Some low end manufacturers getting desperate

[TexHill]

I started managing a LGS in October after being laid off from my previous job in August. It's definitely not my dream job, but it's getting me by until I find something else. Plus it can be entertaining at times.

We all know that the AR market has been flooded with low end rifles, but apparently the manufacturers of these "fine" weapons are really starting to feel the crunch. We've had four manufacturers call us over the past two weeks with offers to sell to us direct. I've spoken with sales reps over the phone from Stag, Aero Precision, and Anderson. The owner spoke to the fourth, and I can't remember what company it was.

These companies must be hurting if they're willing to cut out and piss off their distributors. Personally I think we're seeing a course correction in the market that's been long overdue.

[CRAMBONE]

I was at my Class 3 dealer the other day, updating my trust and doing prints and photos, he has the largest display of Daniel Defense I have seen, carries every make of suppressor, has two Colt Bulldogs on display: so needless to say it's a serious store. Guy walked in with his buddies and asked if they carried DPMS. :

This was after having an indept conversation about the DD and similar level of guns actually selling in our area and selling well. I was surprised at how well quality rifles are selling. I think the word is out and people that know will but quality. And people that don't know more than likely have a fri me that knows what quality is.

[TexHill]

DPMS has a $75 rebate on some of their rifles. You can get into one of their turds for $350 after the rebate.

[AKS-74U]

I think most companies overproduced during the elections and now they're sitting on piles of unsold rifles. I guess you could stash a few away for speculation purposes, but you might not be able to unload them for a long time.

[AKDoug]

I started managing a LGS in October after being laid off from my previous job in August. It's definitely not my dream job, but it's getting me by until I find something else. Plus it can be entertaining at times.

We all know that the AR market has been flooded with low end rifles, but apparently the manufacturers of these "fine" weapons are really starting to feel the crunch. We've had four manufacturers call us over the past two weeks with offers to sell to us direct. I've spoken with sales reps over the phone from Stag, Aero Precision, and Anderson. The owner spoke to the fourth, and I can't remember what company it was.

These companies must be hurting if they're willing to cut out and piss off their distributors. Personally I think we're seeing a course correction in the market that's been long overdue.

I don't know about the others, but I've been buying Aero direct for years. I prefer to deal direct if possible anyway.

[Kdubya]

I think most companies overproduced during the elections and now they're sitting on piles of unsold rifles. I guess you could stash a few away for speculation purposes, but you might not be able to unload them for a long time.

This is probably a big part of it for many manufacturers. Bills need to get paid and they're sitting on back-stock left over from panic preparation. I don't necessarily fault them. We didn't know what would happen in November. Either did they. Yes, had Killiary won, the mfgs would have been moving product at a serious pace. And they'd have likely made out pretty well in the short run. But, had the she-devil won, they may have been hurting just as bad as the consumer in the long run.

So, for the industry, it was almost a "6 in 1, half-dozen in the other" scenario. Either way they were likely going to take a hit at some point. I wouldn't be surprised if other mfgs have been doing the same. Or will do the same in the near future. The market is definitely going to experience some "calibration".

[TexHill]

I don't know about the others, but I've been buying Aero direct for years. I prefer to deal direct if possible anyway.

Companies like Daniel Defense and BCM sell direct too, but always at MSRP. Aero Precision is offering our store pricing below what our distributors normally charge us for the same item.

[Tx_Aggie]

Companies like Daniel Defense and BCM sell direct too, but always at MSRP. Aero Precision is offering our store pricing below what our distributors normally charge us for the same item.

The shop I manage has had a dealer account with Aero Precision and Stag Arms for years and we aren't what I would call a large gun shop by any means. We don't much with Stag but have been happy with Aero for the most part.

We are also set up with Daniel Defense but they stopped selling dealer direct and went to distributor only a few years back when demand for ARs really took off. Before Sandy Hook we were able to order custom rifles directly from DD for our customers (that was before my time). I was told at one point by someone at DD that they plan to eventually re-open direct sales to dealers but I have no idea if it's still in the cards.

As AKDoug said, as much as we like some of our distributors we do try to buy direct from manufacturers when/if we can.

[AKDoug]

I was going to mention the DD thing. I bought my original DDM4V7 from a DD dealer that worked out of his house.

I've always been able to guy direct from Aero cheaper than from distributors as long my volume was more than a couple at a time. Aero has tiered pricing, so volume will get you lower pricing.

Guns are just a side thing for our business anyway. We are primarily a hardware store, and have a tool rental division. Distributors have been going by the wayside as long as I've been in business. With the advent of computer inventory and sales systems, couple with easy shipping providers, manufacturers in the hardware business have been selling direct for many years now.

If you are a manufacturer and are set up with a good shipping department and sales staff, there is no reason to even have a distributor setup.

[HMM]

I was talking to one of the managers at sportsman's warehouse and he told me a big shipment of ammo from remington just showed up that they didn't order. He said they are getting bombarded with companies trying to offload their stock. Guess they were holding back waiting to make a mint when Trump won.

I know I stocked up and now I'm sitting on excess that I only bought because I was worried I wouldn't have the chance if she got in. I'd break even at best if I could unload anything. I plan just to sit back and keep every thing because one day it'll all work out.