What's the story on SAK prices? Yikes!

[Singh]

I've been out if the loop on SAK prices, and now that I'm paying attention prices appear to have gone up by about 30% from a few years ago.

I know prices only go up, but.. yikes!

Anyone have the inside skinny on why? I won't accept "inflation" because it's made-up b.s. that corporations do to increase profit margins to look good for stockholders. This doesn't apply to Victorinox (they're privately owned), and their history of consistent ethics runs contrary to  price-gouging.  I won't assume the worst of them.

 Victorinox raised prices.. so it had to be for a good reason. So, what is it?

My guess: lowers sales due to stricter European knife laws ( plus a culture more adverse to pocket knives),  so they're increasing prices to make up for lost revenue.

[gustophersmob]

I’ll have to respectfully disagree with the premise. Inflation is not made up, and no, every company didn’t just decide to get extra greedy the last few years.

In 2020 alone the US Federal Reserve created $6 Trillion dollars out of thin air (80% of all US dollars have been created in the last 4 years).  This isn't even accounting for what the SNB, ECB, BoE, etc printed.  This, by definition, is inflation, and it is being reflected in prices of everything.  Victorinox is not immune to it.

[Luke Walker]

I actually do think that general price increases play an important role:
- wages in Europe have gone up by 5-8 % in the last year alone. Not only the workers at Victorinox are affecting that but also the staff at the retailers. This also plays into the sales price of the product.
- transportation costs have risen due to increased fuel prices. All the steel used by Victorinox must be transported to the factory and then to the customers worldwide.

I think Victorinox knifes are a bargain. Think about it: a Kebap in Switzerland costs about 10-12 Swiss francs. A Climber (street price of 25-30 SFR) is basically 2.5 kebabs. Or if you like coffee (4-5 SFR a cup) - that's 5-6 cups. For a tool that is made with great precision and quality, backed up by a lifetime warranty and that provides so much utility over your lifetime - it's a steal in my eyes.

I seriously hope Victorinox is making enough margin for the company to survive long-term. Because I want them to be around in 50 years, so they can repair my knives...  It would be sad if my future grandkids would grow up in a world without SAKs and would only be able to buy a Chinese made pocket knife.

[LoopCutter]

Price of steel significantly increased in last few years just because of supply and demand .

Stainless was affected more than other just because manufacturers need for many purposes.

[IMR4198]

I looked is a wholesale catalog from 1990. Today. Wenger Handyman retailed for $37. Dealer cost $21. Equivalent to a Vic Huntsman. More or less. Huntsman prices are still reasonable 34 years later. Best wishes. G

[IMR4198]

 

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[Singh]

I think Victorinox knifes are a bargain...

I seriously hope Victorinox is making enough margin for the company to survive long-term. Because I want them to be around in 50 years, so they can repair my knives...  It would be sad if my future grandkids would grow up in a world without SAKs and would only be able to buy a Chinese made pocket knife.

Agreed!

[Swisster]

Climber's for $30 and Huntsman's for under $35 is still a great deal. Most of the 93mm Alox has jumped up majorly in price but the Swiss Army 7 / Harvester is still a great price at around $40

[Farmer X]

Around the turn of the year, Knife Center sent out a promotional e-mail advising folks to make SAK purchases before Victorinox increased prices. An additional $2 for a Pioneer wasn't as cataclysmic as I figured the increases would be. Certainly there are a lot of factors in play here, and inflation is one of them.

[Tasky]

By contrast, Leatherman prices have generally increased to 40% over and above inflation...

[Enginears]

I know it has been mentioned here before, but aren’t SAKs relatively cheaper than they used to be in the 50s-70s?

I may try to go back and look at the prices in the old catalogs, adjust for inflation and compare to current pricing. I think it would be interesting.

[powernoodle]

By contrast, Leatherman prices have generally increased to 40% over and above inflation...

Leatherman's corporate and other taxes are increasing at an astounding rate, which is an outgrowth of the demographic in Portland.  They should move to Texas or Tennessee.

"Portland has the highest business taxes—on small and large businesses, and pass-throughs and corporations alike—and the second highest top marginal rate on wage income in the country."  https://tinyurl.com/3yckbzsb

This is not a political statement, since we don't do that here.  Its just a fact, which is partially responsible for Leatherman's ballooning MSRPs.

Throw in inflation, which took off after trillions of $ were injected into the economy after the pandemic.  Plus, there appears to be a strategy at Leatherman to weed out MTs with lower margins, like the PS4 and Squirt, and you end up with an absurd MSRP of $229 for an MT.

Makes me thankful that I hoarded Leathermans, SAKs and other MT brands when the prices were reasonable.   I bought a used ARC just to be part of the Kool Kids' Club, but beyond that have pretty much stopped buying SAKs and MTs.

[Farmer X]

This is not a political statement, since we don't do that here.  Its just a fact, which is partially responsible for Leatherman's ballooning MSRPs.

It is an astute observation. Though I noticed the price hikes, I hadn't considered that location might be causal.

[EMZ]

A few weeks ago I spoke briefly with someone from Victorinox in Switzerland. He told me business was still fine, but they had to skip some models because sales of these very models weren't good anymore. They surely look at the sales numbers and profits!

I also think Victorinox has to pay an undisclosed amount of money to the federal Swiss Procurement Agency ('armasuisse')  for the licenses to use the brandnames "Swiss Army Knife" and "Swiss Military".

For example: A ticket for the rockband Rammstein costs about $120. Parking $65, taxi (return ticket parking lot - entrance) about $100. Drinks, booze, food, drugs and traintickets are also expensive. After a few hours of partying everything you paid for is history. But a SwissTool when properly used will outlive you, and cost a lot less. I will take the multi-tool! 

[Swisster]

I would take a Classic SD over Rammstein

[meserie]

I would take a Classic SD over Rammstein

 

[G-Dizzle]

By contrast, Leatherman prices have generally increased to 40% over and above inflation...

Leatherman as a company has lost me lately between price hikes, not listening to the customers, and reported QC issues. I am glad that I like the ones I bought years ago. I hope they are able to get back to form.