Welcome to MGO's Internet Discussion Forums…Please Consider Becoming a Dues-Paying Member of the ORG…Click >>>>>HERE<<<<< for more info…………****DONATIONS**** can also be made toward MGO's Legal Defense Fund and/or MGO's Forums >>>>>HERE<<<<<

KROGER

Page 3 of 14 FirstFirst 123456713 ... LastLast
Results 21 to 30 of 139
  1. #21
    I am a Forum User
    Join Date
    Apr 2013
    Location
    S.E. Michigan
    Posts
    3,831
    Go back to Econ101.
    What happens when supply is up and demand is low?
    There is your answer.
    These are very basic economic principals no longer driven by political forces which drove demand.

    Like Nick also said, a lot of these small dealers who loaded up on political frenzy over the last two or three years will go away.

  2. #22
    MGO Member
    Join Date
    Dec 2006
    Location
    Montmorency Co, MI
    Posts
    4,866
    Quote Originally Posted by Nmadole View Post
    I think it is possible, but not because the cost went down ... I know quite a few FFLs who were betting on Hillary and are way way over extended. They will start dumping merchandise to get cash flow .... I anticipate alot of dealers going under in the next two years.

    Sent from my SM-G925P using Tapatalk
    Maybe some of those supposedly hoarding ammo will go the same way.

  3. #23
    I am a Forum User
    Join Date
    Jul 2009
    Location
    Livonia
    Posts
    8,476
    Quote Originally Posted by dirtmcgirt76239 View Post
    Yeah I understand the idea, they have 250k in guns in there and no one is buying them, that could be a problem.

    I am just saying I did not notice a rush up to the election, its almost as if over the last 7-10 years going back to 2007 ish that all the getting has been got. I just did not notice piles of guns at any of the shops. It seemed very level the last 4-5 months and the shops I have been to I even asked, jeez, no price raising, no empty shelves ? Seemed so tame.

    As long as they did not buy at inflated prices I think most shops will be doing just fine, and demand might decrease 10 percent since there is no deadline looming for doom. But then there is mid term elections right around the corner.
    You're still missing the point. Dealers have to project orders several months in advance for limited items. They thought there would be a run but there wasn't. Now, they are stuck with more guns than they anticipated. They still have to pay for them. Most distributors only give you 30 days. Some manufacturers may give you 60-90. You also have to pay the mortgage, salaries, insurance, utilities, etc. There could be a cashflow problem. Shops aren't going to tell customers their financial position. If they did, it would hit MGO the next day and everyone would go there and ask for deals because "we heard you're hurting for money".

  4. #24
    I am a Forum User
    Join Date
    Feb 2013
    Location
    Lakeview
    Posts
    2,042
    Quote Originally Posted by JohnS624 View Post
    You're still missing the point. Dealers have to project orders several months in advance for limited items. They thought there would be a run but there wasn't. Now, they are stuck with more guns than they anticipated. They still have to pay for them. Most distributors only give you 30 days. Some manufacturers may give you 60-90. You also have to pay the mortgage, salaries, insurance, utilities, etc. There could be a cashflow problem. Shops aren't going to tell customers their financial position. If they did, it would hit MGO the next day and everyone would go there and ask for deals because "we heard you're hurting for money".
    They may not tell customers, but all those shops have employees that know things about the finances, sales goals, inventory, etc.. Word gets out. It won't be public or front page, but it won't be a secret either. Some shops have more cash reserves than others or less overhead and can ride this sort of thing out better, so it won't be universal, nor will all shops feel the pinch at the same time.

    I have several friends that work at gun shops, I hear plenty about how sales and inventories are. That doesn't necessarily translate into bargains for me though.

  5. #25
    Quote Originally Posted by Quads View Post
    Go back to Econ101.
    What happens when supply is up and demand is low?
    There is your answer.
    These are very basic economic principals no longer driven by political forces which drove demand.

    Like Nick also said, a lot of these small dealers who loaded up on political frenzy over the last two or three years will go away.
    Thanks I only have about 5 econ classes under my belt. I only read business crap about 1 hour per night for the last 20 years. BBA, minor in finance. These are not foreign concepts to me.

    I did not get the report saying all these shops had high inventory. Like I said, I saw steady stocked shelves. I also said, I saw steady prices these last couple months. Uncommonly steady if you look back to say 2007 or 2008.

    I saw steady demand for the last ten years with a few crazy blips going up around elections and mass shootings. I do not think demand is going to drop off a cliff. Again if you have an industry publication with a forecast sales will be down 40 % I would like to read it.


    If you work at a shop or have a buddy that does, thats great. I do not think sales were so high and order filled so quick that you cannot get past a slight lull. Guns are good collateral. You can get a loan to ride out a few months of high inventory. People did not stop wanting guns. They still have money. The economy did not collapse.
    Last edited by dirtmcgirt76239; 11-10-2016 at 10:47 PM.

  6. #26
    Quote Originally Posted by JohnS624 View Post
    You're still missing the point. Dealers have to project orders several months in advance for limited items. They thought there would be a run but there wasn't. Now, they are stuck with more guns than they anticipated. They still have to pay for them. Most distributors only give you 30 days. Some manufacturers may give you 60-90. You also have to pay the mortgage, salaries, insurance, utilities, etc. There could be a cashflow problem. Shops aren't going to tell customers their financial position. If they did, it would hit MGO the next day and everyone would go there and ask for deals because "we heard you're hurting for money".
    Well lots of gun shop owners do pretty well, you can get a loan on the inventory. If its just a few months, its not the end of world, as long as there is steady demand in the future. It does not need to be increased demand.

    How much in dollars does a shop like say double action commit last month, for an order coming this month ?

    How much do you think they would like to change that order if they had a crystal ball ? 40 % ?

    Heres another angle. If they did not order a huge amount of guns, just normal amount, and sold every last gun they had, did they have a good month ?

    ok.

    Then you place a larger order after the election and do not risk your store if that is even a thing, I do not believe successful shops are that hard up for money, the owner has no credit, no business credit. no savings nothing. But lets pretend he does live like that.

    Losing the store would cost you much more than 1 months extra sales beyond your normal demand. Seems pretty simple to me.
    Last edited by dirtmcgirt76239; 11-10-2016 at 10:50 PM.

  7. #27
    I am a Forum User
    Join Date
    Aug 2013
    Location
    Grand Rapids
    Posts
    2,423
    As I've already said I know a bunch of dealers that are cash poor and use terms ... when the piper comes calling in 30-90 days they will deplete their cash reserves .... then when sales still don't match expectation they will have cash flow problems. Then they will dump inventory.

    I think Dirt severely underestimates how many gun you need to actually sell to keep the lights on ...

    You don't open a firearms store to get rich ... it takes ALOT of money to make any money in guns. The profit margin just isn't there ....

    We will see a culling of the gun store market over the next two years; Trump is bad for gun sales ... hate to say it

    (I am not overextended; and will have no problem staying afloat)

  8. #28
    I am a Forum User
    Join Date
    Apr 2013
    Location
    S.E. Michigan
    Posts
    3,831
    Quote Originally Posted by dirtmcgirt76239 View Post
    Thanks I only have about 5 econ classes under my belt. I only read business crap about 1 hour per night for the last 20 years. BBA, minor in finance. These are not foreign concepts to me.
    Then supply and demand should be pretty simple for you wrap your head around, yet you still question the fundamental mechanics of it.
    Okidoke. Have it your way. Nick tried telling you as well. Apparently that didn't work.

    Good day, Sir!
    Last edited by Quads; 11-11-2016 at 10:27 AM.

  9. #29
    I am a Forum User
    Join Date
    Jul 2009
    Location
    Livonia
    Posts
    8,476
    You just don't call up your distributor and tell him that you want 50 M&P Sports and 25 Colt 6920's next week for the election. Sorry, that's not how it works. For high demand items, you have to get them locked down months beforehand. Most distributors have shows a couple of weeks after SHOT. That's where you put in the bulk of your orders for the year. Some dealers have better (or longer) credit history than others. Nmadole and I aren't saying that all shops will fail, but some will. It helps if you are well established and have a range attached. People still shoot, even if they're not buying.

  10. #30
    MGO Member
    Join Date
    Aug 2002
    Location
    Registration=Confiscation
    Posts
    2,430
    Even without large inventories in retail or at distributors one has to consider that with record sales over the last few years manufacturing capacity is at a peak. In order for them to keep those machines and employees working manufacturers are going to have to keep selling product. In order to keep selling product they are going to have to lower prices and/or come up with new products than attract people's attention. The latter takes awhile to come to market so lowering prices is probably the first thing we will see. That all flows down to the local retailer at some point.

    I suspect that like many others the only way I am going to buy something new anytime soon is if the price is so low I can't resist .

Page 3 of 14 FirstFirst 123456713 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
only search Michigan Gun Owners Forums
MGO's Facebook MGO's Twitter