Too Many SKU's? - Need Help

Well then the problem is someone like me who likes the Pegasus, but not the Navigator. They'll quit making the Pegasus and since I'm spoiled I come straight to the Spyderco Forum and whine. Okay I wouldn't do that, but ya know what I mean. Also I think the smaller knives(blades 2" and smaller) are for the world market more than the USA. Some countries you can't carry a Delica. So you carry 3 Pegasus' and a Co-Pilot.
But anyway no matter what knife is discontinued, it was someones favorite. I think the trick is to get more Spyderco's(and other brands) out into the public eye. But how?? Donate 2 or 3 to the "Howard Stern Show". See if he likes them, give him the challenge.(carry it for a month, yada, yada, yada.) I'm sure he'll talk about them. Donate a few to "The John Boy and Billy" show. Have them pass them out as gifts or something. Send a few to Oprah and tell her its for ladies to use as self defense items(tell her to call Eric Remmen). I don't know, just brain storming.
Some people think a $40.00 knife is too much money. But they have a $2000 Bose sound system in their house. What to do?? Advertise in different magazines. Run an ad in USA Today maybe. But then that starts costing more money. Well thats enough rambling from me.
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Next....
Blades
 
Lot of good ideas. a couple of points to confuse the issue.

1) Some of these knives are made by different makers. Small shops in Seki with just a few craftsmen. The Pegasus and Navigator are made by diffeent makers. Each only caple of a very small production capacity. Dropping one, we may not be able to serve the market because the remaining maker cannot make more than he is currently maing. Makers do not want to share making the same design, a pride issue.

2) Many of the slower moving items are custom collaborations. None of the custom guys want to see their knives stopped for all of the various reasons.

It seems to be impossible to please everyone all of the time so changes will have to be made. Appreciate all your input.
sal
 
Sal
Only you know what you need to do with the small shops in Seki. As a Knifemaker I know exactly what i have to do when one model starts to drop off. I have to come up with a new or better design. I am sure that I know why the custom designers do not want their models discontinued. It's called Loss of royalties. It seems like you can do the same with the rest of the custom stuff like you did with the Aluminum Centofantes.Drop
them and bring out a better design
I am sure the Bob T's are getting slow by now. Only you know what the numbers are on those pieces. Maybe you can drop them and have the Starmate be the new flagship for
Bob T. The same should work for the Goddards.

 
Sal,
I'm fairly new to knives but just a question, how much of the problem is just asthetics? I know you have several models that are hugely popular and that some of the gripes relate to colour or composition of handles. How about producing some of the most popular knives with skeleton type handles that are able to take user replaceable scales of various materials. I hope I am getting this across right, the handle frame could be of a solid material like Titanium or Stainless steel etc with centers left out but with threaded holes so the user can attach various types or patterns of scales as they wish. You could produce standard size scales of say - Stag, Bone, Micarta, Mother of pearl or whatever.
Personally I do not particularly like black (tactical?) handles but really like stag and bone and the ability to change the handles of my Endura or Goddard Lightweight to suit my moods etc would make me as happy as a pig in s..... Also my workmates might not look at me funny anymore if my knives didn't look so threatening.
Hope all this doesn't sound too way out.


John Smith
johana@cairns.net.au
 
For colored Zytel knives, make all knives with white handles and ship each of them with a set of colored magic markers
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A custom shop could really offer some advantages here. You factories could just produce plain edge and fully serrated knives, the custom shop could grind up all of the partially serrated knives to order. Produce the knives designed by custom makers in limited editions, and if they sell well, then make them part of the line (this is what taco bell does with things such as Gorditas, seven layer burritos, & such, and when sales drop off, they drop the item.) The custom shop (perhaps two, one here, and one in Japan) could worry about the variants. The distrubuter could order up variants as needed. This would also increase the availability and variety of unique Spydercos. Custom shops could use a stamp or "bug" to mark knives that have passed through their hands. Knives tht have visited the custom shop could easily have their MSRP bumped up 20-40% for the wilder variants. The main drawback would be a price increase for partially serrated knives, but only distrubuters who want them will order them, and you would be able to drop a few SKU's(plus they will have more value because of their custom status). This would also let different variations of serrations come about, such as 50/50, but with the serrations on the end of the blade instead of the base & such.

Distrubuters and dealers would clamor to have "their" own Spyderco that would only be available through them. With electronic commerce becoming more common, it will be possible for consumers to find the customs without too much hassle.

A Spyderco retail outlet is a good concept. Whethr it be online, or an actual store, or both, you could use it as your own test bed for new designs.

The only other idea I can think of is to produce giant amounts of the limited runs, and stock pile them and release them every few years, like a Disney movie. Of course this would mean lots of warehouse space that would be rendered unproductive, but it could be sort of a bank account of sorts, because you can charge more for the future releases of a product.



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"No, it's a Vaquero Grande in my pocket, but I am happy to see you!"
yekimak@hotmail.com
MegaFolderians Unite!!




 
The phrase, "lock, stock, and barrel," meaning "the whole thing," refers to the three componants of a muzzle-loading firearm. Perhaps it could be a solution to the multiple SKU problem, though it might take more than the time between now and the Blade Show to settle on a prototype.
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A modular knife system:

- the lock - an assembly containing all the moving parts, to which the user could attach

- the stock - handle assemblies of various shapes and materials and

- the barrel - blades of various profiles and grind types.

The lock could maybe come in two sizes: One for little gentlepersons' knives and longer slim knives, and a larger one for medium to mega folders.

What sort of lock? It should be something that doesn't occupy the length of the handle, so it would work with various sizes and shapes. I don't know my way around a Rolling Lock, but the newly announced Benchmade 720 uses an Axis Lock cartridge that allows just about any handle shape to be slid onto it.

With a modular knife system, dealers could stock a few dozen componants, for hundreds of variations.

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- JKM
www.chaicutlery.com
 
A sort of mix and match on-the-spot deal? I like it!
Even if a myriad of colors aren't available(I'm a basic black kinda guy), you've easily got at least half a dozen handle styles(one material for cost) and probably the same number of blade styles(maybe 2 steel types). Yes, that's alot of SKU's but like James said, there are 'hundreds' of combos, like a new family/breed of knife altogether. All you'd need to start is buying the core locking module, after that it's a free for all, buy a couple of handles, couple of blades and fashion anything from a midsized tac-utility to a highly individualized piece with a big beefy handle and a small blade.
I don't think this would damage sales to the fixed production models, especially the one's that need special tooling and break from a modular systems configuration parameters.
The thought of walking into a store with a locking module and building several very different knives off of of it, and being able to hold and manipulate it in-store is fantastic.
The main sweet spot of James' deal, to me, is that the user doesn't have to have a lot of experience/skill with mechanical devices to customize their knife, it's designed for that very purpose.
I think a couple of companies have put out a '3 blade replaceable knife', consisting of one handle and at least 3 different modular blade styles. If they can do a 'semi-modular' knife, Spyderco can take it all the way with a fully modular extended family of knives.

Ken
 
I know one of these days "I'll" be the one to come up with a good idea.
You just wait.

Ken
 
You will note that I presented the above suggestion without the slightest idea how it would work mechanically.
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The Benchmade Axis Lock might be one place to start, because it doesn't use the whole length of the handle to operate. I don't know about the rolling lock. And I don't know if it would be practical at all to do such a design without numerous customers sending little bags full of loose parts to warranty service.

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- JKM
www.chaicutlery.com
 
I think the idea of a complete modular knife is a fantastic idea but I think it might worry the manufacturers somewhat as to the ability of the "ELU" in being able to alter the knife and still have a "safe" knife.
My idea was to make the changes just to the handle, eg purely visual, of maybe the most popular blade types. I think even the least technically minded of us would be able to screw on a set of scales.
I would be interested on your views of this Sal. Would it be feasible?

John Smith
johana@cairns.net.au
 
I have to agree with Cobalt, and to some extent, JM. Just as fonts contain inherent similarities (called a 'family') so, too, do more than several of the Spyderco models.

1. Delete models that are too similar and overlap either in function or appearance and size.

2. Set a "cap" at the number of SKU's being produced in any given year. Upon review of new models, make decisions (with consumer/forum input) on which models will be removed from the total 'cap.' Mind you, you're always free to bring these models back the next year if the new ones flop.

3. Then, consider best sellers for upgrades. If they're hollow-ground, bring them out in flat-grind versions. If they're zytel, bring them out in G-10.

4. And always upgrade the steel. The move in 1998 to upgrade basic models to ATS-55 was nice. I have over 30 different Spyderco models, and I repurchased several due to the steel upgrade.

Hope this helps.
 
Sal-
As an employee of a full stocking dealer (what self respecting shop doesn't carry them all?) I think maybe the solution is to limit the runs on the custom-maker collaborations and just d/c some sku's. Benchmade has d/c'd some wildly popular models, the Emerson and now the Sentinel, but they still sell. Dealers will appreciate carrying less inventory, and good sales people (like ours) can sell anything you give us, except for...just kidding.
 
I read this thread, went over to Spyderco.com and looked at the online catalog. As a new consumer of quality knives, I can still see them with "fresh" eyes. Some thoughts were: (1) The CoPilot, Pegasus and Navigator are identical. (2) The Ladybug and Q are novel but I don't know if I want knives that small or "different".
If you drop the stainless handles on all versions, or make them a custom order item , will this lower model numbers sufficiently? Also, the Dragonfly should be small enough for anyone allowed to have a knife, that includes my wife! Petite as she is, she still prefers my Dragonfly, finding the Ladybug too small.
 
I, too, think having several different lines, classic, signature, exotic, or whatever would be a good idea. I really like the custom shop idea. This is something that seems to have worked for guitar makers like Fender. Fender has their lower priced Squire series. They have the middle to high end Fender series which are broken up into the U.S. and foreign made insturments. Then they have their custom shop for the high and ultra-high end. Each series has characteristics in common so that the consumer has an idea of what he's dealing with, right off the bat. My 2¢.

BTW, I'm an artist so that means I know less than nothing about business. So what's an ELU and SKU?

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Ciao

MM
 
MM - I too am the artist and know little about business. That's why I ask the questions.

SKU stands for "Stock Keeping Unit". eg; Spyderco Endura is one model, but with plain, serrated, combo, & stainless plain & serrated, there are 5 SKU's.

ELU stands for End Line User. The term customer becomes confusing since distributors, dealers and end line users are all customers depending on who is speaking. ELU was coined to distinguish them from the distributor/dealer.

Thanx for all the input. Getting some great suggestions.

sal
 
Hey, that brings up another point. Why no stainless combo edge endura? Oops. Sorry. You wanted fewer SKU's, right?
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(I love learning new jargon)

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Ciao

MM


[This message has been edited by MM (edited 21 February 1999).]
 
Hi! I'm new at this so please bear with me 'till I get the hang of it.

I'm a dealer, been doing this for a little over 5 years and Spyderco is one of my main lines. The number of SKUs is overwhelming at times but, in order to be a major player in the marketplace you need to have an impressive display. Lots of different models and variations get customers' attention. The down side is the expense of setting up the display and maintaining it. High inventory cost and sometimes slow return, unless you cut the price to a r1diculously low level to try and get more sales. Then you end up with a lot of happy knife owners and no profit. You are out of business. I have found that if you can get through the startup and hang in there for a while you can actually make a living at this and still have fun doing it. The problem is getting by the "dealers" with a few models who just like selling knives and think that "volume" will make up for low markup. James, you know what I'm talking about.

Lots of SKUs help but too many will overload the senses and make choices difficult. Customers like to be impressed but can be overwhelmed. What's a happy medium? I don't know, (Maybe a fortune teller after a few beers?), but I do believe we need a lot of product to make it in the marketplace.
Obviously, slow sellers and narrow market items should be looked at and trimmed periodically. Exotics and high end colaborations could be kept in limited production and serial numbered. Variations could be kept to a minimum. Basic models such as Enduras and Delicas should always be there as well as Police, Harpy, Native and Co-pilot. There was one comment from someone who thought that Delicas, etc. should go to stores and exotics to the Online sellers. I would think the other way around. Every one knows the regulars and buying these online is natural. Exotics need to be outlet limited. That's what makes them exotic. They should be where they can be handled and fondled, and they shouldn't be cheap. As far as advertizing goes, I understand the concept of building anticipation to create a demand, but, two years from announcement to production is a bit excessive. Six months is probably as far out as you should get. Some of my customers have given up on Bob Lums and Starmates. By the time the Herbst models hit the street, the thrill was gone. They are flat right now.

Thanks for listening. D.R.


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I would suggest that you keep most of the SKU’s however, you can limit production on several. These limited knives should be released a few SKU’s at a time on a rotating schedule. For example: Models 1-20 are now “limited”. Models 1-4 will only be offered during the 1st qtr of 2000; Models 5-10 will only be offered during the 3rd qtr of 2000 and so on until you start over. Hay it works Disney and their movies.

[This message has been edited by Scott Evans (edited 26 February 1999).]
 
It's quite the poser you've given us. On the one hande you want to reduce stock and simplify the lines, on the other hand, whatever gets trimmed will inevitably lead to "why'd you can that one, it's my favorite!"
A number of lines seems to be the answer. Also, when dealing with custom collaborations perhaps an upfront understanding of only 500 made is the way to go.
The Gerber "Paul" series knives work that way and they get bought up pretty quick. They have one knife model and 3 or 4 SKU's where one is a base knife and the others are limited runs with special handle materials and lettering on the blades to inicate there special status. Just a thought.....


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JerryO
 
Sal,
I am reluctant to offer business advise to someone who is so obviously successfull as you have been, but to summarize your problem,
1. Too many SKUs for efficient distribution.
2.A desire not to cut the throats of your loyal Distributors. (commendable!)
3.An unwieldy manufacturing process.(This is a perfect example of how "unwieldy" does not have to mean "Flawed" as you still turn out a consistant quality product.)
Possible solutions;
1.Eliminate all slow moving SKUs and any that duplicate others within your own product line.
2. Offer the now discontinued SKUs from time to time with different options or modifications ONLINE. This will allow you to continue to make those knifes that you really don't want to eliminate AND you can sell them direct online WITHOUT cutting the throats of your Distributors as you are not selling the same product they have in stock. It has always struck me as unfait for a manufacturer to "sell" someone a dist. franchise and then force that same Distributor to compete against the Factory who sells a a lower cost!
3. The continuation of "reduced availability" models in modified (instant collectable) form will allow your small "job shops" to continue in their work and (possibly)allow them a degree of artistic expression in their work.
In summary,
1. You get to reduce the SKUs that must constantly stocked and rid yourself of any sales "turkeys" you may be dealing with.
2.The lives of your distributors is suddenly MUCH simpler, and they feel no pain.
3.Your small "job shops" continue in their work and have something even more distinguished than their prior work.

As an added benny, the collectors now have a VERY attractive line to pursue with hopes of actually seeing the value on their Spyderco knives IMPROVE.
Maybe not everybody is happy, but a lot of folks would be.



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I cut it, and I cut it, and it's STILL too short!

 
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