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How many of you caught that exhange of posts between Keith & Dave on the last page of the 2010 thread? Re. manufacturer's / Distributors etc.

Basically it had to do with different business models of gun manufacturers. Those who use distributors (the larger co's.) & the smaller semi-custom manufacturers who deal directly with the retail buyer.

What with our current economy, the worthless dollar, the gun politics, etc., this will be very interesting to watch. Which business model will do best?

We all are aware that prices are going to escalate,and do so rather quickly.
At first glance, at least to me, it would seem the smaller semi-custom shops would be nimbler on their feet,and more able to control costs, and quality than the bigger guys. While the bigger guys may have more capital, and thus would be able to have more staying power through tough times.

Might just be real intersting to see who survives, and who fades away into the sunset.

Might just be the David vrs. Goliath story all over again. (or I suppose you could read into it - the Fusion vrs. DW story)


Fshcop
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Really lost somewhere in the deserts of Arizona
 

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I agree that the next few years will be very interesting to see what shakes out in the firearms industry.
This last year has been nothing but a gravy year for all the manufactures.
With the economy the way it is and the dollar dropping like a rock and interest rates at about zero. Inflation WILL grab ALL of us by the butt some time down the road shortly!!
 

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I would assume the big business, like virtually anything else, if run correctly it would always win. A lot of different aspects would come into play to help the big business.

Mass Bulk buying - not only helps in manufacturing cost of guns but also the repair.

Undercutting - AKA The Walmart effect - Small company buys product X for $25 a piece, Big company buys product X for $25 a piece. Small company puts a 10% markup on it making it $27.50 and cannot survive with anything less than 10% as they only sell 100 per month and overhead fees cannot be cut, Big company puts a 5% markup because they sell 10,000 per month and have more leeway. Even at times the Big company sells at below $25 to run the small business out of business at which time they can raise the prices again cough *Walmart* cough. Pretty simple.

Name recognition - Why do you think so many police departments receive free guns from Gun manufacturers? Its not because they are nice and want to give our everyday heroes something nice. Its almost all business. "Use our gun because XPD uses ours. If they can trust us you can."

Producing parts - Many large manufacturers make their own parts, cutting out middle man fees. DW caught on to this and, from what I heard, will start doing this in 2010. Getting and training in the equipment needed boosts prices for the first few years, which is probably what we will see facing the 2010 DW lineup.

There's probably others, but I need to go take a nap driving to and from families has gotten to me. besides all these are basic principals, leaving me wondering why I am even typing this, :(
 
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