I appreciate the discussion, and you certainly have nothing for which to apologize. We are talking the same thing- economics- which too few consumers truly understand. The only way most dealers can stay in business is to demand payment up front, or before a product is shipped. I know too many good manufacturers who have been driven to bankruptcy by customers who think they can use the manufacturer as a " banker", and wait to pay him for the products he sells them AFTER they sell the products months later.
When I am advising new dealers, I tell them to offer to order parts and guns NOT on hand in their own inventory, for customers on receipt of payment of the dealer's cost to buy it. Let customers know they can order anything, if they pay for it up front, and perhaps receive a discount on the final cost. The customers will do your local market survey.
I once ordered a Mil. Surp. gun because I had not bought a gun for myself in several years, and had a birthday coming up. The price was so cheap, I almost didn't believe it.
When I got home, after giving my FFL a check for the gun, I talked to my brother on the phone, and he said, "Order One of those for me, too!". Then I talked to my Ex-wife, and she told me to order one for her, Also. I called my dealer back and told him to wait until tomorrow evening before sending in the order, so I could get out with another check for the additional guns.
The Next morning, my best friend heard about the Order, and wanted a gun for himself, too. I drove out at lunch time with money for three more guns.
In the meanwhile, my dealer had another friend come over, and when he heard about the rush to buy these surplus guns, HE ordered one, also! We received 5 guns in that first order, and I believe my dealer ended up ordering a couple more after other customers heard the story, and looked at the one gun someone was late in picking up.
If my dealer was in a retail setting, it would have been wise of him to order 3 or more of these guns to put in his inventory, knowing how quickly they would be bought by shooters who knew value.
As it was, my dealer worked out of his home, where he had a hundred yard range in the backyard that he used to sight in, and shoot all manner of guns. I later met a man who owned 5 of the same model gun I bought that night, for $85 wholesale. I have since seen a few in used gun racks priced at $300.00 and more. The Wholesale price has also gone up, as the supply has dwindled.
Inventory doesn't make a dealer any money sitting there. That is why Gun Accessories cost so much money- with a very high " mark-up" for profit to help pay the dealer's overhead.
I knew a dealer with a retail shop who moved his used gun inventory every WEEK, by selling the guns for only a few dollars profit on each gun. He purposely set his prices low, and became known for at least 100 miles around as THE place to get a good deal on guns. He told me( His Econ 101 lecture) that he could make $20.00 a week every week of the year on a $300.00 investment, or, like many competitors, leave the "inventory " sit on his shelf with a price tag that would eventually make him $100.00. But, he would be losing money if that gun was not sold in 5 weeks!
He accepted guns in trade, and made money on those trades, too. That was one reason he could offer slightly used guns for such a discounted price.
He had been around enough other gun stores to know that they were not rotating their stock that much, and some guns were allowed to sit for Years. :shocked2: :nono:
My comment is, Yes, if you let the inventory sit too long, you are losing money. So, why not get what you can from it, as soon as possible, learn your lesson, and re-invest your money on something that WILL Sell?? You have the profit from filling the original orders, and you will have whatever you get out of selling the remaining barrels at a discount, which represents a "loss ", but converts inventory into cash. No one ever said that selling does not involve gambles. You won't always win. But, you can reduce the frequency of your losses. :hmm: :thumbsup:
