Nightforce Prices UP, Delivery Down

P of PDent

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We just received an Email from Nightforce yesterday that their prices are going up today (prices to follow) and that the build time is now minimum 24 weeks from receipt of order. Apparently they have large government orders to fill and significant commercial back orders as well. They are attempting to hire a second assembly line in Orofino Idaho but insist that they will not compromise on quality to build more/faster. Our current order was sent in April 2011 and should arrive shortly however it is more than half sold. We placed a very large order yesterday to get in under the pricing increase and also to get in line for the next delivery. I place this info so that if you have a Nightforce optic in your near future, that you contact your local dealer ASAP otherwise you will be waiting for a long time. Phil.
 
We just received an Email from Nightforce yesterday that their prices are going up today (prices to follow) and that the build time is now minimum 24 weeks from receipt of order. Apparently they have large government orders to fill and significant commercial back orders as well. They are attempting to hire a second assembly line in Orofino Idaho but insist that they will not compromise on quality to build more/faster. Our current order was sent in April 2011 and should arrive shortly however it is more than half sold. We placed a very large order yesterday to get in under the pricing increase and also to get in line for the next delivery. I place this info so that if you have a Nightforce optic in your near future, that you contact your local dealer ASAP otherwise you will be waiting for a long time. Phil.

A 24 week minimum build time is not good news.

My understanding is that a S&B custom order only takes 16 weeks, and that's delivered to the customer.
 
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I agree that this is not good for business or the consumer. Sometimes with long lags in delivery you lose a certain momentum that can't be recovered easily and consumers move on to other products. Nightforce has become a victim of their own success. I believe thay are doing everything they can to catch up. Part of the delivery problem was the Tsunami in Japan as most of the parts originate in Japan. The thing they now have direct control over is the assembly problem in Orofino and they are trying to address that however a new work force does not get assemled overnight if you want the quality to stay high. Phil.
 
It's good our dollar is so strong...The price should actually be cheaper.

Right? Time for our great dollar that has been high for so long to show up in the pricing.

Is there more than one importer?
 
It's good our dollar is so strong...The price should actually be cheaper.

Right? Time for our great dollar that has been high for so long to show up in the pricing.

Is there more than one importer?

IF the importers did not have to pay air freight charges, brokerage charges, bank fees to convert CDN to USD and government imposed duties, you would be correct.
There are at least 10 legitimate importers of NF product in Canada as well as a few shady dealers who just smuggle in NF product into the country.

According to NF they are also building another facility on the existing property to expand production, but as Phil mentions staff is not something that happens overnight, nor due new buildings.

We too have placed some LARGE orders over the last 2 days to hopefully get ahead of the demand for 2012 scope requirements.
 
IF the importers did not have to pay air freight charges, brokerage charges, bank fees to convert CDN to USD and government imposed duties, you would be correct.

Thats true there are costs associated with importing product into Canada, no argument there.

But, why would pricing go up? If you're buying NF product and everything else stays consistent (duty, fees, paperwork etc.) except the dollar then why wouldn't the price go down, or if anything stay the same?

Not criticizing , just wondering.
 
Thats true there are costs associated with importing product into Canada, no argument there.

But, why would pricing go up? If you're buying NF product and everything else stays consistent (duty, fees, paperwork etc.) except the dollar then why wouldn't the price go down, or if anything stay the same?

Not criticizing , just wondering.

Because the base cost has been increased. So if all the export costs remain static but the costs charged by the maker are increased, the prices go up:(
 
Ok I see, but to a point wouldn't a lower dollar counter that increase?

Today our dollar is worth not quite 1.02 USD, the banks charge about 2% to convert CDN to USD. We do NOT yet know what the increase form NF will be, but if it is 5% at today's rate that means a 3% increase all other factors remaining static.
Now the hard part. What will our $$ be valued at is 24 weeks? If our $$ gets more valuable a merchant could be in better shape depending on whether he opts to pass on the saving, however what IF our dollar tanks to rates of 18 months ago where our $$ was only worth .80? On 1 scope it hurts the consumer a little but on an order to 75 scopes it can be devastating to the importer.

Small business economics is a ##### on a good day, hope that helps you understand better.
 
Today our dollar is worth not quite 1.02 USD, the banks charge about 2% to convert CDN to USD. We do NOT yet know what the increase form NF will be, but if it is 5% at today's rate that means a 3% increase all other factors remaining static.
Now the hard part. What will our $$ be valued at is 24 weeks? If our $$ gets more valuable a merchant could be in better shape depending on whether he opts to pass on the saving, however what IF our dollar tanks to rates of 18 months ago where our $$ was only worth .80? On 1 scope it hurts the consumer a little but on an order to 75 scopes it can be devastating to the importer.

Small business economics is a ##### on a good day, hope that helps you understand better.

Lets not forget that demand currently outweighs supply and manufacturing capacity. That alone dictates and justifies a price increase.
 
Lets not forget that demand currently outweighs supply and manufacturing capacity. That alone dictates and justifies a price increase.

I am not cetain that is the case here, I may be wrong but hope not.
The military contracts take their toll on any business I think if you asked the guys at PGW thay would agree on that. To get a larger facility going also has significant costs.
The costs of many metals and labor have risen over the last 3 years since we saw any pricing increase to speak of, tranport costs have also risen dramaticly with the cost of fuel going up and upand up and up some more:mad:

Truth be known I am no economist so am merely offering ideas on why.
I just wish we knew how much increase is being contemplated.
 
Today our dollar is worth not quite 1.02 USD, the banks charge about 2% to convert CDN to USD. We do NOT yet know what the increase form NF will be, but if it is 5% at today's rate that means a 3% increase all other factors remaining static.
Now the hard part. What will our $$ be valued at is 24 weeks? If our $$ gets more valuable a merchant could be in better shape depending on whether he opts to pass on the saving, however what IF our dollar tanks to rates of 18 months ago where our $$ was only worth .80? On 1 scope it hurts the consumer a little but on an order to 75 scopes it can be devastating to the importer.

Small business economics is a ##### on a good day, hope that helps you understand better.


Yes, thank you for your insights on this. Clear as mud now...

:cheers:
 
Today our dollar is worth not quite 1.02 USD, the banks charge about 2% to convert CDN to USD. We do NOT yet know what the increase form NF will be, but if it is 5% at today's rate that means a 3% increase all other factors remaining static.
Now the hard part. What will our $$ be valued at is 24 weeks? If our $$ gets more valuable a merchant could be in better shape depending on whether he opts to pass on the saving, however what IF our dollar tanks to rates of 18 months ago where our $$ was only worth .80? On 1 scope it hurts the consumer a little but on an order to 75 scopes it can be devastating to the importer.

Small business economics is a ##### on a good day, hope that helps you understand better.

Rick, you can solve all your problems by opening up your drawer with all the money and take out say a couple hundred thousand and go convert it to US funds then put the US cash in another drawer and wait the 24 plus weeks to pay your bill with Nighforce. Problem solved. Phil.
 
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