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The Business of Knife Making A forum dedicated to all aspects of running, managing and legal operational issues relating to the custom knife making and custom knife selling industry. |
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#1
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Markup on materials
I've always had problems with pricing my work, and I'm curious as to how others handle markup on more expensive materials. For example, you offer a basic utility knife with Micarta scales for $100. The Micarta costs you $5. A customer wants his knife with exotic wood which will cost you $30. Assuming the wood is no more difficult to work than the Micarta, how much would you mark up the basic knife?
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#2
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Brett, I would at least double your cost, and add a fudge factor for breakage. In the example you mentioned, the selling price of the knife should be at least $150, and maybe $175.
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#3
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I haven't mark up any of my material, in fact this is the first time i heard of it. Is this a common thing to do, what about steel? What about a shop fee for the belts, electric,sand paper and other stuff.
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#4
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Thanks for your replies! Doubling the cost is fairly common in the retail world. I just wasn't sure about it because it doesn't take much to double or more the cost of the basic knife that way. But in the end, I suppose it's up to the customer to decide whether it's worth it to have all the "bells and whistles."
As far as "shop fees" for steel, belts, and such... well, that's all figured in to the basic price of the knife. I think you have to mark up the more expensive materials to more than you paid for them, or you will make the same amount of money selling a Damascus bladed, mammoth ivory handled hunter as you would selling the same model with Micarta and 440C. I don't think you can stay in business that way. |
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