OT: How is this possible?

dantecubit · #1

Okay, so I was up late last night watching the Alien movies again in anticipation of AVP, and caught the tail end of an infomercial. It was with that Ron Popeil guy, and he was selling knives. You get 28 knives for "3 easy payments of $13.33." What I don't understand is, the knives are guaranteed not to get dull or damaged... or they'll replace them for free. How is this possible? NO knife can stay sharp forever, let alone a piece of infomercial junk. How can they make any money from this?

rorschach · #2

Sadly, as a marketing guy, I can answer this. They are banking on the general consumer's laziness to take advantage of a warranty. True story: I once worked for a company that sold computer modems ('member those?) Competition was fierce, and we had a special rebate going which brought to total cost of the modem down from $145 to less than $40. Guess how many consumers bothered to cash in the substantial rebate? Less than 15%. I was stunned.

So, the Popeil strategy is likely this: the sheer quantity of knives in the deal will make them seem almost "disposable" and therefore the consumer will be unlikely to make a warranty claim, they will simply pick up an un-used knife.

One final point: some less than ethical companies make it extremely difficult to actually cash in a rebate or warranty claim. I have experienced several instances of trying to cash in a valid rebate, only to be denied via postcard for some bogus reason like "receipt not attached" when it clearly was. This is yet another reason to love Spyderco, years of doing the right thing. You can't build that rep overnight, and it only takes one bad incident to shatter a consumers' confidence.

-Rorschach :][: <a href= http://www.scarysharp.com>HOS</a>

Zrexxer · #3

I was thinking of the rebate example, and Rorschach hit the nail right on the head. Most people don't bother.

I've just about quit buying anything with rebates though, because as R. points out, it's getting harder and harder to actually receive them. They make you wait 8, 10, 14 weeks, and lately they only mail them after I've complained.

Interestingly enough, a lot of the knives these guys are selling as "lifetime sharp" have serrated edges - a concept that Spyderco figured out a long time ago helps edge longevity.

Jimmy_Dean · #4

I understand the whole concept of returns and everything but the fact is they still sell 28 knives for 40$. I don't care if they are cheap knives made in China, they still have to be made, darn it! It's already impressive that this amount of money covers the knives themselves, let alone the 15% who will claim their warranty....there must be a few things I still don't understant about marketing.

-Dean

Civilian · #5

Thier not sharp enough to get dull. As far as "lifetime guarentee" In 6 months when the company is gone so is the guarentee.
___________
MAT<img src="spyder.gif" width=15 height=15 align=middle border=0>TER

Mancer · #6

Hi dantecubit

I love the Alien movies, they where brillaint as was Predator, there was rumour about a AVP movie, but this was shotdown and said to be nothing more than rumour int he end.

Are they actually going forward with the idea now?
It would be one hellava matchup with a few dozen aliens running around and 1 or 2 predators.

Cheers

MaNcEr

It's Time To Kick @$$ 'N Chew Bubble Gum

*Cho* · #7

It is due out in a few weeks.

Zrexxer · #8

<BLOCKQUOTE>quote:<hr height=1 noshade>As far as "lifetime guarentee" In 6 months when the company is gone so is the guarentee. <hr height=1 noshade></BLOCKQUOTE> That might be a valid argument had he not said that it was Ron Popeil. That guy has been selling products on TV continuously since the mid 1950's. Who can forget such classics as the Ronco Veg-O-Matic and the Popeil Pocket Fisherman!

Tbirdjoe · #9

Underpriced Steel + Workers getting paid 50cents/hr + Factories without environmental or safety controls + Cheap plastics = 28 Knives for $40!

"What you do does not matter...What matters is doing it or not"

DAYWALKER · #10

Aloha Dantecubit!!!

LOL, I crack up when I see the popeil guy's kid bringing out the knives on a pillow!!! I ALWAYS seem to catch this infomercial after my shift...HILARIOUS!

Been training bro?

Proverbs 16:3...Commit YOUR works to the LORD, and YOUR plans WILL succeed!

dialex · #11

I can't add much to this topic, just I reminded it today, when I saw a Philishave clone (3 rotary knives, pouch, rechargable) at less than 5 of your US$. I aggree, bad steel, ordinary plastic aso. but there's still some manufacturing and materials there (!?) I was tempted to get one just to see how it performs - oh well, not that tempted... <img src="wink.gif" width=15 height=15 align=middle border=0>

<a href="http://users.pcnet.ro/dialex">(my page)</a>