Economic impact to online businesses


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k9kev88
February 13, 2013, 05:09 PM
wow, everywhere you turn online you see "out of stock, no backorder" ... if I was an online retailer I would be VERY CONCERNED about my shooting supply business over the next few months.

Anyone see anything in the news about this? I have to believe some of the smaller online shooting supply dealers are going to be in trouble soon and making the news...

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Grassman
February 13, 2013, 05:21 PM
I've wondered this too. After the stock is out the door, and you can't get anymore quickly, what happens? Live off your massive profits you've made over the past four months? That will dry up soon also.

exbrit49
February 13, 2013, 10:22 PM
Talked to my LGs owner this week and he is really concerned. With virtually no ammo, primers and powder in stock it is now hurting his gun sales. No one wants to buy a firearm that there isnt any ammo for.
He has kept his prices reasonable during this crazy time but is now concerned about the next 6 to 8 months. He sees them as critical. Everything is hard to get, with long lead times and the shortages are keeping the shelves pretty bare.
He has come down hard on hoarders and is actually now taking orders mostly from local regular customers and is vowing to hold the incoming items for them. (He has my list and will call as soon as they come in)
Personally I think thats a great attitude and I will keep my business with him. He is now taking lists of the items his regular customers need and is making them a priority. Sounds like a good business plan to me.
I hope other LGS are thinking about doing the same.

larryh1108
February 13, 2013, 10:34 PM
Well, they have a year's worth of profits from the last 2 months and they can't spend it on more inventory so where did it go? Keep in mind that many inflated their profit margins to cash in on the high demand. I would not be surprised if all the retailers have already reaped their last 2 years of net profit and it's only Feb 13.

Many businesses are seasonal. Many retailers make 80% of their annual profit in the Christmas season. This partly justifies the price gouging that is occuring throughout the industry. They are worried about having empty shelves? Well, that is a concern but they have already pocketed the profit for the entire year so it's time to give some of it back to stay open. If they are a well run business, they'll be fine. If they took the money and socked it away for a rainy day, it will be pouring soon. If they spent it on new cars, vacations and expensive homes, they won't be open very long.

Blakenzy
February 13, 2013, 11:38 PM
You would think enterprising individuals would figure a way to import massive loads of ammo from outside the US by now.

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