Leupold Prices

[blargon]

Thanks Phil, however, that still doesn't explain the very significant price difference between Leupold products in the US in 'real stores' and those in Canada. I'm not even saying something 'fishy' is going on; just curious as to why?

Name one product that comes from the US that is cheaper here. Cripes, you can buy a Brand new Sako rifle in the US for under $1000, and they aren't even a US product!

We also pay 25-30% more for our trucks/cars/boats/ATV's, rifles...

On some US forums, I have seen stainless rifles with McMillan stocks and VXIII scopes on them for $1100...

 

[Mur]

Leupold in the States also dictates retail price to their retailers.I believe there are 2 wholesale Leupold distributors in Canada one in the East and one in the West.Canadian retail pricing is probably a combination of Leupold policy,and the control the distributors have over their own pricing.Either way the consumer in Canada loses.Small retailers don't get rich selling Leupold products,I know..I sold them for many years. Mur

 

[blargon]

No, it's that there's only official importer, who sells to everyone up here. They go past controlling the wholesale price and try to also control the retail price. If a dealer cuts his profits to move product, other dealers go crying to numero uno and try to get his dealership pulled. Some of them post here.

 

[P of PDent]

No, it's that there's only official importer, who sells to everyone up here. They go past controlling the wholesale price and try to also control the retail price. If a dealer cuts his profits to move product, other dealers go crying to numero uno and try to get his dealership pulled. Some of them post here.

Korth Group( Leupold Distributor and warranty for Canada) is without question the best distributor/warranty company we deal with. I don't know what they pay for product but I am aware of the significant costs incurred by having a Rep. group and distribution/warranty across Canada. At one time (prior to US trade restrictions on firearms, ammo and scopes to Canada), Leupold was sold direct to the big retailers and to a couple of distributors who in turn sold them to dealers. The available inventories were hit or miss and the prices were a little closer to US retail. At that time warranty was an issue and for the most part sales were low due to the specific lack of support in the Canadian market (sales in eastern Canada were dismal and did not reflect sales volume per capita in the USA) and Leupold was not happy with the sales in Canada. When Korth won the exclusive Leupold contract for Canada the Leupold sales exploded across Canada to the point that they now have a significant market share of the medium to premium optics market. When I need something in short order the chance of it being in stock (or coming in soon) is very high. Because of the support we get in Canada we buy lots of Leupold product because I know I will get supported. Leupold is very happy with the sales volume and service in Canada. We charge the same mark-up on Leupold as we do on the other main optics brands we sell. We can sell for any price we like but if I was to choose a lower mark up, then my other main competitors would do likewise and my sales volume would remain the same but my profit would be less thus I would reduce my inventory to match my expected profit for the outlay of capital. At present I don't need to "cut my profit to move product" as I move significant volume at the current price. We make a good living selling Leupold and other brands and I am not afraid to say we do this to make money. Ultimately the consumer/customers will determine if this model works well in Canada by either buying more product or changing brands. So far things seem to be working out to most peoples satisfaction. Phil.

 

[P of PDent]

As a follow up to this conversation, Kimber firearms has also entered into an exclusive distribution arrangement with Korth Group as well. Prior to this recent turn of events Kimber was sold direct to retailers in Canada as it was in the USA. Dianne and I bought direct from Kimber and loved the product but the importation issues and manufacturing delays (and up front payment) were to put it mildly a nightmare. We were at the point of dropping the Kimber line due to issues unrelated to the guns themselves however we have got back into the Kimber line (handguns and rifles) and sales are brisk. Having said that the Canadian retail prices went up but the process improved significantly. Prices haven't seemed to impact sales but time will tell. Unfortunately increased retail price sometimes is the price of doing business in Canada with the current issues facing the US manufacturers who export to Canada. Phil.

 

[blargon]

As a follow up to this conversation, Kimber firearms has also entered into an exclusive distribution arrangement with Korth Group as well.

Off topic here, but who and where will the warranty work be done for Kimber? The only thing keeping me from buying one is the lack of support for Canadian consumers.

 

[archie_james_c]

Off topic here, but who and where will the warranty work be done for Kimber? The only thing keeping me from buying one is the lack of support for Canadian consumers.

X2 a Montana 84M would be slick

ADDED- As much as the whole US to CAN difference on scopes and such bothers me, what bothers me more is asshats trying to sell they're 3 year old Leupold/Remington/whatever at the new "recession" pricing. When some clown trys telling me his SPS that he paid 500 for new 3 years ago is now worth 650 because of the new pricing, that just ticks me off...

 

[P of PDent]

Off topic here, but who and where will the warranty work be done for Kimber? The only thing keeping me from buying one is the lack of support for Canadian consumers.

That is currently being worked out by Korth Group. That was one of the issues when everyone was doing their own importing so any warranty problems had to be handled by us through a local gunsmith and then invoice Kimber at the end of the year. This was not not a very workable system in the past and that very situation is being currently dealt with. Phil.

 

[Dogleg]

Korth Group( Leupold Distributor and warranty for Canada) is without question the best distributor/warranty company we deal with. I don't know what they pay for product but I am aware of the significant costs incurred by having a Rep. group and distribution/warranty across Canada. At one time (prior to US trade restrictions on firearms, ammo and scopes to Canada), Leupold was sold direct to the big retailers and to a couple of distributors who in turn sold them to dealers. The available inventories were hit or miss and the prices were a little closer to US retail. At that time warranty was an issue and for the most part sales were low due to the specific lack of support in the Canadian market (sales in eastern Canada were dismal and did not reflect sales volume per capita in the USA) and Leupold was not happy with the sales in Canada. When Korth won the exclusive Leupold contract for Canada the Leupold sales exploded across Canada to the point that they now have a significant market share of the medium to premium optics market. When I need something in short order the chance of it being in stock (or coming in soon) is very high. Because of the support we get in Canada we buy lots of Leupold product because I know I will get supported. Leupold is very happy with the sales volume and service in Canada. We charge the same mark-up on Leupold as we do on the other main optics brands we sell. We can sell for any price we like but if I was to choose a lower mark up, then my other main competitors would do likewise and my sales volume would remain the same but my profit would be less thus I would reduce my inventory to match my expected profit for the outlay of capital. At present I don't need to "cut my profit to move product" as I move significant volume at the current price. We make a good living selling Leupold and other brands and I am not afraid to say we do this to make money. Ultimately the consumer/customers will determine if this model works well in Canada by either buying more product or changing brands. So far things seem to be working out to most peoples satisfaction. Phil.

So did I hit a nerve? Just as your post states those that think that Canadian prices are too high have only the dealer and Korth to look at.

 

[Attention]

Off topic here, but who and where will the warranty work be done for Kimber? The only thing keeping me from buying one is the lack of support for Canadian consumers.

The only thing keeping me from buying a Kimber is their poor reputation for accuracy(hit or miss)

 

[blargon]

The only thing keeping me from buying a Kimber is their poor reputation for accuracy(hit or miss)

That's why they need a Canadian warranty depot...In the US if the rifle doesn't shoot, they send it back and Kimber puts a new barrel on. Too hard to do for us...

 

[rig_pig69]

The topic of Canadain vs US prices comes upfairly often on this board and you can accept the explanations or not. To be fair, comparing Canadian retail store prices vs EBay in the USA is not a reasonable comparison as EBay does not reflect true retail US shelf prices that you can walk into a store, handle the product, get advise and direction from the employees and make your purchase. EBay sellers do not have the same requirements and expenses as brick and mortar stores. If you want the pricing to be the only factor in making a purchase then EBay may be your best bet. You might be surprised to hear that US retailers get dumped on because they don't match the price of EBay sellers either. Getting back to Leupold in Canada...inspite of the price criticisms mentioned here, Leupold is our largest selling optics line so it appears that lots of customers feel they are getting good value for the money in Canada (along with the best warranty in the business). Phil.

I agree it's not fair to compare with e-bay, but how about all the other stores down there... like Shields, or even Big R for that matter. I find it hard to believe that an item such as a Chargemaster 750, or the Lyman equivalent, which are both legal to purchase and bring here are both nearly half the price down there.
New rifles prices are very comparible however, but even items such as those Bino buddies, and slings, bipods... less then half price..... maes it tough to by canadian.

 

[rig_pig69]

No, it's that there's only official importer, who sells to everyone up here. They go past controlling the wholesale price and try to also control the retail price. If a dealer cuts his profits to move product, other dealers go crying to numero uno and try to get his dealership pulled. Some of them post here.

Well said..... It is interesting how much cheaper some people are. Recently, i purchased a set of Leupy bino's. I seen them at one of the 'supporting' dealers on here for 'X' amount. I went into to the 'local' candy store, they were over a hundred dollars less there, then here. On an item that costs 600 bux... that's quite a bit. Now one must wonder..... if they're both delivered from the same importer,.....how much is everyone really making????

 

[P of PDent]

So did I hit a nerve? Just as your post states those that think that Canadian prices are too high have only the dealer and Korth to look at.

No you didn't hit a nerve with me. I completely agree that the retail prices for Leupold products are a result of the wholesale price established by the distributor and then the mark up we place on top of that to make a profit on the item. If you have a wide and deep inventory at the distibutor (he does) and a wide and deep inventory at the dealer level (we do along with some other retailers) you will sell lots of product unless the consumer does not see the items offered at the price they feel is fair. Ultimately the consumer will determine if the price is too high by not buying the product. So far at least, that has not been a problem with Leupold in Canada. Phil.

 

[Dogleg]

Nice tap dancing.

 

[warrenb]

wrong thread.

 

[SakoAlberta]

Its not retailers that are marking them up dramatically.

 

[sillymike]

When some clown trys telling me his SPS that he paid 500 for new 3 years ago is now worth 650 because of the new pricing, that just ticks me off...

That's just part of the game... You win some, you loose some.

Just look at the Breda Garand Marstar was giving away ($199) a few years ago... they are now selling for +$700 on the EE.

Can't blame the guys for wanting to get to most $ out of their pruchases.

 

[Silverado]

That's why they need a Canadian warranty depot...In the US if the rifle doesn't shoot, they send it back and Kimber puts a new barrel on. Too hard to do for us...

I'd hope that for the price of a Kimber rifle, that is a very rare occurrence indeed!

 

[i6s1]

There's also the currency fluctuations and the currency risk.

I'd bet some of our dealers bought some of their stock when our dollar was heading towards 80 cents US. Within a few months the dollar is back in the 90s, and the dealer is stuck with inventory that's 10%+ more expensive then his competition.

Consumers then have the option of doing something that's against CGN rules, buying from a Canadian competitor that got luckier timing on the dollar, or simply holding off on the purchase. Dealers have to account for that risk by increasing the margin. They just can't run thin margins like American eBay retailers when they have that currency risk.

I bought a Leupold scope from one of our sponsors this spring, and I have a hunch that it was imported a few months earlier when the dollar was far better. It was roughly the same for me to buy from the sponsor then the US price converted, so I was quite happy with the price. There's a delay from importer purchase to import to distribution to in stock on dealers shelves. When the dollar is rising, it makes the dealers look like scammers. When the dollar is falling, consumers benefit from the apparently favorable exchange rate, but nobody starts threads about that.

I'd like to get a couple more Leupolds, but I'll wait until the spring when the prices reflect a 95cent loonie.

It's not just Leupold scopes that are usually more expensive, it happens with everything that gets imported, new cars, electronics, food, everything.