Raw materials and labor are increasing significantly but I think many companies are taking advantage of the recent inflation and the public's perception of increasing prices to gobble up more margin. I'm not sure if Spyderco is guilty of this but other companies certainly are. At the end of the day, the market and competition will correct these issues. The beauty of a free market system is that it should eventually self correct. We'll see...
No knife costs $5000 to make unless you're making it out of gold. People can charge that much on some because of brand name and because an idiot is born every minute. China has access to the same materials and manufacturing machines that we do here in the US. In fact I'd venture to say most of those machines that American companies are using to manufacture their products are made in china. The biggest difference is China is happy with a 5% markup after actual costs are paid where American companies are much more greedy. They also don't have to pay for workman's compensation and health plans for their employees. China can do everything anyone can if you're willing to pay for it. They often make garbage because they can sell 50 knives in the lower price category than they could in a higher price bracket.
Though a knife may not have cost $5000 to make, it can still be reasonably worth $5000. And yes, the knives in that price range and above often have semiprecious and precious stones, gold, silver and other expensive materials. But it is truly the artistry and the rarity that you are paying for. Don't forget demand drives up price as well. After all, a thing is only worth what someone is willing to pay for it. As far as manufacturing machines, some are china made. But many are from Germany and even the USA. In fact, most of the equipment I see in the facilities I visit are not made in China. China companies seem to be willing to take a more reasonable margin than European or US manufacturers, however, quality is unique to each company. Some of the very best knives we stock at Bear Claw are from China. I don't think that any business can live on a 5% markup though. Thanks for your comment! I appreciate your feedback, keep it up.
@@richardsteinbergmakingknives American companies have alot more to pay for too. Thank our gov for that. Higher wages, workman's compensation, health and dental plans, insurance... Etc. All the more reason to support companies outside the USA. All those things they can cut out is more money that can be spent on materials. I personally have no interest in seeing that employees are paid well . All I want is a quality product for a great price. Fortunately China is coming up. Eventually American companies will have to lower their greed if they want to survive. Look at the piano industry. Americans used to make about 80% of the world's pianos. Now they make about 3%. The reason is china figured out to make a quality pianos for less and if US knife manufacturers don't learn they'll be thrown to the wayside the same way.
Not to be contrary, but China is on the way down, not up. A larger middle class is requiring higher wages and if you want to see what real bureaucracy looks like, take a look at China. In fact it is so difficult to do business in China now that many companies doing business there are expanding their manufacturing operations into other countries like the USA and Mexico. It's actually cheeper to manufacture in Mexico now than in China and with far less logistic and bureaucratic costs. I agree that many US knife manufacturers need to do what is necessary to drastically reduce their margins to lower price points but until people stop paying ridiculously high prices that is not going to happen. I can only hope that, as this channel and others continue to educate knife aficionados we begin to vote with our dollars and buy from makers that charge a reasonable price for their wares. Thanks again for your comment rocks, Ive enjoyed your thoughts and commitment to knives! ...Rock On!!!
@@richardsteinbergmakingknives I just bought a case of Benchmade Infidel knockoffs for $9 each (shipping included). Copies of $450 knives. Awhile back I bought a few Surefire knockoff flashlights that are all every bit as bright and durable as the genuine thing ($16 vs $175). In both instances that's pretty hard for an American company to beat. I'd likely have paid more in shipping alone if I had chosen to buy the real Benchmade over the China version. Good talking to you though. Have a great weekend.
@@realtyrocks1969 Oh yea, I get visits regularly from guys selling counterfeit knives. Of course I won't touch them as it could kill my business. Though they look great, the materials are really sub-standard. But for the price... You have a great week!
Hey I just saw you today over at Anza Knives! Great video! Thanks for coming by! Cheers!
Thanks for sharing this! Very interesting to get a peek into this unique and often misunderstood industry.
Glad you enjoyed it!
Yeah, companies like Spyderco are increasing their prices like crazy without any real reason. Very sad to see.
Raw materials and labor are increasing significantly but I think many companies are taking advantage of the recent inflation and the public's perception of increasing prices to gobble up more margin. I'm not sure if Spyderco is guilty of this but other companies certainly are. At the end of the day, the market and competition will correct these issues. The beauty of a free market system is that it should eventually self correct. We'll see...
No knife costs $5000 to make unless you're making it out of gold. People can charge that much on some because of brand name and because an idiot is born every minute. China has access to the same materials and manufacturing machines that we do here in the US. In fact I'd venture to say most of those machines that American companies are using to manufacture their products are made in china. The biggest difference is China is happy with a 5% markup after actual costs are paid where American companies are much more greedy. They also don't have to pay for workman's compensation and health plans for their employees. China can do everything anyone can if you're willing to pay for it. They often make garbage because they can sell 50 knives in the lower price category than they could in a higher price bracket.
Though a knife may not have cost $5000 to make, it can still be reasonably worth $5000. And yes, the knives in that price range and above often have semiprecious and precious stones, gold, silver and other expensive materials. But it is truly the artistry and the rarity that you are paying for. Don't forget demand drives up price as well. After all, a thing is only worth what someone is willing to pay for it.
As far as manufacturing machines, some are china made. But many are from Germany and even the USA. In fact, most of the equipment I see in the facilities I visit are not made in China.
China companies seem to be willing to take a more reasonable margin than European or US manufacturers, however, quality is unique to each company. Some of the very best knives we stock at Bear Claw are from China. I don't think that any business can live on a 5% markup though.
Thanks for your comment! I appreciate your feedback, keep it up.
@@richardsteinbergmakingknives American companies have alot more to pay for too. Thank our gov for that. Higher wages, workman's compensation, health and dental plans, insurance... Etc. All the more reason to support companies outside the USA. All those things they can cut out is more money that can be spent on materials. I personally have no interest in seeing that employees are paid well . All I want is a quality product for a great price. Fortunately China is coming up. Eventually American companies will have to lower their greed if they want to survive. Look at the piano industry. Americans used to make about 80% of the world's pianos. Now they make about 3%. The reason is china figured out to make a quality pianos for less and if US knife manufacturers don't learn they'll be thrown to the wayside the same way.
Not to be contrary, but China is on the way down, not up. A larger middle class is requiring higher wages and if you want to see what real bureaucracy looks like, take a look at China. In fact it is so difficult to do business in China now that many companies doing business there are expanding their manufacturing operations into other countries like the USA and Mexico. It's actually cheeper to manufacture in Mexico now than in China and with far less logistic and bureaucratic costs. I agree that many US knife manufacturers need to do what is necessary to drastically reduce their margins to lower price points but until people stop paying ridiculously high prices that is not going to happen. I can only hope that, as this channel and others continue to educate knife aficionados we begin to vote with our dollars and buy from makers that charge a reasonable price for their wares. Thanks again for your comment rocks, Ive enjoyed your thoughts and commitment to knives! ...Rock On!!!
@@richardsteinbergmakingknives I just bought a case of Benchmade Infidel knockoffs for $9 each (shipping included). Copies of $450 knives. Awhile back I bought a few Surefire knockoff flashlights that are all every bit as bright and durable as the genuine thing ($16 vs $175). In both instances that's pretty hard for an American company to beat. I'd likely have paid more in shipping alone if I had chosen to buy the real Benchmade over the China version. Good talking to you though. Have a great weekend.
@@realtyrocks1969 Oh yea, I get visits regularly from guys selling counterfeit knives. Of course I won't touch them as it could kill my business. Though they look great, the materials are really sub-standard. But for the price... You have a great week!