Pricing vs. Exposure

J

jkf96a

Well-Known Member
There are pricing discussions for new makers all over the web, but I've got a different kind of pricing question. I've been making knives for five years. Over that time, both my quality and my price have improved. I consistently sell knives quickly, which makes me believe that they may be priced below their market potential. I have been relatively unknown, other than a website, a presence on several forums, and a couple of small shows. That's the backstory.

I was fortunate to have a knife published in Knives 2013, and have a picture/article coming out in Texas Monthly magazine in March of this year. The knife in Texas Monthly was on loan back to me from a dealer who put his price on it for the article. His price is significantly more than I usually sell that knife for. I am soon to have major exposure to new customers, with a list price greatly above my usual pricing.

Here's the dilemma. How do I best take advantage of the exposure? If I leave my pricing alone, I'll leave money on the table and will significantly undercut the dealer. If I raise my pricing to the dealer's price, I am afraid I'll end up holding on to knives much longer and may end up with customers who are not satisfied with my knife at that price. I would like to move somewhere toward the middle, raising my prices to a point that better reflects my knives' market value and leaves less on the table, but not to the point where people don't feel like they are getting a good value for my price. I want my customers to feel like they got a "good deal" on my knives, like they expect to pay more for that kind of quality.

I'd love to hear thoughts and opinions from this group.
Thanks,
Jason
 
Wow...I wish I had your problem. I think I understand what you are saying. You want to sell your knives at a price that is fair for you and your customers.s
I'm going to watch this post to see the responses.
 
That's a tough spot to be in. I'm there myself. I utilize several galleries and I had a knife appraised through one for 180% of my online price. My first thought was "Oh please don't tell me it's worth that much" because it would have done the same to my portfolio, forcing my pricing to rise to make sure I don't disappoint anyone. There are many ethical, marketing, and exposure considerations when knife dealers and galleries are concerned that are possibly out of the scope of this discussion, I'll leave that to another day or more experienced makers.
My solution, however, has been to take it in the shorts profit-wise and reduce my cost to the dealer by their desired margin and keep my final pricing through them very close to what it would be if purchased first hand or off of my site. This way there is no value change to the end-user, no hard feelings, and I tell myself the profit loss is effectively me paying for my marketing. My overpriced knife? I had the dealer knock the price down to a few percent of what it would typically sell for. They complied and the knife has sold at a price I'd be comfortable making a dozen more at. If your dealer is insisting on overpricing your work for their immediate profit, and sacrificing your long-term integrity in the process, you'll have to take it up with them.
 
Because I am nosy, I ask a lot of questions.
There are a couple bigger name makers that I see at some of the shows.
I had noticed at a slower show the makers still had several knives left at the end of the show.
But.....at the end of the last day all of a sudden all the knives were sold.
When I asked, they had sold to an online retailer. If I remember correctly the retailer was given about a 20% discount off the retail prices.
Then the retailer was able to sell them just a bit over retail.
Kept the pricing fairly consistent with the end buyer just paying a slight premium to get the knife now instead of waiting to have one made.
The maker did not have to give a very big discount and the reseller was still able to buy and sell the knives profitably.
 
20 to 25 percent is about going rate and I believe that's a fair price. Wait time is definitely important, too. I agree wholeheartedly, Mark. When I consign a $350 hunter at a gallery I'm only going to get $250 out of it, and when considering materials really plummets my hourly rate. But...it gets me exposure I wouldn't be able to receive on my own.
 
Lagrange said:
Wow...I wish I had your problem. I think I understand what you are saying. You want to sell your knives at a price that is fair for you and your customers.s
I'm going to watch this post to see the responses.
Click to expand...

I am with Eric on this.but..Given the fact that I am not at all known,and may never be known.I also try not to take orders,due to health reasons I have had over the last several years.I make a knife,and figure my material,and since I am not trying to make my living with knives,I try to get a little something for my time.I am always happy to make a few dollars to purchase more material.

God bless
 
Frank Hunter said:
20 to 25 percent is about going rate and I believe that's a fair price. Wait time is definitely important, too. I agree wholeheartedly, Mark. When I consign a $350 hunter at a gallery I'm only going to get $250 out of it, and when considering materials really plummets my hourly rate. But...it gets me exposure I wouldn't be able to receive on my own.
Click to expand...
Exposure and that purveyor's stamp of approval :)
 
I got my start with a purveyor. I didn't even have a computer and couldn't take part in the knife forums so I contacted Bladegallery and sent a couple samples for approval. A purveyor is able to set your prices and they have the market experience to get you in the ball game. Otherwise stay active on the forums and post pictures and available knives for sale. Be sure to pay the asking memberships and enjoy the adventure. The prices will go up slowly but collectors are wanting to make wise investments and don't want to pay full retail as they want to make about 20-30% when the time comes to resell the knife.

Oh also use your real name. :)
 
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HMMM?

I can't help much because i have never sold one of my knives through a dealer.

I may not sell as many? but I have always said this is my price and if that person thinks he can get more? Than good luck to them. I have seen mine on the secondary market from time to time, but for the most part I sell directly to the user. Word of mouth has always been my best sells vehicle. I am by no means rich from doing this yet and some months are tough.
It's just the way I have done it.

Laurence

www.rhinoknives.com
 
If this is out of place, I apologize, but we recently launched a new auction/storefront system where knife enthusiasts and makers and sell their knives. Its completely free to use for the next several months and we're essentially providing it as a service where knife-makers can also benefit from our visitors and gain more exposure.

I understand consignment is not for everyone, and at times a hassle. With the storefront system, you can still benefit from the exposure of our website without us taking a portion of the profit.

http://www.knivesemporium.com/auctions/
 
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