Concerning Costing:
People, anytime a manufacturer agrees to buy & resell a product that is selling at a low margin, the price is going up.
Consider: the HS2000 was, by current market standards, selling below market price. Who knows what margin the manufacturer had on the gun, but let's assume they decided to limit profit to get their guns on the shelves and projected a 30% gross margin. Assuming the dealers selling at $279 had a 15% markup on their cost, here is what happened:
Dealer Cost = $242 ($279/1.15 [15% markup])
Manfacturer's Cost: $169 ($242x.70[30% margin], includes 10% for advertising, marketing, shipping, etc. bringing manufacturing cost to $154)
Assuming the above is anywhere close to accurate (& I have no proof, just speculation), then let's also assume that Springfield is buying the guns in large quantities at about $205 each, providing the manufacturer with a 25% margin on $154. No manufacturing company in their right mind would take much less than that.
So:
Springfield's gun cost: $205
Internal costs (advertising, marketing, shipping, etc.) = 10%
Total costs: $226
Gross Margin of 35% = $226/.65=$348
Dealer cost: $348
Dealer markup of 15% = $348 x 1.15= $400
Again - pure speculation, but we know that the HS2000 was priced low for the market. I don't know what kind of profit the manufacturer's look for, but I work for a manufacturing firm & our management is well aware that they can get 15% to 20% on the dollar by simply investing - so why expose yourself to all the liability of being in business (especially producing handguns) for the same return?
When the manufacturer sells its own product, you pay for 1 company's costs and profit. When 1 manufacturing firm resells another manufacturing firm's product, you pay for 2. The only way it makes any sense for Springfield at all is they believe it would cost them more internally to produce a competitive product than buying the HS2000, along with the development time, and the market is alive.
I'm not a tupperware gun fan - I own only a KelTec P32. Not arguing the merits for or against; they just don't appeal to me. But I don't think Springfield is out to gouge their customers, they simply want to turn a profit.
It's up to the consumer to decide if the gun is worth it.
