View Full Version : Magpul profit on pmags
What is the profit margin for magpul on their pmags? Thanks.
I highly doubt they'll be willing to give that information out.
SingleStacker45
11-15-08, 14:22
What difference does that make. Is it a good product and is it resonably priced? I say yes and others would agree.:confused:
What is the profit margin for magpul on their pmags? Thanks.
At the suggested MSRP, they are most likely within normal limits for a business. I never heard of anyone complaining about $17 +/- for a 30 round Magpul magazine.
When shops sell them for $30, the shop pockets the money, not Magpul. I witnessed a guy paying $30 at a shop this week. I'll remember them when things get back to normal, which I beleive they will. I'll not spend money with them.
Seth Harness
11-15-08, 14:33
At the suggested MSRP, they are most likely within normal limits for a business. I never heard of anyone complaining about $17 +/- for a 30 round Magpul magazine.
Agreed. The most I've paid was $18.50, the least was $17.00 even... I aint bitchin.
theblackknight
11-15-08, 14:38
i buy mine from grant. he HAD them for like 14 wo window. ive up to 12 pmags and one USGI
Whatever it is, it's probably reasonable.
Where we are getting hosed is on rail covers, not by any one company in particular but by all of them...
Damn near every plastic mag in the market is most likely under $10, and I strongly believe at about $5 each. Doesn't matter whether it's Pmags, thermolds, promag, polymer US made AK mags, MSAR AUG mags, g36, plastic ruger mags, whatever. The only reason Pmags are so affordable is because of the dimensional standard it abides by, STANAG4179. The supply for stanag mags is huge and cannot ask for the high prices proprietary, monopolized mags cost.
I bought mine at a gun show in July sometime and they were $10 each and I bought ten for $100 OTD. So I know his cost was below $10 a piece. I wish I had bought another 20. :(
I heard their cost OTD is around $3.50/30rd mag. Is Magpul listed on the stock exchange?
What is the profit margin for magpul on their pmags? Thanks.
1. What does it matter?
2. What business is it of yours?
C4
Ridge_Runner_5
11-15-08, 15:39
I paid $22/ea with a Ranger plate for 3 non-windowed Pmags today at a gun show...did I get screwed? Maybe a little, but it was still cheap compared to $20 each for non-windowed standard PMags or even USGI mags that Ive seen for sale lately...
theJanitor
11-15-08, 15:43
1. What does it matter?
2. What business is it of yours?
C4
agreed.
OP, what does it matter to you? unless you're thinking of going into polymer mag design and manufacturing, which means you shouldn't be looking for info on the web. or you're thinking of distributing p-mags, which means you should be talking to magpul, not us.
theJanitor
11-15-08, 15:45
On a side note. do we need a ECON101 sticky at the top of the page?
My guess for the standard $14 P-Mag outside of the development tooling labor and marketing costs, The material resin costs for the bodies and followers are about 3 cents each a Mag. the springs another 4 cents each.
Now the tooling is the real big cost item in any I.Molding process and I am sure Magpul has many sets of the tooling being used.
1. What does it matter?
2. What business is it of yours?
I can ask you exactly the same thing. What is with the hostilities?
I heard their cost OTD is around $3.50/30rd mag.
What was the development cost that they need to recoup?
What is their warranty/service budget?
What does it cost to advertise?
How much does the company spend each year on salaries, health care, and other benefits for its employees who are not directly involved in the manufacture of the magazines?
What kind of margins do they make on their other products and how do those numbers interrelate to what they charge for magazines?
What is the distributor/dealer cost of the magazines? (in other words, how much of what you're paying goes to Magpul and how much is kept by intermediaries in the sales process?)
There's a lot more to business than just figuring out one product's margin.
My guess for the standard $14 P-Mag outside of the development tooling labor and marketing costs, The material resin costs for the bodies and followers are about 3 cents each a Mag. the springs another 4 cents each.
Now the tooling is the real big cost item in any I.Molding process and I am sure Magpul has many sets of the tooling being used.
I'm not sure where your numbers are coming from, but keep in mind that 1) PMAGs are made in Colorado, not China, and 2) they are not made from the same plastic childrens' toys are made from.
Whatever the profit margin is it is clear that it is proper or even too low of a margin. We are capitalist here, right. It isn't what something costs to make but what it is worth or what you can sell it for that matters.
NickB,
Answer your PM's. :D
I heard they are back ordered in the almost six figure range. I picked up 12 black n/w 30rd mags the other day locally. I've got 40 of them now. Magpul makes "the magazine" I would not be surprised given the mass panic they will never catch up with the demand. Snooze you lost or at least you might end up paying a hell of allot more for them (2x the price of 6 months ago would not surprise me in time) than you might have. Just the way it is. I believe from what I've heard, seen and read that mag puls are the best game in town. They have a right to profit from that. I just wish the lack of magpuls on the shelf was because uncle sam got smart and put in a contract for them. Sending them to our service people who need them far more than my "armchair commando" ass thinks it needs them.
I just recently purchased ten 30 rounders in FDE for $140.50 delivered to my door. Whatever their profit is I hope it is a lot. Perhaps it is just me, but I personally am a big fan of profit and hope everybody makes as much as they can.
makes me glad i bought a bunch of em back in july :o
I'm not sure where your numbers are coming from, but keep in mind that 1) PMAGs are made in Colorado, not China, and 2) they are not made from the same plastic childrens' toys are made from.
I did not have any labor costs if you read my post. So where they are made is not involved in my post be it in Colorado, or China.
If you know what type resin and fillers are being used then you tell me the material costs for the P-Mag body and follower. Also if you know the material and process the springs are made from, again inform me.;)
It is not wrong to ask - this is America.
AND, its not wrong for MagPul or any other business I can think of to answer: sorry, we'd prefer to keep that information to ourselves.
If that pisses you off, then stop buying ANYTHING unless the maker tells you all about their costs (and good luck with that).
On another note: the "dies" to create aluminum or steel mags are not that technologically advanced; if you want to see examples, go join up and then look at the mag section on www.roderuscustom.tzo.com
The injection molding equipment and other polymer handling machinery for Pmags involves a lot larger initial investment. The molding dies are very very expensive and require a die maker/CNC operator with considerable experience. Plus, the current MagPul employees are Americans, purchasing supplies in the USA in U.S. dollars.
Last two I bought retail were $16. I am not complaining about the price, as I also helped my local gunshop pay its rent.
makes me glad i bought a bunch of em back in july :o
Brings on a sense of well being not having scramble. If one had bought a few cases of Pmags several months back you might be able in the not to distant future to turn a nice little profit. Same goes obviously for ammo. Panic! sells.:D
It is not wrong to ask - this is America.
AND, its not wrong for MagPul or any other business I can think of to answer: sorry, we'd prefer to keep that information to ourselves.
If that pisses you off, then stop buying ANYTHING unless the maker tells you all about their costs (and good luck with that).
On another note: the "dies" to create aluminum or steel mags are not that technologically advanced; if you want to see examples, go join up and then look at the mag section on www.roderuscustom.tzo.com
The injection molding equipment and other polymer handling machinery for Pmags involves a lot larger initial investment. The molding dies are very very expensive and require a die maker/CNC operator with considerable experience. Plus, the current MagPul employees are Americans, purchasing supplies in the USA in U.S. dollars.
Last two I bought retail were $16. I am not complaining about the price, as I also helped my local gunshop pay its rent.
You 100% correct about the tooling costs.;)
I got in the AR game somewhat late, so I just wish I knew where I could get some P-mags.:confused: I'm a big fan of profit.
Michael
7.62NATO -- Just so you understand why there was such hostility ...
Ordinarily, when people come here and ask "what does it actually cost so-and-so company to make such-and-such product?" they are getting ready to complain that the price is too high. Right or wrong, I suspect many folks who responded to this thread were expecting a similar discussion to break out.
If you go back and read NickB's post and look at the page closely there is a BIG CLUE that says he probably knows or could find out very easily. Again, why is there a need to disclose the cost of anything? Buy the mags or don't-pretty simple.
I did not have any labor costs if you read my post. So where they are made is not involved in my post be it in Colorado, or China.
If you know what type resin and fillers are being used then you tell me the material costs for the P-Mag body and follower. Also if you know the material and process the springs are made from, again inform me.;)
I can ask you exactly the same thing. What is with the hostilities?
Don't you think it is rude and stupid to ask a manufacturer what they have in a product????
How bout if we asked you how much you make a year? Is that any of our business? Nope, not in the least.
What do you believe would be gained from you know this information? How would you benefit??
C4
Pmags are a great product, and cost less than some other mags I've not been as happy with-Lancer, they also cost only a bit more than USGI mags, and IMO are more durable. Not sure why the info was requested but, the pmag is a solid product with a fair price from the manufacturer.
The only reasons for wanting to know the manufacturers cost on something are:
1. Concerned that you are being overcharged.
2. Wish to make a similar product and want to know if you can compete.
3. Are a nosey SOB that has nothing better to do.
None of these reasons are good reasons to ask by the way and is why you have gotten the response that you have.
C4
Or maybe you're just curious... i've wondered how much it costs to make a pmag myself- and for no other reason than the curiosity of a businessman.
I'm sure magpul makes a KILLING on their pmags. I bet they make $12 bucks on a mag they sell for $14, including overhead.
I also have no problem with that- i think its ****in fantastic, because it's funding more product developement- something they're remarkable at. magpul revolutionized the AR platform with all their modular shit, and it was all funded with little pieces of rubber. more power to them- they'll come up with even more sooper products that are cheap for us and profitable for them.
Magpul did the R&D and came up a superb product and they are intitled to make a profit, and the price must be fair because the sell all they can make. every thing I have got from Magpul has been top rate .:D
Seth Harness
11-15-08, 17:42
There are alot of ways to figure the price of your product so your profit margins are suitable/satisfactory. Most of MAGPULs products are within reason as far as price, so I would guess their profits arent huge. I dont think thats MAGPULs main focus though, a top shelf product at a good price. Pretty much what every American consumer wants in an American company. Hopefully that helps to answer your question, is that all...
Alaskapopo
11-15-08, 17:43
1. What does it matter?
2. What business is it of yours?
C4
Maybe he is curious. He is just asking a question. One that magpul does not have to answer. No reason to get rude and jump him for it. Take a chill pill. It sounds like he wants to invest in the company because they seem squared away and profitable. Nothing wrong with that.
Pat
Magpul did the R&D and came up a superb product and they are intitled to make a profit, and the price must be fair because the sell all they can make. every thing I have got from Magpul has been top rate .
Magpul deserves a lot of credit for the products they've come out with. They're second to none. Making a profit is the American way. Personally, I would pay twice the going rate for a pmag.
Alaskapopo
11-15-08, 17:46
Don't you think it is rude and stupid to ask a manufacturer what they have in a product????
How bout if we asked you how much you make a year? Is that any of our business? Nope, not in the least.
What do you believe would be gained from you know this information? How would you benefit??
C4
I make on average about 65,000 a year. I don't care if you ask me nor would I bite your head of for doing so. If I were the one asking I also would not be offended if you did not want to tell me. Some common courtsey goes a long way.
Pat
bullitt5172
11-15-08, 17:46
1. What does it matter?
2. What business is it of yours?
C4
This is where this thread should have ended.....
Alaskapopo
11-15-08, 17:48
Magpul deserves a lot of credit for the products they've come out with. They're second to none. Making a profit is the American way. Personally, I would pay twice the going rate for a pmag.
I agree Magpul makes great stuff. I wish they would fix the issue P Mags have in cold temperatures but they are great otherwise and I own a lot of them. I also like the Precision Rifle Stock and their metal magazine parts, like followers and base plates. Great company that stand by their products. I think people are just irritable because Obama won the election.
Pat
I think people are just irritable because Obama won the election.
Pat
i dont think anybody IS irritated- not about magpul's profits, anyway. the irritated people are irritated at retail markup, or are irritated for no reason- people irritated in this thread, for instance.
IroquoisSnakePlissken
11-15-08, 18:00
Considering the leaps and bounds differences between P-Mags and all other STANAG AR/M16/M4 magazines, the OP's question should read,
"Don't you think they're worth a lot more?"
My failure rate for P-Mags is zero, and I bought my first P-Mag last summer. I've yet to have any consistency in regards to mis-feeds, etc.
The Magpul magazines are vastly superior to the old crap-tastic magazines, and I paid, on average, around $30 and up for the "old-schoolers" which have, from my limited experience, been far more "accursed" than the P-Mags.
I'd gladly think that they are worth double what we're paying for them, but my hat's off to Magpul for:
1) Putting out not only a quality product, but a SUPERIOR product
2) Not raking us over the coals on 'em
I've got the ole' Bushmaster Bullpup, AWB version, that is VERY, VERY, VEEEERRY picky about which magzines it will actually accept and feed properly. Some STANAGS had to be marked specifically NOT for use with this platform. EVERY SINGLE P-Mag has worked without problem. Period. No more "special designations" for random STANAGs that actually worked with this weapon system.
As well, I finally "get it" in regards to dump sacks. I no longer regard magazines as "highly disposable".
Magpul has really stepped up to the plate, and breathed a lot of new life into our favourite blaster.
The best question you could be asking is, "How much value does the end user get by choosing a P-mag over all other magazines available".
I can't see Magpul's profit being low on these, and even if their cost was a dollar per mag, I'd GLADLY pay more for the level of quality. I can get STANAGs all day long from Brigade QM's retail store, and I'm waiting for the P-Mags. The STANAGs are $2 cheaper, but I'd gladly, happily, and merrily pay more for a mag that works with all my ARs, and that work with a higher level of reliability.
If you know what type resin and fillers are being used then you tell me the material costs for the P-Mag body and follower. Also if you know the material and process the springs are made from, again inform me.;)
Not a problem. Would you like me to post our mold drawings and TDP as well? ;)
Alaskapopo
11-15-08, 18:04
Not a problem. Would you like me to post our mold drawings and TDP as well? ;)
Just keep making great stuff. Any improvements in the cold weather ability of the PMags yet. I was the one who told you about the Pmags cracking in -40 below weather in Fairbanks.
Pat
Personally, I would pay twice the going rate for a pmag.
In hindesight, considering how badass they've turned out, i would have as well... but it's too late now- they shoulda charged more to begin with. nobody should ever say "hey, it's ok to charge me more!"
the first great thing pmags did was drive down the price of 30 round magazines. lancers were going for $35+, GI's with green followers were still like $20-25+. When the pmags came out cheap, the general consensus was that they were "disposable" or "throwaway" mags, but totally worth it for the $12 price tag.
all of the sudden lancers were like $25 bucks and GIs could be got with magpul followers for $12-15 all day long.
since then, they've turned out to be some high speed, durable shit, so they're a double value.
Would you like me to post our mold drawings and TDP as well? ;)
Yes please.
Ooh, and can I get 1,000 free pmags while you're at it? I'd like mine to be the special ones that can be black, FDE, or orange depending on which button I push.
Yes please.
Ooh, and can I get 1,000 free pmags while you're at it? I'd like mine to be the special ones that can be black, FDE, or orange depending on which button I push.
orange is my favorite. all my black and foliage mags are still in their wrappers. im pretty ticked- orange was all that was available for a while, but now it's the only color i can't find
You know I don't think it's bad to ask or know how much of a profit margin a company has, it would be up to Rich if he wanted to make that known. I suppose that comes from my fees being fully disclosed to everyone involved in my business... Anyway I have been buying P-Mags at $14.50 and they are a great product. I hope Magpul is making a KILLING on them. I really like their P-Mags, Magpuls, Followers, MIADS, and stocks, I am also after a Magpul UBR (anyone know where I can get a black one?) and I hope they make good money on those too. When Magpul makes a good profit they are more likely to keep making the excellent items they are known for, and come up with great new products.
Rich and the guys deserve every penny they make and then some!
Cameron
People have EVERY RIGHT to be irritated by ridiculous markups, regardless if "making a profit is the American way".
As a consumer, I want quality for low price. It CAN be done, and STILL have the company making great profit.
For example,....
30rd Pmag-------lowest price I've seen $14.20
MSAR AUG mag----------around $35
Remember, BOTH are Proprietary and Polymer magazines magazines from scratch.
The Pmag molds are brand new.
The MSAR mag molds are also brand new, as they are not 100% exact copies of the original AUG mag.
Why does the Pmag cost around $13-17 and the MSAR aug mags cost $35-$40?
Answer?
Because one company has a monopoly on a type of mag (MSAR) and the other doesn't (Magpul).
Don't think for a second that the MSAR mag and other non-STANAG mags are expensive because they're made out of God's fingernails. It's because of the monopoly. Watch magpul comes out with a $15-$20 AUG mag, next thing you know MSAR will have a 10 for $100 deal, LOL.:D You KNOW that's what would happen.
It's about GREED people, GREED.
You know what the most jacked up thing is? Some systems with proprietary accessories are not popular enough over a period of time to warrant somebody to start making more affordable accessories for that platform. So they forever remain a costly system to upgrade ( in terms of mags, rails, optics, etc). Why do you think people on the forums are huffing and puffing about how the latest new rifle didn't use STANAG mags, or uses a scope rail that isn't picatinny?
I think this thread has more than run it's course.
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