Varminterror
Member
- Joined
- Jul 17, 2016
- Messages
- 14,950
This tells the story.
Earlier during covid, we saw the highest new gun sales per month in history every month. But now, the market is floundering. S&W is kicking sales and rebates on their highest selling products to stimulate market volume regrowth. This strategy makes the sale prices appear to be incentives, temporary and fleeting, in an economic market where most consumers are simply accepting that “prices are high,” and buying trends have slowed down significantly. We had a run on investment Banks this week - consumer confidence is low, buying is slow. The 686 isn’t S&W’s target and likely isn’t the sales which will turn their stock around, so it’s not being debated. For their bottom line, the pistol lines and the M&P15 are their staple sales, the biggest hammer they have to swing to break through revenue walls. Over 3,000 Americans which WILL buy a firearm turn legal age to buy a S&W product every day, and those people typically buy pistols and AR’s, so offering sales on their market leaders is what draws more and more of those 3,000/day gunbuyers to buy S&W products, AND which may entice more of the 10,000+ Americans per day turning of legal age to become part of the 3,000+1. From the perspective of their 686 market strategy, the pistols are loss leaders, in a manner of speaking, as most folks buying a revolver already own another firearm. I’d equally assume, knowing what I know of the demography of these markets, revolver sales don’t slow as much as pistol sales when prices increase, and sales don’t increase as much - either or both proportionately or in volume - when prices decrease. So if S&W wants to make money, they do it with model lines which make them the most money, the easiest.
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