AlaChoctaw,
The GH Khukuris that I have purchased (5 of them so far) came shaving sharp out of the box. The razor edge, as with any knife, will wear off with continued use, but the blade will remain "chopping sharp" for a long time.
With a decent stone, diamond hone, or sharpening system the egde can be brought back up with very little effort. I invested in a Spyderco Sharpmaker a few years ago and use it to sharpen everything that needs an edge (or a point). It's extremely user friendly and comes with everything you need to make things sharp.
As for cost effective - At $59.00, the Service #1 is a great bargain and excellent quality for money. For $10 more, you can get the World War model with a slightly longer handle and blade if these are considerations.
I have to admit that I bought my first Khukuri from GH because of budget limitations. I thought I'd get one to use and abuse until I could afford to spend the big bucks on a "better" one from another company. I opened the box to find a beautiful, display quality knife that has since taken all of the abuse I could give it. I've continued to buy from GH and can't find a reason to buy from anyone else.
Craig at GH has a policy that allows you to trade your blade in on another model if you feel a larger or smaller knife would better suit you needs. His Khukuris come with a full, no bulls**t, money back guarantee. You can't lose.
Blackdog
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When the world is at peace, a gentleman keeps his sword by his side.......
Sun-Tzu 400 BC