When knives don't quite meet Spyderco's quality control standards, they are notched on the spine and sold as factory seconds. Spyderco only puts seconds on sale once or twice a year. Buying a factory second can be a great way to obtain an expensive knife at an affordable price, but it will have at least a minor flaw of some sort and it will not be protected by a warranty. I picked up factory seconds of a couple of models I already own, so that I can heavily use the second while keeping the first-condition version in pristine shape for my collection.
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