ZT 2019 Price Increase

xzonin13

xzonin13

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Anyone else notice the sudden $20-$40 price increase on ZT models on most major retailers? Any news on what's up with that? One of the major selling points for ZT as a brand for me has always been their standard pricing, avoiding the yearly jumps of BM and Spyderco. Getting a titanium/S35VN/USA knife for $200 was great, getting one for $240 is pushing it. The 0450 for $160 was always an easy recommend for newbies, $188 is tougher to sell. BladeHQ linked for reference https://www.bladehq.com/cat--Zero-Tolerance-Manual--225
 
The cost of doing Business +the cost of manufacture +The cost of materials +the cost of labor +The cost of a whole lot of other things ,not hard to figure out .
 
The point isn't the reasoning behind it, it's just surprising that ZT did it after going so long without doing it. For myself at least it was always a sort of pride that my favorite brand wasn't doing the same price games as Benchmade or Spyderco, and it's a little sad to see that change. Particularly as companies like WE have started dominating the similar price market, albeit non-US made.
 
Stop buying at the inflated prices and they will drop...aint gonna happen though.

I like BM folders, but IMHO their prices are too high. So I seek them out in the secondary market.
 
"Games"? Lol. Cost of business goes up every year across industries. It's silly to think that somehow knife companies wouldn't have to do this.
 
That big a jump surprised me. I'm glad I bought my only ZT last year since it's $40 more now.
 
I don’t purchase many Zt’s anymore but I’ve always been impressed with their value. Wi knives also make a nice titanium framelock flipper on bearings in China and typically still cost considerably more than your average ZT. I’m surprised it’s taken this long for Zt to increase their prices compared to Benchmade and Spyderco.
 
Alsharif said:
More business to Chinese companies. Competition will keep prices in check.
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This. WE and Reate are dominating.

FN in MT said:
Stop buying at the inflated prices and they will drop...aint gonna happen though.

I like BM folders, but IMHO their prices are too high. So I seek them out in the secondary market.
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I agree about benchmade. At least ZT keeps their quality in check for the most part. I wouldnt mind benchmade as much if they could just deal with their qc issues.
 
ZT is the first to do it but expect it from everyone across the board, even the Chinese Knives. Steel tarriffs are a factor. Even if the steel is made in the US the cost has gone up do to extreme demand from all industries. This was overdue from ZT. Recently getting to be behind the scenes, and seeing how much work goes in to each knife made in the USA, I am amazed at the very reasonable prices even with the price increase.
 
whitty said:
ZT is the first to do it but expect it from everyone across the board, even the Chinese Knives. Steel tarriffs are a factor. Even if the steel is made in the US the cost has gone up do to extreme demand from all industries. This was overdue from ZT. Recently getting to be behind the scenes, and seeing how much work goes in to each knife made in the USA, I am amazed at the very reasonable prices even with the price increase.
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Absolutely correct. Even the idea of a tariff in a luxury industry that needs to base its year long pricing on projected and volatile futures needs to walk a fine line.

In my business, the bulk of my product is built from pre fabricated panels made from 14 gauge galvanized steel. It's all produced and bent in the states. However, with the flirted tariffs, all steel goes up as manufacturers start buying up steel stateside. Aggregate supply and demand.

My guess is that ZT has been eating costs for a bit to establish a foothold. When they started moving from pocket tanks like the 300 series, 200 series, and the 350 as their go-to models and more of the ultra tough pocket jewelry (no disrespect intended. I carry a pretty ZT most every day), that costs money.
Think about all the different models they offer now. All the different materials they come in including carbon fiber. And they pretty much sell all that they made.

So, if ZT can still sell what they make at $30 more per knife and keep competing with a growing Chinese quality market, they made the right decision.
 
As a diligent consumer I certainly want there to be good reason for all price hikes. However I have serious doubts. Even if markup isn’t as high as I suspect. I heard Eric glesser discussing the price of a sheet of steel in a video. My impression is that steel cost is a very small portion of production cost. With pressure from foriegn markets and probably another dozen We quality OEMs lying in wait, should all work out.
 
Well not just the cost of a sheet if steel is what drives pricing. For most companies, their biggest expense, as well as asset, is their employees. Employees like to get raises and bonuses, healthcare costs keep going up, there are retirement funds to worry about as well as various insurance costs.
 
unwisefool said:
Well not just the cost of a sheet if steel is what drives pricing. For most companies, their biggest expense, as well as asset, is their employees. Employees like to get raises and bonuses, healthcare costs keep going up, there are retirement funds to worry about as well as various insurance costs.
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Sure I understand all of that but as many have pointed out in discussions of annual price hikes shouldn’t exceed standard inflation. I have appreciated that zt has been steady. The steel tariffs aspect could be relevant if that cost were a greater portion of cost more comprerable to labor.
I believe there is a greater market strategy at play. I take comfort in the knowledge that bubbles pop.
 
It’s rare I defend ZT management but in this case I will ... not only are we talking about US manufacturing and materials but they are in Oregon, I’m willing to go out in a limb and say that the employer burdens (taxes and regulation) they face there are probably among the higher of any state.
 
unwisefool said:
Well not just the cost of a sheet if steel is what drives pricing. For most companies, their biggest expense, as well as asset, is their employees. Employees like to get raises and bonuses, healthcare costs keep going up, there are retirement funds to worry about as well as various insurance costs.
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I agree. I think this is something folks forget. Manufacturing (and business of any type) hinges on people. It's a difficult thing to wrap your head around at times when what you want costs more than you think it should.

I run into it this way: I have a good worker. He/she makes a fair wage, and then they learn something that makes them faster at what they do. That increased speed makes them more valuable, so I give them a raise. Their efficiency makes the company more money so they earn more, they've earned it.

Now, at a certain point, they can't move any faster, be more efficient, or create more revenue through their labor. I have increased my price of my product already to cover material cost, overhead, and given them a wage increase that keeps pace with cost of living, say 3%. However, they still see themselves as a good, reliable, employee who earns for the business...and they do. However, they feel their worth is maybe 7% more. The numbers don't say 7%. They say 3% because we are operating at capacity of demand. But they FEEL 7% and I want to keep them because they are a good worker and I dont want retrain someone else.

So here are my options: Live the American Dream, "grow the pie" or some such jargon to go into a new Avenue of the business (which could be very risky even if the gains are to be made) where this superstar employee can spread his/her wings and off we sail on a grand money fueled adventure. However, maybe I like where I am. Maybe I dont want to grow the pie over 4% wages. Maybe the investment to grow costs 20% of my year to year and with the signs pointing towards a natural dip in the economy that's a foolish endeavor.

My other option...raise my prices a bit. What little I may lose from being "too high" I make up for in retaining my most valuable asset, my employee.

We all want to be paid what we are worth. A good company looks out for that.
 
Fanglekai said:
Costs go up, not down. It's the same for every manufacturer and it's not a pricing game.
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That’s not really true though is it? Costs can absolutely go down, in manufacturing in particular. But prices rarely do, unless maybe market wide, pricing strategies blah blah blah
 
But I don't think ZT has had a price increase in many years. So maybe they reevaluated what the knives cost to make and adjusted accordingly. It's not a straight percentage raise across the board, so it looks like some thought and research went into this decision.
 
Not blaming ZT because it seems every manufacturer is raising the prices, from 10% up. Also, many others goods are having similar price increase. The place I use often raised car wash from $13 to $17 (30% increase).

On the other hand, I suspect most people do not get 10% annual raise of their salaries. Life is just getting tougher for many.
 
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