Approximate cost to manufacture a Para II???

Discuss Spyderco's products and history.
kestrel57
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Approximate cost to manufacture a Para II???

#1

Post by kestrel57 »

Feel free to delete. Tx.
.357 mag
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#2

Post by .357 mag »

Im thinking the percentage is lower than what you think. I bet spyderco and dealer, the Para is the highest selling, lowest profit knife they carry. There is to many expensive items on this knife to not think this way.
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#3

Post by ricechrispy »

What have you based your uneducated guess at the cost on? Is it just that $20 seems like a nice round number? What's included in your definition of "direct costs?" Anyone spending $120 on a Para 2 hasn't shopped very long.
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Paramilitary 2, BD30P Manix 2, Delica 4, M390 Mule, XHP Military, Dragonfly 2, Woodcraft Mule, ZDP-189 Manbug, Cruwear Mule, Superleaf, Forum Native 5, Manix 2 XL, Endura 4
kestrel57
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#4

Post by kestrel57 »

ricechrispy wrote:What have you based your uneducated guess at the cost on? Is it just that $20 seems like a nice round number? What's included in your definition of "direct costs?" Anyone spending $120 on a Para 2 hasn't shopped very long.
g-10, s30v blade, lock, screws, clip, bushings, other

5, 5, 2, 1, 1,1, 1

or $16
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#5

Post by .357 mag »

kestrel57 wrote:g-10, s30v blade, lock, screws, clip, bushings, other

5, 5, 2, 1, 1,1, 1

or $16
+ labor, insurance, utility's,packaging,workmans comp.,fuel, etc....

An owner of a business can run out of money quick. They are not a custom shop in a garage with no overhead. Think about it.
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#6

Post by kestrel57 »

items bought in quantity. such as g-10, s30v, screws, and so on.

very modest adv. budget for this item.

Labor --- the tenacious costs $30 - $35. So how much is labor on the para 2? Too high?
kestrel57
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#7

Post by kestrel57 »

I excluded these items. So what do you think it costs for a tenacious or paramilitary 2?
.357 mag
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#8

Post by .357 mag »

I really don't know... All I can say is its not a much as one would think. Just think what is costs just to ship the tenacious here from over seas. Tooling, molds, are very expensive. The lowest cost of the knife is most likely the materials to make it.
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#9

Post by phillipsted »

Taxes. Rent/Lease. Pension contributions. R&D Budget. Reinvestment in the manufacturing plant. Wear and tear on the equipment. Written off debts. If you've never owned your own business, you have no idea how to account for the cost of your production.

Personally, I'm amazed that Sal can produce such a fine catalog of products for the modest prices he charges.

TedP
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#10

Post by DCDesigns »

.357 mag wrote:+ labor, insurance, utility's,packaging,workmans comp.,fuel, etc....

An owner of a business can run out of money quick. They are not a custom shop in a garage with no overhead. Think about it.
yup not to mention they have the materials to ship to the factories, an the product to ship back, packaging, etc.

its no where near as simple as some of you make it sound
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chuck_roxas45
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#11

Post by chuck_roxas45 »

Wonder how much microtech spends to make a kestrel...
alerin
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#12

Post by alerin »

I don't post much, just lurk, but this tread is in bad taste IMO.
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Blerv
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#13

Post by Blerv »

alerin wrote:I don't post much, just lurk, but this tread is in bad taste IMO.
I have to agree.

Profit margins are secretive for a reason. It has no impact on the product and a company shouldn't be penalized for being efficient or inefficient. The reward of that is for the company to enjoy.

The end line user is already getting the reward. They buy a performance product for pennies on the dollar it would cost them to make something themselves or have an artisan create. They have no risk and vote with their wallet.

I really don't think it's as easy. There is a ton of skilled hands-on assembly going on which isn't cheap. Even if a Delica cost Spyderco $3 to make and my price was 20 times more it would be a deal.
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chuck_roxas45
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#14

Post by chuck_roxas45 »

Blerv wrote:I have to agree.

Profit margins are secretive for a reason. It has no impact on the product and a company shouldn't be penalized for being efficient or inefficient. The reward of that is for the company to enjoy.

The end line user is already getting the reward. They buy a performance product for pennies on the dollar it would cost them to make something themselves or have an artisan create. They have no risk and vote with their wallet.

I really don't think it's as easy. There is a ton of skilled hands-on assembly going on which isn't cheap. Even if a Delica cost Spyderco $3 to make and my price was 20 times more it would be a deal.

Once again Blerv, you expressed my feelings so much better than I could myself. I'm all kinds of bent out about this thread and I don't have the words to express it. Especially since I don't think the OP is even being realistic about the costs.
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captnvegtble
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#15

Post by captnvegtble »

No offense, but this is a poorly thought-out and somewhat ignorant question -- ignorant in the sense that it highlights your lack of experience with running a buisness. All you've listed is the direct costs associated with materials for production of a Para2. There are other direct costs as well, such as labor, packaging, transportation, etc. Add onto that the indirect costs associated with knife production (mortgage, property tax, electricity, health insurance, heating, cleaning, equipment depreciation and repairs, administrative costs, supplies, etc) and your estimated cost to produce a Para2 is probably wildly low.

You also can't compare production costs between a tenacious and a Para 2. The tenacious is made in China, and the Para2 is made in the USA where all of those above mentioned production costs are much higher. That is why everybody is moving production to China.

Finally, I wouldn't expect any buisness to share how much of a margin they make on any product. .
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bh49
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#16

Post by bh49 »

chuck_roxas45 wrote:Wonder how much microtech spends to make a kestrel...
what is microtech? :)
BTW, I strongly beleive that Golden made Spydercos are very reasonably prices. I hope that FRN UKPK, Paras and Manixes are made without losses.
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chuck_roxas45
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#17

Post by chuck_roxas45 »

bh49 wrote:what is microtech? :)
Hahaha, good one Roman. :D
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DedRok
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#18

Post by DedRok »

Kind of like asking how much a stranger makes, isn't it?

[/weird]
Spyderco please make a wire clip version of the Manbug/Ladybug!
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#19

Post by cckw »

I have worked in the business side of manufacturing. When you look at costs there are different ways it is broken down. You are asking about the cost of raw materials. In manufacturing if you have good cost accounting you time every bit of labor, every tiny little supply properly assigned to the item and etc. So with some things you might have a raw material cost that is a significantly different then another item, but the outgoing price is the same and the profit is the same.

So what you are asking is a bit like asking a pastry chef about the cost of his stuff compared wholesale price of wheat.
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michaelm466
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#20

Post by michaelm466 »

as far as comparing the tenacious to the para 2, I would guess that american made CPM-S30V is significantly more expensive than chinese made 8cr13mov as far a the raw material, then there's also the extra belts, machining and labor time it takes up with its extra wear resistance/carbides and perhaps heat treatment.
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