Bonus guns for gun shop salesmen?

[Laphroaig]

Has anyone else heard of this? A friend of mine was telling me about a mutual friend who recently started working for a local gun shop. Apparently, Smith and Wesson rewards salesmen by giving them bonus guns after they sell so many of their products.

Apparently this guy has received 3 new Smith's so far.

Laphroaig

 

[Swing]

I've heard of it. Back in May, whilst buying/getting the transfer on a silencer started at the local FFL/SOT that was taking forever, the owner's wife/co-owner referenced the S&W give away. She said they met the quota, but Smith was so far behind on orders, they hadn't sent the free handgun yet. True? Beats me, but they are normally straight shooters, no pun intended.

 

[mnrivrat]

I am sceptical they would reward salesmen for their productivity. I could see them dealing with the owners in giving bonus guns with the ordering of some qty of their product, but no individual sales persons.

"Recently started working" and three bonus guns already is also hard to believe.

 

[monk d]

I guess it is possible that the owner of a LGS could reward his/her sales people by giving bonus guns, or, Smith and Wesson could reward their own factory reps with bonus guns, or, like what was said above, a manufacturer could reward a LGS owner for one reason or another, but the original post seems to suggest that a LGS salesman was rewarded directly by S&W, which does not sound like something they would do

 

[AlexanderA]

This tells me several things, none of which is a complete surprise:

1. S&W is cash-poor, so that it has to pay incentives in kind rather than in cash;

2. S&W is desperate to sell product;

3. It is, in fact, making some sales;

4. The markup per unit, to the manufacturer, is high enough to allow the incentives.

Conclusion: depending on how you look at it, the glass is either half-empty or half-full for S&W.

(In most businesses, under these conditions, you would boost demand by cutting prices. S&W must believe that demand for their guns is not price-dependent. The elasticity in the gun market is dependent on external factors, such as the threat of restrictive legislation.)

 

[Ryanxia]

I am sceptical they would reward salesmen for their productivity. I could see them dealing with the owners in giving bonus guns with the ordering of some qty of their product, but no individual sales persons.

"Recently started working" and three bonus guns already is also hard to believe.

This is what I was thinking.

 

[jmr40]

It is very common. A lot of wholesalers offer deals to gun shops to encourage them to buy in bulk. I've several close friends in the business and they often get offers saying that for each 6-12 of gun "A" they purchase they will send 1 gun "B" free. None keep the free gun for their personal use, but put it on the shelf to sell. It is just a way to discount for bulk purchases. Most of the time the free gun is something that is a slow seller, but it will let the local gun shop mark it down really low, advertise the fact, get customers in the store and hope to sell them something else. When it does sell, at any price they still make money.

Some brands must be purchased through wholesalers, others directly from the manufacturer. Many manufacturers do the same. One local store had to purchase a minimum of 50 Benelli semi-autos, but got several Nova's thrown in free.

I suppose a local shop owner could choose to use the "free" guns as a reward or bonus for his employees if he chooses to do so.

 

[dogtown tom]

mnrivrat I am sceptical they would reward salesmen for their productivity. I could see them dealing with the owners in giving bonus guns with the ordering of some qty of their product, but no individual sales persons.

"Recently started working" and three bonus guns already is also hard to believe.

Many shop owners use the incentive guns to reward good employees. The most successful salesmen are commission based.

Several manufacturers have programs where the dealer buys X number and gets X number free: Some are as low as "buy 5, get 1 free"
Here's a few

ATI 2014 Stocking Dealer Program
Beretta Stocking Dealer Px4 Promotion
Colt Pocketlite Free Laser Program
Diamondback Firearms 2014 Stocking Dealer Program
GLOCK 2014 Stocking Dealer Program.
HK Stocking Dealer Program
LaserMax Dealer Rewards program
Rossi 2014 Stocking Dealer Program
Savage 2014 Stocking Dealer Program
SCCY Summer Dealer Special
SCCY 2014 Stocking Dealer Program
SCCY Retail Reward Program
Springfield Armory 2014 Stocking Dealer Programs
Taurus 2014 Stocking Dealer Program
Walther Stocking Dealer Program
Windham Weaponry Dealer Appreciation Program

AlexanderA This tells me several things, none of which is a complete surprise:

1. S&W is cash-poor, so that it has to pay incentives in kind rather than in cash; No manufacturer pays cash incentives, its almost always in product. Heck, Sig was giving consumers a free .22 pistol with the purchase of a centerfire pistol a few months ago.

2. S&W is desperate to sell product; Where have you been the last nine months? All manufacturers are desperate to sell product.

3. It is, in fact, making some sales; Funny how sales incentives work isn't it?

4. The markup per unit, to the manufacturer, is high enough to allow the incentives. It's nothing new. It's not just S&W. Not even newsworthy.

Conclusion: depending on how you look at it, the glass is either half-empty or half-full for S&W. It's not just S&W. Manufacturers and distributors that couldn't be bothered by small time dealers like me now call twice a week with their latest special.

(In most businesses, under these conditions, you would boost demand by cutting prices. They have, there has been a buyers market for the last nine months.

S&W must believe that demand for their guns is not price-dependent. The elasticity in the gun market is dependent on external factors, such as the threat of restrictive legislation.) That's not just S&W, it applies to every manufacturer

 

[theotherwaldo]

According to the guys at my LGS, Ruger's doing it too. One guy says that he's working on his third free Ruger in a year.

 

[BK]

distributors that couldn't be bothered by small time dealers like me now call twice a week with their latest special.

Right there.

I wish we would have had this type of supply, sales and promotions back when demand was so high. But that's not how it works.

I've gotten a great many free guns over the years, but few are interesting enough to move into the personal collection. Some were definitely sweet incentives though. Keepers.

There's been a lot of money to be made in .22lr ammo for the past year and a half though!

 

[joustin]

When I worked at Gander Mtn Ruger gave away guns to people that sold a lot of their products

 

[splattergun]

a

In the sales business, rewarding sales crews with product (or money) is called spiff. It encourages the salesmen to sell the products line that rewards them. Common practice.

 

[CWL]

Product awards are a great way to get sales to focus on your product. You also are making sure that the award itself continues to "sell" for you.

If you offered a $500 cash award to a salesman, you need to withhold about 1/2 of it for taxes. Sales guy only gets to keep ~$250.

If you give a salesman a $500 gun, he'll tell everyone that he got a "x-brand" gun.

Reason why non-gun companies now give gift certificates rather than cash as awards.

 

[MARKMALL]

A friend's wife works at a LGS. About every 6 months he shows up at the range with a free gun she got. She has received S&W,Khar and maybe Rugars.

 

[rondog]

I came >< this close to taking a job in a LGS, but the pay and working conditions were atrocious. It would take a LOT of free guns to make that job worthwhile, but I bet the managers and store owners grabbed them first.

 

[Ed Ames]

This tells me several things, none of which is a complete surprise:

1. S&W is cash-poor, so that it has to pay incentives in kind rather than in cash;

That doesn't really follow from the evidence.

Gun store employees are disproportionately guys who like guns and are in it more for the employee discount than the big gun store employee money. Many stores obviously preferentially hire people who have retired from a normal career and want to fund their hobby.

In that situation, a $100 cash incentive is nowhere near as nice as a pistol that costs $100 to manufacture (which is probably typical cost of goods for any gun retailing in the sub-$500 range).

 

[zorro45]

Most of the guys I know that work in the gun store are spending most of their $ buying guns and ammo. If you were thinking of getting "objective advice" from the guy in the gun store then this should be factored into that (dumb) decision. It is like asking the waitress what she would recommend for an appetizer, usually it is what the chef is trying to clear out of inventory before it goes bad.

 

[danez71]

There is a smaller LGS chain in So.CA with 18 stores. It used to be family owned .. I don't know now.

I know for a fact several/all of the brands do it there.

 

[KansasSasquatch]

I know that big retailers offer a reward program that may not include fee products, but at least huge discounts. A relative of mine works for a very large retailer of outdoor products. Through doing simple tests about their products, she can get one firearm per year from a certain Italian shotgun manufacturer for 40% off MSRP, directly from the manufacturer, as well as one firearm from their sister companies for the same deep discount. There's 2 optics manufacturers she can get 60% discounts from. And she doesn't even work at the gun counter. I imagine the people at the gun counter are eligible for better rewards from manufacturers.

 

[Sunray]

"...has to pay incentives in kind..." The kind that you wear not carry. Costs a fortune to give a minimum wage sales guy a firearm. Costs little to give him a tee shirt.

 

[dogtown tom]

Sunray "...has to pay incentives in kind..." The kind that you wear not carry. Costs a fortune to give a minimum wage sales guy a firearm. Costs little to give him a tee shirt.

It doesn't cost a fortune to a "minimum wage guy" anymore than a salesman making $70,000...........the aim is to drive sales.

Let us know which manufacturers give T shirts as sales incentives.
In my years as a dealer I've yet to see that offered, while the "free guns' is offered by many.

Free T shirts are a standard PROMOTIONAL item, not requiring the dealer to sell X number of guns.

 

[drewzfoster]

I have a friend that works at a large online gun store, he got a free 9mm shield.

 

[BobTheTomato]

I can see this for large volume movers (cabelas, bass pro ect). They are most likely about volume and more likely to steer people a certain way.

 

[TennJed]

This tells me several things, none of which is a complete surprise:

1. S&W is cash-poor, so that it has to pay incentives in kind rather than in cash;

2. S&W is desperate to sell product;

3. It is, in fact, making some sales;

4. The markup per unit, to the manufacturer, is high enough to allow the incentives.

Conclusion: depending on how you look at it, the glass is either half-empty or half-full for S&W.

(In most businesses, under these conditions, you would boost demand by cutting prices. S&W must believe that demand for their guns is not price-dependent. The elasticity in the gun market is dependent on external factors, such as the threat of restrictive legislation.)

No S&W is not cash poor. They are no more depserate to sell a product than any other business. They are in fact doing very well

http://ir.smith-wesson.com/phoenix.zhtml?c=90977&p=irol-fundincomea

 

[GOPerfect]

I sell part time, I have received 8 guns for free in the three years that I have been selling. Makes sense to me.