Why do some knives really cost so much?

[not2sharp]

Lets hope I don't get flamed for this but this is a serious question. Lets take for example the spyderco paramilitary 2, about $120-140 at most retailers. What really makes this knife so expensive? The parts that go into it don't seem to me like they would be anymore than like $30 USD, a few pieces of extremely high quality steel, and then the scales, so what really makes this knife for example cost $120?

The price has absolutely nothing to do with manufacturing costs, warranty, overhead, distribution, retail and other costs. It is simply a measure of how much we are collectively willing to pay for the knife. Often they underestimate the price, and the item flies off of the shelf (like the recent run on "assault rifles" and ammunition) and at other times they over estimate the price, which leads to alot of inventory and discounting and ultimately the end of production. The only significant consideration is our perception of the quality of the item vs. the relative quality of other competing knives. These perceptions can change over time, some brands fade from memory while others are rediscovered and what we one thought of as run-of-the-mill knives might become excellent and highly sought as the messaging on the product evolves over time. Once apon a time (post WWII) ancient Japanese swords were near useless war trinkets frequently given to youngsters to beat againts trees, it wasn't until many years later that information flow and demand rose to price these into the 5 and 6 figure ($) range.

n2s

 

[dr_fosg8]

Hmm...Why do quality tools cost so much. I think you know the answer already your just looking for a bandwagon. I would wager that if someone GAVE you the materials to build a PM2,(since you called it out), you couldn't produce it for $200 worth of labor alone.

For what you get in a made in usa knife with top of the line materials the spyderco knives are a heck of a deal.

 

[Ankerson]

Lets hope I don't get flamed for this but this is a serious question. Lets take for example the spyderco paramilitary 2, about $120-140 at most retailers. What really makes this knife so expensive? The parts that go into it don't seem to me like they would be anymore than like $30 USD, a few pieces of extremely high quality steel, and then the scales, so what really makes this knife for example cost $120?

Cost of materials, Manufacturing costs, R&D, Advertising, packaging, labor, and general overhead.

It all adds up just like anything else that is made.

 

[dcmartin]

Lets hope I don't get flamed for this but this is a serious question. Lets take for example the spyderco paramilitary 2, about $120-140 at most retailers. What really makes this knife so expensive? The parts that go into it don't seem to me like they would be anymore than like $30 USD, a few pieces of extremely high quality steel, and then the scales, so what really makes this knife for example cost $120?

I'm gonna chime in here and say, you most definitely are paying for materials design and R&D that is "step up" from the $30 pieces. These (the higher priced models) have a bunch of R&D and not only that but they have to be made in larger runs to assure consistency. I'm sure the machinery has to be tooled for a specific run (assuming they are production runs)

As for your "entry level" knives, most but not all have lower grade steel, thiner liners, nylon or plastic handles. Some people's entry level knives are $20 -$30 pieces, some are $100 - $200 pieces depending on their need and cash at hand. Like anything, if you start with a lower grade knife....you use it and later want something else, something better (trust me this happens with $600 knives as well) The next knife you get, you're going to want it to be a bit better than your previous one.... Ask most anyone here.

The bottom line (for me) would be TIME... It takes time to come up with the designs, it takes time to purchase and process the raw materials and it takes time... a lot of it for the R&D to refine the product to a streamline & aesthetic, perfectly functioning knife. Most of the really hot selling / in demand knives are a much more refined version of their former selves. Add to that the heat treating, the DLC, the machining, sharpening, assembling, shipping... None of that is free, it takes time and as we know.... "Time is money"

The other part of the equation is DEMAND.... the PM2 has a great following because it's an awesome no nonsense great looking work horse of a knife. I love mine and I can't really see myself without one in my collection.... So what i'm saying is... If a company has invested a lot of time in a particular model and that model has a solid following, don't expect the prices to drop anytime soon.

You said "The parts that go into it don't seem to me like they would be anymore than like $30 USD" It's not the parts, it's the finished product.... that's what you're paying for. As you get deeper and deeper in to this wonderful time consuming money pit of a hobby (trust me, in a year you'll see a $400+ knife and think...Yeah, that's not too expensive Lol) You will see and appreciate the subtle designs and all the work that goes into making one of these $120 knives. Hope this helps

 

[The Mastiff]

Handle material that can be injection molded in mass quantities for a very low price.

Hi Jacknife,

Once set up and running it's true each piece isn't all that expensive. You would however have to take into consideration that the mold for injection molding can run from $30,000 on up to $50,000. The costs need to be amortized over the run of knives.

Just taking a project through concept phase to finished product costs a bunch of money needed for engineering, prototyping, changes, testing, breaking some knives to see where they need to be reworked, back to engineering, then over to prototyping again.Heat treats need to be worked out on more than the blade. Springs need to be made, treated, tested to failure, tested for lifespan and corrected back in engineering again if needed. And so on. Then there is sending the prototype to the factory/vendor who might need to suggest a few changes or tweaks depending on their needs and capabilities. Then back to engineering again for more testing, prototyping, etc., etc.

Sal stated his projects are can take a couple of years before beginning production.

 

[red mag]

While the question is pretty simple, the different answers given are interesting.
It can also be seen as a question of the price-performace-ratio.
From my point of view the ratio fit's for the PM2.
YMMV.
red mag

 

[22-rimfire]

The only significant consideration is our perception of the quality of the item vs. the relative quality of other competing knives. These perceptions can change over time, some brands fade from memory while others are rediscovered and what we one thought of as run-of-the-mill knives might become excellent and highly sought as the messaging on the product evolves over time. Once apon a time (post WWII) ancient Japanese swords were near useless war trinkets frequently given to youngsters to beat againts trees, it wasn't until many years later that information flow and demand rose to price these into the 5 and 6 figure ($) range.

Perception is often reality. As far as knives and their cost or "value", it is very subjective to the consumer. You are paying for a brand name. You are paying for everything that goes into building a particular knife based production assumptions and the product's acceptance at a particular price point to customers.

Establishing a price is part of the manufacturing process and they plan on making money whether it be a $20 knife or a $300 knife. Some products are mispriced based on the market and production costs. Tis the way things work. Sometimes you win and sometimes you loose.

It is very hard to convince someone who makes minimum wage, or maybe they are the easiest to convince depending on how you look at it, to spend a week's wages on a knife that they may loose or use just occasionally. Some people will never be convinced that value and quality matches price. There are lots of knives available for people like that.

I also recall when Japanese swords were pretty inexpensive and a lot were moving into the market frequently at gunshows (or gun & knife shows) as they were a convenient venue to buy and sell. The WWII vets were aging and you started to see them in the 1980's mostly and $200 would buy quite a nice blade. The $500 ones are now the ones that sell for thousands.