Custom knife prices

bandaidman

bandaidman

Joined
Feb 11, 2001
Messages
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I have been observing what I consider an interesting trend in the custom knife market.

Certain "hot" custom knife makers (ie Ryan, Emerson, Loveless, Onion) who have long waiting lists and high demand for their product seem to consistantly sell their blades below the secondary market prices.

I find this curious.

I can understand Emerson to a degree as the good will and publicity generated by the sale of his customs undoubtedly helps his production company.

How about the other makers? As an example why sell a blade for $700 when it invariably seems to sell for $1000 or more when people resell them (seemingly soon after delivery)?

One must understandably be careful not to overprice one's wares but why does a fellow with a 5+ year waiting list (or has even stopped taking orders due to high demand) sell a blade for clearly less than the market price?

Not a bad thing for the initial buyer mind you, just a phenomenon not seen in many other areas.
 
I think that secondary sellers are able to get a higher price because there is a premium for getting the knife immediately, instead of waiting several years fro one ordered from the maker. If the maker upped his price, the secondary market would still charge and get an additional premium.
 
One reason may be that the maker agreed to make that knife for $700 three years ago, when that's what they were worth. That's one reason to be willing to wait so long for a top quality custom. Actually, seeing that makes a knifemaker feel pretty good. If the $700 knife were selling for $500 today, that would spell trouble.
 
It is indeed supply and demand, just different than the usual scenario.

I guess I was not as clear about my question as I thought.

Here is a specific example:

Maker "X" sells his knives for $500 each and has a long, long wait. People readily pay $1000 each to get one (from an individual or dealer although dealer sales often have the benefit of publicity for the maker). I understand that people will pay a premium to get it sooner but why doesn't the maker raise his price to say $750-1000 dollars and keep more for himself as a sale is almost certain.

This directly impacts his income in a positive way. The corollary would be that most people would not volunteer to work for $10/hr if their job was willing to pay $15. It might shorten his wait a bit (or a lot if he raises prices too much) but his price would be more represenative of the market and provide for him better!

Other industries tend to raise prices in accordance with demand.

Just curious.....


edit Jerry posted while I was typing this and I see his point (especially if you have commited to a price). I understand the positive impact of watching the value of your work appreciate but there are some cases that the difference between the maker price and the market price is large enough to add up to real dollars. Is it a wise idea to commit to a price years (2-3+)in advance? If the value of the makers work goes up significantly than he is the one losing income. If his value goes down than I think people will cancel their orders and he is out of luck again. The maker assumes the majority of risk when he commits to a price several years in advance. Less than two I can see setting a price, more than that?????? Just my curiosity at work..
 
what I cant understand is WHY people pay so much for some of these knives. Take Ernies knives for example. Sure there are only so many, and they are hard to obtain.....but 2.5x the original price!!!
This is hard to fathom!! :confused:
 
Good question; I've always wondered why Randall Made knives sell directly for less than they resell second hand. I was always told it was the three year waiting period, but are people really that impatient?

When looking at custom makers (or semi custom as above) who have three year waiting periods, it always struck me that they do not have their prices set high enough.
 
Wow, this brings up that question I posted Months ago about knives as a commodity. As long as there are folks who buy only to resell, it is the secondary market that will always remain the strongest.
Tom made the most valid point with Emerson customs. The secondary market is way out of control, yet folks are still jumping on every Emerson custom at $1200 or more. But does there come a point where the maximum re-sale value is reached? [do not flame me, I like Emerson]

Also, if I am buying to establish a collection to pass on to my Sons, why would a two/three/five year wait bother me, and why would I care what the knife is worth if I were to sell it, if I have no intention of ever selling it?

And, if I really want a certain knife, and the maker is NOT taking orders right now [read this Jerry;) :( ;)] am I not stuck in the secondary market paying whatever the seller wants if I really want that knife for my collection?

These remain serious question for me. I hope some of you guys will help me out in finding the answer............Thanks:confused:
 
Originally posted by wolfmann601
...am I not stuck in the secondary market paying whatever the seller wants if I really want that knife for my collection?
Click to expand...

"Stuck" as opposed to what? Given the specific conditions you mentioned above, then you've kind of answered your own question haven't you? ;)

There's no secret here, no special site, password, or methodology. You want something bad enough, you'll buy it. If not, someone else will. It's just that simple.

You cannot expect to reach a consensus by asking everyone if they think the secondary market for any knife has become "way out of control". You're attempting to define the indefinable, IMHO.

There's no harm in asking, but any response your questions garner will ultimately be nothing more than a small sampling of a very large community. Ten, twenty, thirty, forty respondents to a thread entitled "Is the secondary market on XYZ Custom Knives out of control?" may agree that yes, it is. However, that does not a hard and fast rule make, does it? Moreover, if you personally thought XYZs were worth every penny, why would you care in the first place?

It's nice to share and commune with those of similar interests- however- you're going to have a hard road ahead if you hope to quantify the forum members' personal preferences and opinions into neat little pakages.

Just have some fun, and buy what you like because it's worth it to you, not what anyone else says it is. You may find it MUCH more rewarding when you aquire a piece because it's appreciated by you, not just because you might be able to turn it over quickly at a profit.

There's plenty of room on the boards for all of us, even the Ferengi.

Firebat
 
Pretty interesting thread guys. And it's great to hear from the makers on this issue.

Personally I think custom Emersons are really :cool:. If I did not have a daughter in private school and a wife who's gone back to college to become a teacher I might own one. But when I started shopping for a custom (or customs) and realized I could own a TNT (it's still awesome Tom:D ) and the Obenauf I wanted (on the way:D ) and have $400-$500 left over, the appeal of an Emerson custom dropped significantly for me.

I suppose the answer is to try and get on 'the list' and wait, but for me, with some makers, the math just does not work. That's just my opinion and for those who have more knife/disposable income all I can say is I'm jealous :p
 
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