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Shooting Industry, Sept, 2000, by Cameron Hopkins
Listen up: If you're not selling "tactical folders" in your store, you're missing out on the hottest profit-makers since high-cap mags were banned. Designed for self-defense and coming from major manufacturers at price-points ranging from $29.95 to $299.95, these black-handled beauties typically offer a dealer 30 to 50 percent margins.
"The profit margin for dealers is great," says Scott Bennett, president of CFI. "They can make on one knife what they make on five Smith & Wessons."
CFI, a Dallas-based distributor specializing in high-end firearms like Les Baer Custom, Wilson Combat and Knight Armaments, has become the leading national distributor of tactical knives, offering a complete inventory of the hottest sellers: MicroTech, Benchmade, Columbia River, Spyderco, Kershaw and Emerson Knives.
For example, the new LCC model from MicroTech sells to dealers for $109 with an MSRP of $159. That's as much profit as many dealers would make on several handgun sales. "Dealers are used to making two percent on a gun. We offer them 50 percent margins and much faster turns," said MicroTech's Anthony Marfione.
That's a hugely attractive line of accessories and one that is growing fast. "Over 50 percent of our dollar volume is in knives," said Bennett, ostensibly a "firearms" distributor. "It's the best kept secret out there."
Guns & Knives
Secret indeed. The knife industry traditionally sells its wares through specialty cutlery shops and mass merchandisers, but the red-hot trend in tactical knives has attracted a whole new swarm of customers: gunners.
Today, leading knife companies display at the SHOT Show and run national ads in gun magazines. The ads are working, too. "Our best draw by far is American Handgunner. It out-pulls all the knife magazines combined," said Ernest Emerson of Emerson Knives.
Midwest Gun Exchange, a gunshop located in of Mishawk, Ind., even had a booth at the recent Blade Show, the knife industry's biggest consumer show. "Knives are a big part of our business," said Midwest's Tom Wikeson.
Sizzling Sales
If tactical folders are hot, "collaboration knives" are sizzling. Collaboration knives are joint ventures between manufacturers and custom knifemakers with the custom bladesmith providing the design and the manufacturer producing the knife with economies of scale at work.
Benchmade Knives, the industry leader in collaboratives, has enjoyed dotcom growth since delving into custom-knives-at-factory-prices by working with cutting-edge designers like Allen Elishewitz and Mel Pardue.
The Benchmade Model 720 Mel Pardue Folder was voted the 2000 Knife of the Year by the 400-member Shooting Industry Academy of Excellence. The premier knifemaker has received this top industry award for an unprecedented three years in a row.
Spyderco started the collaboration movement with a Bob Terzuela design in 1990. Since then the trend has grown to the point that you would be hard pressed to name a manufacturer that doesn't offer a collaborative knife. Even Buck Knives, the most tradition-bound of all the manufacturers, is offering two: a Kit Carson line of fixed blade fighters and a Mick Strider designed folder.
Kershaw jumped on the collaborative bandwagon two years ago with Ken Onion's landmark "speed safe" design. In just two short years, Kershaw has emerged as a major player in the tactical world, thanks to its association with Onion.
"The beauty about collaborating with custom knifemakers is that the makers have done a tremendous amount of development and design work -- the actual legwork of making a new knife. We then have to make sure we can faithfully reproduce their designs," said Rod Bremer of Columbia River Knife & Tool (CRKT), the leading maker of affordable collaboratives.
Beginning in 1994 with one collaboration, CRKT now does over 60 percent of its volume in collaboratives. "It's just gotten stronger and stronger in the last five years," said Bremer.
Money Makers
Overall, the knife business is thriving. "The knife market as a whole is extremely strong right now," said MicroTech's Marfione.
MicroTech is the number one selling brand in the tactical niche, according to CFI's Bennett. In addition to a full range of manual opening knives, MicroTech offers an extensive line of automatics -- "switchblades," if you must.
Going one step further, MicroTech won "Collaboration of the Year" at the Blade Show for its double-action LCC model based on a Greg Lightfoot design. (A double-action refers to an automatic knife that can also be opened manually.)
"Everything that I would have done, they did," said bladesmith Lightfoot. "It has the same quality as a handmade custom."
Billy Bates of Buck Knives summed up the attraction of tactical folders thusly: "People want a utilitarian knife with good value that's going to last."
Knives are highly profitable, take up little shelf space, offer fast turns and stimulate impulse buying. How can you say no to that?
Selling Tactical Folders
To maximize your investment, work with a good distributor who knows knives. A good distributor can tell you what knives are selling, alert you to new offerings on the horizon and help you to pick a starting inventory. One of the best is CFI of Dallas. Scott Bennett, president of CFI, offers a unique return policy on all knives (20 leading brands): If an established dealer cannot sell a given knife in 30 days, he can return it for full credit. CFI can be reached at (817) 595-2485.
Inside tips:
* If you're only going to stock one brand, make it MicroTech. It's CFI's best seller. Benchmade is a close second. These are the top two "upper end" brands.
* Spyderco is a great all-around brand with a wide selection of models. Price point is mid-range.
* Columbia River Knife & Tool offers the best "bang for the buck." Excellent quality and features in the low-price point bracket.
Hot New Tactical Knives For 2000
* Kershaw's "Boa," a collaboration with Ken Onion
* Buck's "Strider," a collaboration with Mick Strider
* MicroTech's "LCC," a collaboration with Greg Lightfoot
* Emerson's "Mach One," an Ernest Emerson design
* Benchmade's "Axis Folder," a collaboration with Warren Osborne and Mel Pardue
* Columbia River's "Navajo," a collaboration with Jim Hammond
Selling Points for Tactical Knives
* Most feature liner locks or other sophisticated locking mechanisms -- much safer and stronger than traditional lockbacks.
* Thumb-stud opening feature is a practical advantage -- one-handed opening is easy.
* Pocket clip feature is a great convenience. The most comfortable and accessible way to carry a "pocket" knife.
* Today's designs feature the latest blade steels for rugged use and edge-holding capability.
* There are many times a gun is not available. Having a defensive knife for backup is another layer of protection.
* Collaborative knives offer custom quality at production prices. No lengthy waiting list for an original from a custom maker.
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