Well, let's try a little logic here:
1) According to Steipp's formula, the material and operation cost of one shot of 100 grams (80 grams net) for each set of knife halves is 100 dollars.
2) the mold costs were approximately $50,000 plus some additional for the reworks, say $60,000 total.
On the first run of 300 knives, then, we are looking at 100 plus 166 pro rata for amortized cost of mold.
This alone puts us at 266.00 per knife to break even on the first run.
This does not include degating and other finishing operations which Miltner Adams performed to produce a commercially viable knife.
Second, it is obvious that the pricing was in error, since MA was selling the knives at 260 dollars per piece. How do they make a profit on a run of 300 knives unless LQMT subsidized them, which they did.
Third, if they were making money at $260 a pop through Miltner Adams, then why would they increase the sales price to $320.00 when they are now making the knife and selling it direct from the LQMT website.
Not to mention the loss from absorbing the cost of marketing through the Knife Center.
Liquidmetal is still clueless as to how to make a profit, even with the black knife, because they are clueless as to how to make a sales projection on expectable future knife sales.
PS The color is not why the first knife did not sell.
Adding 60 per knife for the "alleged" price increase from making the knife black doesn't cut it.
No question, the barrel hinge is nice and crisp....but the reason a knife sells is due to its functionality and usefulness.
Rube Goldberg machines are nice too. But how many do YOU own?
