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Young Entrepreneur Forums » General Business » General Business » How the heck do infomercials sell knives so cheap?



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Old 11-21-2004, 05:59 AM   #1 (permalink)
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How the heck do infomercials sell knives so cheap?

Like www.ronco.com sells a 30 piece set for $40, and I remember www.miracleblade.com having a huge set for only $20. I checked the s&h for the knives ronco sells and it's only $16.80 fedex ground for me.

<edit> BTW the price for miracle blades is on the infomercial only and not the website. I'm thinking about getting both the knives from ronco and the miracle blades to compare the two since they're so cheap. If I don't like something I can always give it to a friend.

Last edited by guitarizt; 11-21-2004 at 06:05 AM.
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Old 11-21-2004, 11:23 AM   #2 (permalink)
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I've never ordered them, but a few ideas:

- They make some money on the shipping
- They try to push extra products (ie - a knife rack)
- They use your name/address to market additional products
- They try to sell you extended warranties
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Old 11-21-2004, 10:26 PM   #3 (permalink)
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- They try to sell you extended warranties
Heh... When they do that, just ask them "I thought you had a good product, what do I need an extended warranty for?"... That usually gets them, LOL
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Old 11-21-2004, 11:29 PM   #4 (permalink)
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It's the quantity. There's a 99% chance the knives are either made in China or Taiwan. Most likely China. They cost well under a buck a knife to produce when high quantities are ordered.

The infomercials cost about $30,000 to shoot and produce and if the product isn't selling they can pull the ad.
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Old 11-25-2004, 06:07 AM   #5 (permalink)
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Wow, a dollar per knife? I guess that answers my question. Has to be true since lots of these sets are less than $2 per knife. After all they can't be selling this stuff for a loss.
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Old 11-27-2004, 09:05 AM   #6 (permalink)
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When you pay in installments you get charged with interest.
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Old 11-28-2004, 01:14 AM   #7 (permalink)
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Jimmie got it, the answer is volume and cheap (sweatshop) labor. The same 5 year old who makes Nikes is making those ronco rotisseries too... unfortunately
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Old 11-28-2004, 02:03 AM   #8 (permalink)
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Jimmie got it, the answer is volume and cheap (sweatshop) labor. The same 5 year old who makes Nikes is making those ronco rotisseries too... unfortunately
Volume and compounded interest on those payments man, you've gotta be nutz to buy those knives... or maybe lonely or depressed.... kinda like watching the Anthony Robin's infommercials...hahaha!
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Old 11-28-2004, 11:37 AM   #9 (permalink)
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That guy's mouth is too big. I don't trust him. *shifty eyes*
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Old 12-08-2004, 09:41 PM   #10 (permalink)
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Like everyone else has said here, it's volume.

What's really interesting is that you can find another distributor for those types of products and get them cheaper. You'd have buy in quantity, but I've found some local places that sell those products and the minimum buy is 4 units depending on which product.

You just have to work yourself up the distribution chain. Takes some time, but it is worth it.
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