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Posted:  1/2/2013 4:10 PM #35794
Jimmy03


Joined: 1/2/2013
Posts: 7
Last Post: 1/24/2013
Subject: CTD Pricing
I am just curious as to why CTD feels the need to increase all of their pricing due to the recent unfortunate situations we have had. I am a long time CTD customer and feel like I am being taken advantage of. I am not trying to cause problems, just curious if there is a resonable explanation for this? I understand the demand has gone up, but the vendors have not reported an increase, so why does CTD feel the need to increase the prices.


Posted:  1/2/2013 5:10 PM #35796
CTD Blogger


Joined: 7/14/2009
Posts: 10828
Last Post: 8/20/2014

It business economics for us.

 Pricing is based on demand, inventory, future resupply, plus speculative replacement cost.

 Let’s use magazines as an example.

 We plan to buy a 12 month supply of a magazine.  We know how many we sell in an average month, and buy 3 months worth and put in a purchase order for more magazines to be delivered every 3 months to round the year. We have room for a 3 month supply, but not 12 months worth.  It also ties up the inventory expense in 3 month periods, not 12.

 Our business model is to always have inventory. It does nothing for the customer or company to have out of stock items.

 Ideally, the last magazine is sold as the truck delivers the next batch.   All is great. 

 Now demand goes absolutely crazy. We’re burning through our inventory 10x faster than we planned.  There is a true panic taking place right now.

 Pricing is used to slow sales, and maintain inventory levels.   You can see pricing go up sometimes several times in one day to slow sales. We want to have inventory until our next shipment arrives. We calculate the sales vs. time, and do our best to have inventory until we are resupplied.  The customer is now competing with other customers for the same magazine.  At $10 each, every single one would be gone within hours. At $40 a piece, they may be around long enough for a customer to buy one or two before they are all gone, or we get more in.

 To stay in business, we need products to sell. As a customer, you want products to buy.

 Then there’s speculation, just like gas prices.  How much will it cost us in the future to buy that same items?  We sometimes look at the worst case scenario, and price items high.

 Right now, there’s no inventory to be purchased quickly at decent prices, so we have to wait for purchase orders to be fulfilled.  Manufacturers are still making products, but it takes weeks to get it to their distributors, and then to us. 

 Now this sound all doom and gloom, but it’s not.  The exact opposite works too.

 We have 40,000 magazines on the shelf, and sales are a trickle.  Then next shipment is due in 10 days. Demand is low, inventory is high, and we need room for the next shipment.   To make room, we slash the price and hope they move out quickly.

 This has happened in the past. No one was complaining when we had a glut of magazines and sold them off at $5.00 a piece.

 

 

 



Posted:  1/2/2013 9:17 PM #35802
Jimmy03


Joined: 1/2/2013
Posts: 7
Last Post: 1/24/2013
I really appreciate your response, I guess I didn't look at it like that. It makes absolute sense when you look at the big picture. I guess I was looking at it as a large short term gain for CTD rather than a long term solution to the immediate panic from the customer base. The way I look at it is, if people are that worked up about purchasing a magazine they will pay whatever it takes to get them. Just my opinion. I do appreciate you taking the time to respond.

Posted:  1/2/2013 9:42 PM #35803
BigDukeSix


Joined: 12/4/2011
Posts: 202
Last Post: 1/26/2013
It's called price gouging, no matter how you slice it!
~Stay safe, stay prepared!

~Remember, two is one and one is none. Always have a backup!

~If you show up for a fair fight, you are NOT prepared!

Posted:  1/3/2013 8:27 AM #35804
CTD Blogger


Joined: 7/14/2009
Posts: 10828
Last Post: 8/20/2014

Duke,  you're in charge.
 
Give me a price to sell a magazine that normally retails for $15.00, but now is in very high demand.


Posted:  1/3/2013 8:48 AM #35805
suprab


Joined: 1/3/2013
Posts: 1
Last Post: 1/3/2013
 $15, dont cost any more to make, profit margin is the same, and you still cant stock them dispite your price gouging

Posted:  1/3/2013 9:03 AM #35806
CTD Blogger


Joined: 7/14/2009
Posts: 10828
Last Post: 8/20/2014

Okay.  I've priced my magazines at $15.00 and I sell them all in one hour.  I now have 200 employees with families, building, and overhead.  I don't have anything to sell.
 
No more magazines are available right now. I might get my next shipment in 6 months, at 3x the cost from our distributor because I have to compete for the same magazines. Since I didn't raise my prices, I can only buy 25% of what I need. I keep the margin the same, and I sell out again in one hour. Play this out one or two more times and you're out of inventory and money.
 
Notice I didn't say manufacturer. They may hold their pricing, our source has other companies willing to pay more to get the magazines. They know what the market will bring and they will still make a profit. 


Posted:  1/3/2013 10:42 AM #35807
horselips


Joined: 5/2/2012
Posts: 2063
Last Post: 9/30/2014
The problem is not demand, it's insufficient supply. Time to take a plane ride to Hong Kong, Peking, or New Delhi. Have a chit-chat with a couple of smiling guys in dark glasses. Sample the local cuisine, and maybe a babe or two. In 2 weeks a boat will arrive in Long Beach with a billion magazines, you'll be able to not only meet demand but sell them for $9 a pice and make even more profit on each one. And local manufacturers will get the message - don't ever let us run low on product again. Don't overproduce, but don't ever allow the market to overwhelm your capacity to produce if necessary. And we all lived happily ever after.  


Posted:  1/3/2013 10:58 AM #35808
CTD Drew


Joined: 1/3/2013
Posts: 1
Last Post: 1/3/2013

This is a full blown panic. The problem is very much demand, and not a single manufacturer can gear up to produce the amount of magazines or guns to meet the current demand. 
 
We saw nearly a 500% increase in one group of products over last year.  


Posted:  1/3/2013 3:18 PM #35809
AirChair1


Joined: 10/9/2009
Posts: 72
Last Post: 2/14/2013
It's nice to see a rational explanation of how this works. I'm just going to standby until the prices come back down. Can you imagine how foolish people are going to feel when they realize that they spent all of that money for naught?
Air Force: If you absolutely, positvely want something destroyed overnight.

Posted:  1/3/2013 5:01 PM #35811
mtnboomer


Joined: 2/9/2006
Posts: 336
Last Post: 8/18/2014
The problem is not demand, it's insufficient supply.
 
No horselips, the problem isn't either one - it the suppliers! Those noodle-slurpers and curry-gobblers in the dark glasses watch our news even closer than we do! As soon as they heard the words "gun ban" ooze from the slimely lips of Mz Paloozi they told their taskmasters at all their manufacturing plants to start cracking the whips and put those factories in double or triple production mode. They are stuffing their off-shore warehouses to the rafters and then telling the American retailers/distributors that their Kalifornia warehouses are empty and they have no idea when they will catch up with demand. Oddly enough, as soon as those aforementioned American retailers/distributors reach a point where they will pay triple to 10-times the regular price for those items, shipments start arriving faster than they can unload the containers!

It would seem to me that it's time for those American retailers/distributors to find more domesticly produced products - even at slightly higher prices - and give those overseas syndicates a monitary b*tchslap!    
 
"I'd love to spit some Beech-Nut in that dude's eyes and shoot 'em with my ol' .45, cuz a country boy can survive!" Hank Williams, Jr.

Support the Second Amendment - Join the NRA http://www.nra.org

Oklahoma State #1 - GO POKES!

Posted:  1/3/2013 5:27 PM #35813
horselips


Joined: 5/2/2012
Posts: 2063
Last Post: 9/30/2014
The only problem with holding back supply waiting for prices to multiply is if the President and his jock-sniffing Senate and cowardly House do pass a ban, they might get stuck with loads of merchandise they can't unload. And those who did buy, even at outrageous prices, will at least have their magazines.


Posted:  1/3/2013 7:42 PM #35814
Jimmy03


Joined: 1/2/2013
Posts: 7
Last Post: 1/24/2013
The sad part is, all the legal law abiding citizens are in a panic right now trying to stock up on guns, ammo, etc. to prepare for a possible law to be passed limiting what they can or cannot buy. I understand the panic but disagree with the chaos it is causing. Even if these idiots fight for this ban, it will take a very long time for it to go through. If people would buy what they need and not stock up on 100 clips to sell on Ebay, we wouldnt be in this situation. Trust me I am all about making money, but that is driving the price up for all of us because someone wants to take advantage of a situation and charge 2000 for 10 AR clips.

Posted:  1/3/2013 10:59 PM #35816
JakeTowson


Joined: 1/13/2012
Posts: 5
Last Post: 1/3/2013
Where are the Ruger Mini 14 magazines? First you moved the 20 rounders from $30 to the ridiculous price of $80 dollars now they are completely gone. Not out of stock, but entirely removed from the listing. Given that and the $1,000 dollars for 1,000 rounds of .223 raping, it seems you guys are bent on doing Dianne Feinstein's work for her. You are surely losing many customers because of this gouging.

Posted:  1/3/2013 11:01 PM #35817
mtnboomer


Joined: 2/9/2006
Posts: 336
Last Post: 8/18/2014
Posted by:horselips"
The only problem with holding back supply waiting for prices to multiply is if the President and his jock-sniffing Senate and cowardly House do pass a ban, they might get stuck with loads of merchandise they can't unload.
"
 
That's not as much of a situation as it may seem. As I said, these overseas manufacturers watch our news much closer than we do and have eyes and ears all over D.C. The wait won't be that long as supplies dry up quickly and demand continues skyrocketing - a couple of weeks at most (check all your usual sources - it's already happening!). Then they wait for the first whispers of proposed anti-gun legislation to seep out of Congress. This will create a HUGE panic! With supplies exhausted and retailers/distributors desperate for more stock, the overseas manufacturers suddenly start scratching their collective heads an say, "Well, there is that stock from the contract with that 'other government' that can't afford it now that we can send you - for a price!" And so it will begin, the more the suppliers "find" in their warehouses, the more it will cost. It will take time to negotiate legislation through Congress - probably several months as fixing the economy will get in the way. The overseas suppliers are well aware of this and know they have three to six months to dump their massively overpriced products on the frantic American market.
 
Welcome to the Brave New World, citizen. Your papers, please?!
"I'd love to spit some Beech-Nut in that dude's eyes and shoot 'em with my ol' .45, cuz a country boy can survive!" Hank Williams, Jr.

Support the Second Amendment - Join the NRA http://www.nra.org

Oklahoma State #1 - GO POKES!

Posted:  1/4/2013 3:27 PM #35841
Retired Jack Booted Thug


Joined: 1/4/2013
Posts: 6
Last Post: 1/27/2013
I would be happy just to have the opportunity to get some mags, and ammo again.
I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crises. The great point is to bring them the real facts.
Abraham Lincoln

Posted:  1/4/2013 7:51 PM #35847
BigDukeSix


Joined: 12/4/2011
Posts: 202
Last Post: 1/26/2013
It's no different than the owner of the local Quikee Mart raising the prices of items in his store as a hurricane approaches and people are flocking to his store to stock up on supplies.  I hope the extra money you're lining your pockets with is worth the loyal customers you're losing.  Cheaper than Dirt?  Time for a name change!
~Stay safe, stay prepared!

~Remember, two is one and one is none. Always have a backup!

~If you show up for a fair fight, you are NOT prepared!

Posted:  1/5/2013 8:31 PM #35855
Yocs03


Joined: 1/5/2013
Posts: 5
Last Post: 2/2/2013
I agree. It's like the gas station down the street that decided after 911 that it was a good idea to raise the price the next day to 5.00 a gallon. I get the fact that everyone wants to make a buck, but come on. I agree with the name change, it should be " cheaper than dirt, sometimes"

Posted:  1/8/2013 5:45 PM #35922
whosurdaddy


Joined: 1/10/2011
Posts: 24
Last Post: 7/27/2013
Option 1 Figure out how many products you can sell per day, and still have inventory until the next shipment arrives. Only release that many items per day. Option 2 Sell what you have then pay you employees to volunteer (Meals on Wheels, USO, Habitat for Humanity, visit kids at a hospital...).You take the charitable donation tax credit, help people and get some good PR. Option 3 Charge $200 for a $10 item, piss off your customers and be a complete €#% about it. Which option did y'all choose?

Posted:  1/16/2013 12:12 PM #36073
mtnboomer


Joined: 2/9/2006
Posts: 336
Last Post: 8/18/2014
You know what pisses me off more than paying two-prices for a product? When a retailer/distributor sends me an e-mail advertising "Magazines in stock now!" and when you click on a product, it's says, "This item no longer available."
 
Oh........................sorry, did I say that out loud?
"I'd love to spit some Beech-Nut in that dude's eyes and shoot 'em with my ol' .45, cuz a country boy can survive!" Hank Williams, Jr.

Support the Second Amendment - Join the NRA http://www.nra.org

Oklahoma State #1 - GO POKES!

Posted:  1/17/2013 8:53 AM #36087
Speed Biker


Joined: 3/31/2009
Posts: 94
Last Post: 1/24/2013
Posted by:BigDukeSix
"
It's no different than the owner of the local Quikee Mart raising the prices of items in his store as a hurricane approaches and people are flocking to his store to stock up on supplies.  I hope the extra money you're lining your pockets with is worth the loyal customers you're losing.  Cheaper than Dirt?  Time for a name change!
"
It really is not the same. You are talking about items that are necessary to sustain life; food, water etc. Do you really NEED those 30 round Pmags to survive? Probably not. Don't compare food to stuff that you simply WANT. That's just silly.


Posted:  1/17/2013 11:55 AM #36091
horselips


Joined: 5/2/2012
Posts: 2063
Last Post: 9/30/2014
NONE of this matters anymore. The Government has made clear its plans to end manufacture and sale of tacticool weapons and accessories. If the House of Representatives suddenly grows a spine, we'll be OK. On the other hand, if the GOP Congressmen in Washington are anything like the ones in Albany, NY, we're TOAST. Even a compromise bill will certainly mean the infringement of the freedoms we enjoy today. Pardon my pessimism, but I don't trust politicians - regardless of their party affiliation. Whatever you need or want, just STFU and buy it NOW - before the only magazines you can get are Reader's Digest and Better Housekeeping. Try stuffing them into your firearm. 


Posted:  1/17/2013 1:44 PM #36094
Speed Biker


Joined: 3/31/2009
Posts: 94
Last Post: 1/24/2013
Posted by:mtnboomer
"
You know what pisses me off more than paying two-prices for a product? When a retailer/distributor sends me an e-mail advertising "Magazines in stock now!" and when you click on a product, it's says, "This item no longer available."

Oh........................sorry, did I say that out loud?
"
Ctd isn't alone on this. I suppose when the ads go out, there may be inventory in stock. I just got this from Sarco Inc.
 
JUST IN THE DOOR!!! Check out some of our great new gear!!!
AR15 M16 30rnd Orlite Mag - AR126
AR15 M16 Orlite 30 Round Magazine
Orlite magazines were developed for the Israeli Armed Forces. The bodies are made from high-melt-temp black nylon with a steel reinforcement mesh imbedded in the top 1.5 inches to strengthen the feed lips. The mags have a rib around the middle which helps to seal the bottom of the mag well and also prevents the magazine from being over-inserted and the feed lips damaged. Orlites are quite reliable, and were general issue in the Israeli Army through the 80s.
 
Go to Sarco's website. Do you think they actually have them......NOPE!
 


Posted:  1/17/2013 7:28 PM #36097
BigDukeSix


Joined: 12/4/2011
Posts: 202
Last Post: 1/26/2013
Well it's a good thing I don't give a rusty **** what you think Speed Biker.  You're entitled to your opinion, as I am to mine. 
~Stay safe, stay prepared!

~Remember, two is one and one is none. Always have a backup!

~If you show up for a fair fight, you are NOT prepared!

Posted:  1/24/2013 10:49 PM #36209
ts


Joined: 1/24/2013
Posts: 1
Last Post: 1/24/2013
What can you expect its the American Way nothing but greedy money hungry softies that steal, complain about everything and need to harden up a bit like in the old days.
 
This coming from a born and raised chicagoan
 
Since we are on the topic of CTD pricing 
 
CTD can you share the reasons on why orders of said mags at 15 or so dollars placed prior to Sandy hook were canceled? Not sure I see the ethics there to support your supply and demand claim
 




Posted:  1/25/2013 8:32 AM #36210
hot_lips_banana


Joined: 6/28/2005
Posts: 1336
Last Post: 8/8/2014
ts-

Again- we sold out of magazines. Plain and simple. If you ordered magazines and then had that ordered canceled, it was because there were no more magazines to send. You are one of literally hundreds that did not get their order in on time to receive a magazine. We have to cancel, because we have no idea when we will get more.

 

We are not the only retailer dealing with this issue. Magpul can only make so many magazines.

 

And again- our actions were NOT in any way politically motivated.

 

I could say this again and again until I’m blue in the face, but I’m betting that no matter what I say it’s not the answer you’re looking for sooooooo… I guess keep making your own conclusion based on no facts whatsoever. Or believe me and carry on….

CTD Forum Moderator

Posted:  1/26/2013 1:03 AM #36225
JerDon


Joined: 1/21/2013
Posts: 58
Last Post: 9/8/2013
Hello out there! I can attext to much of this and there is so much that goes on behind the scenes that many just do not realize as the amount of warehouses a single Mag can sit in and from to you! Maybe 6 places as time then X's the amount of RR Freighting  or OTR Truckers and they are out of their minds on Gas prices and labor now!! My Cousin works for the Company who hauls the X Facto tour around all the the USA and he tells me that from plac e to place so so crazy now. Freight pf any type has went up by 300 percent recently! 
I am into Misurp weapons as well newer ones and like to stay with a certain platform caliber wise as to be able to one day learn to reload. Anyone on a local basis whom loves to teach about relaoding well Im a great student! :-)
Owner of just some:
Glock 17
Vepr 7.62x54R I am in Wuvvvvvvv!
Saiga 5.45x39mm
Saiga .410
Yugo SKS Love that one!
And more but not to worthy of mentioning!

Posted:  1/26/2013 4:50 PM #36229
mtnboomer


Joined: 2/9/2006
Posts: 336
Last Post: 8/18/2014
Obviously JerDon, you didn't read ALL the posts! And Hot_Lips, you're still missing the point!
 
Our collective rants, JerDon, have nothing what so ever to do with increased shipping and fuel costs, or increased labor costs, or increased utility costs, or increased tea and sushi costs. It's about price gouging - plain and simple! I don't know if CTD actually jacked their prices up when demand skyrocketed - it doesn't matter one way or another to me. What does matter is how much of a bloated markup are they going to place on items when they are back in stock?! 10%, 50%, 10,000%? We'll have to wait and see.
 
And Hot_Lips, the point is that it grinds on our last nerve when companies like CTD send out mass e-mail advertisements to try to hook customers into buying mechandise THAT DOESN'T EXIST!
 
Now, is everyone happy!
"I'd love to spit some Beech-Nut in that dude's eyes and shoot 'em with my ol' .45, cuz a country boy can survive!" Hank Williams, Jr.

Support the Second Amendment - Join the NRA http://www.nra.org

Oklahoma State #1 - GO POKES!

Posted:  1/26/2013 5:28 PM #36230
horselips


Joined: 5/2/2012
Posts: 2063
Last Post: 9/30/2014
Sushi costs? SUSHI COSTS! I have never eaten sushi in my life, although I have seen it a thousand times in my supermarket. The problem is, a package of sushi is priced right up there with a large rib-eye or porterhouse steak, and guess which one wins every time! One of these days a friend or family member will take me to a sushi restaurant, but, knowing me, I'll see something beefy on the menu and order that instead. Alas...


Posted:  1/26/2013 6:03 PM #36231
BigDukeSix


Joined: 12/4/2011
Posts: 202
Last Post: 1/26/2013
So then why were the orders cancelled?  So they could reorder at higher prices?  We all know the that the right thing to do would have been to nitify customers that due to inventory shortages, their orders might take longer to process, yet they would still get their merchandise at the original price that was in effect at the time they placed their order.  Of course doing it CTD's way means more money for CTD!
~Stay safe, stay prepared!

~Remember, two is one and one is none. Always have a backup!

~If you show up for a fair fight, you are NOT prepared!

Posted:  1/27/2013 12:09 PM #36238
Retired Jack Booted Thug


Joined: 1/4/2013
Posts: 6
Last Post: 1/27/2013
All I can say is CTD can make their money while they can, it wont be mine. The internet is a funny place, and when people thing they are getting screwed they tell about  it, and CTD and the price gouging is in nearly every forum on the net. So I say again, make that $$ while you can, it wont be mine.
I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crises. The great point is to bring them the real facts.
Abraham Lincoln

Posted:  1/27/2013 3:29 PM #36239
hot_lips_banana


Joined: 6/28/2005
Posts: 1336
Last Post: 8/8/2014
We don’t purposely plan and build an email with items that we do not have. Seriously- things are selling THAT FAST.
Let me tell you this- on Friday, my supervisor put in order in for some .22 LR ammo (ammo we did not carry in our on-site warehouse) before she could even complete the order, it had sold out. So those of us who work here aren’t immune, either.

 

Am I glad I stocked up on .22 Mag when I did? I sure as heck am.

CTD Forum Moderator

Posted:  1/27/2013 3:38 PM #36240
hot_lips_banana


Joined: 6/28/2005
Posts: 1336
Last Post: 8/8/2014

BigDukeSix- the orders were canceled because there was no inventory to send. The last I heard, we aren’t taking back orders right now, either, so we can’t guarantee we can ship anyone a PMag. Hell! I can’t even get a PMag!

Insert these lyrics into the following song: “I never promised you a PMag…”   

 
CTD Forum Moderator

Posted:  1/28/2013 8:10 PM #36254
fxrsniper


Joined: 1/28/2013
Posts: 1
Last Post: 1/28/2013

 
 FROM CTD Okay.  I've priced my magazines at $15.00 and I sell them all in one hour.  I now have 200 employees with families, building, and overhead.  I don't have anything to sell.
 
No more magazines are available right now. I might get my next shipment in 6 months, at 3x the cost from our distributor because I have to compete for the same magazines. Since I didn't raise my prices, I can only buy 25% of what I need. I keep the margin the same, and I sell out again in one hour. Play this out one or two more times and you're out of inventory and money.
 
Notice I didn't say manufacturer. They may hold their pricing, our source has other companies willing to pay more to get the magazines. They know what the market will bring and they will still make a profit.
 
 
Thats your problem you have other products to sell all the other Businesses are taking them has high as you are. I got the same mags that you are selling from a just as big Business as you are for $17.99 you are selling for $40-50 most places I've looked that's not price gouging is $20-25 it's price gouging 7.62x39 500 rounds $229 Sportsman Guide all day $127. $100 mark up thats not Price gouging enjoy tour Company you are losing thousands of Custome and if they dont ban clips which they probably wont you will still have lost thos customers. Also Tapco is still selling there's to the Businesses for the same price.


Posted:  2/2/2013 8:06 AM #36328
muggles


Joined: 2/2/2013
Posts: 2
Last Post: 4/9/2013
So it is okay to be "devirginized" by CTD and as a customer we should just call it a love story.  Everybody on the consumer end should just lay back and accept that what you have in stock one day for $15 and turns into $100 overnight is acceptable?  Just like the Obama Administration, your organization is a great one...  unbelievably fantastic and totally misunderstood.   At CTD's 600 percent profit we just to need to call it redistribution of wealth, from our pocket to yours.


Posted:  2/2/2013 1:39 PM #36335
BiPolar


Joined: 2/2/2013
Posts: 4
Last Post: 2/3/2013
---I now have 200 employees with families, building, and overhead.  I don't have anything to sell.---
 
1 - Selling all the magazines in one hour versus 1 month does not change the gross revenue generated, so if you made accurate calculations for gross vs. employee-costs initially, WHAT DIFFERENCE DOES IT MAKE IF YOU MAKE ALL THE SALES AT ONCE OR OVER TIME?  That is a nonsensical example.
 
2 - If you cannot acquire/sell enough product to sustain 200 employees, lower your overhead...what are you, General Motors?  IN THEORY, "customers' needs' drive the quantity of employees required.  Maintaining your volume of employees as your first consideration is very reflective of the times in which we live and corresponds to the current administration's approach this country's management.  Is that the company you wish to keep?
 
3 - My Dad always said when you are trying to explain something you know is wrong...you're rationalizing...so just shut up and do whatever it is without trying to make yourself feel good about it. 


Posted:  2/2/2013 4:01 PM #36339
mrking


Joined: 2/2/2013
Posts: 1
Last Post: 2/2/2013
I am not one to take sides, but explain a very similar situation. Before retiring I owned a retail gaming store and poof - one day could not give pokemon cards away, the next day the parking lot was full. I went to every distributor I knew, they jacked up the price then they ran out. I even went to toys-r-us, walmart, anywhere i could to find them to sell. I ended up 2nd day air cases from a distributor in NJ, 500 packs per box, 3 boxes per day, paying $1 over retail per pack. Retail then was about $2, I paid $3 plus 2nd day air. I charged $5 a pack, made $1.25 and limited packs to 10 per customer. I was the only one in Houston with pokemon and my business grew after the pokemon craze slowed down because customers saw a few others sell it for $7 to $10 a pack and they respected my not overly gouging them. Manufacturers did not jack up the price but they were out and were printing the next release.
 
So my advice? Limit numbers of hot items per customer at a reasonable price. Selling out in an hour is not good business as I am certain other dealers and hoarders were loading up. But charging $50 for a $10 item is also not good business. Academy here limits 3 boxes of ammo per day per customer, walmart, 1 per day. And both have not jacked up price.
 
Computers are great tools, you could post your policy (be fair upfront), limit a certain number of product per customer, say per month of identified hot stuff, and everyone gets a piece of both happiness and disappointment. You do not have to pay overtime nor lay anyone off - your business flow is controllable. Meanwhile, work like heck to keep the trucks coming.
 
Just my thoughts. By the way, thanks CTD, I ordered DRT 9mm ammo (fair markup) Thursday about 5pm and it arrived Friday via UPS at noon.


Posted:  2/2/2013 4:08 PM #36340
mtnboomer


Joined: 2/9/2006
Posts: 336
Last Post: 8/18/2014
My posts - and those of most others here - are not complaining about the retailers/distributor per say. It's the practice of jacking up prices for stock already on hand during mass panic purchases like the ones happening now. It's also about what the manufacturers and middle-men will charge the retailers/distributors for new stock that will cause those prices to skyrocket at the retailer/distributor's end so they can make a fair profit.

We all realize the retailers/distributors have overhead and emmployees to pay - and we all hope they can continue to do so without going out of business. But, like everything else in this world, there are those that value profit (regardless of how they make it!) over customer satisfaction and loyalty. I'm sure you are a very honest business man that has the welfare of his customers and employees first in his mind and wouldn't stoop to this kind of unfair tactics. But, there are others (yea, GM is one - I know, I'm one of the lucky ones that get a pension check every month from them!) that only think about the bottom line and how to make it fatter!
"I'd love to spit some Beech-Nut in that dude's eyes and shoot 'em with my ol' .45, cuz a country boy can survive!" Hank Williams, Jr.

Support the Second Amendment - Join the NRA http://www.nra.org

Oklahoma State #1 - GO POKES!

Posted:  2/2/2013 7:59 PM #36342
Thunderstick


Joined: 2/2/2013
Posts: 1
Last Post: 2/2/2013
OK, so say AR-15 mags were going for $15 each.  The supply quickly begins to dry up as you realize they're suddenly bringing $50 each on the secondary market.  You decide to go with the $50 ea. price, too, thus slowing sales and effectively shutting off the guys who wanted to buy 100 at a time so they can take them to gun shows and sell them for $50 apiece themselves.  To them, you're a greedy price gouger.  The same as they intended to be, but they claim the moral high ground.
 
Meanwhile, the average Jane and John Doe with the typical American capacity for denial, avoidance and procrastination suddenly realize it looks like the ship is going to hit the sand.  They realize they should have prepared sooner, and have allowed themselves to get caught short.  Others live out in BF Egypt, and it's a looong way to a store or even further to a gun show, where the mag supply is totally unpredictable.  To these folks (who also understand shipping is frequently cheaper than gas), you are a hero with a few mags to share, and at only $50 apiece.  The greedy ones cuss you, while those who realize they could soon feel the pinch sincerely thank you for having something to sell them to make up for their Pretty Poor Prior Planning.
 
You've helped the folks who really needed it, and have more money to pay employees during the times when you have no inventory for them to sell to make a profit to pay them with.  If you're lucky, you'll have a little bit extra to put back into inventory which is constantly rising in cost and can still be in business when things return to some semblance of normality.
 
The complainers are the same ones who say "Right on" while watching the mainstream media demonize the entrepreneur who uses some of his strategic reserve of gasoline to fill up his 15mpg pickup, go buy gas cans somewhere for $20 each, and drive however far is necessary to fill them up at $3.50 a gallon and take them back to where the gasoline is needed, and charges $5-10 a gallon to cover his time and expenses, and maybe a bit of a profit for his efforts.  To the government brainwashed sheeple and the liberal media fools, he's a price gouger.  To those who need the gas and can't go get it themselves, he's a hero.
 
CTD, you're the heros. 


Posted:  2/3/2013 8:33 AM #36356
rugerhosue


Joined: 2/3/2013
Posts: 1
Last Post: 2/3/2013

I think many of us understand the economics of how your textbook approach works.  But I have seen many companies go out of business because the bean counters were put in charge.  I would suggest you need to factor in the Marketing and PR side of this. Lock your management teams in a room and give them all an equal voice in how to solve this issue.  For the two or three items / categories that everyone seems to be hoarding you might consider a different approach. 
 
I would personally rather see you increase prices slightly, but create a waiting list. First come first serve. Maybe cap the amount someone can order or maybe not. Maybe allow existing customers a priority. I would even suggest you update those customers on a regular basis on where that order stands in the queue. Let everyone feel like we are in this together.  During this whole updating process you have a huge marketing opportunity to cross sell your prepping products.
 
We get magazines in time and at a fair price. You get to keep your customers and build a bond that will last forever.  
 
If you like the idea just send me a case of PMAGs. ;-)  Good luck. 


Posted:  2/3/2013 3:13 PM #36357
BiPolar


Joined: 2/2/2013
Posts: 4
Last Post: 2/3/2013
3 - My Dad always said when you are trying to explain something you know is wrong...you're rationalizing...so just shut up and do whatever it is without trying to make yourself feel good about it. 

 It seems you have taken this to heart.  At least not sputtering about your business model will gain you some respect...at least with me. 


Posted:  2/3/2013 10:26 PM #36360
shrades


Joined: 2/3/2013
Posts: 2
Last Post: 2/3/2013
you are on the money!!
 


Posted:  2/17/2013 4:21 PM #36517
Blindleader


Joined: 2/17/2013
Posts: 1
Last Post: 2/17/2013
You guys have lost so much business I imagine CTD will be going down in flames shortly. Magazine stocks are starting to appear again, ammo too, at pre-retard prices. I've managed to buy a dozen pmags in the past two weeks for 19 bucks each, ammo for 36cpr and other supplies. You guys have a pmag listed for 99 bucks, but it still cost you 14 to get it, so business economics?? That's BS, you're making 3 months worth of sales in a few days, no increase in your overhead as stock from the mfg is the same but want to cry you have nothing to sell?? I hope you guys realize the error of your ways right before you drown....@import url(http://www.cheaperthandirt.com/Forums/CuteSoft_Client/CuteEditor/Load.ashx?type=style&file=SyntaxHighlighter.css);

Posted:  2/19/2013 11:45 PM #36572
78corvette


Joined: 2/26/2009
Posts: 53
Last Post: 2/19/2013
They don't have p mags marked to 99 dollars and everything sky high and its sitting there I can promise you that scared stupid people are paying 99 dollars for a pmag right now...

Posted:  2/20/2013 1:31 AM #36573
frankreynolds


Joined: 2/20/2013
Posts: 1
Last Post: 2/20/2013
 


Posted:  4/9/2013 12:47 PM #37270
muggles


Joined: 2/2/2013
Posts: 2
Last Post: 4/9/2013
   Editted improper post.


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