M-14b

[johnone]

NNTW;
"It depends on what's important to Marstar as a business and, for that matter, how loyal Marstar customers are."
First and foremost we want to provide our customers with quality products at the best possible price, products on which we can apply our warranty policy

"Then maybe it eats the wholesale increase and doesn't make as much profit on a few items, viewing it as a short term issue to meet long term objectives."
You seem to think that there is a huge mark-up on merchandise ?? I'm afraid that perhaps you did not understand what I was trying to say, maybe I did not explain it clearly, most of the products we offer we have input in the QC, after all we will warranty the product(s).... If we obtain a substitute from another provider what assurances do we have that it will meet our specs and our customers expectations ?? Regardless of price ??

"And if Marstar's got the customer loyalty, people may well pay the 20% extra you theorize, because Marstar service, etc, is worth it to them."
While we enjoy a very high level of customer loyalty I really doubt that they will pay an extra 20% just so they can buy from us.... I know I would not buy my new car from a dealer I like if he were charging an extra 20%.

after all one of the main reasons people shop at Marstar is because we offer some of the best deals, best prices, best warranty police and best service in Canada....

Regards
John

[nntw]

"You seem to think that there is a huge mark-up on merchandise ?? I'm afraid that perhaps you did not understand what I was trying to say, maybe I did not explain it clearly, most of the products we offer we have input in the QC, after all we will warranty the product(s).... If we obtain a substitute from another provider what assurances do we have that it will meet our specs and our customers expectations ?? Regardless of price ??"

no need to be condescending, John- i don't think i ever made comments about your margins. nor have we discussed QC before. i talked about market share and overall strategy.


"I know I would not buy my new car from a dealer I like if he were charging an extra 20%."

20% price difference? I'm unlikely to pay 20% more on a new car, but on a $30 magazine? Maybe.

Best deals and best service? From what I can see, the vast majority of your customers are happy. And yet it also seems there's room for improvement.

[johnone]

NNTW;
"I am curious how much analysis you've done on your business- parts vs ammo vs equipment etc- and if you've evaluated where your best returns are, and what your optimum product mix should be, ie, how you should focus your efforts.

Lets take a moment to consider the nature of the surplus business.... Last year for instance two governments contacted us with 7.62x39 ammo, as with all surplus deals you take it all, or you take nothing.... We can't say that we have evaluated our needs and only sell X per month so we will re-order as needed.... NO it does not work like that you accept the offer, sign the contracts and pay for it.... As a result 20 container loads arrived on our doorstep....
We recently signed contracts for thousand of SKS rifles, why ? simply because they were available....
How do you anticipate what will be available in the surplus world this year ?? Or the next several years for that matter....
You speak of parts versus other items for example, late last year we had the opportunity to purchase two warehouses in Greece, 10 x 40ft container loads of premium parts
How would you go about studying the market for these items considering most have NOT been avaialable in any quantities since the 1950s....

" and what your optimum product mix should be, ie, how you should focus your efforts."
I would really like to know how one can do this in the surplus business ?? One never knows what will show up or when, you simply have to be ready....

"I'm guessing small parts (including magazines) are not really a core part of your business."
Well now I don't really know how you define "core part".... Lets see at any given time we have between 25,000 & 30,000 magazines in stock.... We just purchased 500,000 more this past week
Our parts section holds between 100,000 & 125,000 bits and pieces at any given moment.... We are always adding
Parts and magazine are a good example of buying when you can, if I am offered some brand new parts for WW-11 weapons, whose production ended with the war, I'll buy them

" I am curious how much analysis you've done on your business"
Interesting, in 1984 I decided to go into the surplus weapons and munitions business....
We hade VERY limited resourses as I had just been screwed out of my share of another business....
In the past 25 years we have managed to become the largest surplus arms dealer in Canada, a major player in the US market, a prime supplier to many governments....
Our company has become a multi million dollar entity, we have millions of dollars in paid up inventory in Canada and off shore
Marstar does not use credit facilities, we are completely self financing, this way we can negotiate the best possible deals from vendors.
No I do not have any business degrees, but I am a graduate of the school of hard knocks
Hell I must have done something right ??
John

[nntw]

Hi John:

You're a successful enterpreneur who flies by the seat of his pants.

You've got a lifetime of practical experience in a rather obscure, hard-to-predict business.

You're presented with opportunities where you've got to make a snap go/no go decision based on your experience and gut feel.

You've led Marstar and made it a huge success.

Sound about right?


... all I can say, it sounds more and more like an awesome case study for a bunch of bright-eyed, bushy tailed business students. I'm sure they could learn a lot from you, and maybe even make a few suggestions.

[Max Owner]

Johnone; there will always be people who will gripe and complain. Don't waste your time on them. Let them take their "hard earned" cash elsewhere.

[a0jc]

Johnone; there will always be people who will gripe and complain. Don't waste your time on them. Let them take their "hard earned" cash elsewhere.

That's the thing that I'm impressed with John's character. He allows individuals who assume they know more to entertain him on their business experience only to open a can of cold hard reality on them. Considering that he RUNS a company like Marstar, it's amazing that he's willing to go tete a tete with average Joe is something you're not gonna find with many companies nowadays who use university educated mathematics to cover up bad business sense. The internet has allowed people to whine and complain and prop themselves on how super smart they are without really having pass the teenage phase of realizing the world does not revolve around them. It takes someone like John to humble these individuals.

And it's always a good read Like the super huge but obscure firearms importer who can ship in SKS's for $50 a piece :D

[sirren]

Yes it is entirly possable to do an very basic E-mail preorder set up, just because its simple doesnt mean it wouldnt work. They said that upon the arrival of the rifles that they would contact you to conferm your place in line, that is when they COULD HAVE taken proper documentation. and being as they only ask for a "Note" that is how I assumed it would work. After all It was not specified that you had to fill out a form. Read the opening post, it says nothing to that point, read the web sight, it doesn’t either. I just did as it instructed when when no other specifications were stated. technically I was the only one to follow the instructions exactly it seems.
But whatever, its sorted out now. I know for next time.

ok if say it is possable I'll have to take your word for it. Everyplace I have done a preorder from has wanted all the info up front before they will put you on the list/order it for you.

[secondgen]

I should probably go back and read all 13 pages but why bother....

John has been great to deal with. I have bought 3 guns from Marstar and never had a problem. I for one appreciate a dealer who brings in large quantities of interesting products and chooses to sell them a very good prices... if that doesn't say that Marstar cares about it's customers I'm not sure what does.

Maybe John should take on 5 more full-time employees and charge an extra $100.00 per gun to keep the high maintenance customers happy?

[=(M-1)=]

ok if say it is possable I'll have to take your word for it. Everyplace I have done a preorder from has wanted all the info up front before they will put you on the list/order it for you.

Yep it seems to be. I had just done an Email 'note only' pre-order for a M-14 class stock, It wont arrive from the U.S for three more weeks. It was through another non-CGN supplier that I won't mention on the Marstar sight. and all he ask was for an E-mail stating my intentions to purchase, to which he sent a reply stating I was in line to receive the rifle stock.

I should probably go back and read all 13 pages but why bother....

John has been great to deal with. I have bought 3 guns from Marstar and never had a problem. I for one appreciate a dealer who brings in large quantities of interesting products and chooses to sell them a very good prices... if that doesn't say that Marstar cares about it's customers I'm not sure what does.

Maybe John should take on 5 more full-time employees and charge an extra $100.00 per gun to keep the high maintenance customers happy?

You dont need more employees than is necessary to get a job done. You just need to get your moneys worth from the ones you have. And raising customer cost just drops sales and turns more of your happy customers into high maintenance customers. Because when they pay more for an Item they expect more from it. But if you pay a junk price, and get junk, at least your not disappointed. LOL. :D
Not to say Marstar sells junk. But they do offer the junk price. so we should all cut them a little slack.

[tiriaq]

Yep it seems to be. I had just done an Email 'note only' pre-order for a M-14 class stock, It wont arrive from the U.S for three more weeks. It was through another non-CGN supplier that I won't mention on the Marstar sight. and all he ask was for an E-mail stating my intentions to purchase, to which he sent a reply stating I was in line to receive the rifle stock....

That is really excellent customer service! Not only from the USPS, Canada Post, CBSA, the licenced exporter, but from DFAIT for your IIC, and US DOS for the export permit as well!