MAP policy change? 35%

[Nate]

I guess this means I will only look at Sprint runs. For example, the MSRP on the maxamet PM2 is $299.99 right now. With an increase, that puts it well into $300 on MSRP... I love the PM, but it's not a $300+ knife. Ridiculous MAP prices are why I stopped buying Benchmade knives.

Unfortunately what it comes down to is, the people saying anything are on forums, but I would be willing to bet a lot that forum users are a small percentage of the customers.

I wish I got an 8.3% cost of living raise every year :)

I'm not sure what you're talking about. The MAP change doesn't effect MSRP, and we don't know yet what items will be impacted by an MSRP adjustment. The change to a 35% MAP would increase the street price of the Maxamet PM2 by ~$15, from $179.97 to $194.99.

[Nate]

A lot of people outside of the knife forums and people who haven't seen National Knives facebook post, don't know about the increase yet. Knife buyers will notice a 8.3% increase. That's almost 3 times inflation. Cost of materials and labor have not gone up that high in a couple of years.

CPI numbers are farcical. How much have food, energy, housing, and healthcare prices increased in the last few years?

[The Deacon]

A lot of people outside of the knife forums and people who haven't seen National Knives facebook post, don't know about the increase yet. Knife buyers will notice a 8.3% increase. That's almost 3 times inflation. Cost of materials and labor have not gone up that high in a couple of years.

The point you are missing is that the MAP increase does not put one cent in Spyderco's pocket. That extra 8.3% goes into the dealer's pocket, or at least it will if Spyderco can enforce the new MAP so that places like Amazon and Walmart do not circumvent it. I suspect this is being done at the request of dealers.

[ross8425]

I guess this means I will only look at Sprint runs. For example, the MSRP on the maxamet PM2 is $299.99 right now. With an increase, that puts it well into $300 on MSRP... I love the PM, but it's not a $300+ knife. Ridiculous MAP prices are why I stopped buying Benchmade knives.

Unfortunately what it comes down to is, the people saying anything are on forums, but I would be willing to bet a lot that forum users are a small percentage of the customers.

I wish I got an 8.3% cost of living raise every year :)

I'm not sure what you're talking about. The MAP change doesn't effect MSRP, and we don't know yet what items will be impacted by an MSRP adjustment. The change to a 35% MAP would increase the street price of the Maxamet PM2 by ~$15, from $179.97 to $194.99.

Perhaps I misread Kristi's post that says : In many cases, we chose to absorb much of the increases that we received. There were a few increases, however, that we couldn't absorb.

To me, that translates to MSRP. Maybe I am wrong.

[ross8425]

A lot of people outside of the knife forums and people who haven't seen National Knives facebook post, don't know about the increase yet. Knife buyers will notice a 8.3% increase. That's almost 3 times inflation. Cost of materials and labor have not gone up that high in a couple of years.

The point you are missing is that the MAP increase does not put one cent in Spyderco's pocket. That extra 8.3% goes into the dealer's pocket, or at least it will if Spyderco can enforce the new MAP so that places like Amazon and Walmart do not circumvent it. I suspect this is being done at the request of dealers.

But it takes 8.3% out of his pocket, correct? :)

[Hopweaver]

... farcical.

Made me laugh. Thanks!

.

[Doc Dan]

All I know is that I have slowed way down on buying Spydercos since MAP went into effect because I can no longer get good deals that make them affordable. With the price increases (I understand that) and the MAP, it makes it hard for us average Joes. I did just buy 2 knives. I got in ahead of the change, I guess.

[Nate]

Perhaps I misread Kristi's post that says : In many cases, we chose to absorb much of the increases that we received. There were a few increases, however, that we couldn't absorb.

To me, that translates to MSRP. Maybe I am wrong.

It does, but as I noted "we don't know yet what items will be impacted by an MSRP adjustment."

I also thought you may be conflating the two, MAP and MSRP, because no one is going to pay full MSRP for anything unless it's some weird personal choice or they're making a direct purchase from the SFO with a warranty credit (which are issued at MSRP).

[JRinFL]

Actually going from 60% of MSRP to 65% of MSRP is 8.3% increase. Plus annual increase 3-4%? The company I am working for doesn't give it's employees even half of this.
All of this is up to Spyderco. I hope that they know, what are they doing. I do not need to buy any more knives. If I sell 80%, I will have plenty until end of my days.

Yep. Most small employers like mine could never afford to give regular yearly raises like this without also raising their prices thus driving business away. I guess pocket knives are like jewelry, non-essential luxury items. I haven't had a new car in 15 years and now it looks like I'm out of the Spyderco market as well. C'est la Vie

[dsvirsky]

I'm no fan of MAP pricing, but reading this thread I get the impression many people think the change to 35% will somehow increase Spyderco's profits. It will increase the dealers' profit margain -- any of whom can choose to offer an "unadvertised" discount.

[The Deacon]

A lot of people outside of the knife forums and people who haven't seen National Knives facebook post, don't know about the increase yet. Knife buyers will notice a 8.3% increase. That's almost 3 times inflation. Cost of materials and labor have not gone up that high in a couple of years.

The point you are missing is that the MAP increase does not put one cent in Spyderco's pocket. That extra 8.3% goes into the dealer's pocket, or at least it will if Spyderco can enforce the new MAP so that places like Amazon and Walmart do not circumvent it. I suspect this is being done at the request of dealers.

But it takes 8.3% out of his pocket, correct? :)

No, it puts that money in the dealer's pocket. MAP controls how deeply a dealer can discount a product.

I have no idea what the actual wholesale prices for Spydercos are, but just as an example, assume dealer cost on a $100 knife is $45. If he sells that knife to you for current MAP, he's giving you a 40% discount, charging you $60, and making $15. If he sells it to you for the new MAP, he's giving you a 35% discount, charging you $65, and making $20.

[The Deacon]

Actually going from 60% of MSRP to 65% of MSRP is 8.3% increase. Plus annual increase 3-4%? The company I am working for doesn't give it's employees even half of this.
All of this is up to Spyderco. I hope that they know, what are they doing. I do not need to buy any more knives. If I sell 80%, I will have plenty until end of my days.

Yep. Most small employers like mine could never afford to give regular yearly raises like this without also raising their prices thus driving business away. I guess pocket knives are like jewelry, non-essential luxury items. I haven't had a new car in 15 years and now it looks like I'm out of the Spyderco market as well. C'est la Vie

If the difference between paying $120 for a $200 knife and paying $130 for it is enough to drive you away, then yes, C'est la Vie. Hope for your sake gas prices don't jump 10% or more any time soon, or you may have to travel via shanks' mare.

[anagarika]

The change means higher price most people will end up paying. Whether it directly increases profits for Spyderco or dealers, we as buyer do not have enough information on what is the contract agreement between Spyderco and dealers.

It is a free market where buyer will decide based on their preferences, perceived value from all competing makers/brands. At the end of the day the market will find it’s dynamic balance.

Spyderco as company needs to thrive to continue what they have been doing. I believe they also would have factored in mass buyer vs aficionados, and done their homework in making the decision, what is the percentage of different types of buyers and how to achieve optimum outcomes (volume x price), that allows them to continue in the direction they are going.

Personally I like Spyderco and have more of their products than other production knife brand. When I make purchases, it’s always individually evaluated (including impulses and hype from forum), and whether I can afford it or not. Life needs & priorities change also with time.

One day perhaps a model from Spyderco at certain selling price is right. On different occasion, perhaps something else from others. It’s a dynamic interplay.

I appreciate that Sal and his core team post here and try to establish communication with end users. It doesn’t happen often in these days and this engagement add positive value in the purchase considerations, along with other factors.

In short, it’s what it is.

[mrtodd777]

If the difference between paying $120 for a $200 knife and paying $130 for it is enough to drive you away, then yes, C'est la Vie. Hope for your sake gas prices don't jump 10% or more any time soon, or you may have to travel via shanks' mare.

Nailed it. These knives are luxury items. NO ONE needs a $200 knife to go sit behind a computer all day and open mail. Even folks like Lance who are really putting their blades through a workout would most likely get along just fine with a $30 Kershaw Fillet knife. This is a hobby and we can't deny that.

[bouhunter]

Hope for your sake gas prices don't jump 10% or more any time soon, or you may have to travel via shanks' mare.

:p :p

However gas is a bit less discretionary than knives.

[NickShabazz]

Yikes. This is gonna be a tough pill to swallow for a lot of people, a 5% across-the-board price increase on top of whatever product specific hikes. Particularly given that it'll hit the lower priced items too.

[gaj999]

Yikes. This is gonna be a tough pill to swallow for a lot of people, a 5% across-the-board price increase on top of whatever product specific hikes. Particularly given that it'll hit the lower priced items too.

8.3%

[jtoler_9]

Actually going from 60% of MSRP to 65% of MSRP is 8.3% increase. Plus annual increase 3-4%? The company I am working for doesn't give it's employees even half of this.
All of this is up to Spyderco. I hope that they know, what are they doing. I do not need to buy any more knives. If I sell 80%, I will have plenty until end of my days.

Yep. Most small employers like mine could never afford to give regular yearly raises like this without also raising their prices thus driving business away. I guess pocket knives are like jewelry, non-essential luxury items. I haven't had a new car in 15 years and now it looks like I'm out of the Spyderco market as well. C'est la Vie

If the difference between paying $120 for a $200 knife and paying $130 for it is enough to drive you away, then yes, C'est la Vie. Hope for your sake gas prices don't jump 10% or more any time soon, or you may have to travel via shanks' mare.

I think there is another point missing in your argument. It’s not just about a $10.00 jump. It’s about the fact that the consumer price jumps at least this much every year for the past several years. Eventually the ceiling will be found and felt by Spyderco and their dealers. If you’re ok with a $150.00 delica in a few years, then super. But I suspect for some folks still working for a living, it will change the way they buy Spyderco knives. It already has for some of us.

[ross8425]

some weird personal choice

hahaha, that made me laugh. :D

[Holzfaeller]

Whether or not the dealer sees the additional profit from the MAP increase depends on how much Spyderco charges them for the knives. MSRP or MAP are not necessarily related to wholesale price. Spyderco claiming to absorb the cost sounds like rubbish to me.