Armed Polite Society
Main Forums => The Roundtable => Topic started by: Lee on February 17, 2013, 05:50:18 PM
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The shortage just seems weirder and weirder to me by the day. I visited the shop closest to me yesterday. They are almost sold out of handguns. They are limiting the ammo they have to 2 boxes per person. The employees seemed very concerned that they would soon have nothing left to sell. Then I went to Gander Mountain. It was busier than I'd ever seen it...it was like being at a sporting event or something...packed house, long lines...like 30 long lines.
I was reading today that some of the major firearms manufactures might be a year or two trying to catch up with back orders. I'm assuming that the big box stores, and larger independents will get first dibs on orders. Do you think an unintended consequence of this (or intended if you take the foil off) might be that many smaller stores going out of business, at least temporarily?
Added: The local shop had a big sign up front " WE BUY USED GUNS". On the way home I heard a radio ad from another shop advertising the same thing - "WE BUY USED GUNS, IF YOU HAVE ONE OR TWO, OR TWO HUNDRED -CALL US".
Also, Gander Mountain had several several crews in the stores to buy used guns. I didn't see any sellers though.
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I'm curious how any place smaller than Gander Mountain/Cabelas/etc. can even hope to get new inventory delivered.
In a perfect world, all orders of ammo and guns should go to whomever places them. I'm not so sure that's the case nowadays, though...
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Even raising prices will only tide a business over for so long. No inventory is a very bad thing for the guy that can't make it up in other areas. Used guns, wider range of product, etc.
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A local place that's been around five years or so, went on hiatus in November. (Financial fiddling to get out from under a building they couldn't afford.) Word I get is that they're open again. I'll have to drop by. I have no idea what they might have managed to get, at this point in the game, to reboot their business with.
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Guns and ammo are still be made at the same (or perhaps slightly higher) rate then they were before the panic. The only difference is that now instead of sitting on the shelves for weeks/months/years at a time. They are being bought as soon as they arrive. Which has booth good and bad sides for shops.
Good:
Inventory turns are almost measured in minutes, instead of weeks or months. Yes, while wants are going unfulfilled, product is going out the front the door as fast as it's coming the in the back door. Which is what every business wants, sell inventory as quickly as possible. And from various reports manufacturers are doing what they can to increase production while looking ahead to when the panic ends.
Bad:
Cash flow for smaller shops. They made their pile by selling pretty much anything and everything they had on hand. Which hopefully means that they are smart now that there's possibly less cash coming in now due to the inventory constriction. Rent/Mortage/Insurance/Salaries/etc. still have to be paid each month while they wait for the supply chain to catch up with demand. But if they are selling everything they can get their hands on, and properly managing their cash flow, they should be okay.
Getting new product.
Manufacturers sell to distributors. Distributors sell to retailers, large, small, internet and mail order. Each one probably has their own way of determining who gets what. Most are probably on some type of allocation system. Meaning everyone gets a percentage of what they ordered/asked for. That way everybody gets something to sell which will keep everyone (hopefully) in business.