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Court ordered Reciever in the FX Saga if you are interested
- Thread starter oledawg
- Start date
Appears to me the court did not immediately order FX-USA to go into receivership as much as Axelsson was hoping for today.
-Matt
-Matt
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Are you happy or delighted by that? I'm pretty the Axelssons legal council warned them that would of been a long shot. The court is on a fast track schedule, the best the Axelssons could hope for. Unlawful Detainers (evictions) get fast tracked, I've had simple cases go past 6 months before a judgment....
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I feel 100% neutral about it, why would it matter if I leaned either way, be it happy or sad?
I am rooting for justice at the end of the day, be it in one party's favor or the others...yourself?
-Matt
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I agree. At this point it's impossible for a third party to know much about this mess. Having dealt with similar situations as lender, I can offer one observation. It is often vital for a court-appointed trustee to gain control of the assets. If the defendants are honorable, it's not a big risk. But if not, things disappear quickly.
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It’s a shame it may hurt customers and the industry as this progresses and now includes UA all high level industry leaders.
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I run a airgun store and just like any other industry the actual cost to manufacture the product is usually 10-30% of the msrp.They sealed the affidavit that showed all of FX's rifles and accessories costs
To manufactuer a Apple phone is about $200, but how many millions/billions have been spend on equipment and R&D?
When you buy directly from a manufacturer you can get the best prices, usually around 30-40% of MSRP.
What is actually going on is they transfer the storage of the product from themselves to you. Most airgun manufacturers have a minimum order size which is normally 30-50 rifles. How long will it take you to sell the rifles? How long will they be on the shelf? What about those who can't afford to buy 30-50 rifles (like me)?
This is where distributors/suppliers come into the picture, they buy from manufacturers and stores buy from them.
They normally add 20-30% to the cost unless they are assholes (like Hjorth in Finland that add 100-1000% to the product because they have exclusive distribution rights, this makes it pointless to buy from them when I can get cheaper from online stores in the middle of EU).
So lets say a rifle costs $500 from the manufacturer with a msrp of $1500, they want you to buy 50 rifles minimum. This is normally sent by pallet or crate as those are the cheapest shipping options. Then you have to pay customs or other import duties.
Most manufacturers want the MSRP to be the exact same all over the world, this affects the prices they sell at. In Sweden the VAT is 25% whilst in other parts of the world it might be as low as 10%, yet they both cost the same in the store. Asshole distributors with exclusive distribution rights can ruin this though.
I wanted to buy 31 rifles from a manufacturer, it would have cost me €6500 + 24% VAT (special customs regulation to where I live, have to pay VAT on imports that is then paid back when item is sold) + freight. Then it turned out that there was a exclusive distributor for that brand in Finland, they wanted €16 000 for the exact same order including VAT and freight.
From manufacturer it would have been around €8000 (inc VAT) + freight and there is no way the freight is €8000 for a 100kg (200 pound) order from one EU country to another. I did the math and my profit went from over €10 000 to less than €1000. Some rifles would have cost me MORE than MSRP, why would someone buy from me when they can get a 20% discount from some online store?
TLDR: A rifle might seem cheap to buy from the manufacturer but you need to buy many of them, after you pay all the costs associated with running a business the profit for selling a rifle might be 10-20% of the cost of the rifle if you are lucky.
So if you want to buy airguns cheap all you have to do is start a company, order 30-50 rifles or fewer at a higher cost per rifle from a distributor.
Once you have taken the cost of everything into account you might save $100-300 per rifle, do remember all the paperwork and other work you had to do though. If you had a hourly pay of $10 you would have made more money flipping burgers than all the time you spent getting the rifle.
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So you're saying a marauder cost 50$ to produce, or a Umarex notos cost 25$ to produce? You think air rifles have the same R&D as an Apple Phone?
Apple Iphone:
"How Much Does It Cost to Make an iPhone? The cost of making an iPhone 13 Pro, is $570"
Tesla:
The average cost of production per car fell from Q4's figure, too, from nearly $39,000 to just above $37,000 for Q1
Airgun pellets? You're telling me those cost, with labor, only 2-5$ to produce a tin of 350-500 pellets?
Commonly mark ups are capped around 100-200% at most in many (from production, not from distributor), many industries, including AIRGUN COUNTERPARTS....I could go on with so many examples to this, or you could simply use google yourself. A 30-50% markup from distributor is more modest and common across all industries. High end, 'luxury' branded are in a different league than what is typical within their own markets, are you denying the cost for a brand name itself?
Sure there are overhead costs I am aware of, from freight, to R&D, to employees, to paying for brick and mortar, I am not new to doing business...but if Apple, Tesla, and other airgun manufacturers can do it, so can FX or any other 'high end' brand, especially ones commonly produced in cheaper countries in mass, and then assembled in the business country of origin...
-Matt
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More documents posted on 10/30 and 10/31. Appears the court did appoint a receiver. FX USA remains in control the receiver will do a 4 week analysis reporting back to the court each Friday along with reporting any new financial activity the seems inappropriate.
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Come on guys! We all knew we were being gouged. Heck the advertising cost has to be @ least $200 per unit.
Then figure warranty #'s @ $200. Shipping from Sweden? Retailers mark up.
Now take the bull by the horns and REFUSE to pay these exhorbinant prices. There are plenty of guns for the average Joe. NEVER again quoth the Raven
I was lucky, for which I thank the crew in NC. I got my gun back and hope everyone else did , also. I know they were trying to do that.
Hope the best for the employees.
Then figure warranty #'s @ $200. Shipping from Sweden? Retailers mark up.
Now take the bull by the horns and REFUSE to pay these exhorbinant prices. There are plenty of guns for the average Joe. NEVER again quoth the Raven
I was lucky, for which I thank the crew in NC. I got my gun back and hope everyone else did , also. I know they were trying to do that.
Hope the best for the employees.
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I said here for years that a lot of things were fishy at FX USA and the management was horrible. Those posts were deleted most of the time.
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The type of limited receivership ordered offers no real control over the company operations. If the current management is ethical in its duties, then hopefully things can be resolved without damage to the company. Obviously, the prior action of the Plaintiffs infers that such is not the case, so it will be interesting to see what develops. If the parties can come to a non-judicial agreement, that might result in the best outcome, and maybe this will offer the time to achieve it.
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Lots of juicy documents the last week. Not looking favorable for FX USA. Temporary restraining order and Preliminary motion to strike denied by the court.
Also the receiver said this:
One more week until that is determined.
Also the receiver said this:
One more week until that is determined.
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Other people that worked there knew what was going on, too many things didn't add up and they were not performing like a normal business.
No need to elaborate because this forum curiously deletes posts that shed light on that. Don't be surprised if this post goes under the rug with them.
I'm surprised this whole thread and any mention of the subject hasn't been deleted.
No need to elaborate because this forum curiously deletes posts that shed light on that. Don't be surprised if this post goes under the rug with them.
I'm surprised this whole thread and any mention of the subject hasn't been deleted.
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It’s way too early to draw any conclusions about all this. The court system takes forever and forever and a defendants legal team will go to any length with their filings to make their client(s) seem “innocent”. Defendants are always innocent in their own minds and words so I have a feeling it will all come out in the end. Always say where there is smoke there is fire and that John dip 
didn’t end up where he is by being a good honest businessman.
didn’t end up where he is by being a good honest businessman.Upvote 0
It’s way too early to draw any conclusions about all this. The court system takes forever and forever and a defendants legal team will go to any length with their filings to make their client(s) seem “innocent”. Defendants are always innocent in their own minds and words so I have a feeling it will all come out in the end. Always say where there is smoke there is fire and that John dip
I think that is true for most any business that is super prolific, rarely are the owners entirely benevolent, because those who are offer their goods at very fair prices while paying their employee's well and themselves modestly, while those more focused on quarterly profits squeeze every last drop out of their lemons to make lemonade.
-Matt
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You have to remember, markup may yield a much higher gross profit, but the amount of fixed cost overhead often varies a great deal between the manufacturer, wholesaler, and retailer. When you see the true net bottom line, the profitability might not be what you think.
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