Gun Prices will be on the rise

[Frontier Firearms]

Just got off the phone with my distributor. It apears that gun prices will be taking a large hike shortly. Most items were purchased at a on par Canadian Dollar this year. Yesterday it went as low as .82 cents. Each manufactor has a 2-5% price increase per year for inflation so you can expect prices to go up 15-20% in the coming months. Just thought I would let you know so that no one is suprised when a gun goes up $100-$200. Some dealers are going to be reducing their stock for winter, so this might be a good time to buy now and save alot.

[Tim H]

Ok, so let me see if I understand this properly.

When the CDN dollar was worth almost as much as the USD, we (consumers) were complaining that the prices of the guns should drop to reflect that. The response was that since the guns you had on your shelves were purchased at inflated prices, inflated prices were what you would charge. I understand this, you (dealers) can´t be expected to lose money on guns just because of a fluctuation in the dollar´s worth. I don´t have a problem with it. The word from the gun stores was that ¨prices will change, but not for a while, maybe up to a year.¨

BUT, now you say that because the CDN dollar is dropping, gun prices are going to be increasing again, almost immediately? And you´re telling us this just so that we ¨won´t be surprised when gun prices go up $100-200,¨huh? Well I´m sorry, but the CDN $ used to be worth $.65 USD. Since coming up I have not seen a $100-200 decrease in the price of guns, so WHY would we see that increase now?
That´s worse than the load of crap we´ve been getting from the oil companies.

Wow.

I can´t even think of anything civil to say to that.
Whatever man, whatever.

[mr_trout]

BUT, now you say that because the CDN dollar is dropping, gun prices are going to be increasing again, almost immediately?

Prices dropping do not work the same as prices going up.

When the Canadian dollar was strong, all retail goods (not just guns) slowly crept down but it took time. Retailers take baby steps on reducing their prices because they have something called competition. Not all retailers keep the same stock levels of the same products, and most retailers can not afford a store-wide price drop to match the Canadian dollar. It has to be gradual decline to match what their competition is doing.

During this gradual price reduction, companies that are selling newly purchased stock will be getting extra profit, but this is offset by the money they are losing on the stuff that sat on their shelves for 2 years and devalued. This process continues slowly based on supply and demand.

When costs go up they have no option to wait and see how their competitors react. They are forced to increase prices on their very next order and hope for the best.

This is frustrating for consumers but it works both ways. We tend to prefer doing business with the guy who keeps the product we want on the shelf rather then the ones who have to special order it. But on a price change the guy who stocks stuff, the one with the great service who earned our loyalty, is the one who gets hurt.

[Wrong Way]

Most items were purchased at a on par Canadian Dollar this year.

Funny....then why arent these guns selling 200 bucks less than they were before the dollar went to par? Oh wait, I allready know...


Justify it however you'd like....but the fact remains:

Canadian dollar went to par, prices did NOT drop $100-200...EVER.
Canadian dollar is back where it was a year ago, prices are going up?

Bull####.

[PlanB]

Ok, so let me see if I understand this properly.

When the CDN dollar was worth almost as much as the USD, we (consumers) were complaining that the prices of the guns should drop to reflect that. The response was that since the guns you had on your shelves were purchased at inflated prices, inflated prices were what you would charge. I understand this, you (dealers) can´t be expected to lose money on guns just because of a fluctuation in the dollar´s worth. I don´t have a problem with it. The word from the gun stores was that ¨prices will change, but not for a while, maybe up to a year.¨

BUT, now you say that because the CDN dollar is dropping, gun prices are going to be increasing again, almost immediately? And you´re telling us this just so that we ¨won´t be surprised when gun prices go up $100-200,¨huh? Well I´m sorry, but the CDN $ used to be worth $.65 USD. Since coming up I have not seen a $100-200 decrease in the price of guns, so WHY would we see that increase now?
That´s worse than the load of crap we´ve been getting from the oil companies.

Wow.

I can´t even think of anything civil to say to that.
Whatever man, whatever.

It's called 'business'. Most businesses are here to profit. CDN dollar goes down, price goes up....CDN dollar goes up, price MIGHT go down, in a few months For a short period. I love how all the shops are SO QUICK to announce the price increases, but they all avoided the price dropping conversations when we were at par earlier this year

Be a good little Canadian like everyone else, and bend over and take it in the ass.

I love how the US's gas prices fell to under $2.95 per gallon from $4.50 with the recent drop in oil, but we're still paying over a buck from $1.20. We'll never be treated fairly as consumers, because we put up with it

[mr_trout]

It is the nature of such a small market.

For regular retailers you have walmart who turn over their stock very, very fast. They can respond to changes to their net cost almost instantly and not suffer from it. And when Walmart drops prices everyone else has to change prices as well, or they will simply die off.

But Walmart doesn't sell guns in Canada. Guns are a niche market here and most smaller cities only have a single gun shop, larger ones have a handful more. The internet sellers seem to be the biggest factor on gun prices, and there simply are not that many of them. A small market means prices will go stagnant and that trickle down effect I mentioned before will happen more gradually.

Canadian dollar went to par, prices did NOT drop $100-200...EVER.

Some of the more expensive rifles have had a noticeable drop in price. SL8 rifles were $2200-$2400 a year ago, and last month they were as low as $1900. Sig rifles also seem to have dropped a fair bit. Likewise with the XCR, the first time I called wolverine the price was way higher, but by June it was a few hundred less if I recall correctly.

But I agree overall we didn't see the 20% price drop over the summer like a lot of us were hoping for, especially on products from America. Ammo should be an item that turns over quickly, so this should have dropped in price quicker then anything and it didn't.

[TSE JR]

Funny....then why arent these guns selling 200 bucks less than they were before the dollar went to par? Oh wait, I allready know...


Justify it however you'd like....but the fact remains:

Canadian dollar went to par, prices did NOT drop $100-200...EVER.
Canadian dollar is back where it was a year ago, prices are going up?

Bulls**t.

I disagree with you completely. We adopted US MSRP where ever possible LAST november.

We also didn't say our proces were already increased, just a warning that when we replace our inventory it will.

And be ready for a 20-25% increase if the dollar doesn't stabilize.

REmember, we buy goods not only in USD but in Euros, CHF and GBP... The dollar has stunk against ALL of them recently, with no end in sight!

[mosteaka]

So the conclusion is: for us is a bad thing when canadian dollar is strong, because MAYBE prices will go down (but not likely) for a little bit, but when the dollar goes down prices will go up, so the general trend is UP.

[Allen Gun Works]

I deal in GBP for most of my product, some US but not much.

I looked at it like I do my investments. Things cost me X dollars last year. When the dollar went up, my profit went up X dollars. Not enough that I felt I was ripping anyone off, but they went up. Now, the GBP is trading higher than it has in the last year and half and costing me more money. Did I ever raise or lower the prices, NO. I worked the numbers and realized that yes, the higher GBP is eating into my profit, but I can handle it, for now.

I can't speak for other dealers because I don't know what their overhead costs are or what their profit margins are. For me, I am just going to ride it out and see what happens.

[grayrc]

I believe the only conclusion you can draw from this is that you should cash in your stocks and invest in your firearm collection.




/gc