Sky-high MSRP? Haven't we moved past this?

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Jan 12, 2013
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I dunno, can anyone level a reasonable argument why the MSRPs on Spydercos can't be closer to the actual street price? I just feel the world has moved past this ploy. If I'm missing something, please school me in my ignorance. It just seems dumb to me, but maybe I'm a doof. Clearly the sellers are still making a profit at selling price, and have overhead costs in their selling price, so if the MSRP represents another 100% profit on top of that, it gets kinda silly.

To me, the MSRP, should be what it is supposed to be: a "suggested retail price" that might be shaved by $20 or something if someone wants to move product. As it stands, if you pay the MSRP, your getting ripped off, and I don't feel that's right.

Anyways......no disrespect to Spyderco intended, but am I the only one who thinks this system outdated?
 
Why does it matter if dealers don't sell at or near MSRP?
 
I suppose in simple terms, my question is 'what is the point of suggesting a price that represents a really bad deal'?
 
It may be the same concept as say a furniture store that marks up the prices only to have a 50% off sale later.
 
The relevance of "MSRP" has evolved into meaningless drivel...and doesn't even come close to reasonable expectation of price. Ignore it.
 
Good example Rycen. I just feel, collectively, there is more information available, and consumers are more educated and interconnected, so the MSRP just seems like a dinosaur no-one takes seriously. When new releases hit this forum, people seem to calculate actual price based on slashing the MSRP nearly in half sometimes.

I just think it's outmoded as it currently stands. If the MSRP is out there, it should represent a fair selling price, not a rip-off.
 
It also encourages buyers to go to dealers rather than the manufacturer. This way the manufacturer isnt competing with dealers.
 
Agreed Esav, but the gulf between MSRP and steet price has widened so much, that I no longer feel the MSRP even represents what is a fair selling price.

I am glad some others are wading in with opinions. It's been bugging me for a while.
 
Hi Kidcongo,

MSRP represents the starting point on pricing and discounts. Dealers and distributors want that figure published. It's kind of a mark from which all other figures work from.

sal
 
With Spyderco, it seems that the deepest standard discount we see off MSRP from online dealers is 45%. Ebay of course gets lower than that.

I sincerely...sincerely hope that things with Spyderco remain the same actually. Other main knife companies enforce strict MAP pricing and what were once brands that dealers were able to compete to bring us GREAT prices are now a thing of the past... Yeah they are "past that" indeed OP. Like Chris Reeve said, if he catches anyone selling his knife for less than he dictates, they're cut off...

So please Spyderco keep it just the way it is. Please.
 
With Spyderco, it seems that the deepest standard discount we see off MSRP from online dealers is 45%. Ebay of course gets lower than that.

I sincerely...sincerely hope that things with Spyderco remain the same actually. Other main knife companies enforce strict MAP pricing and what were once brands that dealers were able to compete to bring us GREAT prices are now a thing of the past... Yeah they are "past that" indeed OP. Like Chris Reeve said, if he catches anyone selling his knife for less than he dictates, they're cut off...

So please Spyderco keep it just the way it is. Please.

Totally with you here. I've stopped buying from companies that enforce any kind of MAP. Not a boycott, but they just can't compete from a bang for the buck standpoint.
 
It's kind of a mark from which all other figures work from.

That's actually a nicely succinct way of putting it. Leave it to Sal to drop some wisdom.

In all seriousness, OP, it's to our benefit (as opposed to the alternative). If you happen to disagree with the MSRP, that's fine, but we should be paying attention to the actual price paid instead.

I sincerely...sincerely hope that things with Spyderco remain the same actually. Other main knife companies enforce strict MAP pricing and what were once brands that dealers were able to compete to bring us GREAT prices are now a thing of the past...

Which is yet another reason all my folders are Spydercos. It's not just a great product, but a great company. Time and time again, their models are aggressively priced to be great values, and as far as I can tell there's a steady margin. I don't know that there's a model out there that blatantly costs more than it should, which is a testament to how they do business.
 
Hi Kidcongo,

MSRP represents the starting point on pricing and discounts. Dealers and distributors want that figure published. It's kind of a mark from which all other figures work from.

sal

Thank you for the reply Sal. I appreciate that. I guess I still feel the difference is so consistently great, that MSRP is no longer a serious number. Anyways, it does not prevent me from being a fan of Spyderco products. They are great.
 
From what i have seen In documentaries Sal seems to be very sensible with how he allocates manufacturing resources and manages his shop.

Since you may be reading Sal, ill address you directly. I loved the photos from "back in the day" and the stories about the time when it was yourself and the Mrs and your machine shop was in the car, driving around the country, manufacturing anywhere yall could.

on the other hand With Chris i got a real mad scientist vibe, lol ok so he basically admits that hes constantly buying new expensive machines and researching new ways to make his knives HIS way with the sort of machinery that (for a relativly small industrial outfit) was large and very custom. CR goes onto to say he wishes he has more money to put into research and his manufacturing methods.

I realize the following was the definition of myopic, but the contrast is pretty neat.

it seems many folks do not understand that if you have to pay people to engineer machinery in order to work with the materials you want in the way you want (tolerances, etc) then a huge chunk of that MSRP is going to recoup that investment, and of your constantly doing that , well you cant afford for prices to go down due to your retailers duking it out against each other at the cost of your brand integrity.

now like i said this has been a very myopic picture of these two companies, but it APPEARS to me personally that Spyderco is run such that At the end of the day Sal knows how to use economies of scale in order to get the knives spydie fans want into their pockets.

. any manufacturer of widgets i worked at only set priced based on some combination of materials, cost of manufacture, logistics and even recouping R&D. most here get this i know.

so Spyderco can design a 400$ knife and based on how and where its made they can provide those discounts to retailers he mentioned above (when i worked making transformers we gave a unit multiplier so the more they order up of that design the better the price is for the retailer and ultimately the end user) i cant say if thats how spyderco does bitness, but that could explain the price difference between the new native and the one walmart carried in yesteryear.

i really like how they have taken advantages of economies of scale when choosing how each model will be crafted, the end user seems to be taken into consideration greatly as well as manufacturing outfit and retailer.

- American made knives from the best shop in the solar system made in Golden Colorado

- Tight specced knives with varying designs at the high tech taiwan facility (my knives from here have great fit and finnish especially love the blade finnish on the southard, and the flip action on the domino.

- timless designs lie endura and delica made in seki city where fine steel has been made for centuries.

- affordable and veey well balanced between materials weight and price in the value line like the tenacious and resiliance.
- they even have the byrd line which i have not tried but its neat they offer spydie designs in a package for the everyman

compare that to CRKs operation which im not sure if CRK is what yall call "semi-custom" production knives but it looked that way on the shop tour i saw(reminded me of les baer in the gun world). a eclectic blend of american ingenuity and good ole boys and gals hand fitting the product together.

anyway like i keep saying this is just a rant about two makers i admire and is just my limited view of things.So any criticisms (except grammar im terriblè) comments, disagreements, or corrections to this rant are welcome and read with interest as im still trying to learn about this great thing thats going on in the world with one mankinds forst tools.

so it does make sense to me why spyderco can go to the drawing boa... i mean CAD workstation and design a 400$ knife but then They are able to sell enough so that you can buy it for 180-225$ while another company may need to stick to their msrp stringently in order to travel down the oath they have chosen.
 
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Here's something to consider too. What if you owned a small brick and mortar store and tried to carry a decent selection of Spydercos. You would have inventory sitting around for a long time and if you tried to price even with the large online retailers you would go broke. So if MSRP were way down where the online guys were selling, a B&M would have to sell for more than what the production company suggested in order to stay in business. Setting MSRP near "keystone" levels leaves different businesses free to price according to their business models and still remain within a reasonable range suggested by the production company.
 
i for one hope spyderco keeps things the way it is now,and vote not to change there pricing..
 
The problem is that international dealers convert the MSRP from $ into € and sell the knives at that price. That is why buying from a shop outside the USA is VERY expensive! The only way to have an affordable Spyderco knife is importing it.
 
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