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Thoughts on authorized dealers raising GEC prices above the minimum sale price.

Discussion in 'FEEDBACK: The Good, The Bad, The Ugly!' started by Fixall, Nov 11, 2020.

  1. knifethetank

    knifethetank Gold Member Gold Member

    620
    Dec 18, 2018
    These higher prices have been slowly happening at some dealers with other patterns. I saw higher prices with the 74s and I paid a higher price for a 74 Burlap over the average price at a dealer. I think because the 74s sold out fast a lot was missed and there were a lot of dealers I never seen a 74 put on their website for sale or even an email alert. I'm all for the GEC dealers making money as long as it's reasonable and within their contract with GEC. The 19 is not for me, if you don't like the price don't buy it. I have a lot of knives I paid a premium when working because I couldn't make most drops but since I'm retired now I'm done with it. Let the dealers prosper, flipping has gotten out of control and it's not just with GEC knives.
     
    Heirphoto likes this.
  2. LastRodeo

    LastRodeo Platinum Member Platinum Member

    Nov 2, 2013
    From what I have observed, some of the unapologetic flippers literally don't care what they pay for a knife. It gives them no pause, because they are just going to move it along for a higher sale or trade value.
     
    Pomsbz, mrknife and Jsega51 like this.
  3. Pomsbz

    Pomsbz

    Jul 31, 2015
    I think the interesting thing is that GEC haven't increased their prices. I think that would be the most justified part of the equation. After all they would be investing back into the people with the talent, who are doing the hard work, in the machinery, in improving the product, providing security for the company in the coming lean economic years, etc. If the market is dictating higher prices, they should be getting them, not every one else down the chain other than the people actually doing all the hard work.
     
    Heirphoto, Triton, Murphjd25 and 2 others like this.
  4. LastRodeo

    LastRodeo Platinum Member Platinum Member

    Nov 2, 2013
    From what I have heard, Bill does factor in all those things when he comes up with the price on a knife.
     
  5. Pomsbz

    Pomsbz

    Jul 31, 2015
    I'm sure he does but from where I'm sitting, I'd far prefer him and his team get the extra than flippers. Perhaps he should start a 'premium' line similar to the Case Bose knives to channel the bigger bucks and the collector market into something where the profit would be funnelled back to him rather than the undeserved (flippers)?
     
  6. Norcaldude

    Norcaldude Gold Member Gold Member

    Dec 19, 2014
    I have no idea what GEC pays it's people but kicking the price of their knives up 10 or 20 bucks and giving everybody a raise would be great.
     
    Matt_WY and Pomsbz like this.
  7. LastRodeo

    LastRodeo Platinum Member Platinum Member

    Nov 2, 2013
    I can't speak to how Bill compensates his employees. It's his business (both literally and figuratively) and I assume not only does he want to retain his employees, but I'm sure he wants to company to be around for future generations also.
     
  8. HEMI 49

    HEMI 49 Gold Member Gold Member

    559
    Aug 9, 2018
    Before I retired I worked for a company whose burden rate was $100/hour........ I've heard through BF that GEC is a 30 person facility...... Some of the 30 would be direct labor and some (Joan Mae, Randy Bell, etc) would be indirect labor....

    Assuming 5 indirect and 25 direct employees at 100 knives per day output at 8 hour workday....... Each direct employee has to in essence make 4 knives per day.... At my old $100/hour burden rate, the labor content per knife would be $200.00..... Obviously GEC doesn't have a $100/hour burden rate....... Probably more like $25.00..... Or it has fewer employees with higher productivity levels than 4 knives per person......

    Wages in the Titusville area are low...... GEC benchworkers probably get $14.00-$16.00..... Machine operators $16.00-$20.00....... I think GEC is operating with way fewer than 30 employees..... If they are making 100 knives per day, that output will not support 30 people at the price the knives sell for.....
     
  9. tinfoil hat timmy

    tinfoil hat timmy Gold Member Gold Member

    Aug 21, 2014
    Let em do what they want.

    Everyone else does.
     
  10. Elgatodeacero

    Elgatodeacero Gold Member Gold Member

    Jan 5, 2014
    I can see GEC taking all sales in house at some point.

    the fact is they could do a subscription model and pre-sell basically all knife production.

    This would allow them to drastically increase their profit per knife, at the cost of some initial IT expense and probably two additional full time sales employees.

    The dealer network has helped them grow, but it may not last forever.
     
    tinfoil hat timmy likes this.
  11. TinyDog

    TinyDog Gold Member Gold Member

    Feb 28, 2015
    All, I have had almost every model GEC since 2006 when I bought my first 23. Yes GEC
    are Very nice knives. Despite what any dealers are charging or eBay sellers the knives are not worth it. In the big picture they are were always expensive even prior to all the nonsense going on with the sales prices today. Some will continue to buy them, sellers will continue to sell at inflated prices. I don’t care for the practice. It’s one thing to make a good profit, another to gouge..... yes yes we are a capitalistic society so it will continue to happen until the masses sit back and recognize that their collection of GEC knives will one day be worth about 25% of what they purchased them for. That day will come. It’s not like GEC knives are made of gold.

    IMO this is said... I guess there are a lot of folks out there with plenty of disposable income. They will purchase what they choose at any cost if that is their passion. I may not like what see but I still have a choice to buy, or not to buy. It’s amazing that in an economy that we have today $100.00 knives sell for $500.00
     
    Triton likes this.
  12. Triton

    Triton Gold Member Gold Member

    Aug 8, 2000
    That might be true but I wonder. I think that what is largely driving their market is artificial scarcity. If that goes won't they just be an upscale Case knives? Would they have subscribers at that point?
     
  13. Triton

    Triton Gold Member Gold Member

    Aug 8, 2000
    What are you talking about? My beanie babies are still worth thousands just like my Hinderers!
     
    mikey488 and TinyDog like this.
  14. NewBlades16

    NewBlades16 Gold Member Gold Member

    Dec 28, 2015
    Every pattern?
     
  15. Elgatodeacero

    Elgatodeacero Gold Member Gold Member

    Jan 5, 2014
    I don’t think the scarcity of GEC knives is artificial. They seem to be making as many as they can and the demand simply far outstrips supply.

    Case and GEC are not comparable in my experience, Case makes a nice knife but it falls way short of a GEC to my eyes and hands.
     
  16. knifeswapper

    knifeswapper Knife Peddler Dealer / Materials Provider

    Sep 3, 2004
    There are a lot of things being stated as if they were historically accurate - that require us to ignore most data points. Sure, if you pay $500 for a knife you could have purchased for $100 shortly prior, you are behind the curve. If you pay $99 for a knife you could have purchased elsewhere (or abstained) for $69; you are a bit behind the curve. But over the past 40 years I don't see quality knives being any worse an investment than land, cattle, gold, etc. if you weren't cautious when you bought. Now, if you want to cut out one moment in time to base your entire argument - ok. But then you also have to talk about oil prices going below zero; the crashing cattle market for our American ranchers; gold doubling inside a five year period; etc. etc. Typically I don't see any release prices on quality American traditional knives decreasing over any significant period of time.

    We are all welcome to our opinion, but we are not afforded the same to facts. This is a place for great discussion and reason; but please don't be offended if others don't take what they recognize to be purely opinion posted time and time again as a truth. Especially when the truth is already known by most. Just because we don't understand the reasoning for decisions/policies of others, does not mean there is not valid reasoning - it only means we don't understand it.
     
    willc, Ramrodmb, LastRodeo and 8 others like this.
  17. JohnDF

    JohnDF Gold Member Gold Member

    May 14, 2018
    If you compare it to the Case Swayback Gent, I "might" have paid $70 for the Little Rattler, just to try it out for myself.
    I say "might" because I'm still not sure I'd like a knife that small, all my smaller knives have gone down the road.
     
  18. mrknife

    mrknife

    May 9, 2010
    Caveat Emptor. Well, I guess its a good thing GEC hasn't really made anything I care for tremendously this year.
     
  19. Matt_WY

    Matt_WY Gold Member Gold Member

    530
    Sep 30, 2018
    I though GEC could have easily raised the price $10-20 on the 74 mustang. The 19 seems to already be at a high price point for what it is. I’m surprised to see this is the one dealers are adding the up charge too which in some cases is significant.
     
  20. brownshoe

    brownshoe I support this site with my MIND

    Sep 6, 2002
    That’s a hoot. Only a knife dealer would say that. :)
     
    Triton likes this.

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