Letter from Buds

bailey bud

New member
So I got the big letter from Buds that said (in a number of words) "man - we can't keep up with demand - so we're raising prices......

I'm not really complaining (Buds is still fairly reasonable). From what I can see, prices are up $10-20 on a $300 gun.

That said - I'm wondering - is the consumer firearms market heating up?

How would you know?
 
I'm glad you started this thread because I saw the price increases and was kind of stunned.

But prices have been pretty stable for a year at least so it was inevitable they would go up.

But the increase cuts both ways too.

Makes it real easy to pass on a gun and wait for a good deal to show up much later.

The funny one was BUD's was selling a ported titanium chopped hammer Model 85 Taurus for about $305 for a couple of months and that price just went to around $445 overnight.

Eh,I can add sixty dollars to that and get a Walther PPS or add twenty when they are on sale and get Smith M&P9c or save $80 and get a Smith 642 revolver.
 
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We can speculate some more:

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Maybe it's a little bit of both. A falling dollar is probably partly to blame for the increase cost in materials. But which of those two changes more over the short term?
 
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I got the same letter from Bud's.

I don't think the overall market is necessarily heating up- not hotter than it already is anyway. :)

My suspicion is that Bud's has realized that they're far and away the biggest online new-gun discounter, their business is heating up, and they feel it's safe to raise their margins without alienating their customers base and/or causing their business to drop off.
 
Buds is getting slammed. They have broken the daily sales record twice last week since they have been in business. Go to their web site and look how many are on line. They average around 3,000 at at time. The store is no different, no place to park and I waited 15 minutes last month to pick up a gun I had shipped and this was at noon.

Most of their prices are at a very low margin 5% or so. The prices are set at the distributor not Buds. The gun manufactures are having a hard time keeping up.

Part of the e-mail

After spending the first six weeks of 2012 attending various firearms industry shows, including the NSSF Shot Show in Las Vegas with the highest dealer attendance of record, there was one obvious recurring theme from every manufacturer we visited with...."we just can't make enough firearms". Although we fully expected another surge later in 2012, it has already started as the ATF continues to report all time record highs in background/NICS checks as well as Conceal Carry/CCW permit applications.

We are also experiencing record high sales on www.budsgunshop.com, actually breaking our all time single day sales records TWICE this month ! Considering we had no special promotions going on, and we exceeded every sales record dating all the way back to 2003, it seems pretty clear ......"Here we go again !"

As the national media and general public become increasingly aware of the deteriorating supply and demand issues.....we ALL know what comes next....higher prices ! Although upsetting to most people, it can also be an amazing opportunity for those who are in a position to buy "early and often". Whether you are an investor, collector, or reseller...you would be hard pressed to find a single more lucrative investment than firearms at this time. If you are not currently in a position to buy ?....you should still be very happy about the future appreciation in value of your current firearms collection !

To many customers, and even those outside the firearms industry, it would appear that gun dealers like us are primed and ready to take advantage of situations like this. Although there is admittedly opportunity during these times, it is nearly impossible for us to predict and adequately prepare for the sudden and extreme increases that can occur with nationwide internet sales. You do not have huge increases in sales without also having huge increases in phone calls, emails, shipping, etc.....so it can very quickly become overwhelming.
If you find yourself waiting on hold, or waiting on a reply to an email, please reference our active customer counter on the top right corner of our website. If you are attempting to contact us during a high volume time (over 2,500 customers online) you may want to wait until the volume decreases and try again later. For example, as we are sending you this email, the number of customers currently shopping on www.budsgunshop.com is over 3,000 !

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Other answers and explanations to frequently asked questions are provided below for your review.

Our website prices fluctuate up and down often. The reason for these fluctuations is that we do NOT manually price our products based upon our actual cost of each product. Our philosophy is that it matters very little what we originally paid for any item, as the item is only worth what the market (= replacement value) is at the time of your purchase. To accomplish this, we use constantly updated data feeds from our many suppliers to calculate our current replacement cost. Therefore, our website prices will fluctuate both up and down (and mainly up this year) as our current replacement costs also fluctuates. We do NOT have people on staff manually changing prices of +32,000 website items every hour. This is all accomplished by automated cost analysis programs in an effort to offer you, our customer, the current lowest market price on each and every firearm we sell.

We are now shipping firearms, ammunition and accessories direct from suppliers in multiple states. As a result, delivery times may vary by several days depending upon which items you order and your proximity to those warehouses. If you order multiple items on the same order, you may receive multiple tracking numbers as the items may ship from multiple locations. Please be patient, as if your first package does not include your complete order contents, another package(s) will arrive soon after.

We continue to hire and train staff weekly for phone, email and Live Chat customer support. Our customer service staff for existing orders is kept in house...as we admittedly and proudly put a priority on those customers who have already given us their business. However, for new sales and product related questions, the volume of those calls simply forced us to contract with a third party Call Center here in the U.S.

We continue to invest in our automated answering system. This automated system can actually answer the majority of your existing order questions if you will identify yourself to the system by entering your order number when prompted. Unlike our Call Center staff, the automated system is available to answer your questions 24/7.

Here's the deal....it's probably going to get worse before it gets better. Every contact and indicator we have tells us that guns and ammo are selling MUCH faster than they can be manufactured. Our suppliers inventories are dropping drastically every day and they are already quoting 4-6 month back orders on all new orders !

Like it or not (and we don't)...."Here we go again !"

Team Buds
 
"Buds is getting slammed."

Unless they want to hire more employees to meet the demand, they have to raise prices to drive some customers away. If they don't solve the problem they end up with lots of unhappy customers and overworked employees.

Of course, if you can't get enough guns to meet the demand there's no sense in hiring more workers. The only option is raising prices to slow up the orders.

I've wondered how they made any money selling at such a low margin without working themselves to death.
 
I think that wholesale prices are increasing because of greater manufacturing costs(raw materials, labor, insurance, utilities). Remember that when demand is high, prices will rise to a level that markets allow. I also think that shooter demand and not hoarding is one reason for higher ammo costs.
 
Like others have said, "every four years". And if you think its bad now, imagine what will happen between now and November if polls show Obama leading. If that's not scarey enough, now picture what will happen to demand and prices if Obama actually wins term number 2 (may the deity forbid).
 
Higher prices may reflect higher demand. Their letter seems legit, in asmuch as they may want to spread out their sales over 10 months, as opposed to a HUGE rush in October/November. By getting you to buy now, they avoid backorders and unhappy customers later.
 
I ordered a pistol from Bud's last month. I went on line the next day and the price had gone up $20. on that piece overnite...:eek:
 
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