What is the problem? Supply and demand? More people want them at the current prices than what they can build. The price must be too low, or they wouldn’t be selling out... Sure the price may be high to some, but overall, they must not be too high, contrary to popular belief. Some rifles are much higher, and yet the shelves are full of them. Maybe, we should be complaining about the already too high prices on those rifles instead... People actually are not cleaning out the stock of those rifles because they don’t feel they are getting the value for the money.
We act like they are the only one increasing pricing. Pricing goes up all the time. Vortex implemented a price increase on Jan 1, and I don’t think people are stopping ordering those overpriced scopes. Many companies didn’t make nearly the money they normally do this year, with the pandemic affecting all areas of business. Whether it is purely supply and demand and they just want an extra $50 or whether they need it to offset some income they didn’t make, what do I care? That is the great thing about this world. You get to go buy something else, buy what you want. Every single company is trying to figure out what to do about selling prices right now and how to make money. This is nothing new. How much money is too much money to a company? Who gets to decide? Should we really implement income caps, because companies are too successful?
Gas prices change every day! Better stop buying gas! They raised the price on me $0.10 today. Car prices went up, how dare they, they cut costs this year and made it crappier but I have to pay more? Cable prices went up and they suck! How dare all these companies try to make money... while they can... got to make the money while you can. That is life man.
I own and have owned FXs, but have owned just as many Daystates, and have owned several other brands as well. So I’m not defending FX. I’m defending business.
I have to agree with you here. Much o this thread reads as if the people involved have no idea how business works. There are lots of people who get into a particular business (like making airguns) out of love for a sport. If they don’t learn how to run a business they very quickly go out of business, leaving former customers high and dry! Frederick Abelson may have gotten into this business because he loves airguns, but he is in it, and very successful, because he knows how to run a business! Constantly finding ways to improve productivity, even while pushing the boundaries with innovative products is not easy, but is absolutely necessary if one is to be successful. Raising prices when necessary, or possible, is also a part of the equation. Establishing your own local distribution setup, such as he did with FXUSA is not cheap, and quite likely a money loser in the short term. But in the long term it allows you to exercise control over the pricing and distribution of the product, manage inventories and servicing, and generally improve your knowledge of the (local) market.
Most people have no idea about the margins in any consumer related business, including those who complain about the fact that the Chinese made products cost so little to make, but sell for (in many cases) comparable prices to stuff made elsewhere. Let me tell you a little secret. Price (to you) and cost (to the manufacturer) are only tangentially related. You make a product for as little as you can, consistent with the quality, service, etc. you intend to provide. You sell a product for as much as you can, consistent with demand, supply, and competition. If you can make it for a dollar and sell for $10, that’s what you’ll do. If it costs $5 but there is competition and you can sell for only $10, that’s what you’ll do. These are not government contract, cost + businesses. Furthermore, everyone in the retail chain has their own margins to support. Thus, it is not uncommon for a manufacturer to make a product that has manufacturing costs of $25, sells to a wholesaler/distributor for $50, then has the wholesaler sell that on to a retailer for $60. In many instances retail margins range between 30% and 50% (of Gross selling price). If we settle on 40% the retailer is selling the product for approximately $100.
Finally, before we think that all of those margins represent profits, remember that along each part of the chain people have their fixed costs, like rents/mortgages on facilities, administration, interest (if they borrowed money), administrative costs (finance, marketing, HR/payroll, etc). Oh yes, and TAXES!
Welcome to Capitalism folks. It absolutely sucks, and at the same time is better than every other economic system out there! And remember, without it we would have FX airguns or any of the others either.
If $50 bucks more on an Impact is too much, walk away and buy something else.
Good Luck and have Fun, since that’s what it should be about, especially for those of us lucky enough to be having a debate about a $50 (2.5%) increase on, say, a $2000 Impact.
Chris