Discount Program Abuse?

[Etablinsky]

If a knife manufacturer, such as Microtech, offers a discount to a customer because that customer is in the military or employed as a first responder is it an abuse of the discount program for the buyer to resell the knife (or knives) at the full undiscounted value or even at a premium?

In my opinion it is. It is also my opinion that this behavior jeopardizes the discount program as the knife manufacturer may choose to cease offering such discounts when they realize their good intentions are being taken advantage of.

 

[EyeDog]

I doubt there are many abuses. And I am not upset if military or LEO resale at the current user market price. I wish all manufacturerers had these programs.

 

[onekerf]

Very interesting...

 

[Lapedog]

If a knife manufacturer, such as Microtech, offers a discount to a customer because that customer is in the military or employed as a first responder is it an abuse of the discount program for the buyer to resell the knife (or knives) at the full undiscounted value or even at a premium?

In my opinion it is. It is also my opinion that this behavior jeopardizes the discount program as the knife manufacturer may choose to cease offering such discounts when they realize their good intentions are being taken advantage of.

I’m sure that they are aware of the possibility of this happening. I don’t think they will consider a service member making a few extra bucks on the side to be a major problem.

Now if someone was buying a whole collection under discount and reselling that might be an issue.

They probably don’t see it as losing much money anyway since the military discount might be the same price they sell the knives to distributors for anyway.

 

[Etablinsky]

I doubt there are many abuses. And I am not upset if military or LEO resale at the current user market price. I wish all manufacturerers had these programs.

Thanks for your response. I just think that the spirit of such programs is to put these tools in the hands of people who need them most, at a less prohibitive price, and reselling them at a substantial profit goes against that spirit.

 

[Peter Hartwig]

It certainly happens, but the manufacturers usually won't let you make a habit of it. I think the manufactures would rather have a little abuse then ending the program.
I say let them have it-not too much for risking your life. I don't think the manufacturer is really out any money and I am sure they feel better for helping.
That is not to say I would encourage it.

 

[onekerf]

I'm in favor of anything that benefits someone as a first responder. I couldn't do most what they do, and am glad that there are those that have dedicated themselves to this.

 

[TOMBSTONE]

Basically your referring to ethics or morals. Not everyone holds themselves to the same standards
Personally, if the only intent of the purchase and discount is for profit, then I wouldn't be comfortable using the discount program

 

[on_the_edge]

I think TOMBSTONE said it very well. If the intent is to buy a knife to try and when the person buys it, he/she has no intent of trying to resell it and make $ on it, then I personally have no problem if the buyer ultimately does not like the knife and then chooses to sell it at the current price that the knife goes for in the marketplace. The few extra dollars in the guy's pocket does not bug me. Of course, they aren't going to be buying multiples of a knife they don't like unless the intent is to make money.

I once knew of a guy who worked at a well-known establishment with an online presence and a very good reputation here. The guy would use his employee discount to buy all of a particularly popular and hard-to-come-by Benchmade model and then turn around and sell them online for a little less than other sellers, but still high enough that he was making decent money on each sale. Enterprising, but it left a very bad taste in my mouth. Fortunately, his employer took notice and very heavily applied the brakes.

 

[Danke42]

If someone is ordering hundreds of rare knives at a mil discount and then flipping them for sure then that's bad behavior but I can't see someone in the services having that much spare time to devote to a side business. Most of the suppliers will notice if they have an individual ordering an unusual number of knives.

The best defense is to not buy from flippers. If they can't flip they dry up and blow away.

Someone in the service selling one knife they got a deal on wouldn't be on my radar. Just about anyone in the ranks is underpaid in my opinion.

 

[popedandy]

@Establinsky do you know someone who is actually doing this, or is this just a hypothetical situation?

 

[Etablinsky]

@Establinsky do you know someone who is actually doing this, or is this just a hypothetical situation?

I don’t know that someone is actually doing this and I wasn’t looking to out anyone

I’ve seen things which appear to indicate this may have happened or is happening and that is what inspired the thread

 

[Quiet]

Thanks for your response. I just think that the spirit of such programs is to put these tools in the hands of people who need them most, at a less prohibitive price, and reselling them at a substantial profit goes against that spirit.

Well, if by "the hands of the people who need them most", you must mean LEO/military/FirstResponders, right? So, couldn't they simply approach that manufacturer for a discounted knife of their own?

 

[Etablinsky]

Well, if by "the hands of the people who need them most", you must mean LEO/military/FirstResponders, right? So, couldn't they simply approach that manufacturer for a discounted knife of their own?

It goes against the spirit, in my opinion, because the buyers appear to me to be buying the knives not to use themselves but to sell for a profit.

I’m assuming the buyers on the resale side pay the premium because they themselves do not qualify for the discount program direct from the knife manufacturer.

 

[Quiet]

It goes against the spirit, in my opinion, because the buyers appear to me to be buying the knives not to use themselves but to sell for a profit.

I’m assuming the buyers on the resale side pay the premium because they themselves do not qualify for the discount program direct from the knife manufacturer.

Well, what you are describing is exactly what knife website companies do. Buy the knife at a certain price, to sell it at a higher price for a profit, no? I mean, I get what you're saying, but I think this is kind of a non issue, because a manufacturer probably tends to nip this thing in the bud pretty quick. "Man, we notice that Officer Smith sure does order a lot of our best-selling model, he must lose a lot of 'em in the line of duty."

 

[Etablinsky]

Well, what you are describing is exactly what knife website companies do. Buy the knife at a certain price, to sell it at a higher price for a profit, no? I mean, I get what you're saying, but I think this is kind of a non issue, because a manufacturer probably tends to nip this thing in the bud pretty quick. "Man, we notice that Officer Smith sure does order a lot of our best-selling model, he must lose a lot of 'em in the line of duty."

There’s a saying that goes something along the lines of pigs get fat, hogs get slaughtered

Sure the ones who abuse it most get on the manufacturer’s radar and get nipped in the bud but maybe not the others abusing the program to a lesser extent

 

[Peter Hartwig]

@Establinsky do you know someone who is actually doing this, or is this just a hypothetical situation?

It's hard to verify in most cases, but it was identifiable in a few cases with Hinderer(on USN), back when Hinderer was a rare item, and only 1st responders/military could buy direct and they got bench price. The rest of us had rather inflated secondary prices. In most cases I believe the buyer just decided the knife wasn't for them, but a few you could identify as profit seekers. There were a couple that passed the bench price along on the sale, but that was pretty rare and those sold in seconds, so most were selling at the going price.
I am sure Rick commented on this, but can't remember what he said. I know he wouldn't sell to the person again if he thought that was their motive. The objective of the exercise was to get a quality knife into the hands of 1st responders/military at a reasonable price. From other things he has said, I doubt he would care what people sold them for, but would care that they were taking knives from those that could use them.

 

[BD_01]

I am very grateful for the Spyderco OpsFocus program. I only found out about it this year, after my binge purchasing had died out. I’ve used the privilege twice, and was honored and humbled each time.

I think the discount equals 10-15% below MAP, which makes Spyderco super attractive to me (yeah, like they weren’t already—hahaha). Honestly though, if I was in it for flipping, after paying for postage, PayPal fees, etc., there’s no way I’d make a profit.

If Sal Glesser happens to pass by here, thank you, sir, for providing this generous privilege to those of us in uniform.

 

[Etablinsky]

I am very grateful for the Spyderco OpsFocus program. I only found out about it this year, after my binge purchasing had died out. I’ve used the privilege twice, and was honored and humbled each time.

I think the discount equals 10-15% below MAP, which makes Spyderco super attractive to me (yeah, like they weren’t already—hahaha). Honestly though, if I was in it for flipping, after paying for postage, PayPal fees, etc., there’s no way I’d make a profit.

If Sal Glesser happens to pass by here, thank you, sir, for providing this generous privilege to those of us in uniform.

I didnt know that spyderco did that. That’s great to know.

 

[BD_01]

I didnt know that spyderco did that. That’s great to know.

Yeah, matter of fact I think I found out about it reading a GBU thread—even though it’s posted on their website. IMO it says a lot of good about Sal & Co.