"Off Quality" is a relative term here. S!K has commented that they finish-out seconds because they are still better than scrap and they can get them out to customers willing to pay... whether customers are also willing to wait is the main issue. S!K rarely has a problem selling off inventory. They also receive knives back from grinding or HT in batches, and sometimes it is just easier to get the mess of 'seconds' out of the shop to keep Guy or someone else from fussing with them and wasting more time that could be better spent on true 'firsts' or something else.
Moving a portion of production to a separate company allows S!K to focus on making 'firsts' and lets someone else handle finishing out blades in a timely fashion. *shrug* If we are lucky, it will also allow S!K to hire more help on the customer-service end as well.