Why should I pay $25 to $400 for folding knife you ask? I can find one that looks just like the name brand one I want but for $8.95 at the swap meet or on the internet?
The answer is the same for all things: You get what you pay for. Secondly, if all you want is a knife for opening letters, packaged food products or to look cool on your desk, a cheap might do just fine. However, if you actually intend to use the knife as a utility tool, I strongly advise you to avoid buying a cheap knock off knife because it will break very easily, and the steel is often brittle or has a very low Rockwell hardness rating. Sharpening is also more difficult and the blade will not hold a sharp edge very long.
Another point to consider is the reliability factor. If you bought the knife for the wilderness, self defense or as an emergency tool, you want to have confidence in the strength of the locking mechanism, blade steel and general integrity of the construction. You do not want the knife blade snapping in half or popping right off the handles because of some minor lateral pressure if the blade gets stuck in some wood or other matter.
I had a few of these cheap knock off knifes and they are junk. They are weakly made with poor quality steels. I go to gun shows a lot and frequently see a table full of knifes advertised as