Potential Tariffs & Golden, CO.

[apollo]

Just my 2 cents and it might sounds bad but my guess is long term we knife collectors are going to get screwed by all off this no matter what country you live in because Prices always go up but never come down.

[Skywalker]

Just my 2 cents and it might sounds bad but my guess is long term we knife collectors are going to get screwed by all off this no matter what country you live in because Prices always go up but never come down.

In fairness to Spyderco... Certain products (Bodacious!) do have lower MSRP in 2025 than they did in 2024.

(Though in general I agree, this will cause prices to go up and it's unlikely they'll retreat much)

[cjk]

The sky is not falling. People are smart and will learn to adapt. Businesses are made of people. It will be OK.

[Danke]

[sal]

Seems like there is certainly a lot of speculation, which means guessing and opinions? It also seems like there is little overall agreement, which again supports the fact that we don't know what the future will hold. I also think that this is a fluid change, which means nothing is the way it will be, so we still don't know.

sal

[zhyla]

Seems like there is certainly a lot of speculation, which means guessing and opinions? It also seems like there is little overall agreement, which again supports the fact that we don't know what the future will hold. I also think that this is a fluid change, which means nothing is the way it will be, so we still don't know.

sal

Sure… but I’m curious how Spyderco with relatively static pricing model and MAP program will cope with the complex and probably very dynamic tariff environment.

[Landshark99]

I think one point about tariffs is being missed is the punishment to country A is that their goods will become more expensive and the people of the country B that added those tariffs will then in theory buy less from country A, On the other hand country A will never pay those tariffs, the importer in country B will pay them and most likely pass them on to the buyers in country B, They are then basically a sort of slaes or value added tax for the consumer of country B

[Wartstein]

....
On the good side I know Spyderco will do what it can to keep prices as low as possible while still ensuring its workers get paid. I know I for one will be buying at least one Spyderco this year to keep supporting Sal and the employees at Spyderco. I am sure all their employees are nervous between the market, talk of recession, crucible bankruptcy and now tariffs.

As said by Sal and others: Much is just speculation, but I am a bit afraid that this could be not about knives getting more or less expensive, but pretty much everything - and thus it will be harder to spent money on things like "more folders" in general

Let´s hope for the best!

[brj]

I've been buying stuff quite selectively over the last couple of years anyway, so no major impact for me as far as knife buying habits go (not going into general cost of life, the trend is pretty obvious already).

[sv4]

I think one point about tariffs is being missed is the punishment to country A is that their goods will become more expensive and the people of the country B that added those tariffs will then in theory buy less from country A, On the other hand country A will never pay those tariffs, the importer in country B will pay them and most likely pass them on to the buyers in country B, They are then basically a sort of slaes or value added tax for the consumer of country B

That’s it in a nutshell. That’s how I understand it too

[Synov]

On the bright side, this could mean more stimulus for local manufacturing.

I doubt many are going to heavily invest in manufacturing just because of tariffs that will probably be removed three years from now, if not sooner.

[akapennypincher]

Well someone report how tariff's have effected you personally.

[Mat_ski]

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

[Skywalker]

Well someone report how tariff's have effected you personally.

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

[Mat_ski]

Well someone report how tariff's have effected you personally.

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

What is unclear?

Why is Mexico made Ram as expensive as US made Ram?

[Skywalker]

Well someone report how tariff's have effected you personally.

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

What is unclear?

Why is Mexico made Ram as expensive as US made Ram?

Through 24MY, Saltillo was making the older 4th gen Ram "classic", which was the cheaper version.

Also, under the current UAW contract, Stellantis has agreed to maximize US production at Sterling Heights before starting to build current-gen 1500s in Saltillo if demand exceeds SHAP capacity, so the price is still primarily pegged to US production.

[WilliamMunny]

Well someone report how tariff's have effected you personally.

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

What is unclear?

Why is Mexico made Ram as expensive as US made Ram?

I don't want to be political per Sal's wishes so I will bring it back to knives.

It comes down to Profit.

Hypothetical:

Spyderco sells the PM2 for $200 and it sells well.

It costs Spyderco $100 to make a PM2 in the US = $100 profit.

Spyderco then moves their production to Mexico. It now costs only $50 to make that same PM2.

Spyderco knows they can sell it for $200 so there is no need to drop the price to $150, instead they keep they extra $50 per knife as profit. Spyderco CEO now gets a big bonus for increasing profits 50%.


Very simplified but just because cost go down does not mean the customer will see those savings.

[Mat_ski]

Well someone report how tariff's have effected you personally.

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.

The future is uncertain and that’s why markets tanked. Bottom line, no one knows what’s the end goal.

But let me ask a simple question:
Did Ram1500 or Chevy Silverado become less expensive after they moved manufacturing to Mexico?

Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

What is unclear?

Why is Mexico made Ram as expensive as US made Ram?

I don't want to be political per Sal's wishes so I will bring it back to knives.

It comes down to Profit.

Hypothetical:

Spyderco sells the PM2 for $200 and it sells well.

It costs Spyderco $100 to make a PM2 in the US = $100 profit.

Spyderco then moves their production to Mexico. It now costs only $50 to make that same PM2.

Spyderco knows they can sell it for $200 so there is no need to drop the price to $150, instead they keep they extra $50 per knife as profit. Spyderco CEO now gets a big bonus for increasing profits 50%.


Very simplified but just because cost go down does not mean the customer will see those savings.

Yes, so this results in trade deficit. Shouldn’t this be discouraged through policy?

[Mat_ski]

Double

[WilliamMunny]

Higher material costs due to steel/aluminum tariffs certainly took a chunk out of my 2018/2019 bonuses last time around. Probably years beyond that too but it gets difficult to parse with covid.



Could you make your point more clearly? Because Ram's product lineup is weird with the "classic" 4th gen and new 5th gen 1500 sold simultaneously, and despite moving some production to Mexico Ram and GM still have truck assembly plants in the US, notably Sterling Heights Assembly in MI for Ram and Fort Wayne Assembly in IN for GM (and Flint, if you're counting Silverado HD).

What is unclear?

Why is Mexico made Ram as expensive as US made Ram?

I don't want to be political per Sal's wishes so I will bring it back to knives.

It comes down to Profit.

Hypothetical:

Spyderco sells the PM2 for $200 and it sells well.

It costs Spyderco $100 to make a PM2 in the US = $100 profit.

Spyderco then moves their production to Mexico. It now costs only $50 to make that same PM2.

Spyderco knows they can sell it for $200 so there is no need to drop the price to $150, instead they keep they extra $50 per knife as profit. Spyderco CEO now gets a big bonus for increasing profits 50%.


Very simplified but just because cost go down does not mean the customer will see those savings.

Yes, so this results in trade deficit. Shouldn’t this be discouraged through policy?

I think that is the goal of tariffs. To make it more expensive for Spyderco to produce the PM2 in Mexico, making it no more profitable to produce in Colorado.

I am no expert, just my basic understanding. These are the times I feel bad for Sal and Eric, to keep a company profitable while still keeping cost down enough to keep sales up. He has said he has had many up and downs in the past but between the possible steel supply disruption and current trade climate it must be stressful to say the least.