Looks like manufacturers are jumping on the price wagon!


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dsm
December 31, 2012, 12:42 PM
I ordered a stripped upper from a vendor a couple weeks ago when their website said it was in stock. Well, I get an email today stating:

"We are unable to complete this order as T***** I******* increased their prices by several hundred dollars so we can't even begin to restock these items at a reasonable price. This order will have to be cancelled, you can resubmit a new order when we receive new pricing information from T***** I*******.

We look forward to future business when the market slows back down and parts become available again."

I know how supply and demand works, but I am getting the hint that the manufacturers are provoking it!!

Unfortunately, I'm stuck in the middle of an AR build and absolutely refuse to pay $200-$300 for a stripped upper, $300-$400 for a BCG, etc!!

So I will wait it out several months to see what happens. I definitely won't loose any sleep by not having an AR as a safe queen!

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Derek Zeanah
December 31, 2012, 12:58 PM
Here's the other side of the argument:

You're a manufacturer. You have the facilities required to keep up with normal demand. Now you're dealing with 3-4 times normal demand. You want to ramp up production to compensate. What do you do?

Well, probably a mix: Increase the number of shifts worked. You'll experience an additional 50% labor cost due to overtime, plus increased employee turnover rates and an additional training cost as a result.
Increase capacity. If you're making your parts on those fully automated CNC machines, then you're looking at 6-7 figures per machine (I've seen some that cost > $1 million used in firearm production). That's going to be financed by loans, which may not be at good rates (are you going to be able to use these machines in 6 months with the new AWB push, or will they be sold for 20% of the acquisition cost when you end production?)
Maintenance windows are going to be stretched, so you can keep the machines running a greater percentage of the time, so you'll see more wear on machines and more waste as out of spec machines crank out products that exceed acceptable tolerances before the problem is caught in your testing methodology.
How about supplies? Are your regular aluminum suppliers going to be able to provide the grade of aluminum you need at 3x the quantity they delivered last month without increasing costs? They have the same problems you do re: production capacity.And on and on. It's not like Colt can double their production (not enough to keep up with demand) and maintain their same costs. Their costs go up, and they pass that on.

Robert
December 31, 2012, 01:33 PM
Derek hit the nail on the head.

robMaine
December 31, 2012, 01:39 PM
I feel lucky, I am in the middle a Varmint AR build, and I have been able to get every part for Pre-Panic prices. Search around, sign up for in-stock notifications on reputable websites, be patient, etc...

Additionally, I am not convinced that manufacturers have increased their prices that much. I think some less then ethical sellers are blaming their greed on that, but I read(can't find source), that some manufactures have issued statements saying they have not increased prices.

dsm
December 31, 2012, 01:59 PM
Good points...I never gave that side of the argument much thought at all and its all totally understandable.

Hopefully in 6-8 months, the supply and prices will fluctuate back to a normal state. Until then, no AR build for me unless I find what I need at a decent price. OR, I could cash in and start a custom 1911 build...something I would actually use! LOL

tomrkba
December 31, 2012, 02:47 PM
Just wait. This will blow over when no AWB is passed. They don't have the votes and they know 2014 will be awful for anyone who voted for it.

ChooChoo
December 31, 2012, 03:26 PM
They don't have the votes and they know 2014 will be awful for anyone who voted for it. This will be a knee-jerk response just like the AWB. With a much worse situation where 20 children and 7 adults were massacred and our legislators will feel pressure to do something; even if it's wrong they will do something.

Our saving grace is if enough legislators are contacted with rational requests and also with the advisement that you will actively campaign for their absence in congress after the next election. Pehaps this will soften the repsonse and milder restrictions or limited time restrictions will be passed rather than severe restrictions resulting from you doing nothing now.

History has proved that it's infinately easier to maintain your rights rather than trying to get them back after losing them.

nathan
December 31, 2012, 03:44 PM
Every money loving gun maker and seller right now wants to sell their guns and what not 4 times the price value . Everyone wants to max their gain in these panic stage. The media is feeding it and also from the White House.

Dr. Sandman
December 31, 2012, 03:57 PM
Unfortunately, I'm stuck in the middle of an AR build and absolutely refuse to pay $200-$300 for a stripped upper, $300-$400 for a BCG, etc!!



Just a thought: You're in the middle of the build. I assume that you have the receiver already. According to the current regs, that's the gun. You already have an AR. Just wait for the prices to become more reasonable.

And I agree with Choo Choo, it's time to be proactive and make some polite noise in the direction of your representatives.

AlexanderA
December 31, 2012, 04:13 PM
They're just following the advice Sam Colt gave to his managers in 1861: "Make hay while the sun shines!"

MachIVshooter
December 31, 2012, 04:18 PM
DS Arms pricing is still very reasonable (small increase, ~$30 on complete uppers)

Downside? 4-6 month backorder.

Order your upper, they'll charge your card, then credit is back a few days later until your order is ready.

tomrkba
December 31, 2012, 06:40 PM
No, ChooChoo, it's the realistic response. Do the analysis of Congress (or poke around). They don't have the votes.

Obviously, everyone has to pressure these people to make sure they vote correctly.

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