Good points Chris. Discussing markups and margins gets complicated, and doesn't mean much without an understanding of the specific business. Greatly oversimplified, but basically, the business has to make enough to generate an acceptable return to the owners, and cover the cash needs of the business. Contrary to much public opinion, the gun industry in the US is relatively small, and not very profitable. This why most US makers have been either acquired by larger European companies, or bought by investment bankers who have learned from their mistakes, and want out. The shifting political environment and public perception of guns and violent crime has made it a very challenging industry. Exactly what all this will mean to the air gun market remains to be seen. Right now, firearms and air guns are enjoying a huge surge in demand which, as all cycles, will pass.
I try to be optimistic, but as George Carlin said, "never underestimate the power of stupid people in large number".
I try to be optimistic, but as George Carlin said, "never underestimate the power of stupid people in large number".
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