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Firearm industry in chaos

Discussion in 'General Gun Discussions' started by RockyMtnTactical, Jan 31, 2013.

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  1. gearhead

    gearhead Member

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    If a customer bought 10 generators at $200 and sold them at $1000, then the store was either selling them too cheaply or the customer was buying before the need based on speculation. He or she took a risk, and as I've seen many times if the storm was a bust then they were stuck with them.
     
  2. -v-

    -v- Member

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    Thats not a unlikely scenario, I agree. I will say it really depends how the economy looks 6-12 months from now. Someone who sitting there with a $2000 AR and no cash to pay for necessities is going to reconsider their purchase. I recall post '08 panic someone on a local gun board was trying to sell a tricked out ar-15 with an 4x ACOG for literally $0.50 on the $1.00. Myself? I managed to pick up a nice Arsenal SGL 21 for only $100 more then what a WASR-10 was going for. YMMV, of course.

    Plus, the other angle for a lot of the new buyers, is how many of them got it because the allure of something that is about to be banned? I suspect that crowd will have little attachment to their new acquisition.

    Also, I do suspect lean times for manufacturers. Recall what was going on with prices in the summer and fall of '09? $650 MP-15s weren't hard to get, and everything seemed to be marked down a good $200+ from the going rates in '10 or '11. What does that translate to? Manufacturers and sellers accepting a slimmer profit margin in favor of moving goods.

    Now, don't misunderstand me, I'm NOT saying they will have long lean times, but for the 3-8 months after this mess blows over, they are going to be seeing reduced sales volumes versus what the have been averaging prior to December of '12.
     
  3. gossamer

    gossamer Member

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    I need to ask this again. What evidence is there that the "gouging" is the manufacturers and not the wholesalers/retailers?

    At my Walmarts, Bass Pro, and Cabela's -- the largest retailers of guns and ammo in the US -- price tags are the same as they were a few years ago. At my local gun shops the tags are not new.

    At gun shows and some LGSs prices are higher, yes. But overall, I'm not seeing the chaos.
     
  4. larryh1108

    larryh1108 Member

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    The recent election did not cause any serious shortages or runs on ammo like we are seeing now. There was almost 6 weeks in between the election and the tragedy at Sandy Hook. There was a run on a lot of guns leading up to the election in anticipation of the election but after it my LGS and the big box gun stores all had a good supply of ammo and ARs, etc. I did not see anything like the last election and I was watching closely. A lot of guns were on backorder and they seemed to be the recent releases and popular guns but there was plenty of stock on the shelves and walls at every gun store i visited in the weeks after the election. When Sandy Hook occured, the very next day the run on ammo and ARs started because Obama came out and said he was fed up and would do someting about it. So, I attribute this shortage on the tragedy, not the election. Who could predict that?
     
    Last edited: Feb 4, 2013
  5. HoosierQ

    HoosierQ Member

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    It in fact costs millions and millions of dollars to warehouse product. It used to be done prior to the advent of computerized inventory because there was just no way to know what was coming at you. Nobody liked dealing with all that inventory but they had to. Now, the whole supply chain is "just in time". So the guy making barrels for you is getting his steel just as he needs it...all the way back to the steel mill who's smelting the iron...etc.

    It does not allow for the graceful handling of dramatic demand shift but otherwise saves an industry millions and millions of dollars. Until you sell it, you own it and if you own it, it's on your books and thus you have to pay taxes on it as well as secure it etc.

    A few industries do maintain large inventories (vaccinations for example) because it there is unexpected demand, supply cannot wait. Guns do not fall into that category. Ammo...well the military does all the warehousing there, not the manufacturers.
     
  6. Isaac-1

    Isaac-1 Member

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    One thing that I am a bit surprised has not been mentioned here is just how much out sourcing there is in the production of AR platform rifles these days, just look at all the Magpul branded parts you see on many brands of AR's, the limiting factor on the production of these guns may well be the availability of such parts, I therefore suspect we will see some new volume production models introduced soon that bypass many of the 3rd party parts bottle necks by using imported replacement parts, etc..
     
  7. breakingcontact

    breakingcontact Member

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    I suppose I could join the logic that if prices were raised, there would be more availability. A magazine that cost $40 before is $100 now. I'd be happy at $60 at this point.
     
  8. Kynoch

    Kynoch member

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    The AR15 has become the IBM PC clone of the firearms industry. Back in the late 1980's and early 1990's small shops across the US were building dirt-cheap IBM PC clones until they were finally overtaken by a few that had grown into large companies themselves like Dell.

    I would like to understand the (non-massacre) supply of parts to AR15 assemblers. If it's truly competitive and not artificially controlled, it should ultimate lead to very inexpensive AR-15s...
     
  9. Cosmoline

    Cosmoline Member

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    It did! Stripped lowers were going for under $100. But then panic hit and demand went crazy.
     
  10. Jay Kominek

    Jay Kominek Member

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    How about that, my favorite video on price gouging actually uses generators as its example.

    "Is Price Gouging Immoral? Should It Be Illegal?"
    http://www.youtube.com/watch?v=h9QEkw6_O6w
     
  11. Kynoch

    Kynoch member

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    Yeapper.

    Areo Precision branded stripped lowers were going for $59.95 before the massacre.
     
  12. jwh336

    jwh336 Member

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    I don't think they'll have any issue selling them. I know people that own a few AR's for different purposes. Competition, hunting, tricked out, fun, long range, etc...

    I personally don't own an AR because I think there are better rifles available. I have owned a few different AR models and shot a number more, the gun is just not for me. Either way, whatever they manufacture will sell.

    On a side, I haven't seen price increases at any of my area gun shops, just empty shelves and many customers. I'm sure after the panic is over the people who intended to purchase an AR will get one.
     
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