Knife Making Tutorial - How to Price Custom Made Knives (40 Min Tutorial)

[@RCStudiosca]

Good job. I've been making knives on and off for over 20 years now and this is the best break down I've seen to date. Please keep up the good work. It is hard to show a client how you price your work; and you have done a great job.

[@daonlyme9392]

You think you can help me with getting me a custom made knife?

[@jameselam6645]

I got into knife making and started out selling knives through totally different outlets than you! I recently gave away one of my knives and showed a bowie that I recently made for a customer on my channel but I didn't share how much the two would cost because I wasn't sure if my subscribers would understand the bowie was made out of 1/4"x 3"x 15" cowry x my cost for the steel was well over $300 dollars! I totally understand you!

[@3riverblades]

Glad it worked for you, I made that spread sheet 3 times... I glad you put more into it! TY

[@3riverblades]

Thanks Brother It helps to educate the customers, they just see numbers not the work that's behind it. Thanks for the support!

[@pandaman1966]

I love your video's, your are a very talented knife maker and teach me new things all the time...Thanks

[@survivalkraft]

Thanks for the info. I am just getting into knife making and am really enjoying it. But it is time consuming and expensive. Your info is sobering, but at the same time encouraging. Happy grinding, my friend! God bless!

[@daonlyme9392]

Can you make me a custom knife?

[@northernfool7453]

Hey man, great video! I am a new maker and this is the hardest part of making and selling them for me. This is really helpful.

[@daonlyme9392]

You still make knifes I need a custom one?

[@doberman74]

aaah, I finally got to sit and watch this. I think the problem I am having at the minute is there is too many 1 offs and variables. As soon as I get onto batch runs from waterjet this is the system I'm gonna run for sure. Another kick in the nuts is the UK prices, everything is higher so when we compare it makes our blades look more expensive when in actual fact they are similar markups. A good example in costs is the 9 Ti friction folder scales has just used 6 belts at £6.40 each.. Awesome vid

[@kmetvhribih]

If you want to calculate the retail in excell, just multiply the cost of goods with 2.75 (at 175% markup, 150% would be 2.5). Good tutorial, thanks for the spreadsheet :-)

[@trainwon5699]

Good job thanks

[@3riverblades]

Glad you liked it bro... Im not an accountant but man its shocking when you see the real numbers ! thanks brother

[@3riverblades]

Thank You ,Yea I shot this video 4 times I was wiped out but glad you got the picture. You can add what ever cost you like to the spread sheet that's why I left it open.

[@3riverblades]

Thanks for the support; I think most "buyers" or collectors expect to pay more for custom knives however the issue is finding these buyers. Anyone that starts with "I can get" usually means they are buying china made knives. The good news is I see a trend of custom knife makers coming back and stronger than before with some really awesome styles. I wouldn’t quit my day job until I knew I could sell at least 7 knives a day. Social media has defiantly helped me get the word out!

[@MrJuanhgonzalez]

I really appreciate your information. I am new to knife making and have been really benefited by your info. I tried to download but your link isn't working for me.

[@wh1skey7even38]

Hi, where can I find the knife makers cost profit estimater link?

[@MikeWareoffthebeatenpath]

Although this video is 6 years old. I am curious as to figuring out the actual time it takes a knife maker to create a knife? I hear if you worked for 40 hours on a knife or even 10 hours and the cost divided out and is said $4.00 hour? Not disputing your word as to why I even came to find the video. I am curious and looking for help. Using Bar stock doing all the work myself broke down into actual labor time not sitting and talking to friends or watching KZbin. I have 2 hours and 22 minutes average time per Bushcraft knife I make. That is me doing all the work from bar stock. I am new at this and being my 7th year as a hobbyist knifemaker with a brand a label. I have found that going full time this year that more knives equal more advertisements. Being a 35-year retail multi-unit Manager of chain stores. Advertising is the most expensive part of the business. So with my strategy till I get to where I need to be. Is more knives in the field means more branding. Equals more sales in the future. Now with that said can you? or will you elaborate some on how you got to the 10 hours on a knife up to 40 hours per knife in labor hours? Is it from a break down of a typical sale week vs how much time you spent in the shop and how many knives sold? I am asking to see if I am missing something in the equation of your figures and others who have made it. Not bashing nor am I belittling your labor time. I am only wanting to know. I am currently using a tried and tested method for centuries in retail. principle of 3. 1/3 cost 1/3rd labor 1/3rd reinvestment. I have a cost of $49.86 using 01 tool steel. I do other metals as well and the cost only moves up to customer by the difference in material and if cryo treatment. Generally by $15.00 to $20.00 all materials and maintenance. Lights, water, and adding $2.00 for tool use. for reinvesting when it breaks. My average monthly sale last year was as a hobbyist was 18 knives a month. Generally, all made in one weekend. I sale for $150.00 plus shipping. Gross profit of $2700 a month with a net profit of $1800 a month. Being a weekend of long hours as in 16 to 18 hours per day. I average about 40 hours labor in those 18 knives that month. so with an average of 40 hours, I make $45.00 an hour for the shop and me. Why did I stick to the $150 knife price? The common man can and will pay $150.00 for a quality handcrafted in a one-stop-shop. That personal connection with the maker and the customer. See I am on the fence about moving to water jet and other resourcing. If you have not gathered yet my age is of the old ways. See when we outsource I am asking the customer to pay for me to do less work on the knife and make it easier for me. I am not saying this is a bad thing. If the customer is willing to pay for my name only. I enjoy making knives that are heirloom pieces and can be passed down. Some old man and his dog, in an old wooden shack, making knives for the common man. Please do not think I am being negative. I am just asking if I missed something in the video. ATB Mike

[@gambitgaming4573]

when you change the amount of knives made you don't change the cost of materials. if your making less knives its gonna be less in material goods. great video. I just started making knives

[@PUGIOBEARER007]

super helpful thank you very much

[@3riverblades]

Most knife makers are self employed but you are correct. I was establishing how the knife makers get paid for your labor / time per knife. Profit was probably not the correct word. I was trying to do the simple math and not get into the margins, etc. Thank you.

[@NashPrep123]

Hey I can help you with that excel grid. All you do is put the Cell Letter and Number multiplied by the other one you want to multiply or divide if that is what you want to do. like D2/E2 and it will calulate that. or Sum A2-A9 or something like this and it will add or subtract or divide or multiply

[@MTBLPP]

Good video. I really appreciate all the videos you make. Unless I'm missing something, couldn't you just make the selling price cell =G16+(G16*G17) ? Then the profit would just be G18-G16 or whatever. Worked for me. Keep the videos comin. Thanks!

[@3riverblades]

Thank you, I am waiting to get more accurate data from my vendors and rework the numbers a bit but yes I do see that I walking tight rope... need a little more room. The other side of that coin is trying to sell a $300 knives is not a easy task my friend. : )

[@3riverblades]

your welcome thanks

[@JRobinson312]

Just a helpful hint to save a little time, the formula in excel for your 175% markup would be =(1.75*cost per knife)+cost per knife

[@blatant2subtlety]

cool..ty

[@tri-forceblades3123]

Where is the link?

[@mikesweet3544]

Well said.

[@anthonymook2321]

Where is the forging in this 😢

[@gerhardtcustomknives]

this confirms that I need to raise my prices

[@3riverblades]

Piecing together a knife and making a knife from bar stock are completely different.

[@WessexBladesHandMadeKnives]

awesome,,awesome..awesome......and my crazy 60 hour blades that I sell for,,,less than a UK Kabar,,,,ssshh!! I work at Tesco for £8/hr I could have earned near £500 and still not bought any material...but nothing else I can do until I can ditch 3 of my 4 jobs...as you say unless you make £10/$16 an hour you may as well stack shelves, let the wages clerk deal with the finances and not have to work in dust and grit...high quality low volume custom blades should return profit to the maker!

[@1ARTHURJR]

Where is the link to the spread sheet? Thanks

[@3riverblades]

Try again... Sorry the link was messed up.

[@3riverblades]

I grind my own steel

[@theplasticdesert2408]

Not hating but how can you justify these as custom made knives when you outsource your water jet cutting and heat treating?

[@ka1bbg]

dont forget the shop cost money, the machines cost money, someone has to play banker to buy all the material and process costs before the knife is made and sold. your skill and time is worth money....bf

[@pandaman1966]

Your math is good but you need to add a basic cost of equipment...say $5.00 per knife, this will help pay for new grinders repairs etc... this is a hard number to come up with...Also in the first of the video your number were kind of off, don't get me wrong I think your video is great, if your cost is $80 in materials and I double the cost to get a selling price its 160, now my profit is only from the 80.00 not the 160.00....so if it takes me 20 hours to make a knife this I only make 4 per hour.

[@longjohnson2]

make your bones...eat sleep grind, i fuck with that

[@BillEbert]

Made a google DOC version if people want it docs.google.com/spreadsheet/ccc?key=0AmIE8N49y9VDdFByc0swMG1tWWxhWmx2UExDYzlpV0E&usp=sharing

[@glenpaul3606]

It's not 160 divided by 28 knives because 80 was materials and 80 was labor. You actually made 80 divided by 28 = 2.86 per hour. And you sold materials at your cost without markup. At 224 selling price per knife first subtract 80 for materials which leaves 144 then divide by 20 hours labor and you get 7.20/ hour. Retails clerks make 14/hour for a no skill job. If you can't make 25/ hour for highly skilled labor is it worth doing ? Your knife should sell for 20 hours labor X 25/hour = 500 plus materials 80 so sell for 580 to make a reasonable profit . Even at 20/hour labor that's 480 sell price including materials at cost. I think the skill required to make quality knives is worth more than 25/ hour. Heck my hair cutter charges 24 and it takes her 10 minutes. At just 4 per hour that's 96/ hour. A good mechanic makes 35/hour but dealer charges 120/ hour. I think you are under selling the value of your time at 14/hour.