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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  
Old 01-23-2013, 12:54 PM
Jason Fry Jason Fry is offline
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Pricing vs. exposure

There are pricing discussions for new makers all over the web, but I've got a different kind of pricing question. I've been making knives for five years. Over that time, both my quality and my price have improved. I consistently sell knives quickly, which makes me believe that they may be priced below their market potential. I have been relatively unknown, other than a website, a presence on several forums, and a couple of small shows. That's the backstory.

I was fortunate to have a knife published in Knives 2013, and have a picture/article coming out in Texas Monthly magazine in March of this year. The knife in Texas Monthly was on loan back to me from a dealer who put his price on it for the article. His price is significantly more than I usually sell that knife for. I am soon to have major exposure to new customers, with a list price greatly above my usual pricing.

Here's the dilemma. How do I best take advantage of the exposure? If I leave my pricing alone, I'll leave money on the table and will significantly undercut the dealer. If I raise my pricing to the dealer's price, I am afraid I'll end up holding on to knives much longer and may end up with customers who are not satisfied with my knife at that price. I would like to move somewhere toward the middle, raising my prices to a point that better reflects my knives' market value and leaves less on the table, but not to the point where people don't feel like they are getting a good value for my price. I want my customers to feel like they got a "good deal" on my knives, like they expect to pay more for that kind of quality.

I'd love to hear thoughts and opinions from this group.
Thanks,
Jason
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  #2  
Old 01-23-2013, 05:31 PM
tuskbuster tuskbuster is offline
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im right there with ya jason,cept the mag exposure. alot of my repeat cutomers have told me im a little under $$$. but this is my bread and butter right now. i put out 3 to 5 blades a week depending on amount of extras.ya'll will probably laugh but average around 10 bucks an hr.after material,but heck where can ya never leave home and have as much fun ,other that bein a prostitute,LOL
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  #3  
Old 06-17-2013, 05:43 PM
hbarncraftworks hbarncraftworks is offline
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Quote:
Originally Posted by Jason Fry View Post
There are pricing discussions for new makers all over the web, but I've got a different kind of pricing question. I've been making knives for five years. Over that time, both my quality and my price have improved. I consistently sell knives quickly, which makes me believe that they may be priced below their market potential. I have been relatively unknown, other than a website, a presence on several forums, and a couple of small shows. That's the backstory.

I was fortunate to have a knife published in Knives 2013, and have a picture/article coming out in Texas Monthly magazine in March of this year. The knife in Texas Monthly was on loan back to me from a dealer who put his price on it for the article. His price is significantly more than I usually sell that knife for. I am soon to have major exposure to new customers, with a list price greatly above my usual pricing.

Here's the dilemma. How do I best take advantage of the exposure? If I leave my pricing alone, I'll leave money on the table and will significantly undercut the dealer. If I raise my pricing to the dealer's price, I am afraid I'll end up holding on to knives much longer and may end up with customers who are not satisfied with my knife at that price. I would like to move somewhere toward the middle, raising my prices to a point that better reflects my knives' market value and leaves less on the table, but not to the point where people don't feel like they are getting a good value for my price. I want my customers to feel like they got a "good deal" on my knives, like they expect to pay more for that kind of quality.

I'd love to hear thoughts and opinions from this group.
Thanks,
Jason
Hey Jason.

Just a quick question: Did you sell the knife in question to the dealer? If so, he bought the knife at wholesale, which is generally purchased at around 50% of the retail price.

Another thought is to bring your prices closer to the dealer's and include free shipping in the U.S. That shouldn't be perceived as undercutting the dealer and your customers will love getting a free shipping deal.
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  #4  
Old 06-24-2013, 07:52 AM
Gary Mulkey's Avatar
Gary Mulkey Gary Mulkey is offline
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Hi Jason,

I wish that there was a simple answer to your question but unfortunately that's not the case. Pricing is the most difficult thing that there is about our business.

I don't believe that I would be influenced by a dealer's pricing however. Remember that it is always much easier to go up in price than it is to come down. If you are comfortable with your current pricing then I wouldn't be too concerned with a dealer's price. He may have established a price but that doesn't mean that the knife will ( or should) sell for that price.

I wish that I could be more specific but this is a very subjective thing with no absolute best answer.

Gary


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  #5  
Old 06-25-2013, 09:53 AM
Jason Fry Jason Fry is offline
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This is kind of a late followup on this thread. I ended up splitting the difference between my original price and the dealer's price for the price published in the article. I've made roughly 21 knives since the article, and used the article as my anchor point for pricing. Like alot of us, my prices are built on a cost-plus kind of system. For example, that knife costs $275 with stainless bolsters, add $25 for tapered tang, add for premium handle material, etc. I re-set my price structure with the article knife as the mid point. Since then I've sold all but 2 of my 21 knives at roughly 20% higher prices than before the article. I've had no trouble moving them and have been getting good feedback from my customers.
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  #6  
Old 03-27-2015, 02:37 AM
audrey22v audrey22v is offline
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Re: Advertizing on this Forum

However for school I have to write a paper about future jobs and this is honestly what I'm hoping for in the long run.


smart lover
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