Why are new knife inventories so low at retailers?

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I have seen knife inventories, such as GEC and CRK go from a moderate inventory and selection in the past 12 months to almost nothing. I imagine part of this may be due to supply chain issues stemming from the pandemic, staff shortages, or, maybe people are simply buying up all available knives. Those of you who have better connections with retailers than I do probably have more insight into this. When will knife inventories improve?
 
GEC and CRK both have a business model that depends on supporting their prices and increasing demand by limiting supply.

If there was enough supply of these knives to fully meet market demand, prices would decline and collector interest would likely decline as well. It's the nature of the beast with these two brands - and a few others.

The truth is not popular, so I expect the attacks to begin about ... now.

That said, they are both likely struggling with the same economy wide issues: supply chain problems and qualified labor shortages.
 
I have seen knife inventories, such as GEC and CRK go from a moderate inventory and selection in the past 12 months to almost nothing. I imagine part of this may be due to supply chain issues stemming from https://www.bladeforums.com/threads/how-to-make-the-gec-drop.1595705/the pandemic, staff shortages, or, maybe people are simply buying up all available knives. Those of you who have better connections with retailers than I do probably have more insight into this. When will knife inventories improve?
GEC inventory has been low for +four years. This is not a sudden happening.


Just a note this is just a quick overview of the threads bemoaning that it's hard to find a GEC knife.
 
I've noticed this with Hinderer knives in the last year. They increased production by adding more CNC machines and had caught up to the demand. Knives used to be available for days to weeks on dealer sites. Now they sell out within an hour. Seems like they might be purposely limiting supply to increase demand.
 
People are also buying more knives as well. They have been stuck at home and taken up new hobbies. I don't believe CRK limits supply that much. They take a bit longer to make and are also very popular, so the small supply they have gets bought up.
 
People are also buying more knives as well. They have been stuck at home and taken up new hobbies.

I agree, but I think the impact of this effect was much larger earlier in the pandemic. It seems to me that demand for knives in general - not GEC, CRK, Hinderer, etc - but knives overall, has backed off some since earlier in the COVID era. I could be wrong, but that's my observation.
 
I agree, but I think the impact of this effect was much larger earlier in the pandemic. It seems to me that demand for knives in general - not GEC, CRK, Hinderer, etc - but knives overall, has backed off some since earlier in the COVID era. I could be wrong, but that's my observation.

There's been no "back off" in demand for and no surplus of knives, guns, ammos, cars and other things that I buy/collect.

In fact, demand and prices for all of these things continue to rise because of the diminishing supply of these things, as well as the "worry" and economic dysfunction created by the apparently endless peril that the C19 virus continues to represent not only in this country but in the world at large.
 
One part of the supply chain crisis that directly affects consumers - Americans are buying more than ever. So even in normal times inventory would be lower.
This is rarely discussed. Even less discussed is that there is a 90% annual turnover for truckers. It's a pretty messed up industry.
So getting from ports to stores is an issue. As proof that this is a bottleneck, there is more demand for places to park full shipping containers. Even once ships are unloaded, there just aren't enough truckers.

Every factory in every industry is competing for the resources too.

It's purest fantasy - especially for free market types - to think government administration has much to do with this. This problem exits all over the world.
 
There are a lot of factors. Crazy knife collectors are being crazy knife collectors and buying enough knives to kit out a personal platoon or company's worth of knives. Outbreaks are hard on the the supply chain everywhere along the way. The largest ports in the world have been continually backed up and often closed down periodically the last couple years. Every time a port shuts down due to an outbreak it causes massive backlogs that just get worse and worse, mostly because of how ports work here. You have a fragmented infrastructure system that's been a race to the bottom, which makes it hard to upgrade the port facilities, let alone any connecting rail systems. Instead of being an integrated, well operated machine, it's complete chaos. The various pieces and fragmented operations are so uncoordinated that they're constantly getting in each other's way, blocking each other from getting their job done. It's to the point where some companies are begging to be able to offload cargo containers with helicopters to bypass the mess of the ports.

There is a shortage of shipping containers in China, because we're buying more junk from them than they're buying from us. There was a recent styrophome shortage that would mean your fridge was ready to ship but delayed because they didn't have the packing materials to safely send it. The online shopping craze has stretched the logistics of shipping to the breaking point, when people are buying a pack of gum and need it shipped to their doorstep. That same space on a ship, train car, or truck being used for someone buying some printer paper (instead of going to a local office supply shop) is competing with my knife getting shipped. The increase in online shipping is killing warehouse workers who have to do twice as much with half the staff, due to covid protocols. The warehouse is also now disconnected from the office staff, who are often working from home. After years of driving a lot of truck drivers out of their jobs, by treating them like garbage, all this extra delivery work means there's a shortage of drivers to treat like crap. Asking them to come back, because you miss treating them like crap hasn't worked out very well.

Then there's the way the products are distributed. A certain amount of knives are sold directly by the manufacturer, so they hold onto that stock for dear life. Some preferred retailers get the lion's share of what's left and a lot of the other retailers get the scraps which are quickly bought out locally. There might be a bunch of the knives you are looking for, but they're either being sat on by someone you don't normally buy from or sat on by someone people don't normally think of to buy quality knives from. In the last year, I've found some knives that were sold out everywhere, but just sitting in some obscure hardware store you wouldn't expect to buy a more expensive knife from. You really don't expect to trip of a Cold Steel Magnum Tanto among the gardening tools of a hardware store, but it can happen.
 
Thanks for the observations. I do think demand has not declined overall. If it had, Knives would be easier to find on the retail market. I tend to agree that knife collectors are buying more knives now, somewhat akin to when everyone was buying out TP at the grocery store early in the pandemic. That, coupled with a severe supply chain lag, is probably keeping many knife makers from getting products out more quickly, where they could make more money if they sold more even. I agree that GEC knives have always been a bit low in inventory, but this year it is clearly the worse I have seen. The only recourse is to pre order knives and that is what I have done. I have a CRK coming in the next few weeks, I hope.
 
Steel markets are currently one of the hardest things to plan around. Steel Mills are STILL running at reduced capacity. For most of the steel we buy we have like 30 minutes to seccure a 50-60K lbs order of material once our vendors let us know - that is literally how quick its being sold. Hell, DOM tubing is anywhere from 18-32 weeks out depending on size!
 
There are supply chain issues on the manufacturer end, on the dealer end its all just people purchasing stuff at a more rapid pace than previously. We have no interest in limiting supply, and none of our manufacturers do either, all that does is lead to frustrated customers and less sales. A lot of the in-line SKUs for larger brands are becoming much easier to keep in stock, but the smaller batch guys like CRK, Hinderer, Koenig, GEC, etc continue to sell out immediately upon release because people missed out last time are very motivated to succeed this time.
 
So getting from ports to stores is an issue. As proof that this is a bottleneck, there is more demand for places to park full shipping containers. Even once ships are unloaded, there just aren't enough truckers.

There is a shortage of shipping containers in China, because we're buying more junk from them than they're buying from us.

And all this time I bought into the line that GEC and CRK were "made in America"... :rolleyes:

There are supply chain issues on the manufacturer end, on the dealer end its all just people purchasing stuff at a more rapid pace than previously. We have no interest in limiting supply, and none of our manufacturers do either, all that does is lead to frustrated customers and less sales.

I'm sure that dealers want to sell every item they can, but to believe that manufacturers like GEC, CRK and Hinderer (all of which are sold by DLT) "have no interest" in limiting supply is practically beyond belief.

That said, it's very likely that GEC, CRT and Hinderer are struggling with some of the same issues - such as a tight labor market - that other businesses are struggling with. But there is such a clear and compelling business model for these three companies (and others like them that depend on enthusiast/collector business for success) to thrive by limiting supply, thus increasing demand and supporting and/or increasing prices.

"It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices rise."
 
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GEC and Hinderer have been pretty limited for years, with scheduled drops when things would become available.
CRK used to be relatively easy to find, but the update from Sebenza 21 to 31 (and the S45VN change to a lesser extent) pushed demand for old stock and once they were all sold, dealers were back to waiting for their next drop.
 
Here's the deal and this has come up before. For small companies like GEC or Hinderer they know very well how many knives they can make and still meet their production standards. CRK is a bigger spot but they know the same. None of them are sitting on a warehouse of demands waiting for demand to skyrocket.

A lot of folks have come here and posted they were sad they can't buy a GEC with sliver acrylic covers whenever they feel like it and opined that GEC should start a second factory in Turkey or Thailand or somewhere to take advantage of cheap labour and crank up the numbers to exceed demand and flood the market at the expense of quality.

For some reason those suggestions keep getting shot down also.
 
There are supply chain issues on the manufacturer end, on the dealer end its all just people purchasing stuff at a more rapid pace than previously. We have no interest in limiting supply, and none of our manufacturers do either, all that does is lead to frustrated customers and less sales. A lot of the in-line SKUs for larger brands are becoming much easier to keep in stock, but the smaller batch guys like CRK, Hinderer, Koenig, GEC, etc continue to sell out immediately upon release because people missed out last time are very motivated to succeed this time.
Thanks for your insight. I often look at your site. Not longer ago you were showing a lot more available CRKs and some GECs. I tend to agree that people are buying more rather than the reverse.
 
Wery crude explanation ;

In 2018 Reeves made 1000 knives monthly
then were 1500 able buyers
so 500 bought Cyvyvy instead
Now Reeves made same 1500 knives monthly
but due to toilet paper shortages able knife buyers grow to 3000 !
So now there are 2000 Cyvyvy buyers :^D
And that make big sense
And CHCP is happy, very ...
 
raw materials in general are going to be an issue for the next year, most likely. I work in an industry where we do a lot of steel construction. I would order it from distribution who ordered it from the manufacturer who ordered it from the mill. At peek season, the mill was on triage only cranking out certain types of steel at certain times to at least partially fill orders. What was generally a 6 day turn around to get my product in 2019 was up to 122 days this past July.

It's gotten a bit better, but they are expecting another spike early in the spring. I think everything all over is just bottlenecked and bottlenecked against other bottlenecks. It's going to make an interesting macroeconomics class in the years to come.
 
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