Need some help from folks who are plugged into the current manufacturer/supply chain/business side of handguns. I know several members either work in gun shops or have prior experience. Hopefully, you can educate me on the current state of affairs. Thank you in advance.

Fortunately, I don't need much in the way of new guns, ammo or even most reloading components. Haven't been to a LGS in the past few years. Went to one yesterday with a friend of mine who is just starting out. I was shocked. Not just scarcity of handguns, but other bread-and-butter inventory as well. My question is primarily regarding DISTRIBUTION CHANNELS FOR HANDGUNS.

Background:

1) The LGS is not a fly-by-night. I've known the owners personally for over 20 years. Have no idea if the experience is representative of other LGS or not.
2) Sales people told me the following regarding P320/P365 specifically and handguns generally. (a) No mechanism for individual orders. (b) Periodically, they get a dump of guns from their distributor (I presume). Then they rapidly sell out. (c) Timing or specificity of next dump is unknown.
(d) Prices are higher than on-line. Not unexpected, but much higher.
(e) One salesman said he'd been trying to get a P322 himself for months to no avail. I see them available at Osage County.

Questions:
1) Many of the guns that they don't have ARE available from two on-line vendors I trust and have bought from for years. Top Gun Supply and Osage County Guns. Granted, you may have to wait for In-Stock sometimes, but they are available. Does this indicate a different, more favorable distribution chain for on-line vendors compared to LGS?
2) I presume established on-line vendors have higher sales volumes than most LGS. Consequently, do the distributors and/or manufacturers cater to the high-volume customers? Pure business decision?

Bottom line: I fully understand the manufacturing, distributor retails sales supply chain. I've got a business background, besides having bought and shot a lot of stuff since starting in 1962. Hopefully, somebody with direct knowledge, can explain what is going on now. I feel really bad for those people just starting their journey through the wonderful world of firearms. Thanks again.

Sig has Master or Elite dealers. Product allotment is based on volume. Retail floor space is dedicated to showcasing the Sig product line.

Take what I say with a grain of salt, been working part time in Gun shops since I retired five years ago.

First one was a very small shop, it was more a hobby for the owner who was in his 80’s. Pre Covid we had problems getting guns, most of the large distributors could care less about small volume shops, economy of scale. We had one supplier that catered to the small shops, they went belly up just before the SHTF.

Once Covid hit we were basically SOL when trying to get any new handguns, we depended on used bought from other dealers or estate/thinning of the herd sales. We were to the point that while the owner would sell me anything that I wanted I felt that could wait, we needed to sell whatever we could to keep the doors open.

Shop closed earlier this year due to his passing, have recently started part time at a larger shop. We seem to have a decent inventory in width and depth of handguns from S&W, Sig, H&K, FN, all the big guys. I’m too new to know much more that that.

Sooooo...I worked full-time at a LGS when I retired in 2013 until 2019. I kept relationships with some of our distributors while the owner handled the other distributers. The firearms industry is NOT an exact science and I was amazed at how it seemed to work at all. Manufacturers announce new firearms and generate buzz without having enough inventory manufactured to satisfy the demand. When the inventory finally arrives, the customer base has moved on to the next "new" thing. Having SHOT and other trade shows announcing new products during our busiest sales period (late Nov - Mar) then to only have inventory available during our slowest sales period (summer) was a real challenge.

Anyway, I digress. Back to the OPs question. The availability of inventory depends on how many distributors the LGS has established a relationship with and how much volume they generate. If a distributor gets 10 of the latest high-demand product, they are going to go to their best customers first. If you don't do much volume and only have one distributor you deal with, it is tough to get inventory. There is a delicate balance that any good LGS must achieve between volume and the number of places you get the volume from.

Large on-line only gun stores have different overhead requirements. While a LGS has to have trained and knowledgeable sales people to move their products, the on-line store has to have more inventory and shipping personnel. The overhead model is completely different for the two stores.

Next is the economy of scale issue. The following is an example.
After the 2016 election, S&W found themselves with too much inventory. The offered Shields at buy 5 get one free to dealers through the distributors. A LGS might only be able to sell 6 or 12 (at the most) in one order so the savings is helpful but not as much as when an on-line giant from South Carolina orders 5 or 10 thousand Shields and cost averages them and sells them direct to consumers for less that what normal wholesale cost on a Shield is. It's tough to compete with that. However, it also drives the value of the product down because when you go to trade your Shield in that you paid full price for, the LGS won't be able to offer you hardly anything for it because of what the on-line giant is selling them at.

That brings me to service. This helps and hurts a LGS. I can spend two hours with you going over all the firearms options and getting you to the perfect gun for YOU. Most customers will buy it from your LGS and that is a plus for the LGS. However, after they have fondled all the firearms and the salesperson answers all of their questions many people will leave the store and order it on-line because it is $25 cheaper than what you have it listed for and have it shipped to your store to do the transfer. In the end many end up breaking even or spend more than the LGS price. The LGS will also do things the on-line store usually can't or won't. Trade-ins, layaway, try before you buy (if they have the same gun on the range or letting you test a used gun) that are helpful to customers.

When I worked for the LGS I bought 99 percent of my guns from him. The owner took care of the employees and did them right. Now that I have moved on, I find myself buying 80 percent of my guns from a LGS (the one I worked at and one much closer to me) and 20 percent on-line because sometimes the price is too good to pass up or that I have found something I am looking for that the LGS doesn't have and can't get.

Just my $.02. I really enjoyed my time in the LGS and still help them out from time to time when they are short handed. I still feel like the whole industry model is broken though.

Location, location, location. I moved to Florida last year. First 2 gun shops I walked into were like stepping into an ice bath. I was shocked how much stock they had. The second gun shop, Florida Gun Exchange, literally has the best in stock showroom I have ever seen. (Buds in TN was pretty good too)

On any day I could buy a Hellion, Tavor X95, Staccato, WC, any CZ including Parrots, etc. at this shop. It is like every day is like Christmas.

I work part-time sales in a medium sized shop with several branches. Our buyer grabs what he can get from sundry distributors. It's always a surprise as to what might show up.

I can't speak to other shops, but our volume leaders are guns that few here would give a second glance to. WE have dozens of SCYYs and pallets of Heritage SA revolvers and sell beaucoup to people who don't know any better. Because that's what moves, that's what the buyers go for

If I never sell another crappy Turkish AR style shotgun I'll be a happy camper. One of my last customers this week brought in a list of a half-dozen low end pistols, shotguns and AR pistols that he wanted, when for the money he spent he could have gotten a couple GLOCKs or Rugers, let alone Tauruses.

Thanks everybody for taking the time to provide informative responses. I now have a better idea of what the lay of the land is. Somewhat chaotic if you're not one of the larger high-volume guys. Very tough business environment.

I've always tried to shop local in order to support the little guys. Not just with guns. It's getting tougher and tougher with today's economy and supply chain issues.

Overall, it's a sad state of affairs. Probably the biggest gun boom in history and some places can't get anything to sell.

Thanks again.

quote:

Originally posted by Nipper:
Thanks everybody for taking the time to provide informative responses. I now have a better idea of what the lay of the land is. Somewhat chaotic if you're not one of the larger high-volume guys. Very tough business environment.

I've always tried to shop local in order to support the little guys. Not just with guns. It's getting tougher and tougher with today's economy and supply chain issues.

Overall, it's a sad state of affairs. Probably the biggest gun boom in history and some places can't get anything to sell.

Thanks again.

I spoke to the owner of the shop I used to work at and he told me that during the height of the latest gun run, he would have two laptops open in the middle of the night when one of the vendors updated inventory and would add to the cart on one computer and checkout on the second because the products were selling that fast. I consulted for another shop at the same time and the owner didn't empower anyone in the shop to order inventory and he didn't put in the extra time to find inventory. That shop had hardly any inventory. Small businesses are a tough place to make money. Takes a lot of work. My folks were small business owners, I lived it.