DSH007 wrote: ↑Tue Dec 10, 2019 2:16 pm
Doeswhateveraspidercan wrote: ↑Tue Dec 10, 2019 1:05 pm
DSH007 wrote: ↑Tue Dec 10, 2019 12:59 pm
Doeswhateveraspidercan wrote: ↑Tue Dec 10, 2019 11:57 am
Is anyone at Spyderco and the supply chain listening?
This is the second time I have heard of the retailer putting the ball back in Spyderco's lap, second hand this time and over the phone the first.
This is just the thing I have been carping about all year long. This way of doing business is creating sour feelings towards the Spyderco brand the supply chain and the retailer.
Imagine how many of the silent ones you are not hearing from. Just imagine.
After weeks of hype and build-up, 100s (1000s?) of people login all at once to compete for the chance to pay $155 for a knife. Knife sells out in literally minutes. People complain online about missing out on their chance to pay $155 for a knife. Haha, BHQ & Spyderco know exactly what they're doing..
When it comes to these things, I figure you win some, you lose some. For as hard as I tried, I just could not score the Cruwear Shaman. I lucked out on the Dodo. That's the way she goes..
I disagree with this, wholeheartedly because if I did agree with it, I would have no respect for either entity and do not think that lowly of Spyderco.
I believe that Spyderco is trying out different a different business model in this past year and they are leaving allot of $$$$$ on the table and with it allot of hard feelings with those who have missed out due to lack of availability.
I also believe in Sal and believe he will be adjusting things as time goes on.
EDIT: I am saying this as someone who did not miss out but was able to order one.
When it comes right down to it though, Spyderco is a business and the goal of any business is ultimately to make money. I have always respected that Spyderco does so in a way that is as fair as possible to their customers, and I respect the h*ll out of them for their willingness to actively listen to their customers like they do.
Well of course a business is in business to make money, never understood anyone stating such an obvious thing but I digress..
Sorry but I disagree with this, one of the main issues is too few being produced of models that are clearly going to be sell outs.
How is making only 400 even profitable for Spyderco? Well lets do a little hypothetical research and see.
Lets look at this shall we? M4 Jade Dodo sold for 154.95 retail.
So if we take 400 X 154.95 = $61,980 dollars of merchandise sold at retail. Sounds ok right? ahhh but lets dig deeper...
A Manufacturers gross profit is usually between 25% & 35% This varies. Lets use the Raising Percent model shall we and apply 25% and 35% but I am willing to bet it is between 15% and 25% ?
Doing so we can determine the best Spyderco will manage on a run of 400 items will be $15,495.00 @25% and $21,693.00 @ 35% that is not much profit but good on a small batch and likely less than what many manufacturers would bother to even put effort into so I say Spyderco is a company for their customers.
At 25% Spyderco makes roughly $39.00 in profit per knife and at 35% the make roughly $54.25 per knife.
This means that @ 25% 115.95 is left over and at 35% $100.70 is left over to split between the Distributors and retailer and covers the cost of doing business. From this I think the percentages are lower.
Gross profit percent is the profit margin of an item.
In order to determine the actual gross profit percent, a business owner takes the difference between the selling price of an item and the total cost of that item.
The figure he reaches is known as the gross profit percent. Gross profit percent applies solely to the finances of a company prior to having to factor in such variables as the taxes, employee payments, as well as a host of other figures that differ from one to another.
This means if Spyderco has a healthy profit margin it will be between 25% and 35% [
Average
The average manufacturer's gross profit percentage varies between 25 percent and 35 percent. However, items with more expensive price tags, such as motor homes, automobiles, and even houses, have markup prices of only 10 to 15 percent.
I believe Spyderco uses the following method allot but not exclusively and always with their specialty runs which is part of the reason they do them in the first place.
Raising Percent
In order to achieve the highest gross profit percentage, a business owner might use the "All Costs Plus Profit" method of pricing. This method of using gross profit percentage factors in the total costs of an item, from manufacturing all the way through to delivery, and then adds in the desired profit percentage.
In other words, rather than allowing market forces to determine how much of a profit percentage a business makes, this method creates the percentage the business owner desires. The disadvantage to this method of determining gross profit percentage is the possibility customers will not pay the cost of the item.
I believe Spyderco also employs this method but only on large batches and or when items do not move. Reducing Percent
In the event competition exists for similar products in other companies, a business might decide to adjust the gross profit percentage. Obviously, if a business sells a product at less than it costs the business to manufacture the product, the business loses money on every item sold. Therefore, in order to adjust the gross profit percentage, a manufacturer can sell an item for 30 percent over the total cost of the item, rather than 40 percent. This reduction in the profit percentage can lead to increased sales, which leads to an overall profit increase. You need volume to make this work however which clearly in numbers of 400 are not enough volume.
$ made on this run. Ummm not great in my book... but not bad either if you take a long view using the Raising Percent model.
I am willing to bet they could have sold twice as many easily especially since this knife came from an already manufactured items tooling etc.... have been done in the past. Here we changed the color of the G-10 and the steel. I am certain that alone is a bigger deal than I can imagine. I am certain this is the only reason they could make just 400 and not loose money.
I view Spyderco as the master of doing this.
When I see stuff like this it makes me Say thanks to Spyderco for even bothering with a low profit project like this and that production capabilities must be stretched with so much going on or their would be greater risks being taken with higher production numbers and following profit.
To me this speaks well of Spyderco producing this model for us and not just the profit, which as can be seen in not much for a company that averages 10 million in revenue with 84 employees. Pretty darn impressive.
The recent Straight Spine Stretch was produced in a batch of 1200. To me this seemed too little, but had to be done in order to make it work. The SS Stretch required redesigning tooling for a whole new blade shape, so there have to be gteater numbers produced to be sold.
Now this is what I say makes a difference between Sypderco and other companies and Sal must be a genius to keep this all this going.
So yes Spyderco must make a profit, I do not have a problem with them charging more, heck it is a blue wonder they manufacturer such items as these and charge as little *** they do.
My only wish is more would be made, not for me because somehow whenever I go after something I always get it but for the ones who missed out and no the secondary market doubling the price on a item not even a day old is not only unacceptable but despicable behavior in my book.
Ah well just some musings.
