AAC screwing small dealers and customers rant

[markm]

I can't say for sure.

I've read that AAC is deploying CNC welders to increase capacity. But a true dealer should be able to lead time his reorders accordingly.

[SHIVAN]

I could run the tightest shop in the world, I could have a database spitting out average product turn rates, margins, lead times, etc and still get a run on 5 or 6 M4-2000's if I have them and no one else does....or if my price is $50 better than the other guy.

Which kills my re-order plan that had projected I would need to order M4-2000's in February, not November.

Now, I place my order for 10 more....can AAC accomodate that instant demand?

The business model of stocking dealers says, "No." AAC will wait for a minimum batch demand to reach the preset ceiling. If they happen to be producing SPR/M4's when my order hits, I could be screwed.

Which is exactly what used to happen...

Grant usually has all the hard to get stuff, but I've routinely caught him with low stock/no stock on common items. He's had the order pending with the vendor for over a month....but they can't deliver it on the drop of a hat.

So he waits, and I wait.

Only thing different is that the stocking dealers are now locked in, and will probably need to keep "hush-hush" about supply side issues -- lest they want to get shitcanned off the program.

If this somehow helps AAC avoid the common delays they've encountered, then I'm all for it.

The market has been forcing this move for some time. The common recommendation from anyone who buys suppressors says, "Don't order a suppressor, buy one from a dealer that has it on his shelf."

[rob_s]

I suspect that this is a move on the part of AAC to simply be able to reduce the number of calls they take. Instead of 10 calls from 10 customers they'll get one call from one dealer. And even then, the hype will die eventually. I think that the mystique and perceived "cool guy" factor (ala Harley in the '90s) is due largely to the lack of supply.

[markm]

I could run the tightest shop in the world, I could have a database spitting out average product turn rates, margins, lead times, etc and still get a run on 5 or 6 M4-2000's if I have them and no one else does....or if my price is $50 better than the other guy.

Which kills my re-order plan that had projected I would need to order M4-2000's in February, not November.

Now, I place my order for 10 more....can AAC accomodate that instant demand?

Likely not... at this point anyway. But the fact that you'd even order 10 more to replenish inventory puts you head and shoulders above most dealers who will only order if someone comes in and pays for one.

[ST911]

Got a letter in the mail from AAC stating they no longer ( as of 01 DEC 07 ) will sell suppressors by the level 1,2,3 system. They now have a dealer and stocking dealer program. Dealer is 9 and less and of course stocking is 10 or more< or you can buy from some of there larger distributors. It goes on to say this will help with there backlog on orders yada yada yada. I call BS. They only want to sell to there cheering squad only. They can charge less than a small dealer and take a % of our buisness away. So If someone comes to me for an AAC transfer from one of them, I will charge them 150.00 for the transfer... Rant off

As noted by others. Not new, not inappropriate, and not unique to AAC.

[markm]

I suspect that this is a move on the part of AAC to simply be able to reduce the number of calls they take. Instead of 10 calls from 10 customers they'll get one call from one dealer. And even then, the hype will die eventually. I think that the mystique and perceived "cool guy" factor (ala Harley in the '90s) is due largely to the lack of supply.

There's no mystique about it. One could easily build a chart of desireable features in a can similar to your Rifle chart, and AAC would be way to the left.

I just look at the features of my M4-1000, and compare it to screw on cans from other makers that have prices hundreds of dollars over what I paid. People are either buying on emotion or ignorance. Who would pay more for a can that delivers so much less?

I went with AAC not for mystique, but for absurd durability.

[Dport]

I'm no business major, but it seems to make sense from a supply chain management standpoint for AAC.

How well can individual dealers predict demand? I'm betting not very well, especially with the restricted nature of the devices.

As you aggregate the orders demand should become easier to predict. (Law of large numbers or some such?)

Theoretically, at least, the better the ability of the manufacturer to predict demand the better they can configure their production line to meet the demand.

There are a couple problems with this approach as I see it.

First of all, do the numbers ever get large enough to be able to predict demand? I don't know where that threshold is, and I'm not sure in this particular industry you'd ever get there.

The second problem is you're asking the dealers and the distributors to assume the risk instead of the manufacturer. Sure that makes sense for AAC. It doesn't make sense from a dealer and especially a small dealer standpoint. The dealer now has to assume the risk by stocking the product. A product that is probably not in high demand compared to other products.

The real question is how many dealers will refuse to accept the risk at all and how will that affect demand?

[Mongo]

All you have to do is look a PSI. They stock AAC cans and buy large amounts of them taking up much of AAC's production runs. They have the cans in stock and have a lot of sales to individuals and other dealers. They have good prices because of the amount they buy also.

This is the same in the rest of the gun industry, when was the last time a dealer bought stock straight from most of the gun dealers instead of one of the wholesale places? PSI has basically become a wholesaler of AAC cans due to this and have thus prospered. For the little guy/dealer this looks like a shitty deal but in reality it works out better for them if they start ordering from a stocking dealer like PSI. They get the can faster, it is in stock and usually at a good price.

It proves out the saying "it takes money to make money"

[Renegade]

The problem with being a stocking AAC dealer is inability to get the product. I buy in quantities greater than 3, and will have no problem with the 10 unit rule, but if it takes 4-10 months to get them then and only 2-3 weeks to sell them, you are still looking at only having them in stock for 1-2 months of the year.

MFG capacity is the problem to be solved, if this change fixes that, great.

[dubb-1]

Who would pay more for a can that delivers so much less?

I choose which products to buy based on specs and the people behind the company. As such, I don't own any AAC supressors. They are well built, though.