Ruger Prices Going Up


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trailgator
December 21, 2007, 12:23 PM
I picked up a pistol at my local gun shop Tuesday, and was informed that Ruger was raising prices 13% across the board as of 1/1/08. I'm sure they aren't the only one. Has anyone heard of any other manufacturers doing this?

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Ed Ames
December 21, 2007, 12:33 PM
They aren't raising prices. Your dollars are worth less.

The dollar has lost more than 13% of its value over the last year. In January of this year 1 US Dollar would buy 1.17 Canadian Dollars. Today it will buy 0.99 canadian dollars. Roughly the same loss is seen relative to most currencies.

Expect imported firearms to get a LOT more expensive, but all firearms will get a bit more expensive because metal is an international commodoty. A drop in the value of the dollar makes it harder for a US company to bid against companies in other nations for raw materials like steel. Also expect other types of impact because the cash reserves of a company like Ruger are likely mostly in US dollars but the materials they buy are also bought by companies with their reserves in a stronger currency, so Ruger, S&W, and others have basically lost 17% of their money. The money they would use to buy raw materials to make our guns.

:(

ArmedBear
December 21, 2007, 12:35 PM
Ruger does that every year, it seems. Some of their guns are worth a bit more; others go from a decent gun for a decent price to "No way!" IMO, the standard 10/22 has already crossed the line, and unless there's a new AWB that kills the competition, the Mini-14, even "new and improved" has been pushing it for a long time. 13% MORE? $800 retail will just make the AR more attractive.

USFA, assuming they're not already selling every gun they have the manufacturing capacity to produce, has got to be pretty happy that Ruger is jacking up the New Vaquero's street price ever closer to $600.

Beretta just nudged US prices up. But they have exchange rates to worry about, too.

Of course, $3.60 for Diesel isn't helping American companies keep their costs down, and metals keep going up as worldwide industrialization continues.

Still, a lot of the price of a gun is the value added in manufacturing, not the raw materials or transportation. Steel doesn't cost that much, and modern shipping is pretty efficient. Some of Ruger's prices go up because they think they can get the money they want to charge (there's no reason a 10/22 costs more to produce than a Marlin 60). If they can, then they were right. If not, they'll find out soon enough. Note the frequent dropping of products from their line.

WRT exchange rates, they're a two-edged sword.

If the dollar is high, imports are cheaper in the US and exports are more expensive for foreign buyers. So in the modern global economy, manufacturing migrates out of the US because it's cheaper to make things elsewhere, and because our products become too expensive for others to buy. Unemployment and loss of whole industries are real threats. But the US consumer can buy a lot of stuff for a good price.

If the dollar is low, imports are more expensive in the US and exports from the US become cheaper for others. So it becomes attractive to make things in the US, both because foreign goods are more expensive here, and because foreign buyers want to buy US products when the prices are better. That often means higher employment in the US. The US consumer, however, has to pay more for goods in a global economy when the dollar is low.

The dollar went up, probably a bit too high, because foreign investors were buying US securities. Obviously, money that came to the US to buy mortgage debt and real estate is not happy money now. And little new money is flowing in after it. So more people are exchanging dollars for other currency, driving the dollar's price down. It's not really about what the dollar is "worth" in some abstract sense, any more than a given day's stock price perfectly represents the real value of a publicly traded company.

That's one reason the Gold Standard people want the dollar tied to something tangible and unchanging. However, we had economic problems with that, too, just different ones, as I recall. So I have no idea who is right, or what "third way" might work better.

HOME DEPOT GEORGE
December 21, 2007, 01:12 PM
It might also depend on where you live I just picked up a new single six at bass pro in orlando for 310 dollars and my 50th anniversary flattop for 429 at a lgs. Anyway even if they do go up I will still buy ruger over anything else since they will outlast most any other pistols.:cool:

ArmedBear
December 21, 2007, 01:15 PM
Their revolvers remain worth buying after an increase.

Some of their long guns are only about 10% away from ROTFLMAO as it is now. I do remain happy with the one Ruger long gun I still own, though.

Omaha-BeenGlockin
December 21, 2007, 01:17 PM
If nobody buys it -- the price will come down. Happens all the time.

Ruger historically raises prices at year end---if you want one bad enough--go ahead and pay it----if not, wait around awhile and the price will come down.

Ed Ames
December 21, 2007, 01:37 PM
ArmedBear... that's a good writeup.

I suspect the gun industry has special issues with the Dollar's value because the US is the largest small arms market. As the dollar continues to collapse US manufacturers are going to be somewhat insulated... but guns are a small part of my annual budget so I'm still kinda bitter about the whole thing. No, I'm downright unhappy about taking an involuntary 20% pay and net worth cut with no recourse so that the stock market numbers look good to people who only look at uncorrected numbers. :(


Still... it's worth knowing that imported gun prices are going up more than US gun prices. If you want that bargain CZ or whatever now's the time to buy.

CB900F
December 21, 2007, 01:56 PM
Fella's;

The scuttlebutt I've heard is that almost all shooting related items are going to see a significant price hike in early 2008. Ammunition and components in particular.

900F

paintballdude902
December 21, 2007, 02:11 PM
Expect imported firearms to get a LOT more expensive

ruger is still made in the U.S. OF A

im glad i got my single six last year for 230

Ed Ames
December 21, 2007, 03:07 PM
Paintball... yeah, that's why the sentence continued: "but all firearms will get a bit more expensive..."

Imported firearms will get a LOT more expensive, all firearms will get a bit more... and US guns made with imported parts will fall somewhere in the middle.

:rolleyes:

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