by ex-LT on Thu Jun 01, 2017 6:26 pm
What's driving the prices? A combination of factors.
1a) In some instances, manufacturers probably ramped up production prior to last November's election under the assumption of a different outcome. The anticipated rush to buy before the Wicked Witch of New York (by way of Illinois, with stops in Arkansas and D.C. along the way) took office never materialized, and now they're sitting on millions of dollars of inventory, with little to no increase in demand. Unsold inventory isn't healthy for the company's bottom line, so they need to blow out inventory at rock bottom prices.
1b) Some retailers overbought in anticipation of a Hildebeast win in November and the subsequent run on products. Thanks to the Donald and the American voter, they're now stuck with unsold inventory, and the bills on those orders are coming due. Defaulting on the payments isn't an option, so they're stuck selling at or below cost to cover as much of the debt as possible.
2) Some manufacturers (S&W in particular, but also Beretta and FN) are on the verge of releasing, or have already released, enhanced versions of existing models (eg: the M&P M2.0, the soon to be released Shield M2.0, FN 509). They need to clear the inventory pipeline to make room for their latest and greatest.
and
3) In some instances, I think manufacturers overestimated the demand for new product lines (Remington RP9, Ruger American Pistol?), and are having difficulty selling them.
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