Is my business the first to die because of the election?


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longdayjake
November 6, 2008, 07:22 PM
I have been selling bullets for some time now and I even went the extra step to ligitimize my business through the state. I was doing fairly well until the election. Suddenly all of my bullets sold out in one day and my suppliers won't even return my emails or calls because they are waiting for prices to go up even more. So, here I am with bills to pay and no way to make any money because I can get no stock. Luckily I work a full time job somewhere else in the evenings, but what about others in my situation?

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streakr
November 6, 2008, 07:27 PM
Sounds like you're at the mercy of greedy suppliers.

s

bluez4u
November 6, 2008, 07:56 PM
Obama spreading the wealth.................

againstthagrane
November 6, 2008, 08:08 PM
how is it obama's fault that greedy suppliers are trying to maximize profits until a republican returns to office?

RPCVYemen
November 6, 2008, 08:29 PM
how is it obama's fault that greedy suppliers are trying to maximize profits

I have a pretty hard time blaming this on on Obama. What the heck did he do?

Have your suppliers told you that they are hording because prices are going up? It seems like they would have the same problem you do - they can't make any money w/o selling bullets.

Mike

Firethorn
November 6, 2008, 08:40 PM
Probably a symptom of the credit crisis. The suppliers can't get their stock because they can't get the credit to buy the stuff.

Also, you have a lot of panic buying by gunnies right now. Thus the 'suddenly'.

ranger335v
November 6, 2008, 08:48 PM
The OB comment was tongue-in-cheek guys. Don't be so up tight!

longdayjake
November 6, 2008, 08:54 PM
Sadly I didn't have much in stock because I couldn't afford to. When the buying craziness hit I sold $1000 worth of bullets in one morning. Now that I have a bunch of money to buy more bullets, the suppliers are either too busy to care about my measly $5,000 purchases or they just want to sell straight to the public rather than waste money on selling cheaper to the dealers. By-the-way, when I say I sell bullets I mean all I sell are the copper and lead projectiles. I don't sell fully loaded rounds. I don't know why but they have just stopped responding.

FMJMIKE
November 6, 2008, 09:17 PM
Obama spreading the wealth.................
Looks like the nuts are coming out again....Grow up !!!
:mad:

ants
November 6, 2008, 09:29 PM
Jake, I'm a small business owner too. What you describe is not an election problem.

Very small businesses depend upon immediate sales activity alone to maintain cash flow and product flow. There is no backup inventory, nor alternate supply sources. This puts the smallest businesses on the edge of subsistence daily, even in a healthy economy. Unfortunately that does not constitute a strong business position, for when it suddenly becomes a seller's market (something you dreamed about for years!) you may be left with neither the stock nor supply stream to capitalize. Without stock or supply, you die instantly. That's not the fault of the economy, that's just business reality at the bottom of the pile. Better planning and better capitalization may be the superior strategy next time. And I truly hope there is a next time for you.

Now, if only you decided to sell AR magazines rather than those damn bullets...

distra
November 6, 2008, 10:17 PM
I have a pretty hard time blaming this on on Obama. What the heck did he do?


Got elected. :neener: Seriously, sales of firearm related items are brisk. I'm sure your suppliers are tied up with other possibly bigger orders. I'd keep pounding on them 'til they call you back. My $0.02

SoCalShooter
November 6, 2008, 10:28 PM
I do not think it is obama's fault. We all knew ahead of time that if he got elected there would be a run on equipment in general.

crushbup
November 6, 2008, 11:11 PM
Look on the bright side: this panic buying has probably stimulated the firearms industry by a factor of 10. Hopefully it'll snowball into an invincible lobbyist group that will manage to keep any anti-gun legislation out of the pipes.

Monkeyleg
November 6, 2008, 11:28 PM
I was going to add Glock and other brands of magazines to my online store, but my distributors are either out of stock or the prices have gone up to the point where I can't make a profit.

Archie
November 6, 2008, 11:35 PM
Allow me this question:

Are the suppliers simply greedy and are waiting for the price to go up?

or -

Are the suppliers making and shipping bullets hand over fist and our friend Jake here is just down the list a ways?

Suppliers - like all other businesses - have to service their highest paying customers first. It's not a matter of being greedy, it's just how a business stays a profitable business. Add into that the factor of the price of lead and gilding metal is going up constantly these days.

Jake, I wish I could help you. I'm glad you have a 'day job'.

If it is President Elect Obama's fault at all, it is only because of the fear of his possible actions. That's a pretty far excuse to hang this on him. Not that I'm not passing certain as soon as he can, he'll start working on it.

Just Jim
November 6, 2008, 11:39 PM
If we didn't have the socialist Obama and his government I would suggest that you take the money you have and start making your own bullets. There is alot of people who want bullets now.

However the future won't be for anyone in business as the taxes are going to go up faster than gun prices have.

jj

Mossberg88
November 6, 2008, 11:43 PM
i'd hafta say that this is the effect of supply & demand, regardless of whether it may be spurred by the election.

longdayjake
November 7, 2008, 12:04 AM
I was going to add Glock and other brands of magazines to my online store, but my distributors are either out of stock or the prices have gone up to the point where I can't make a profit.

This is the biggest problem that I have run into. The cheaper suppliers are probably just too busy to worry about my little business because the big names are throwing more zeros at them.

If it is President Elect Obama's fault at all, it is only because of the fear of his possible actions. That's a pretty far excuse to hang this on him.

Nowhere in my post do I try to blame my problems on Obama. I said that the election did it. The majority of Americans elected leaders that have been known to hurt the second amendment. This has caused a rush to the stores to buy anything gun related. That is why my bullets sold so fast. I just didn't have the supply that I needed to keep up. So, one might venture to say that my business woes are a result of the fear that was created by the left taking power.

armoredman
November 7, 2008, 12:25 AM
Best of luck to you, sir. Seriously.

biggiesmalls
November 7, 2008, 12:49 AM
of course it's obama's fault. and you know what? blaming him isn't a bad thing either. if enough people blame him for enough things then we can take back our country in 2012.

CRITGIT
November 7, 2008, 12:57 AM
if enough people blame him for enough things then we can take back our country in 2012.

:D:D:D

I was thinking politics is forbidden here!

CRITGIT

rondog
November 7, 2008, 01:02 AM
I've bought a bunch of bullets from a guy in Phoenix that bought 3 or 4 (can't remember) Magma bullet casting machines, and makes bullets at home as a sideline. They're great bullets for a really good price, I should probably get some more. I hope he's got a good supply of lead.

moooose102
November 7, 2008, 07:00 AM
as much as i would like to, i cant find it obama's fault either. he hasnt even taken office. this is just paranoia sweeping through the ranks. once everyones "rainey day" money is gone, thing will get back to normal. of course by then, obabma will take office, and then things will get ugly. i cant blame you guys though. if i have $4-500 laying around, i would place a nice big reloading order, just in case. but, then what do we do, hoard the stuff? for how long? it doesnt make sense to quit shooting. how far will this paranoia go? i am the most paranoid person i know, so i am not critisizing anyone. but you have to draw a limit somewhere. unless you have VERY DEEP POCKETS.

Double Naught Spy
November 7, 2008, 07:10 AM
The fault of the election? Nope? The victim of a less than adequate business plan in a tumultuous market? Sure.

MAKster
November 7, 2008, 09:08 AM
Sounds like your business model is faulty. If your suppliers can go straight to your customers then you are an unnecessary middleman.

daskro
November 7, 2008, 09:13 AM
As a smart small business owner, you should have seen this coming. Perhaps you should have not over extended yourself as much as you did, otherwise you would have not had liquidity problems. Then again most small businesses fail due to under-capitalization.

thegooch
November 7, 2008, 09:24 AM
Sounds to me like you don't know how to run a business and now you're blaming the election b/c of it.

longdayjake
November 7, 2008, 11:51 AM
Sounds to me like you don't know how to run a business and now you're blaming the election b/c of it.

Yeah that must be it. If I had a lot more money to work with rather than using credit I would have bought a lot more bullets. Sadly I am a sole proprietorship and can't just throw up my hands and claim bankruptcy if the credit gets out of control. Most people I talked to about starting a business told me to get an LLC so that I could just claim bankruptcy if I got over extended. Though I admit it was tempting to do I thought at the time that I would rather avoid such problems and work with a reasonable amount of debt. As far as me blaming the election, I have the evidence in that even with the slow economy I was doing just fine to supplement my income until the day after the election. I set up this business so that it would not hurt me or my family if it was to go under but rather to support my taste in expensive firearms and in feeding them. I own and shoot a lot of guns thanks to this business. So, in my eyes my business was a success because I am now the proud owner of thousands of rounds of ammo, an m1a, ar15, m1 garand, and various other military and hunting rifles and none of these purchases has made it difficult to pay my other bills. Also I have built up some crazy credit all in my name. I can see how some people would think that my business plan was a failure but I just see it as a job well done that I just can't maintain forever. Those that have bought from me will attest that I run a business really well because I am always in contact with them and my shipping and customer service is excellent. I am not the only one having issues getting things in stock right now, but I may be the only one with nothing at all in stock. I admit to be kicking myself in the butt for not having maxed out every bit of credit I have before the election, but I decided to play it safe. If that makes me a bad businessman then so be it.

ants
November 7, 2008, 12:26 PM
Have other bullet sellers gone out of business this week after Obama was elected president?

Seems to me this is happening to Jake, but it is not necessarily wide spread.



Jake, take it from another businessman. Hang in there, bud. Keep the day job and hang in there.
You'll get your suppliers back. You'll get your customers back.
You're not the type to lay down and die. Keep kickin'.

Archie
November 7, 2008, 12:39 PM
Not blaming the whole world for a local misfortune; that's refreshing and actually encouraging.

I'm thinking about starting a small business when I retire. Something small that will keep me busy, give me a little profit and not destroy my life savings if it doesn't work out.

I understand the late "Colonel" Harlan Sanders (of Kentucky Fried Chicken fame) went bankrupt or bust numerous times before he finally made it big with the celebrated fried chicken recipe. It's hard to win if one quits at every dissappointment, and it doesn't sound like you're a quitter.

Life goes on.

Art Eatman
November 7, 2008, 01:17 PM
If you've watched commodity prices lately, you already know that they've fallen quite a lot. Base metals as well as other items.

Many suppliers had to buy during the runup in prices. They're holding, now, as much as possible, hoping for a re-inflating of prices so they won't sell at as much of a loss.

longdayjake
November 7, 2008, 02:04 PM
If you've watched commodity prices lately, you already know that they've fallen quite a lot. Base metals as well as other items.

Many suppliers had to buy during the runup in prices. They're holding, now, as much as possible, hoping for a re-inflating of prices so they won't sell at as much of a loss.

That makes sense.

missin44
November 7, 2008, 02:08 PM
Obama has nothing to do with it..blame your suppliers

longdayjake
November 7, 2008, 02:08 PM
This just in. I was able to get some bullets just now, but my prices don't reflect much profit. If they start selling like crazy then I guess I will get to raise my prices like everyone else. Sadly, I don't think they are that good of a price as it is. But don't tell anyone. They are still cheaper than anyone else on gunbroker.

ants
November 7, 2008, 02:30 PM
Great news, Jake!

nathan
November 7, 2008, 02:41 PM
A lot are hoarding like all of us. Its too early to tell what will happen next not until Obama is sworn next year. Ammo suppliers know this and they have them but wll not release .
Wait till further notice.

TAB
November 7, 2008, 02:47 PM
really you need to start a LLC... i would not start a biz with out it

rondog
November 7, 2008, 04:47 PM
I just contacted my supplier, he's been busy this summer laying in a stock of bullets to get ahead of orders. Just sent him a MO for 1500 9mm LRN's, 1500 .38 SWC's, and 1500 .44 SWC's. This is the guy I mentioned earlier with the Magma machines in his garage.

Double Naught Spy
November 7, 2008, 05:52 PM
This just in. I was able to get some bullets just now, but my prices don't reflect much profit. If they start selling like crazy then I guess I will get to raise my prices like everyone else. Sadly, I don't think they are that good of a price as it is. But don't tell anyone. They are still cheaper than anyone else on gunbroker.

It is kind of you to sell at little profit, knowing you don't have a good source with which to resupply. It seems awfully shortsighted of you as a businessman, especially given your opening post, to be doing that.

dirtyJ
November 7, 2008, 06:15 PM
The only thing I know for sure is that ammo prices didnt do so great under the Bush administration either...

longdayjake
November 7, 2008, 06:53 PM
It is kind of you to sell at little profit, knowing you don't have a good source with which to resupply. It seems awfully shortsighted of you as a businessman, especially given your opening post, to be doing that.

The reason I am not selling for much profit is because the bullets that I just bought were sold to me at higher prices then I am used to. Also, I bought a lot more than I probably should have and am hoping to pay off the credit as fast as possible. Once I pay off the credit I can relax and let my stock sit longer. Yes, that is short sighted but it keeps me out of trouble.

Rubble
November 7, 2008, 10:52 PM
Its called CAPITALISM. AND ITS GOOD.

jeff-10
November 7, 2008, 11:24 PM
Sounds like your business model is faulty. If your suppliers can go straight to your customers then you are an unnecessary middleman.

+1

Are you reselling bullets or loaded rounds? If bullets, then on a small scale it does not seem viable. Maybe you could start manufacturing them?

Flatbedder
November 7, 2008, 11:46 PM
As a buisness owner I will say this. Your suppliers will protect their largest and most important customers first. I run a trucking company that specializes in flatbeds. I have seen what has happened to the metal and scrap metal industries in the last 2 months. Not pretty. Just when smelting and mining companies were slowing down to adjust for the down turn there seems to be a spike in demand. Copper, brass, aluminum etc. If there is a lag in the supply chain, and therefore, a lag in production and distribution, what small inventory there is, is going to go to the largest customers first. Sorry, but that is just the economic facts. I just tried to log onto Magpuls website to order 10 more 30 round mags. Guess what? no more direct orders. They are only supplying to their dealers and distributors. Things will balance out, but it will take a few weeks to get production ramped up and supplies moving again. As a transportation company owner, I can tell you that things have slowed dramatically. It will take a while to get some loads out on the road and get the factories back up to speed. I believe there will be plenty of goods available before "Lord Obama" decrees that EBR's are no longer available to the commoners.

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