Approximate cost to manufacture a Para II???
Approximate cost to manufacture a Para II???
Feel free to delete. Tx.
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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.
In chronological order:
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
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
g-10, s30v blade, lock, screws, clip, bushings, otherricechrispy 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.
5, 5, 2, 1, 1,1, 1
or $16
- phillipsted
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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
Personally, I'm amazed that Sal can produce such a fine catalog of products for the modest prices he charges.
TedP
yup not to mention they have the materials to ship to the factories, an the product to ship back, packaging, etc..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.
its no where near as simple as some of you make it sound
- chuck_roxas45
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Wonder how much microtech spends to make a kestrel...
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I have to agree.alerin wrote:I don't post much, just lurk, but this tread is in bad taste IMO.
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.
- chuck_roxas45
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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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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. .
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. .
what is microtech? :)chuck_roxas45 wrote:Wonder how much microtech spends to make a kestrel...
BTW, I strongly beleive that Golden made Spydercos are very reasonably prices. I hope that FRN UKPK, Paras and Manixes are made without losses.
"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf"
My top choices Natives5, Calys, C83 Persian
My top choices Natives5, Calys, C83 Persian
- chuck_roxas45
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Hahaha, good one Roman. :Dbh49 wrote:what is microtech? :)
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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.
So what you are asking is a bit like asking a pastry chef about the cost of his stuff compared wholesale price of wheat.
- michaelm466
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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.