2500. That has thrown my radar out of whack about what is expensive or not. Suddenly $400 for a knife seem like small change.
 
I can't afford $400, so to me that is too much money to spend on a knife. It's OK though, I have a good solution for that: since I can't afford a $400 custom knife I don't buy one. I was able to afford some cheaper production knives - so that is what I bought.

Yesterday I jumped at a real bargain - a large hand made knife for $95 + shipping. The blade, handle, sheath and everything all made by hand by skilled craftsmen and it is 15" long & 26oz in weight, brand new. I can't wait for it to arrive so I can chop up some trees and see how it does.

Does that make a custom knife at $400 expensive? Not at all - if the maker of my new knife lived in the USA then there would be no way he could make that knife and charge so little - it would probably be at least $400 for him to be able to pay his bills! The builder is a hard working man in Nepal and over there it costs less money to live, though he probably has more of a need for the income from this knife than most American makers would.
These are all bargains as far as I'm concerned: http://yhst-7333098713883.stores.yahoo.net/
 
Good thread. Spend as much as you like, on the things you like I say, but do it for yourself. I have several $400-700 watches, when some people ask what it's worth and I tell them they are beside themselves because to them watches cost $20-100. My brother-in-law wears a $6000 watch he carefully picked out after analyzing for over a year. He earns probably 6x or more what I do (and I do all right) so for him, 6g not a lot. Nice thing with knives, for under a grand you can have one of the finest examples of man's most used tool on the planet. It's up to you if it's better than that Buck119 I lusted after as a teen.
 
come on! everyone knows that pure knifenuts are buying simply because it has become an addiction to somehow attain the very finest marketed product as a status symbol.
in summary, price probably wouldn't matter just as long as the knifenut get the latest fix?
it's probably pretty dicey for makers should their new products fail to catch on due to overpricing.
 
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