Supply and Demand Questions

[2ADMNLOVER]

What is the truth behind why long guns are getting harder to find ?

Is it just the plain simple truth that the manufactures can't keep up with demand ?

A buddy and I went to Bradis today after work just to browse a bit . They are pretty much cleaned out .

I've never seen them so bare , even the Mosin and shotgun room were bare .

My buddy thinks that behind the scenes the guberment has told the manufactures to stop making them .

I would think that if that were true somebody would've spoke up about it by now .

So what gives , where's the supply ?

 

[KLB]

I would guess manufacturers are setup to supply X number of guns. Building those guns takes raw materials and parts that have to be ordered ahead of the time they will be produced. There is also a top limit of how many they can actually build in a certain time frame. It isn't as simple as "Hey, demand is up make the line go faster."

As they ramp up production more guns will hit the stores. It is just going to take a little while.

 

[thatgtrguy]

All the gun stores around Indy are pretty much cleared out. Demand was that high. I think gun wholesalers are in a wait and see mode. Why begin ordering massive quantities of assault rifles if they're now banned? I'm not sure why all the pistols are gone. Those were never seriously considered for the ban. Are gun manufacturers unable to produce at a high enough capacity?

 

[rotortech]

This is simply how supply and demand work. In today's economy, there is no giant warehouse the has a year's supply of rifles or ammo. They hold about 2 or 3 weeks worth of inventory at any time. If the demand spikes up retailers get cleaned out, then shortly after that, the warehouses get cleaned out and the factory (as stated above) can only produce so much per day.

They will get caught up and people will stop buying it all up at once. Eventually, there will be enough to go around again. Unless that which is feared comes true.

Meanwhile, the distributors and retailers are having a great sales year. Hooray for them!

 

[cesteb]

i was talking to the owner of the plainfield gun store and made the comment i bet your happy about the increase in sales and he actually said no that he was not. that he couldnt get anything in to restock his shelves and for small gun stores like his that it would run alot of people out of business

 

[cesteb]

as far as pistols i think that people feel like they should protect themselves after the shootings in colorado and in connecticut.

 

[jamil]

All the gun stores around Indy are pretty much cleared out. Demand was that high. I think gun wholesalers are in a wait and see mode. Why begin ordering massive quantities of assault rifles if they're now banned? I'm not sure why all the pistols are gone. Those were never seriously considered for the ban. Are gun manufacturers unable to produce at a high enough capacity?

I think people read the summary of Feinstein's proposed bill, which includes semi-automatic pistols that can accept a magazine > 10rds. That's pretty much everything any more.

You're right about wholesalers, or even some smaller manufacturers, especially whose business is mostly the civilian market. Before all this mess, manufacturers like Spikes Tactical already had a very long lead times. Why buy or build inventory that can't be sold legally?

We're in for a rough year. But if the hype dies out and no significant legislation passes after a year, things may get back to normal.

 

[tornrebel]

This is a simple business issue where Gun companies have a fixed production rate that can not be over compensated for without changing the way the factory floor runs. The other side is the variable rate that can fluctuate and is attributed by materials, shipping, and man power. The fixed cost is the amount of machines and max efficiency they can attain. I would imagine at this point all the gun manufacturers are working at max volume to keep up while maintaining a fixed cost in case this is a 3 month abnormal increase. So I guess I could of just said no I don't think they have been told to slow down and I don't believe they would anyway when it comes to turning a higher profit.

 

[tom1025]

Right now the demand is greater then the supply. I am sure the manufacturers will kick it into high gear. The goverment is loving all the extra tax dollars they are raking in from this tragedy.

 

[Slawburger]

I am guessing that the manufacturers have several problems.

1) Supply Chain: All their suppliers have to send more material.
2) Equipment: The lines are balanced to produce at a certain level.
3) Training: Some jobs can be performed by new temps, some can't.
4) Manning: Can't hire & train permanent employees for a spike.
5) Inventory: No one wants to get stuck with excess if the product is banned or demand drops.
6) Credit: Buying more material requires a larger account with suppliers.
7) Space: More material, people, WIP, and Finished Goods requires more space.
8) Distribution: Shipping 10 truckloads a day is not like having UPS pick up a pup trailer.
9) Business Systems: Software is scaled to volume, too many orders and it can't keep up.

 

[fyver]

It's no different up here in N. Indiana. Nearly all LGS's cleaned out, with really only Hi Point crap left in the big box stores. Was some ammo available at the Big R tonight though.

 

[tom1025]

I am guessing that the manufacturers have several problems.

1) Supply Chain: All their suppliers have to send more material.
2) Equipment: The lines are balanced to produce at a certain level.
3) Training: Some jobs can be performed by new temps, some can't.
4) Manning: Can't hire & train permanent employees for a spike.
5) Inventory: No one wants to get stuck with excess if the product is banned or demand drops.
6) Credit: Buying more material requires a larger account with suppliers.
7) Space: More material, people, WIP, and Finished Goods requires more space.
8) Distribution: Shipping 10 truckloads a day is not like having UPS pick up a pup trailer.
9) Business Systems: Software is scaled to volume, too many orders and it can't keep up.

Distribution wouldn't be a problem. Any major carrier can handle 10-30 trailer swaps a day.

 

[U.S. Patriot]

Have you been asleep this whole time?

 

[Kutnupe14]

What is the truth behind why long guns are getting harder to find ?

Is it just the plain simple truth that the manufactures can't keep up with demand ?

A buddy and I went to Bradis today after work just to browse a bit . They are pretty much cleaned out .

I've never seen them so bare , even the Mosin and shotgun room were bare .

My buddy thinks that behind the scenes the guberment has told the manufactures to stop making them .

I would think that if that were true somebody would've spoke up about it by now .

So what gives , where's the supply ?

And apparently to shut up about it.

(you know they'd be raising holy hell to the public if that were true)

 

[jooky52198]

Feinstein is a moron. Im so tired of these washington hypocrits. Its do as we say not as we do. I wish someone could walk right into the chamber of congress with a fake plastic gun just to prove a point. Why on earth would anyone want to take away the right of legal gun owners to protect themselves?

 

[jooky52198]

I wish we could truly have transparancey like Obama promised, but if we did....no way he gets elected to a second term.....

 

[MCrupe]

I think Slawburger has it right and hopefully the price goes down sooner than later. I think that background checks should be done you have to get one for your LTCH so if you have one you should be able to show that to any seller and be ok to purchase.

 

[VikingWarlord]

All the gun stores around Indy are pretty much cleared out. Demand was that high. I think gun wholesalers are in a wait and see mode. Why begin ordering massive quantities of assault rifles if they're now banned?

This is the most logical answer. It isn't just wholesalers, it would be manufacturers as well. It doesn't make sense to ramp up production for something they might not be able to move due to increased regulation or an outright ban.

This can be thought of almost as a bubble. Unlike housing and banking, the manufacturers are in the unique position to know for a fact that the bubble will burst very soon. Increasing production costs money they may not be able to recoup through sales.

 

[Kutnupe14]

This is the most logical answer. It isn't just wholesalers, it would be manufacturers as well. It doesn't make sense to ramp up production for something they might not be able to move due to increased regulation or an outright ban.

This can be thought of almost as a bubble. Unlike housing and banking, the manufacturers are in the unique position to know for a fact that the bubble will burst very soon. Increasing production costs money they may not be able to recoup through sales.

What I'm pining on, is what is known, in economics, as a "soft market." With everybody freaking out, and buying stuff at ridiculous prices, once the hoopla dies down, the market will be flooded with firearms/accessories. Those that have spent unreasonable amounts will be effectively shut out of the market, because they will be too busy trying to dump a $1500 Stag while the market will allow those to buy at Colt at I would guess $700-800 (or slightly above dealer cost).
It's gonna be epically AWESOME.

 

[Mr Evilwrench]

The manufacturers are not as flexible as you might wish they were. To significantly ramp up production would require complex, specialized (expensive) machines and highly trained operators for them. The investment doesn't make sense when the market is operating normally, as making too many doesn't make them sell, and stocking is a pure expense. With the possibility of a ban, an increase in capacity would be a complete waste. Otherwise, things will return to normal, and the current capacity will be appropriate. The bean counters often make more sense than people give them credit for. Just relax. Working yourself up over this stuff isn't going to change anything.