Walmart has done it again

[ar15jules]

I don't know about WalMart, but Dicks Sporting Goods has several different firearms that they advertise as "Dick's Exclusive". I don't have a flyer handy and can't think of exact models, but does this mean they are junk? No, but lower models none the less.
Jules

[Warners Surplus]

Wal-Mart over the years has had a few as the manufacturers put it "Box store designed guns" The 2 biggest were the Winchester Ranger and the Remington 710.

To alot of NEW gun buyers (first time buyers) they would go to Wal-Mart and see the Winchester Ranger for $299.99 and then to a gun shop and see a Winchester 94AE for $365.00 and immediately think the gun store was triing to rip them off. it wasn't until re-sale that they were finding out that the Wal-Mart gun was Pine stocked and of less Re-sale value.

The same thing happened with the Remington 710. After a few years we started seeing the same 2 guns show up in mom & pop stores due to the fact that Wal-Mart sales on the 2 models dropped (word got out that they were down graded firearms) but the factories were stuck with Wal-Marts projected sales.

Both of the above models have now been discontinued.

Other than those 2 models I am not aware of any Wal-Mart "Exclusive" guns. They are selling alot of the same guns that gunshop's stock.

ETA: I forgot about the Mossberg MAVERICK 88

However, If you take a look at things from an economic business stand point.

Profit Margins,
Wal-Mart works on a basic rule of a 2% profit margin,anybody in retail will tell you thats LOW.
But if you look at numbers it's easy to figure out the difference.
If Wal-Mart posts a yearly $10,000,000,000.00 (10 billion)dollar world wide sales at 2% profit they are setting on $200,000,000.00 (200 million) PROFIT.

With the mom & pops,
If they are showing $1,000,000.00 in yearly sales (not bad for a mom & pop) at the same 2% profit margin, They are setting on $20,000.00 (20 thousand) in profit.
I hope MOM & POP has a small apartment and can walk to work or the kids are missing meals.

Loss Leaders,
Every retail business has them, normaly you see them come out in sales flyers. We pick 1 or 2 products that we sell at or below cost. Around hunting season it is usually ammo. Off season it may be holsters. It' done on the speculation that customers will buy other items while they are there.
Wal-Mart has hundreds of Loss Leaders over the course of the year. Guns and Ammo have always been high in loss leaders because they know customers will buy hunting clothes and cleaning acc. while they are there if they need them.

Bottom line is that, 99% of the products Wal-Mart sells are the same as the mom & pops sell. But they can work on alot LOWER profit margin than mom & pops and thats without even looking at buying power.

One thing Wal-mart is doing that is backfireing on them is the corporate bullying for lower price's. The ending result is we are starting to see manufacturers selling products under the headline of THEY ARE NOT AVAILABLE TO THE BOX STORES.


Rich W.

[Xringshooter]

Here in State College the two Wal-Marts are stopping firearms sales as of March 1, 2007. I got a surprise though when I was in last week talking to the sporting goods clerks. They are going to start selling reloading gear; primers, powder, bullets, tools, scales (Lyman 1200DPSII and RCBS), presses, the whole bit. They will also continue to carry ammo.

As I had said in a previous thread, if you cultivate a good relationship with your local gunshop they may work with you on the price or provide you with a layaway program. When I asked Wal-Mart about layaway for firearms they said no and even stated that they are going to do away with ALL layaway programs in the near future.

I, as a part time gunsmith/firearms seller, am going to do whatever it takes to keep my customers happy. If I sell them a firearm and they bring it back with a complaint, I'm going to fix it on the spot (if I can) or make sure that it gets fixed correctly. Word of mouth is everything to a small shop owner. If my customers are happy with me they may tell their friends "go see Ron, he gave me a decent price and took care of me when my XYZ didn't work right". In the big box stores you may not even see the same person twice when you go there.

Also, the local gunshop may (probably will) have access to a larger assortment of firearms than the big box and don't have to order in quantity if they don't want to. I can order 1 firearm from my wholesalers and, if it is in stock, have it in 3 days or less depending on how quick you want it and what you are willing to pay in shipping. (I work on a cost + profit margin + shipping + sales tax + PICS charge). My profit margin isn't that much right now as I am just starting out, want to try to get my name out, and I do not require the gun business to pay my bills at this time (other than the firearms I want to buy, LOL).

The big box may be able to beat my price, but you can't beat a good friendly local gunshop to hang out at and talk guns.

[DPB]

Rich,

I'm not sure I understand. The 710, Ranger line, and Maverick line are all available outside of the "box store" environment. As far as Winchester goes, the "Ranger" guns have always been the "entry level" option, but they are not exclusive to any one chain. The 710 is still on Remingtons website as current production, and there is still an active Maverick web site. These are, in many cases, the guns that the box stores stock (for any number of reasons), but I've seen them enough other places that I don't believe they are "exclusive."

I'm sure you are right about marketing practices and profit margins. As I said, when "Mom and Pop" are competing directly with Wal Mart, it's time for them to change their business plan, because that's a losing proposition.

Strangely, Wal Mart isn't even particularly competitive right now in ammo sales, except .22. I'm not sure what to attribute this to.

X Ring, where is your shop?

One other thing, I wasn't attacking the customer service of any of the shop owner's/employees here. What I was trying to say was that the Mom and Pop customer service" is not, on average, what people like to remember it as. It sounds like your shops have excellent customer service. I could take to some shops that do not. Shops where I've seen people go a significant amount of cash in hand, ready to buy, and got the "you're not worth our time" treatment.

[luckyned7]

I've seen the prices...I've just never seen the Wallmart clerk that works the sporting goods department...EVER! I went there once for a great deal on sporting clays shells. I got a late night invite and ran out to buy shells. Whatdaya mean I can't buy shells after 11!!?? I still haven't fiqured that one out...the banks are closed so I'm not out on a midnight bank robbing spree. Someone decide to do a domestic shooting and go down to Wallyworld for ammo in the past?

Kind of turned me off for any gun sport related shopping trips to Wallyworld in my future. I'm not sure I could spell L-e-u-p-o-l-d for that invisible clerk anyways.

[Xringshooter]

DPB,

I work part time out of my house in Lemont at the present. I mainly do general gun repairs (I'm not set up with a lathe and milling machine yet, so no major metalwork, barrel turning, stock making etc.). I sell firearms via individual orders, I do not stock firearms at this time. If interested drop me an email and I can give more specifics.

I can special order just about anything you can think of and right now I'm starting to specialize in custom AR's. I am a dealer for DPMS, Bushmaster, Rock River Arms and Stag Arms and can get Armalite. I have and can do transfers (my charge is $20) if someone orders from their own source.

I take it you are presently in the sandbox? If so, watch your six and come home safe and sound.

[Frenchy]

Originally Posted by luckyned7

I've seen the prices...I've just never seen the Wallmart clerk that works the sporting goods department...EVER! I went there once for a great deal on sporting clays shells. I got a late night invite and ran out to buy shells. Whatdaya mean I can't buy shells after 11!!?? I still haven't fiqured that one out...the banks are closed so I'm not out on a midnight bank robbing spree. Someone decide to do a domestic shooting and go down to Wallyworld for ammo in the past?

Kind of turned me off for any gun sport related shopping trips to Wallyworld in my future. I'm not sure I could spell L-e-u-p-o-l-d for that invisible clerk anyways.

I dunno what Wally world you go to, but the ones in my area, Cranberry and Monaca both sell 24/24 7/7. I find the best time to shop there is usually 3 to 4 am or was when i used to finish work at 2:45 am.

I mainly go there because I can pick up my needs just before i hit the range next day. Never had a problem buying bullets, mind you, finding some one to serve you can be a pain.

I think I lik ebuying bullets there because I know they have to ask me if i am 18... LOL I know, ego trip as it may be, its nice when some one asks you if you are 18/21 and you know you look your age at 47

[PA Rifleman]

Originally Posted by DPB

...
Strangely, Wal Mart isn't even particularly competitive right now in ammo sales, except .22. I'm not sure what to attribute this to....

Very believable. The majority of profit in the gun industry is on small items. Cleaning supplies, ammo, targets, slings, cases, etc. The big ticket items are sold at very small margins. The real value of big ticket items is drawing customers in to buy the little stuff.

[k-1]

I agree with you support your local Walmart dont give a hoot about gun owners
your local will keep you informed.

[Kenshin]

One of the good things now is two of my best friend work at walmart. And walmarts down in berks county and the one here in state college(On vario) are getting rid of all gun sales. The ones in berks have already stopped selling. And from what ive been hereing since Katrina in New Orleans, walmart has been thinking about getting rid of firearm sales all together.