market driven prices

[birdshot8's]

Why would Gun manufacturs stop making a popular product while they can still make a profit? for instants:
Saw a Nylon 66 in a pawn shop today. The rifle had just come out for sale and the owner had not yet determined a sale price. The rifle had some rust and the stock was well scuffed. I told him I would pay 200 out the door and he seemed insulted. He said he would need quite a bit more than my offer. I thanked him and left. When I got home I searched the rifle in On Line Auctions and sure enough the rifle was being sold at 75 to 100% more than I had offered.

 

[browneu]

It's hard to say that the manufacturer makes a profit on a firearm without knowing the cost of manufacturing said item.

 

[birdshot8's]

I realize some guns are expensive to make like Savage 99 or Winchester model 12, but I would guess a Nylon 66 cost maybe 20 dollars to stamp out.

 

[gspn]

Running a business is about maximizing returns. You don't just make anything that you can profit from...you want to optimize so you are making the set of items that brings you the most profit.

It could be that the company could make more money by ditching one product and plow the freed-up resources into more profitable ventures/products.

 

[2ifbyC]

There are many reasons for a manufacturer to cease production when they are still making a profit: volume of sales, expertise to make the product, tooling and maintenance costs, and a trend of diminishing returns vis-à-vis price increases. Many of the above reasons are why Colt stopped manufacturing revolvers.

 

[rule303]

In the case of the Nylon 66 and many other guns, like the Winchester 94, I think it gets to a point where they have sold so many that the market is saturated with good used examples which can be had for much less than the cost of used.

 

[ms6852]

I have been waiting for one year for the PMR-30 by Kel-Tec. I have 3 on order for $279 each. Yet at the gun stores most vendors are not able to keep them in stock becasue the demand is so high some people are paying $500 to $600 for them, according to the vendors. Me, I will wait patiently in the meantime, Kel-Tec continues to tweak the gun with some of their minor problems. Hopefully when my guy finally receives his order I am hoping that all problems will have been fixed,...I refuse to may 200 to 300% above MSRP.

 

[JohnBT]

In the case of the Nylon series rifles, the molds and equipment were worn out and very expensive to replace.

Think of the factory floor space as a fixed number, the work force as fixed and so forth. They just decide that they have better things to do with their people and machinery. Building a new addition and hiring people is very expensive. Hiring qualified people is anyway.

Speaking of unqualified people, we see how that's working out for Remington trying to build Marlins with people who have never done it.

John