Often the initial batch is pretty steeply discounted, since once you get a PD to go with your weapon, they're unlikely to switch for about a decade, at least. That means you can sell additional batches to them at something closer to market price, you get to sell them parts, do their maintenance and/or train their armorers ($$$), and you'll get sales from other agencies who see the performance of your weapon and from private citizens who want to carry what their PD carries (under the mistaken, yet common, assumption that the PD selected the very best weapon).
The best part about this is that sales to this PD are pretty much a lock. You can rely on the numbers being there. You'll know that they're good for X guns per year, so you can rely on that many sales at an agreed-upon price. Any contracts you have for maintenance/training are easy money. This gives you some income that is stable and predictable and not affected by market fluctuations. Multiply that by multiple PDs statewide, and it makes for a situation that might not have the ultimate highest volume of sales, or the thickest profit margin, but is just plain gravy for them (since you never have to wonder if the run of guns you just made are gonna sell).
Mike
The best part about this is that sales to this PD are pretty much a lock. You can rely on the numbers being there. You'll know that they're good for X guns per year, so you can rely on that many sales at an agreed-upon price. Any contracts you have for maintenance/training are easy money. This gives you some income that is stable and predictable and not affected by market fluctuations. Multiply that by multiple PDs statewide, and it makes for a situation that might not have the ultimate highest volume of sales, or the thickest profit margin, but is just plain gravy for them (since you never have to wonder if the run of guns you just made are gonna sell).
Mike