Studying at Western University starts with a knife-forging competition

Chapter 113

"The doubts from domestic platforms have basically subsided," Zhang Yue began, turning on screen sharing to show the data spreadsheet she had compiled. "I have over 100,000 followers on Bilibili, and even more on Douyin. More and more people are asking about customized prices in the comments section, and I need a clear answer."

Lin Yuan leaned back in his chair: "Matt, tell me about your pricing plan first."

Matt turned to a new page in his notebook and cleared his throat.

"We've already figured out the pricing in the US market. High-end pieces—silver-iron alloy with cloud-patterned steel—start at $20,000, corresponding to orders at the level of Nielsen and Jason."

The budget-friendly lottery offers prizes ranging from $3,000 to $5,000, corresponding to standard Damascus steel craftsmanship, hunting knives or camping knives, with fixed blade shapes and simplified equipment.

He paused for a moment.

"Pricing in the Chinese market cannot be simply copied. Currency conversion is one thing, market affordability is another. A US dollar of 20,000 USD is equivalent to about 140,000 RMB, which can buy a decent used car in China. There are people who can afford to buy a knife for that price, but their numbers are extremely limited."

Zhang Yue nodded: "Moreover, the consumption habits of fans in China are different from those abroad. The overseas knife enthusiast community is more mature, and there is a large base of people willing to pay for handmade forgings."

The domestic market is still in its development stage. Many people only became interested in forging after watching your videos. It's unrealistic to expect them to spend tens of thousands of yuan right away.

"So we're not taking on high-end custom orders for now," Lin Yuan said. It wasn't a suggestion, it was a decision.

Matt made a note in his notebook.

"What about the budget version?" Zhang Yue asked. "Three to five thousand US dollars, which translates to twenty to thirty-five thousand RMB. Is there a market for this price range in China?"

Lin Yuan thought for a moment: "Yes, but we need to control expectations. People who can afford to spend 20,000 or 30,000 yuan on a knife won't use it to chop wood or cut bones like knife enthusiasts abroad. They're buying a collectible, a symbol of status, and a sense of identification with the video content. The performance can't be bad, but more importantly, it needs to showcase the craftsmanship and be unique."

"Then we'll use the standard Damascus steel process, with the same material ratio as the civilian version abroad," Matt said. "1084 and 15N20 are stacked, forged two to three times, with about two hundred layers. The blade shape is fixed for hunting knives or camping knives, and the equipment uses standard parts."

Low cost, short working hours, and controllable profit margin.

"What's the price?" Zhang Yue asked.

Lin Yuan did the math in his head. A budget-friendly hunting knife costing three thousand US dollars, plus the cost of materials, equipment depreciation, and labor, would yield a profit margin of about sixty to seventy percent in RMB at the current exchange rate.

If the price is too low, the profit margin will be squeezed, so it's better not to do it at all. If the price is too high, it will be beyond the affordability of domestic fans.

"Twenty to thirty thousand RMB," he said. "That corresponds to a price range of three to five thousand US dollars overseas. The specific price depends on the type of knife and the complexity of the fittings; a separate quote will be given when you place an order."

Zhang Yue typed a few lines on the keyboard, then looked up: "At this price point, we need to explain the difference between this and high-end custom-made products. Otherwise, fans will ask—why do people abroad spend $20,000 on your knife, but it only sells for 20,000 RMB in China? Isn't this discriminatory treatment?"

"That's simple," Matt chimed in. "The materials are different. High-end custom-made products in the US use a silver-iron alloy with cloud-patterned steel. Silver itself is expensive, and the complexity of the process is on a completely different level."

The Chinese budget version uses ordinary Damascus steel, resulting in lower material costs and a lower price. Just clearly explain the difference.

"Furthermore," Lin Yuan added, "I'm not going to forever refuse high-end custom orders in China. Once the market matures and someone is willing to pay the corresponding price, I can do it. But there's no rush now."

Zhang Yue wrote down these key points in the document and then turned to the next page.

"One more question. What's the process for domestic fans who want custom orders? Can they just message me directly? Or should we create a dedicated customer service channel?"

"I'll send you a private message first," Lin Yuan said. "You're currently managing the domestic account, and you'll be collecting all the fans' customized requests."

If you need a quote, just ask me, and I'll calculate it and you can get back to me. Once we get more orders, we'll consider creating a dedicated customer service account.

"What are the payment methods?"

"For customers in China, we'll use WeChat or Alipay. A 50% deposit will be paid upfront, with the remainder due before shipment. The contract will be electronic, and both parties will sign it to confirm." Matt tore a page from his notebook, on which he had prepared a list of terms. "I'll have my lawyer draft a standard template for these details. When you send it to the client, just fill in the price and the type of cutter."

Zhang Yue nodded and wrote those down.

"There's one more thing." She put down her pen, looked at the camera, and said, "Should we run a simultaneous giveaway on domestic platforms? Like the monthly lucky draws for fans overseas?"

Lin Yuan shook his head: "No. International shipping is too risky. Customs declaration, shipping costs, and the regulatory policies of various countries are all troublesome. If domestic fans have needs, they can use the affordable customized version. The price is about the same as the price of overseas lucky draws. No need for a lucky draw, just place an order directly."

"Are there any limits on the number of orders for the domestically made, more affordable version?"

"No limit. But the production schedule needs to be arranged," Lin Yuan said. "The orders I have on hand are already completed for Nelson and Jason, and the California hunting knife will be finished this week. After that, I can free up time to work on domestic orders. I take two to three orders a month, and I can't handle any more than that."

Matt did some calculations on his notebook: "Two to three orders a month, each order worth 20,000 to 30,000 RMB, plus high-end customization and lucky draws overseas, the annual income is already quite considerable. The key is to control the pace and not overwork myself."

"I know." Lin Yuan stood up, walked to the furnace, glanced at the thermometer, then walked back and sat down. "Zhang Yue, you can decide on the content update frequency for the domestic platforms."

I'll send you video footage regularly; you'll be responsible for voice-over and subtitles. You can specify the pricing in the channel description and the pinned comment for each video, so your followers can see it.

"Okay." Zhang Yue closed her notebook, picked up the tea on the table and took a sip. "That's all for today. I'll compile the meeting minutes and send them to your email. Once I confirm there are no problems, I'll start replying to fans' customized inquiries."

The video call has ended.

Lin Yuan closed his laptop and walked to the worktable. The handle patch for the California hunting knife had been polished, and the reddish-brown desert ironwood gleamed like amber under the light. He attached the handle to the keel, tested the grip, and then removed it, setting it aside to wait for the glue to cure.

Matt sent a message from the dorm, containing the meeting minutes Zhang Yue had just compiled. Lin Yuan opened it, glanced at it, confirmed nothing was missing, and replied with two words: "Received."

He put his phone back in his pocket, picked up his gloves, and walked to the furnace to heat the next billet. The coke in the furnace was already thoroughly burned, and orange-red flames peeked out from the gaps in the charcoal, reflecting off his face. He used tongs to grip the billet and feed it into the furnace, adjusted the damper, and then stepped back to wait by the material rack.

Daniel walked over from the office area, holding the folder in his hand.

"The registration list has exceeded two thousand, and it's still growing. It's growing faster on Instagram than on YouTube." He placed the folder on his desk and tapped the first page with his finger. "Of these people, how many will actually become customers?"

Lin Yuan glanced at the email addresses in the folder: "Two winners are available each month for the lucky draw. Conversion rate is not important."

The important thing is that they've taken notice, and they'll see our videos and know what we're doing. When they need a good knife someday, they'll remember us.

Daniel nodded, put the folder away, and went back to the office area to continue organizing.