Online knife business

[Jeff4]

Does anybody out there think running a online knife business would make any type of profit ? please tell me any ideas do you think it'd be worth it that website itself that domain the name the ownership all under $2,000 please tell me what you think is this a good investment or no? Also comes with the promise of connections for more inventory it's a brand new website I would have to build it and Market it

 

[killgar]

I want to say "Welcome to Bladeforums", but your first post here seems pretty sketchy. It looks like you're trying to direct traffic to that website, which is heavily frowned upon here. And if that's the case, then don't get too comfortable here, because you won't be here very long.

But if you're trying to make a legitimate inquiry and ask for advice about starting a knife selling business, then I would suggest that you alter your post to make your inquiry a more general question about the knife business, with no mention of that website.

If you are making a legitimate inquiry, and truly looking for advice, then I have some thoughts on the subject, but I will wait to see what happens with you and the state of your post before I share those thoughts.

 

[snuffle]

The first question I'd ask is, do you have any experience in online retail?

Choosing names and working on site development are the easy, fun parts. How do you feel about book keeping, talking to unreasonable people and handling logistics?

 

[Jeff4]

I want to say "Welcome to Bladeforums", but your first post here seems pretty sketchy. It looks like you're trying to direct traffic to that website, which is heavily frowned upon here. And if that's the case, then don't get too comfortable here, because you won't be here very long.

But if you're trying to make a legitimate inquiry and ask for advice about starting a knife selling business, then I would suggest that you alter your post to make your inquiry a more general question about the knife business, with no mention of that website.

If you are making a legitimate inquiry, and truly looking for advice, then I have some thoughts on the subject, but I will wait to see what happens with you and the state of your post before I share those thoughts.

Thanks and I understand completely. I changed it so the site isn't in the post at all. Please help I need advice lol

 

[Jeff4]

The first question I'd ask is, do you have any experience in online retail?

Choosing names and working on site development are the easy, fun parts. How do you feel about book keeping, talking to unreasonable people and handling logistics?

I'm willing to do all of that. My question is do you guys think an online knife store would generate any profit of course if I have connections and all basically how many people buy knifes online you know....

 

[killgar]

Alright now, Welcome to Bladeforums .

Here are a few questions I would ask you regarding starting a knife-selling business-

1. Do you have any experience running an online business, or any business, or much experience simply selling things online?

2. What type of knives would you sell? There is a wide range of knives out there, from cheap Home Shopping Channel stuff, to high-end knives that cost hundreds of dollars a piece, or more.

The type of knives you sell would determine how much competition there is out there. And in order to be competitive, you would have to price your knives at the same price or lower than the competition. As a result, your profit margin could end up being so small that it's not worth the trouble.

3. What type of payment system would you use? That gets complicated. Credit cards? PayPal? You're talking about legal/tax/IRS/government stuff there, including a business license, and possibly some type of liability insurance (like in case a kid buys a knife from you and cuts themselves and their parents want to sue).

There's a big difference between running a successful knife business, and losing money trying to turn ones interest in knives into a business. To run a successful business you first need to have all the legal stuff down tight. Otherwise you could end up with crippling tax problems, fines, and possibly lawsuits, and at the very least, maybe a lot of inventory that you can't sell.

Then you need to have your "numbers" down tight. You need to know EXACTLY what it's costing you to run the business, every last thing from the legal stuff (license, insurance) to the cost of merchandise, to the ongoing cost of running a website, the cost of dealing with returns and refunds, etc, etc, etc.

I'm sure I'm forgetting some stuff (or a lot of stuff), but you get the idea. Running a business is a complicated matter. You have to cover ALL your bases, and ALL the details, because if you get one thing wrong, you could end up losing a lot of money.

 

[AdamFuzzyballs]

I'm willing to do all of that. My question is do you guys think an online knife store would generate any profit of course if I have connections and all basically how many people buy knifes online you know....

I mean, In my experience most of what I buy has been online, mainly because the days of brick and mortar knife stores are largely behind us. However, there are a FEW knife stores within three or so hours of me that I would consider making a trip to if they carried what I wanted. I think the main thing to consider is variety of product. There’s a ton Of knives that even really well known stores don’t carry, so you pretty much have to order online. However, if you’re considering carrying the basic Kershaws and bucks, I would think you might have trouble because of competition from the big “non knife specific” chains- think Walmart, etc.

The biggest challenge I would see is that you’re discussing a niche market inside of a niche market- you’re going to be up against established online dealers fighting for a relatively small population of knife buyers. If you try to appeal to the “non knife community” and carry basic everyday user friendly knives, then you’re up against Walmart and Amazon.

My advice would be to focus your product. If you’re already in a small corner of the market, maybe consider focusing all your effort into a specific brand, style, or subject (traditional knives, fixedblades, maybe just sell one certain brand).

This way, you lower your challenge of competing with other companies who can get more diverse inventory, and you also set yourself apart by being THE place to buy whatever specific subject you choose.
“Don’t try to do a bunch of things mediocre, perfect ONE thing and do it the best”.

I’m not sure if it will be extremely profitable, I would say at the moment I doubt it due to competition, but if you work at it, in a few years you may have enough repertoire in the community to earn your place.

 

[Jeff4]

Alright now, Welcome to Bladeforums .

Here are a few questions I would ask you regarding starting a knife-selling business-

1. Do you have any experience running an online business, or any business, or much experience simply selling things online?

2. What type of knives would you sell? There is a wide range of knives out there, from cheap Home Shopping Channel stuff, to high-end knives that cost hundreds of dollars a piece, or more.

The type of knives you sell would determine how much competition there is out there. And in order to be competitive, you would have to price your knives at the same price or lower than the competition. As a result, your profit margin could end up being so small that it's not worth the trouble.

3. What type of payment system would you use? That gets complicated. Credit cards? PayPal? You're talking about legal/tax/IRS/government stuff there, including a business license, and possibly some type of liability insurance (like in case a kid buys a knife from you and cuts themselves and their parents want to sue).

There's a big difference between running a successful knife business, and losing money trying to turn ones interest in knives into a business. To run a successful business you first need to have all the legal stuff down tight. Otherwise you could end up with crippling tax problems, fines, and possibly lawsuits, and at the very least, maybe a lot of inventory that you can't sell.

Then you need to have your "numbers" down tight. You need to know EXACTLY what it's costing you to run the business, every last thing from the legal stuff (license, insurance) to the cost of merchandise, to the ongoing cost of running a website, the cost of dealing with returns and refunds, etc, etc, etc.

I'm sure I'm forgetting some stuff (or a lot of stuff), but you get the idea. Running a business is a complicated matter. You have to cover ALL your bases, and ALL the details, because if you get one thing wrong, you could end up losing a lot of money.

I would only have to pay for domain name which I would own and it's some decent quality knifes.. and he said PayPal and other sorts of payment.. my concern is how many people actually buy knifes online at that you know....

 

[Jeff4]

I mean, In my experience most of what I buy has been online, mainly because the days of brick and mortar knife stores are largely behind us. However, there are a FEW knife stores within three or so hours of me that I would consider making a trip to if they carried what I wanted. I think the main thing to consider is variety of product. There’s a ton Of knives that even really well known stores don’t carry, so you pretty much have to order online. However, if you’re considering carrying the basic Kershaws and bucks, I would think you might have trouble because of competition from the big “non knife specific” chains- think Walmart, etc.

The biggest challenge I would see is that you’re discussing a niche market inside of a niche market- you’re going to be up against established online dealers fighting for a relatively small population of knife buyers. If you try to appeal to the “non knife community” and carry basic everyday user friendly knives, then you’re up against Walmart and Amazon.

My advice would be to focus your product. If you’re already in a small corner of the market, maybe consider focusing all your effort into a specific brand, style, or subject (traditional knives, fixedblades, maybe just sell one certain brand).

This way, you lower your challenge of competing with other companies who can get more diverse inventory, and you also set yourself apart by being THE place to buy whatever specific subject you choose.
“Don’t try to do a bunch of things mediocre, perfect ONE thing and do it the best”.

I’m not sure if it will be extremely profitable, I would say at the moment I doubt it due to competition, but if you work at it, in a few years you may have enough repertoire in the community to earn your place.

I completely understand. He is selling the website the inventory the connections also promises to teach you all the ins and outs I've looked him up he has good reputation I just don't know and concerned with it being profitable it's a brand new site I would have to build it up it pops right up and all when u type it in Google so it is legit

 

[AdamFuzzyballs]

I would only have to pay for domain name which I would own and it's some decent quality knifes.. and he said PayPal and other sorts of payment.. my concern is how many people actually buy knifes online at that you know....

Everyone buys everything online now, that’s not the obstacle- it’s whether or not they see a reason to buy from you and not Amazon. What will YOUR online dealer do BETTER?

 

[Jeff4]

Everyone buys everything online now, that’s not the obstacle- it’s whether or not they see a reason to buy from you and not Amazon. What will YOUR online dealer do BETTER?

See that's the thing what could top Amazon right what could be better

 

[Boattale]

If you're relying on total strangers for business advice that's not a good beginning. Here's my advice nevertheless. Don't do anything in the business world that you're not already an expert in.

 

[Jeff4]

If you're relying on total strangers for business advice that's not a good beginning. Here's my advice nevertheless. Don't do anything in the business world that you're not already an expert in.

No I just need advice on a simple investment buying a online knife store with inventory connections the whole nine

 

[snuffle]

my concern is how many people actually buy knifes online at that you know....

Well, you're posting this in a forum full of people who spend an absurd amount on knives, mostly on online vendors.

The question, though, is how are you going to lure them away from the places they currently feed their addiction? It is a fairly mature market, there are lots of options already. I spend more than I should on knives, and there are a lot of knife shops I've never even looked at.

Again, domain names are sort of the fun part. Sure, "all the good ones are taken", but they just don't matter a whole lot. Giving people a reason to visit your site (whatever it is called) is much harder. The contacts are potentially far more valuable, it all depends on what they are.

See that's the thing what could top Amazon right what could be better

This makes me think you really would be well served by doing a lot more research. Amazon is not your competitor.

 

[killgar]

I think the only way for an unknown person to even have a chance of succeeding in the knife business is by setting their prices so low, not just lower than the competition, but low enough that people are willing to take the chance and buy from someone with no reputation for honesty or customer service/satisfaction. And that is a VERY hard sell.

And of course, the lower your prices, the lower your profits.

And then there's advertising. You can't sell anything if people don't know about you. You could use social media, I assume that's free (I'm not knowledgeable about such things), but going direct to the knife buying public might add to your costs. Like for example- in order to advertise here on Bladeforums you have to purchase a "Dealer" membership for $350 a year.

 

[Shorttime]

I think you should give this one a pass, OP. Unless you already have a degree in business administration, you're going to find yourself in over your head, underwater, up a creek without a paddle. Because of all the reasons people have already given you.

I admire your enthusiasm, but I predict that it would also be your doom. Enthusiasm is a great trait for a salesman, but the owner of the company needs to be absolutely stone-cold rational if he's going to make it in a market which is already saturated. Or in any market really.

If you want connections, you've found the place to be. Read, learn, participate, accept that your enthusiasm is going to get away from you sometimes (I know mine does).

Decide for yourself whether the advice and criticism you get here is something you can use to improve, or if it's just people on the internet being people on the internet.

If you really can't pass this "opportunity" up, buy the website, and then flip it for a 5% profit, and invest that money in a broad portfolio with no more than 30% of it in high-risk investments.

 

[Jeff4]

Well, you're posting this in a forum full of people who spend an absurd amount on knives, mostly on online vendors.

The question, though, is how are you going to lure them away from the places they currently feed their addiction? It is a fairly mature market, there are lots of options already. I spend more than I should on knives, and there are a lot of knife shops I've never even looked at.

Again, domain names are sort of the fun part. Sure, "all the good ones are taken", but they just don't matter a whole lot. Giving people a reason to visit your site (whatever it is called) is much harder. The contacts are potentially far more valuable, it all depends on what they are.



This makes me think you really would be well served by doing a lot more research. Amazon is not your if

I think you should give this one a pass, OP. Unless you already have a degree in business administration, you're going to find yourself in over your head, underwater, up a creek without a paddle. Because of all the reasons people have already given you.

I admire your enthusiasm, but I predict that it would also be your doom. Enthusiasm is a great trait for a salesman, but the owner of the company needs to be absolutely stone-cold rational if he's going to make it in a market which is already saturated. Or in any market really.

If you want connections, you've found the place to be. Read, learn, participate, accept that your enthusiasm is going to get away from you sometimes (I know mine does).

Decide for yourself whether the advice and criticism you get here is something you can use to improve, or if it's just people on the internet being people on the internet.

If you really can't pass this "opportunity" up, buy the website, and then flip it for a 5% profit, and invest that money in a broad portfolio with no more than 30% of it in high-risk investments.

I would love more advice on all this

 

[Jeff4]

Well, you're posting this in a forum full of people who spend an absurd amount on knives, mostly on online vendors.

The question, though, is how are you going to lure them away from the places they currently feed their addiction? It is a fairly mature market, there are lots of options already. I spend more than I should on knives, and there are a lot of knife shops I've never even looked at.

Again, domain names are sort of the fun part. Sure, "all the good ones are taken", but they just don't matter a whole lot. Giving people a reason to visit your site (whatever it is called) is much harder. The contacts are potentially far more valuable, it all depends on what they are.



This makes me think you really would be well served by doing a lot more research. Amazon is not your competitor.

I really wish I could talk to someone like you more thoroughly

 

[Shorttime]

All right. I have no intention of being That Guy, this time. I want to ask a serious question:

Jeff. Do you have any business training or experience?

 

[Jeff4]

I think the only way for an unknown person to even have a chance of succeeding in the knife business is by setting their prices so low, not just lower than the competition, but low enough that people are willing to take the chance and buy from someone with no reputation for honesty or customer service/satisfaction. And that is a VERY hard sell.

And of course, the lower your prices, the lower your profits.

And then there's advertising. You can't sell anything if people don't know about you. You could use social media, I assume that's free (I'm not knowledgeable about such things), but going direct to the knife buying public might add to your costs. Like for example- in order to advertise here on Bladeforums you have to purchase a "Dealer" membership for $350 a year.

Awesome response and that's true too but it's coming with an inventory of 640 knifes