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Tuesday, July 7, 2015

KCT Prices-Why we do what we do

I was sitting down with a new business partner, and we got into a topic we're both passionate about:  price.

He mentioned that he had wondered if our prices meant lower quality before handling our products, which I found confusing.  Call it a side effect of being on this side of the coin. When he pointed out that Raven Concealment, G-Code, and the other big names were 2-3 times the price for similar gear, I started to get the picture.

This isn't a knock on the big names, I don't want you to get the wrong idea.  It's just a comparison on methods and cost savings

I've talked to reps and employees of some of the big guys.   I've found that most of the big guys are really wasteful in terms of material.  Like using about 2 times the material we use to make a similar product.

So, there's already a much higher production cost.  Then there's the overhead, but we won't get into that, as I can only speculate at the payroll costs and so on.  I can only tell you that ours is far lower, as we have a much smaller staff.

 So, our materials cost is lower, but how else are we saving money?  The big thing is our production method.  We have a unique way of building our holsters that ensures we can use roughly 90% of each sheet of material.  No, I'm not sharing that method.  But it works, and works well.

We also only charge more if we pay more to make that product.  For example, you order a holster in black from a company, it costs a certain amount, if you want it in FDE or OD, it generally costs more from them.  And it shouldn't.  The materials cost is the same for both colors.  Because the other guys get their materiel from the same place we do.  The next time you're on their site and the price goes up when you select the Coyote Tan option, I want you to really think about that.

The only thing we really have to charge more for is the patterned material, like Kryptek, Multicam and so on, and that's a flat charge from us.  All of our marketing, logo work, and design takes place in-house.  It's a big cost saver, sort of like not having to hire someone to write your lyrics as a singer.

This article might cause some outrage from the big guys.  People are shaking their fists at their pizza ovens, or looking at their Sunbeam griddles wondering if they're doing it wrong.  And that's up to them to decide.

When we came into the Kydex industry, we looked at what other people were doing, decided we weren't going to do it unless we could do it better, and for less consumer cost.  So we locked and loaded, and hit it hard. Years ago when these big guys were starting out, they put up a price point and said "yep, that's what these things cost," and it stayed that way for a long time. And you, the consumer said "OK, fine.  Hang onto my money for a few months, and then give me the gear, it's worth it."  And people were (relatively) happy with that for a long time.

But that's changing.  We're proving that every day, on every order.  We back it with a bulletproof lifetime guarantee.  Because we manufacture high-end gear.  Gear guys go downrange with.  Kit LEO's carry in.   Holsters and kit that are the lifeline for thousands of people.  Concealment gear for the shooters for multi-million dollar companies.

If you spend a dollar with us, it will go further than with any other company.  We stand behind what we do 110%.  We just don't make you pay double for quality- we believe that money should be going to ammo, training, and protecting your loved ones.

Give us a try.  I personally guarantee you will be impressed.

Ben Dakoske
Co-Founder, Kinetic Concepts Tactical

1 comment:

  1. I recently got a holster for my M&P 22 Compact from you and I love it!

    When will you be able to make Browning High-Power holsters??? :)