Colts Stocking Dealer Program

[il.bill]

Anyone have information on how Colts stocking dealer program has worked out?

As a small 01FFL dealer I cannot afford to meet the stocking terms, so my distributors will no longer sell me a Colt firearm. I could have sold two 1911s and a LE 6920 in the last month, but they are simply not available to me because I am not a Colt dealer. The customers simply purchased a product from a different manufacturer (unfortunately, not all of them from me!).

I did sell a nice Stainless Steel 1911 Model #O1091 that I had in stock to a very satisfied customer early this week, but that is quite near the end of the line for my Colt sales possibilities. It is just hard for me to see this as a good idea from a company that really needs to move some product.

 

[il.bill]

This could make just about any shooter smile, I would think ...

 

[Old Fuff]

I know nothing...

However decades ago they tried the same thing, and it totally flopped. They required retailers to pay up front for stock that wasn't made, let alone ready for delivery. Dealers looked at this and told them to go fly a kite.

Supposedly besides the dealer setup they were also going to pump out more product, with some having attractive prices. If this was the case some of that additional production should have ended up in our members hands, and if so they're would be an uptick in threads and posts as they showed off their new toys.

So far as I can see this hasn't happened. You might check Gunbroker and see if an unusual number of new Colts are being offered at scalper prices.

I do know that the Company was advertising for new help to fill an unusually high number of open positions in lower and middle management as well as technical jobs. That's not a good sign.

As for smaller retailers: Colt isn't making anything that someone else isn't doing, and doing it well. What you need too do is seek out other similar models that are equal or better quality, and are attractively priced to the trade. After that it's a matter of selling them to potential customers. This is where the men get separated from the boys.

Don't hesitate to point out that Colt is now in the middle of bankruptcy proceedings and nobody knows how they will come out. The manufacturers of the products you offer are not in the same boat.

 

[pharmer]

These folks will sell you some. I got one for $815 delivered. Joe
http://www.centerfiresystems.com/RI0068.aspx

 

[joem1945]

Colt is not the only industry to have programs like this. when I owned my business a major company wanted us to be a distributer and factory authorized repair center . They sent a contract to us and it stated we'd have to buy $50,000.00 worth of their products. I could do that but I only wanted certain products. They said NO, We will choose the product to send. TolD them thanks but No Thanks keep you obsolete stuff and here's your contract back UNSIGNED!!!

 

[newfalguy101]

Based on info gleaned from an FFL restricted web forum, there seems to be an unusual number of "dogs" you are forced to buy along with the good sellers

 

[il.bill]

Actual Requirements

Basically a dealer meets the requirement by stocking one (1) gun from each series (four (4) handguns, and one (1) rifle), with the same in back stock - a minimum of ten (10) Colt Firearms kept on hand and ready for sale. The five "series" are: Mustang, Defender / Commander, Government, Premium, and Modern Sporting Rifles. See the attached .PDF file.

Is that an unreasonable amount of inventory for a 'registered stocking dealer'? I suppose not really, at least from the point of view of some, certainly including Colts executives. Is $6,000 to $10,000 or so of inventory committed only to Colts a high enough bar to eliminate me and who knows how many other 01FFL dealers from selling Colts? Absolutely.

It just does not make good business sense to me, but then I am not a multi-million dollar operation with highly paid executives making my business decisions, so what do I know. However, to date my 40+ year old business (adding firearms last March has pumped up the gross sales considerably, but there is not a lot of profit in each individual sale ) has remained profitable, although it is, and probably never will be, anything to brag about.

NOTE: Question - Can a Colt Stocking Dealer sell new Colt firearms to other dealers? Answer - No.

 

[Ohen Cepel]

And people wonder why Colt is in trouble. If this is their concept of who to sell stock then I am at a total loss.

As it stand now, if I had $10k and wanted to drive around my local area and buy NIB Colt items I would come home it most if not all of my money. With this new program I'll be sure to come home with all of it.

Silly.

 

[jerkface11]

Give it a couple of months and there won't be a colt to buy from.

 

[flphotog]

I bought one from my LGS not long ago, he was able to get it from Davidson's. He isn't a stocking dealer, from what he told me the cost to become a stocking dealer was ridiculous.

 

[oneounceload]

Based on info gleaned from an FFL restricted web forum, there seems to be an unusual number of "dogs" you are forced to buy along with the good sellers

And that is the same for every major maker - you have to take the good with the bad. When I had a FFL a long time ago, I looked into becoming a Browning stocking dealer; the dogs I would have to take to get the in demand product made me say no. Only a BIG gun shop could afford that

 

[il.bill]

Based on the information Colts has in the above attached .PDF, I could not really say I would be forced to take a number of "dogs". It is really just a matter of continuously tying up the required money in inventory that makes the deal onerous for a little guy like me.