Selling knives

Brad Lilly

Moderator and Awards Boss
I struggle with selling my knives. By far the worst part of knifemaking is selling stuff in my opinion.

What do you guys use for a window of time for a buyer? When you get a "I will send the money today" and payment really arrives?
 
Brad,
When they say they will be sending the money,pin them down.
"I'll send you a check when I get my next paycheck".Ok,what date will that be? "This Friday".Friday the 13th? Yep! Ok so I should receive it Monday the 16th,right? Yep!
If you don't get the check on the 16th call them and inquire about it. If they tell you something new,pin them down again so you can know what to expect. If they fail to send payment two times I wright them off and forget about them, I don't even call or email them about it again.
 
For this very reason, I have regretfully started taking deposits on custom orders. All I ask for is enough to cover material costs. After the knife is ready for delivery, I give them 30 days to pay the balance. If it is an item for sale and is already finished, I expect payment immediately or it stays for sale.
It hasn't been a big problem but has happened frequently enough to start taking deposits. I don't like having to do it but I like being left holding the bag even less.
 
My buyers flake maybe one knife out of 50. I can tolerate that. Kind of like Calvin, I let them go a while, then give them a deadline. If they miss the deadline, I pull the plug on the deal and start looking for another buyer.

The deposit thing has stung many a knifemaker. I'd rather deal with the occasional flake than take deposits.
 
I took a deposit on one commission and hated every minute of it. I never did it again. I never took another commission after that either. It was really a negative experience for me.
If someone backed out of an arranged knife buy, I just listed it on the forums or my personal site.

This was when I was a part time maker and didn't depend on the income. A guy that is making a living at it has more demands on cash flow from his work.

From what I have read on the knife forums over the years, deposits damage more makers reputations than just about anything else I have seen if there is a problem. On the other hand, you have some makers that put months into a very high end knife and need to eat so they really do need to ask for a deposit.

I would suggest maintaining a mailing list of potential customers if a deal falls through and then sending out a picture, description/price and first come, first gets it email. If a customer buys one knife from you and likes it, they will often buy another.
 
I've heard horror stories about deposits too but I think most of those guys were taking deposits just to get on their list. I put guys on the list but don't ask for a deposit until I'm actually ready to start the work. That way if something goes wrong on my end all I have to cough up is 3 or 4 deposits which wouldn't be a problem.
 
I started asking for deposits very early on. I got skunked on 2 knives from 2 separate orders back when money from this one meant I could make another one. I'm still on a very tight budget. I tell people that I like to ask for X up front to help cover material costs etc. I then tell them this is completely negotiable and I'm willing to talk about it. If they cancel without giving me a chance, I'll gladly return what I haven't spent on materials. If they don't like the knife after it's finished, I'll give it all back. So far, everybody seems to understand and actually kinda like the no-bull approach. But I'm done trying to hunt someone down for a month or two trying to get paid. If it's done and you can't meet in a reasonable amount of time to take possession, I'll tell you to come pick up your refund whenever you're ready. Completed knives with no home make for great gifts to people who really want or need them. Theoretically it should work as long as i'm always open and honest about it. it's really more of a way for me to keep them vested in it.
 
Thanks for the great advice. I don't plan on ever doing deposits, I have read about a few guys getting caught with them. I guess I just keep my head down and press on
 
I've been told by others (outside the knifemaking community) that I should request deposits. I never have and probably never will. I've been fortunate enough to have not had any problems with customers paying. I'm sure that my volume of sales is probably much lower than most of our members here. I want my customer to be happy with what he is paying for before he pays for it. I'm confident enough in my ability that I feel that if the buyer backs out, it will sell to someone else, or it will make a good gift.
 
I'm still pretty new on the business side of things. But I grew up doing custom millwork and have a hard time seeing how building someone a custom kitchen or fabricating a knife is much different. I don't fully comprehend why a deposit up front is an issue... I guess if you get in a spot where ypu fail to deliver than you might have a problem. But how much are we really talking here? I try to get between 30-50% upfront and I'm a stickler. My deposits are non refundable unless I fail to complete the order altogether. I like the safety net of knowing my time and materials are not wasted if a buyer flakes and it keeps them involved in wanting the blade. I guess I'm still new and naive. But I'd like to believe I'm not alone on this.
 
I think where deposits become a problem is if there is considerable time between deposit and delivery. If you're taking orders with a two year waiting list, and taking people's money now for a knife you'll build two years from now, you are setting yourself up for a disaster. On the other hand, it is reasonable to occasionally take a deposit, particularly if you're going to have to buy some high end stuff up front. Here's an example of how I handle these. I had a guy order a set of six knives with Mike Norris stainless Damascus. As a hobby guy, I don't have the cash flow to front $400 for Damascus. I told the customer I'd take the order, and that I'd take a deposit when the Damascus was ready. I ordered the Damascus, and 6 weeks later when it was ready, I took a deposit. Four weeks later I was done with the set and took the rest of the payment.
 
I think that's the key Jason. I don't think anyone would want to, much less have to, put up a deposit on something that can't be delivered in less than 6 weeks. 90% of the time my customers have the finished piece in their hand within 2 weeks of my receipt of their deposit. Occasionally it takes a bit longer than 2 weeks but not very often.
 
i am still in the make for stock situation. i post a knife for sale when it is ready to ship. i know i lose a few $$, but i go thru Paypal, so i don't ship till money is in the bank and paypal doesn't pay me until the knife is delivered.
 
This is an interesting topic and I was surprised to read about people's experiences with deposits. I believe if you are doing it full time as your only source of income a deposit is a must for custom work. I was burned once on a commission and once is enough. For custom orders I require a 50% deposit with the remainder due on completion. This has had no negative effect on my sales but I also have a fairly fast turn around time of 1-2 weeks. I have been doing this full time as a young person starting out for 3 going on 4 years now and having those deposits starting out was often the only way to afford the materials to do my work.
 
I have always taken a deposit of half minimum for a commission with a delivery date specified of 6 weeks to 6 months depending on how backed up I am.

This has been my full time business since 96 and I have only had one problem client. This guy seemed to make a problem of most everything around him.

I do my best to get along and keep all people I deal with happy. When I took the deposit, I had a tinged in my gut saying this guy was going to be a pain. Sure enough I would get calls every week after we had agreed on all of the details and that deliver would be in 12 weeks. He would call and talk about all the things he might want to change every week. I would say, If you want to change anything now is the time to please tell me? "Oh No, I was just thinking!"

This went on for four weeks and I finally said, You are welcome to call and say hello but pleasssse! If you want any changes? Lets do them now!

"Oh No, I was just thinking. The man drove me so nuts calling every week sometimes twice, wanting to know again all the possible handle woods, steels and patterns etc.

I finally just mailed a check back to him for his deposit and said that I think things would work out better if we didn't do business and I wished him well.

So! If you haven't had a problem with a customer? You haven't sold enough knives! :3:
 
I have always taken a deposit of half minimum for a commission with a delivery date specified of 6 weeks to 6 months depending on how backed up I am.

This has been my full time business since 96 and I have only had one problem client. This guy seemed to make a problem of most everything around him.

I do my best to get along and keep all people I deal with happy. When I took the deposit, I had a tinged in my gut saying this guy was going to be a pain. Sure enough I would get calls every week after we had agreed on all of the details and that deliver would be in 12 weeks. He would call and talk about all the things he might want to change every week. I would say, If you want to change anything now is the time to please tell me? "Oh No, I was just thinking!"

This went on for four weeks and I finally said, You are welcome to call and say hello but pleasssse! If you want any changes? Lets do them now!

"Oh No, I was just thinking. The man drove me so nuts calling every week sometimes twice, wanting to know again all the possible handle woods, steels and patterns etc.

I finally just mailed a check back to him for his deposit and said that I think things would work out better if we didn't do business and I wished him well.

So! If you haven't had a problem with a customer? You haven't sold enough knives! :3:


OH YEAH !
The constant phone calls make you want to chuck thier knife in the swamp. The 'visits' are even worse if you're unlucky enough to be dealing with a local. They expect to see thier knife in your hands upon walking in...as if you have nothing better to do. Just one of these experiences is enough to change your mind.

Rudy
 
This is where the hobbyist has the upper hand. I make lots of knives, but I make em my way for me. I don't take orders, except from family. And if people want to buy my knives they can, if not they don't have to. I will keep em. They are my artistic release......
 
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