To dealers and manufactures….USA Prices and Jumps and Drops (?)

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Blackpaw

Blackpaw

Member
Apr 23, 2020
3,197
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Idaho, United States
This is mainly to the dealers and manufactures that have the guts to answer.

As we see with gas / petrol prices they vary on the cost of crude oil, etc. Sometimes they go up and some times down, and it always seems that is the way it is and will be. Does the same apply to dealers / manufactures in pricing their airguns????!!!!

Overnight several dealers (Kalibgrun and Brocock / Daystate raised their prices 10% overnight) in USA only not in EU, for the price of their products. Dealers said it was the result of the straightening GBP and Euro against the USD. Plus the logistics with COVID etc, Fair enough…but and there is always a BUT.

If for some reason the euro / GBP (UK pound) fall against the USD, as it did two years ago, like 5-10% difference will dealers / manufactures lower their prices in USA?

So does any airgun or dealer have the guts to reply?

Yes, this is calling the dealers and etc out, but if you raise because of economics, if the trend changes, you should lower prices because of economics.
 
Costs go up then prices go up but the biggest influence is the basic law of business-supply and demand. I can assure you if the demand were to drop they would lower prices to get the business back up to speed again then the whole process starts over.



Think we are still in a strange time in world history-give it some time and see what "normal" looks like again with pricing and everything else IF we ever see what we consider normal again.


 
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Yes all those PCPs inching up to the 2K price point. Just won’t buy, simple enough. My current stable is good for the foreseeable future. The dealers and manufacturers are simply pricing many out of the market. Short sighted as opposed to flooding the market with affordable good product. The close to 2K Brocock Atomic is but an example. I want one, but refuse to pay that jacked up price.
 
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Simply do not reward their greed with your further purchases. As there are many other good brands on the market place that will do just fine. And like L.Leon said maybe I don't need that simple want just now.
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This !!!

I was about to order a Uragan compact....then I saw a several hundred dollar mark up. As much as I wanted that rifle....I'll do without it 
 
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Mrmetals,

In my opinion, after an item is selected, and the agreed upon price fully paid, any product price increases, prior to delivery to purchaser, are the responsibility of seller. Any price decreases benefit seller, as well. (Buyer or seller may wish to negotiate price increase or decrease resolutions, as part of pre-order agreement.) Sellers not wishing to assume this risk should refrain from pre-order sales. If a buyer fully paid for a pre-order, only to be charged an additional, non-agreed upon fee, upon delivery, I'd consider seller to have acted in bad faith and would not patronize. 

WM
 
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Absurd pricing... My first PCP, an Gamo Urban was spectacular to me in its consistent accuracy. And in its ability to take small critters easily from 40 to 50 yards. Furthest kill 80 yards (range finder measured). Then I spent more money for better PCPs. And while I gained refinement at more than double to triple the costs. I didn't gain much in terms of how I use PCPs practically. This is confirmed through many pellets down range, on pests and paper and lots, lots of plinking. For me PCPs are like "fantasy" items. I have an "envisioned" usage. Ex: "Sweet ratting rig" BUT?! How often am I ratting? Or, pesting, etc. That said, we are fortunate to have so many choices in PCPs. I paid $700 USD for my Compatto 3 years ago. Then a Bantam HR fir $1200 USD, both have set such a high bar that I'm loath to go north of 1.5K. They will serve for the foreseeable future. A few years down the road I will seriously look at the classifieds.
 
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To my knowledge that if a gun is pre-ordered and billed to your credit card or deposit put down, the deal is said and done with price fixed, especially on the credit card. If a dealer tried to charge you more, after you already paid for the gun, because prices when up, then that shows two things, one the dealer has no integrity and I am sure, in most states, violate the law for break of contract.

It is back to the fuel at the pump, you fill up at one price, then go to pay in the store and prices jumped 10 cents between the time you pumped and go to pay. This would be illegal and the gas station can only bill you for the price at the pump, if they lose money, that is on them. Once the price is locked in then any lose is on the dealer, it isn’t your responsibility to make up their lose.
 
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Not all dealers operate this way. Check out the prices at Krale...you'll need to monitor over the span of a couple weeks.

A while back, I noticed their pricing floated with Dollar vs Euro valuations. Airgun prices went both up and down.

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your 100% right KRALE prices go up and down almost daily i like that they have a set margin then work on that,, I was shocked to see the Daystate prices COME ON MAN it's uncontrollable,What do you think the mark up of a PCP anyways 40%maybe a little less ,How much do you think it cost Daystate to build a REDWOLD no where near $2900 ,
 
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Hynzie- “What do you think the mark up of a PCP anyways 40%maybe a little less”?

I am willing to bet that the markup is at least 100%, and perhaps more. The manufacturer covers their warranty with the first 100% markup. Any extra percentage is where the real money is made.
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It depends on what markup you are talking about. For retailers of items like airguns the MARGIN is rarely beyond 40% Actually few items have a markup higher than that, although jewelers margins can be 50% or more. For firearms the margin is more usually between 20-30%. 

However if there is a distributor involved then they have to make a markup too. This is anywhere from 2-10% depending on category. Then we come to the manufacturer. There markup on the actual cost to make a product like an airgun is probably 50-100%. Note that this is the markup on their cost, so the margin is 25-50%.

So, if an item costs $500 to make, the manufacturer sells it to the dealer/distributor for $750 - $1000. The distributor/dealer (I’m combining them for simplicity) sells it to you for $1500 - $2000.

Now, that looks like crazy markups, but the cost of production is only a part of the costs of the whole chain. The first cost is the cost of the R&D that the manufacturer performed, possibly for years before selling even 1 gun. Then you have to add the costs for shipping, handling, etc. Then Warranty service accruals. Then advertising, promotion and marketing. Then Administration (accountants, HR, Legal, general management, etc.). These are not trivial. Few manufacturers make more than 20% Earnings Before Interest and Taxes (EBIT). And oh yes, taxes, and Interest on the inventory they have to keep.

The same is true for the retailers. They have similar costs, plus often the need for more sales staff to answer questions when we call, listen to gripes, keep track of what’s being said on AGN :) etc

None of this is to defend terrible business practices like gouging customers when things are in short supply, or jacking up prices on items already pre-ordered and paid for. I merely wanted to point out that much of the discussion I see around margins and markups really don’t address the way the real world works.

Chris
 
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