EURO vs. Dolllar
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EURO vs. Dolllar
Back in December most of the gun vendors made price adjustments because of the 30% increase of the Euro value against the Dollar, and the effect that it had on their prices. Looking at the exchange rate today I noticed that the Dollar has gained back approximately 12% of that loss. That should translate in $120 of every thousand. Can we expect a price re-adjustement based on the new rate, or does it work only one way? I want to hear your opinions....Thanks.
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Robert
I have learned from these years, there isn't a free lunch. I really do not believe the top gun prices are going to come down at all.
Just think this way, if the dealer have paid the high price to import the guns, there is no way they are going to adjust the current retail price because the exchange rate has favored in US dollars.
The only possible way to have the price reduced may have to depend on the newest model for the coming years which the dealers had to order for you instead. Even so, the chance of price reduction is still slim.
It is my opinion, sell your house and get what you like now and do not look back.
Just think this way, if the dealer have paid the high price to import the guns, there is no way they are going to adjust the current retail price because the exchange rate has favored in US dollars.
The only possible way to have the price reduced may have to depend on the newest model for the coming years which the dealers had to order for you instead. Even so, the chance of price reduction is still slim.
It is my opinion, sell your house and get what you like now and do not look back.
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Quasi-economist
Fabian: If the situation had been the oposite one: the value of the Euro had risen against the Dollllar (I adden even another l here, Fabian), then the dealers would have readjusted their prices upward immediatelly. Even for guns in stock imported earlier at a lower price.
The economical profit, Fabian, where do you think that goes? Yes. into those deep pockets...
Gun traders are a little like horse traders..
Kind regards,
Quasi-economist
The economical profit, Fabian, where do you think that goes? Yes. into those deep pockets...
Gun traders are a little like horse traders..
Kind regards,
Quasi-economist
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guest
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mikeschroeder
- Posts: 488
- Joined: Tue Mar 02, 2004 10:56 am
- Location: Kansas
Hi
One of my students (actually Dad) just bought a new 1913. One of the people he talked to was Nygord. The price of the gun varied with when the dealer purchased it. If the Euro goes down, the price probably will. These guys are exactly stupid, they know that you understand what the prices and exchange rates are.
One of the people he talked to did mention that they aren't stocking much right now, costs too much. If the prices do go down, then these guys would get stuck.
Mike
Wichita KS
One of my students (actually Dad) just bought a new 1913. One of the people he talked to was Nygord. The price of the gun varied with when the dealer purchased it. If the Euro goes down, the price probably will. These guys are exactly stupid, they know that you understand what the prices and exchange rates are.
One of the people he talked to did mention that they aren't stocking much right now, costs too much. If the prices do go down, then these guys would get stuck.
Mike
Wichita KS
Those Greedy International Competition Gun Dealers
Quasi-economist wrote:Fabian: If the situation had been the oposite one: the value of the Euro had risen against the Dollllar (I adden even another l here, Fabian), then the dealers would have readjusted their prices upward immediatelly. Even for guns in stock imported earlier at a lower price.
The economical profit, Fabian, where do you think that goes? Yes. into those deep pockets...
Gun traders are a little like horse traders..
Kind regards,
Quasi-economist
How do you think Nygord, Pilkington and Larry Carter got so rich? There fortunes are built on the backs of us competitors. That's why so many international conglomerates are trying to get into the competition gun market. GE and Walmart know that this is where the real money is at.
Come on guys. These sellers do a small business. They serve a niche market (and serve it extremely well). I bet that 30% increase would take away ALL of their profits if they had not raised their prices. The dollar started sinking in early 2002, but prices were not raised immediately. If I remember correctly, they only raised prices about a year ago when the dollar really went south. Yes, if the dollar recovers to it's old levels I fully expect them to lower their prices, but I am not going to beat them up based on the day-to-day trading fluctuations.
I am glad we have such people willing to serve our teeny tiny market.
Steve T (IL)
Steve T
thank you, your exactly right. We struggled through 2003 with minimal price increases,making no profit, hoping the exchange rate would go down. we finally had to get up to normal margins in Janaury to stay alive.
Fabian, check your math, 12% decrease of of 30% increase is $120 out of $1000? boy I wish I could do math like that with my banker. and actually the real numbers are more like a 8% decrease of a 40 percent increase
thank you, your exactly right. We struggled through 2003 with minimal price increases,making no profit, hoping the exchange rate would go down. we finally had to get up to normal margins in Janaury to stay alive.
Fabian, check your math, 12% decrease of of 30% increase is $120 out of $1000? boy I wish I could do math like that with my banker. and actually the real numbers are more like a 8% decrease of a 40 percent increase
Also, I would like to say that prices were much higher in the late 90's. They dropped when the dollar was strong a few years ago. I watched the prices drop back in about 2000 and took advantage of some of the great deals. To me who had watched the prices through the late 90's the prices in 2000-2002 looked like bargains. So, history shows the vendors will lower their prices as they can.
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Guest
About rasing the price of guns in stock purchased at older lower price.
Think of this, if Scott bought s a gun from Styer last year for $1,000 and he sells it for $1,400. Now the new cost to him is $1,500, if he does not raise the price of the guns he has in stock, where is the $500 going to come to buy the new inventory?
The reality is dealers have to have the $ to buy inventory in advance of them selling it.
To the degree that they "eat" the price increase, lowers their profit and what they take home. In other words, they get a pay cut.
regards
Gary
Think of this, if Scott bought s a gun from Styer last year for $1,000 and he sells it for $1,400. Now the new cost to him is $1,500, if he does not raise the price of the guns he has in stock, where is the $500 going to come to buy the new inventory?
The reality is dealers have to have the $ to buy inventory in advance of them selling it.
To the degree that they "eat" the price increase, lowers their profit and what they take home. In other words, they get a pay cut.
regards
Gary
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Paedagogus
- Posts: 6
- Joined: Fri Apr 16, 2004 1:03 am
Greed!?
It's not greed, it's BUSINESS.guest wrote:Sure: I seem to think guys like Nygord raise the prices at the drop of a hat, even on items already in inventory-greed.
Last edited by Paedagogus on Fri May 14, 2004 1:00 pm, edited 1 time in total.
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Paul in Denver
For those of you who voiced objections to the business practices of Pilkington and Nygord - think about which side of the following conversation makes the most sense to you.
Barry Byer: Hi Sam, I see you have your house up for sale
Sam Seller: Yes Barry, I've been in it for a year now and decided I would like to sell.
Barry Byer: Well Sam, you know I have always wanted a house just like yours and they are very hard to find. Since I'm now in a position to be able to afford it, I checked the county real estate records and found out you purchased it last year for $100,000. I'll make you an offer of $110,000 for it.
Sam Seller: Well, you're right, I did pay $100,000 dollars for it. But my real estate agent tells me that because of market conditions including inflation and appreciation, it will cost me $125,000 to buy a replacement home. So, I cannot accept your offer of $110,000, but I'll offer it to you for $125,000.
Barry Byer: I cant believe you Sam! Where do you get off trying to sell me your house for what it will cost you to replace it instead of what you actually paid for it plus a little profit?
Sam Seller: I just told you I need to sell this house for a price that will allow me to buy a replacement.
Barry Byer: That's the most unethical thing I have ever heard of. You should wait unitl you sell the replacement house to recoup the difference. Why should I absorb your replacement costs??
If any of you would accomodate Barry Byer in this scenario, please call me. I'd like to make an offer to buy your house.
Seriously though, like many other shooters, I am very grateful to people like Nygord and the Pilkingtons as well as others who serve a very small market with top notch products and excellent after sale service and support. They shouldnt have to do all that and pay for it too.
[/b]
Barry Byer: Hi Sam, I see you have your house up for sale
Sam Seller: Yes Barry, I've been in it for a year now and decided I would like to sell.
Barry Byer: Well Sam, you know I have always wanted a house just like yours and they are very hard to find. Since I'm now in a position to be able to afford it, I checked the county real estate records and found out you purchased it last year for $100,000. I'll make you an offer of $110,000 for it.
Sam Seller: Well, you're right, I did pay $100,000 dollars for it. But my real estate agent tells me that because of market conditions including inflation and appreciation, it will cost me $125,000 to buy a replacement home. So, I cannot accept your offer of $110,000, but I'll offer it to you for $125,000.
Barry Byer: I cant believe you Sam! Where do you get off trying to sell me your house for what it will cost you to replace it instead of what you actually paid for it plus a little profit?
Sam Seller: I just told you I need to sell this house for a price that will allow me to buy a replacement.
Barry Byer: That's the most unethical thing I have ever heard of. You should wait unitl you sell the replacement house to recoup the difference. Why should I absorb your replacement costs??
If any of you would accomodate Barry Byer in this scenario, please call me. I'd like to make an offer to buy your house.
Seriously though, like many other shooters, I am very grateful to people like Nygord and the Pilkingtons as well as others who serve a very small market with top notch products and excellent after sale service and support. They shouldnt have to do all that and pay for it too.
[/b]