OnPointFirearms
Member
- Joined
- Aug 23, 2005
- Messages
- 93
Late last week, American Tactical Imports (ATI) received their third shipment of GSG-5 rifles from Germany. It was a long journey plagued with delays, but they're finally here. That's the good news.
The bad news is that Tony Dichario, president of ATI and Amchar Wholesale, has made a very hasty, last minute decision not to fulfill GSG-5 orders that he promised dealers-- orders that distributors, dealers, and end-users have patiently waited weeks and months for. Instead, Amchar is abandoning the distribution channel-- refusing to sell to Lipsey's, Sports South, Ellett Bros, and other distributors. In addition, ATI is requiring dealers to purchase an additional firearm with every GSG-5 they order. That means dealers need to purchase a Springfield XD, Kel-tec P-11, Bushmaster M4, etc. just for the "privilege" of acquiring a GSG-5. This 1:1 plan isn't "crazy" since ATI/Amchar is the exclusive importer of the GSG-5-- but it IS very stupid. And it has already angered a good many of us!
The policy wouldn't be such a bad idea if Amchar Wholesale actually stocked a broad-line of products like RSR, Lipsey's, Sports South, Ellett Bros, and other distributors. However, a third tier, backwoods distributor like Amchar doesn't afford dealers the same kind of luxury we've come to expect from others in the distribution channel. Luxuries like reliable service and predictable and ethical business practices. It would be fine if dealers could source hot-selling brands like S&W, HK, Glock, and Springfield Armory from Amchar. Unfortunately, they only sell S&W to law enforcement end-users and they never have enough Glock, HK, or Springfield Armory products in stock. To make matters worse-- Amchar's pricing isn't even inline with other distributors. So, to add insult to injury, it costs dealers more to purchase firearms from them!
According to an inside source at Amchar, the problem is with their cash flow. Amchar/ATI resources are stretched paper thin and they can't come up with the necessary capital to purchase the next shipment of GSG-5, which is already ready to ship from Germany! They're cash poor and desperate. Their solution: force dealers to buy an additional firearm with each GSG-5 they order. Problem solved? Hardly.
To say the fledgling GSG-5 has experienced growing pains is an understatement. ATI/Amchar's failure to execute timely distribution to dealers clearily demonstrates the staggering ineptitude of both firms and their boss, Tony Dichario. However, distribution problems by themselves are not enough to kill the GSG-5. Quality control issues are problematic for the brand and threaten its future. Several of our clients have already documented poor fit and finish, loose screws, cracked buttstocks, missing parts, cracked bolts, broken receivers, firing pin issues, stripped screws-- and an inability to get any service from ATI or Amchar Wholesale. These problems, coupled with the fact that the manufacturer in Germany (German Sport Guns) has a background primarily in airsoft guns, don't inspire confidence. ATI/Amchar/GSG need a quality product delivered in a timely fashion at an attractive price point-- period. Presently, they're failing to deliver on all counts.
Cracked Bolt on GSG-5
Stripped Screw Holes
The hysteria surrounding the GSG-5 is well documented. GSG-5s were selling upwards of $600 on Gunbroker during its highly-anticipated launch. Now, there are no bids on those auctions and dealer profit is suffering on these $405 rifles. If a dealer can only make $100 on one of these (and that's a big IF at this juncture)-- why would he buy another gun at a higher cost from a distributor that he cannot trust in the first place?
We're at a crossroads with the GSG-5, my friends. Demand increases, but a move by Amchar/ATI has created a bottleneck in the supply chain. Customers who have been waiting for weeks and months are frustrated to the point of cancelling orders and swearing off the GSG-5 altogether. The GSG-5 is a novelty item. It's a fun little plinker, but not much more than that. It should be cheap and easily produced in mass quantities. We've seen this time and time again in the firearms industry: a firm comes out with a hot new product-- a product that won't be available for months and months. People lose interest and spend their money elsewhere. In this economy, I can't blame them.
Just wanted to let you guys know what's going on. We're done doing business with ATI/Amchar. A lot of other dealers feel the same way. Take care and as always-- stay On Point and God Bless.
-- Evan
The bad news is that Tony Dichario, president of ATI and Amchar Wholesale, has made a very hasty, last minute decision not to fulfill GSG-5 orders that he promised dealers-- orders that distributors, dealers, and end-users have patiently waited weeks and months for. Instead, Amchar is abandoning the distribution channel-- refusing to sell to Lipsey's, Sports South, Ellett Bros, and other distributors. In addition, ATI is requiring dealers to purchase an additional firearm with every GSG-5 they order. That means dealers need to purchase a Springfield XD, Kel-tec P-11, Bushmaster M4, etc. just for the "privilege" of acquiring a GSG-5. This 1:1 plan isn't "crazy" since ATI/Amchar is the exclusive importer of the GSG-5-- but it IS very stupid. And it has already angered a good many of us!
The policy wouldn't be such a bad idea if Amchar Wholesale actually stocked a broad-line of products like RSR, Lipsey's, Sports South, Ellett Bros, and other distributors. However, a third tier, backwoods distributor like Amchar doesn't afford dealers the same kind of luxury we've come to expect from others in the distribution channel. Luxuries like reliable service and predictable and ethical business practices. It would be fine if dealers could source hot-selling brands like S&W, HK, Glock, and Springfield Armory from Amchar. Unfortunately, they only sell S&W to law enforcement end-users and they never have enough Glock, HK, or Springfield Armory products in stock. To make matters worse-- Amchar's pricing isn't even inline with other distributors. So, to add insult to injury, it costs dealers more to purchase firearms from them!
According to an inside source at Amchar, the problem is with their cash flow. Amchar/ATI resources are stretched paper thin and they can't come up with the necessary capital to purchase the next shipment of GSG-5, which is already ready to ship from Germany! They're cash poor and desperate. Their solution: force dealers to buy an additional firearm with each GSG-5 they order. Problem solved? Hardly.
To say the fledgling GSG-5 has experienced growing pains is an understatement. ATI/Amchar's failure to execute timely distribution to dealers clearily demonstrates the staggering ineptitude of both firms and their boss, Tony Dichario. However, distribution problems by themselves are not enough to kill the GSG-5. Quality control issues are problematic for the brand and threaten its future. Several of our clients have already documented poor fit and finish, loose screws, cracked buttstocks, missing parts, cracked bolts, broken receivers, firing pin issues, stripped screws-- and an inability to get any service from ATI or Amchar Wholesale. These problems, coupled with the fact that the manufacturer in Germany (German Sport Guns) has a background primarily in airsoft guns, don't inspire confidence. ATI/Amchar/GSG need a quality product delivered in a timely fashion at an attractive price point-- period. Presently, they're failing to deliver on all counts.
Cracked Bolt on GSG-5
Stripped Screw Holes
The hysteria surrounding the GSG-5 is well documented. GSG-5s were selling upwards of $600 on Gunbroker during its highly-anticipated launch. Now, there are no bids on those auctions and dealer profit is suffering on these $405 rifles. If a dealer can only make $100 on one of these (and that's a big IF at this juncture)-- why would he buy another gun at a higher cost from a distributor that he cannot trust in the first place?
We're at a crossroads with the GSG-5, my friends. Demand increases, but a move by Amchar/ATI has created a bottleneck in the supply chain. Customers who have been waiting for weeks and months are frustrated to the point of cancelling orders and swearing off the GSG-5 altogether. The GSG-5 is a novelty item. It's a fun little plinker, but not much more than that. It should be cheap and easily produced in mass quantities. We've seen this time and time again in the firearms industry: a firm comes out with a hot new product-- a product that won't be available for months and months. People lose interest and spend their money elsewhere. In this economy, I can't blame them.
Just wanted to let you guys know what's going on. We're done doing business with ATI/Amchar. A lot of other dealers feel the same way. Take care and as always-- stay On Point and God Bless.
-- Evan