When do you consider it price gouging?

C

camhabib

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Feb 11, 2005
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There’s currently a used A2 folder for sale online (I’ll let you guess the site) for $1700: the knife originally retailed for $900 and has multiple scratches from the previous owner. I’ve seen probably half of the limited release Shiro Sigma’s for sale online, most at a substantial markup, and just got laughed at by someone for offering $80 bellow retail for a used HatiOn.

Obviously demand drives price. If the prices aren’t reasonable, they won’t sell. But as additional people look to sell and use these “inflated” prices as reference, the price is driven up, and remains there until the market corrects and the prices plummet, essentially having the inverse intended effect on the value of the item.

So the question is at what point does it become gouging and counter productive, negatively and impact fair market prices? Isn’t offering a fair price better in the long run, and good karma for both the seller and buyer who gets to enjoy a beautiful piece?

Tl;dr: markups are dumb.
 
Markups are only dumb to a buyer who doesn't want to play. Ante up or fold, it's all the same when the market is calling the price. Or wait, you might get lucky...
 
I think flippers are obnoxious and wouldn't mind hearing that everyone that buys knives just to mark them up and immediately resell them all just fell down some stairs at once. That said, it's part of the free market and I respect their right to do it (even if I think it's crappy behavior).

On the other hand, there is a positive side of overpriced knives; it's entirely amusing to watch the bottom fall out of some hyper-inflated market assuming you're not in it. I quite enjoyed watching the Hinderer bubble burst. What's worse than buying a flipper that doesn't flip? Buying a flipper that doesn't flip for $1200 and then seeing them going for $350 on the exchange a couple of years later. I'm looking forward to watching the loopy Shirogorov bubble burst too. I love how nobody thinks it can happen to them, as if a maker of limited availability luxury goods could never decide to double/triple/quadruple/whatever production at any moment to cash in on their hype.
 
People set those high prices to see if thy can get a sucker to bite. Unfortunately, some people don’t have the patience to wait until the price is dropped to fair secondary market value. As long as a few are willing to pay the stupidly high prices, the secondary market will continue to have overly priced knives. The only thing that will drive the secondary market down is buyers refusing to pay the ridiculous prices that some knives bring.
So no, it’s not price gouging. In some circumstances, price gouging is against the law, but I doubt it would apply buying knives. :rolleyes:
 
If the price is too high pass. No one is forcing anyone to buy an overpriced knife, nor does anyone owe you(generic you) a cheap price. The market will adjust the price if it is too high. It is also impossible to say if an item has been marked up unless you know what it was purchased for. The guy may have paid $1900 for the folder(listed at $1700) and be giving a $200 break.
When I started out I would get upset about people overpricing knives and lowballing me on mine. I have gotten over it. It is up to me if I want to make the deal or not. If not there is almost always another chance down the road.
 
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Different people sell knives for different reasons. Generally if I am selling a knife I have atleast carried it to try it out so I don’t try and pull any LNIB stuff. Why pay full price for a lnib knife when I can buy the knife new in box for real for the same price.

If I am trading a knife or selling it then I give a good price because I am happy to see my knife to go to a good home and hook somebody up with a knife they want for a deal.
 
I have a price range that is acceptable to me currently. It does change over time. I don't even consider something that is $1000 unless it is made by a very reputable bladesmith (certified). Even then I usually back out as it is out of my comfort zone.

On topic, we live under a capitalistic system and I guess it's a person or dealer's right to set whatever price they like or what they hope the market will bear. I don't play these games. There seems to be a lot of GEC knives that are purchased solely to re-sell once the particular offering is sold out and the folks that dragged their feet buying or couldn't at the time are looking at some marked up prices. So be it..... they aren't worth it to me.

I do set prices on firearms (collector stuff) and if something won't sell at the price I feel is appropriate, I keep it and don't loose any sleep over it. There is always next year.....
 
Every one has a right to to set the price. We all have the right to not buy if we think the price is out of line. There are times when I will be willing to buy even if the knife is over priced, but mostly I just move on, especially when there is a market bubble, because I know from experience that the bubble will eventually burst. I also pass when I identify those individuals who are more opportunistic. This type of character doesn’t strike me as a knife enthusiast. If you treat me like you think I’m a sucker, you will never get a penny from me.
 
If someone undercuts the 100% markup and sells for cost to unload an extra they run the risk of being bought by one of the gougers, just to give them a bad review and hurt their seller profile. I haven’t had to sell any knife “online,” yet, but when I do I’ll upgrade membership and sell on exchange. There’s too much risk of getting a counterfeit “return,” losing the knife, the $$, and seller rating on “that site,” on which I only sell non-edged collectibles and electronics, etc.
 
You don’t have to buy now. The question is if you want it now while its the hottest knife on the block. Or can wait til no one cares you own one
 
evilgreg said:
On the other hand, there is a positive side of overpriced knives; it's entirely amusing to watch the bottom fall out of some hyper-inflated market assuming you're not in it. I quite enjoyed watching the Hinderer bubble burst. What's worse than buying a flipper that doesn't flip? Buying a flipper that doesn't flip for $1200 and then seeing them going for $350 on the exchange a couple of years later. I'm looking forward to watching the loopy Shirogorov bubble burst too. I love how nobody thinks it can happen to them, as if a maker of limited availability luxury goods could never decide to double/triple/quadruple/whatever production at any moment to cash in on their hype.
Click to expand...
Couldn't agree more. It will be "interesting" to watch this bubble burst, which it will eventually. My advice is to not buy into it now and certainly don't complain if you do and get caught holding the bag.
 
Crying that you can't afford it and demand
they sell for what they paid for is laughable.
 
evilgreg said:
On the other hand, there is a positive side of overpriced knives; it's entirely amusing to watch the bottom fall out of some hyper-inflated market assuming you're not in it. I quite enjoyed watching the Hinderer bubble burst.
Click to expand...

I remember paying nearly $800 for a 3" Hinderer wharncliffe and thinking to myself "I better get this now, who knows when I'll ever see another 3" wharnie on the market!" At least I only purchased one Hinderer and not a whole fleet of them like so many people did back then.
 
It's only price gouging when I want to buy the knife.

Seriously, people will pay what they are willing to pay. The market will adjust up and down accordingly. I avoid the "flavor of the month".
 
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