Knives can get very expensive, and if you're new to the hobby, you might be shocked to see some priced anywhere from a few hundred to a few thousand dollars. I know I certainly was when I first got into it. So, why do these knives cost so much? Are you being scammed—or is there a real difference between these and other good-looking knives that cost a fraction of the price?
Let’s break it down.
1. Low Production Numbers Drive Up Price
The first big factor isn’t just the cost of high-end materials—it’s the relatively low production volume. When you're only making small batches, the cost per unit stays high, and makers need a larger profit margin just to keep the lights on.
For example, a 50% profit margin is considered fair for most small businesses. A big company producing thousands of knives each month can get by with less. But a small shop producing just 10–50 knives a month still has to cover rent, utilities, and expensive machinery—which can easily cost $2–3k/month, even on the low end.
If you're only making 10 knives a month, those fixed costs get divided across fewer units—driving the price per knife way up.
2. High-End Materials Are Expensive (Especially in Small Batches)
It’s no secret that premium materials cost more, especially in small quantities. Like most things, the more you buy, the cheaper it gets.
So if you’re ordering 10 pieces of titanium or blade steel at a time, your cost per unit is much higher than someone buying 1,000+. That’s just another reason small-batch knife making costs more.
3. Tight Tolerances and Perfect Function Aren’t Cheap
High-end knives are typically built around two things: top-tier materials and flawless function.
Smooth, consistent action requires tight tolerances, which adds cost. It takes more time per knife, requires higher-end equipment, and results in a higher scrap rate. If one part is slightly off—it gets tossed.
Personally, when I release a new product, I build in a 25% material scrap rate into the final price. As I refine the process, I adjust that, but early on, it’s necessary to stay sustainable and price the product accurately.
4. One-Person Shops Wear All the Hats
For makers like me, it’s a one-man operation. I handle everything—designing, machining, marketing, customer service, packing, and shipping.
Larger companies hire teams to handle each of those steps, which improves efficiency. But when you’re doing it all yourself, your time becomes one of your most valuable resources—and it has to be factored into your pricing just like any skilled labor.
5. Distributors Take a Cut
If you sell your knives through a distributor or retailer, they typically expect around 25% off the retail price.
While it’s often worth it for the increased reach and larger orders, it still eats into your margin, and you need to build that into your pricing strategy if you plan to work with them.
6. Made in the USA — For Real
Every knife I make is made in the USA, in-house, by me. I also do my best to source U.S.-made materials and hardware whenever possible.
Is it more expensive to do it this way? Absolutely. But to me, it’s worth it—and a lot of my customers agree.
Final Thoughts: You’re Not Just Paying for a Knife
So why should you pay more for a knife made by a small shop instead of a big factory brand?
Because small makers put in real time, care, and craftsmanship to give you the best experience possible. They care about what they make—while many big companies just care about the bottom line.
This was a quick overview of why high-end knives are expensive, and the same logic applies to many other handmade or small-batch products.
There are other factors too, of course—but hopefully, this gives you a solid understanding of the pricing and what goes into each piece.
You’re not just buying a tool—you’re supporting a maker, their craft, and the hours of work that bring each knife to life.