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The Range
Law & Order
cheaper than dirt no longer selling firearms?
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<blockquote data-quote="AKguy1985" data-source="post: 2046831" data-attributes="member: 824"><p>Cheaper than dirt is trying to cover their butt</p><p></p><p>They said:</p><p>Consumer reaction to the political rhetoric after the shooting in CT caused a rush of online orders at Cheaper Than Dirt! which led to the largest backlog in the company’s history.</p><p></p><p>Cheaper Than Dirt! management had no choice but to suspend firearm sales while examining ways to meet customer demand and maintain the careful and lawful processes established.</p><p></p><p>Firearm sales require a significant amount of individual attention compared to the automated system for non-firearm products. Firearm orders were being placed faster than the inventory system could update, potentially leading to an overselling situation and cancellation of orders on a very large-scale.</p><p></p><p>Ammunition and shooting accessories orders more than tripled, resulting in week-long shipping delays. Since firearms sales are a much smaller portion of its sales and require more resources, the decision was made to utilize personnel in areas that would make the most impact servicing customers.</p><p></p><p>The past three weeks have been spent catching up on the tremendous backlog of orders, training additional staff and increasing inventory back to acceptable levels.</p><p></p><p>Firearm sales will resume on a limited basis beginning Tuesday, January 8, based on available inventory. The selection will increase as more firearms become available. Specifically, firearms that are in high demand are not currently available from manufacturers due to the lack of inventory. This includes most modern sporting rifles.</p><p></p><p>Cheaper Than Dirt!’s goal is to maintain the level of service customers have come to expect.</p><p></p><p></p><p></p><p></p><p>Then in the comments section they said:</p><p>It business economics for us.</p><p></p><p>Pricing is based on demand, inventory, future resupply, plus speculative replacement cost. Let’s use magazines as an example.</p><p></p><p>We plan to buy a 12-month supply of a magazine. We know how many we sell in an average month’ we buy 3 months worth and put in a purchase order for more magazines to be delivered every 3 months to round the year. We have room for a 3 month supply, but not 12 months worth. It also ties up the inventory expense in 3 month periods, not 12.</p><p></p><p>Our business model is to always have inventory. It does nothing for the customer or company to have out of stock items. Ideally, the last magazine is sold as the truck delivers the next batch. All is great. </p><p></p><p>Now demand goes absolutely crazy. We’re burning through our inventory 10 times faster than we planned. There is a true panic taking place right now.</p><p></p><p>Pricing is used to slow sales and maintain inventory levels. You can see pricing go up sometimes several times in one day to slow sales. We want to have inventory until our next shipment arrives. We calculate the sales vs. time, and do our best to have inventory until we are resupplied. The customer is now competing with other customers for the same magazine. At $10 each, every single one would be gone within hours (Brownell’s sold out in 72 hours is one such example). At $40 a piece, they may be around long enough for a customer to buy one or two before they are all gone, or we get more in. To stay in business, we need products to sell. As a customer, you want products to buy.</p><p></p><p>Then there’s speculation, just like gas and milk prices. How much will it cost us in the future to buy that same items? We sometimes look at the worst case scenario, and price items high. Right now, there’s no inventory to be purchased quickly at decent prices, so we have to wait for purchase orders to be fulfilled. Manufacturers are still making products, but it takes weeks to get it to their distributors, and then to us. </p><p></p><p>Now this sound all doom and gloom, but it’s not. The exact opposite works too. We have 40,000 magazines on the shelf, and sales are a trickle. Then next shipment is due in 10 days. Demand is low, inventory is high, and we need room for the next shipment. To make room, we slash the price and hope they move out quickly. This has happened in the past. No one was complaining when we had a glut of magazines and sold them off at $5.00 a piece.</p></blockquote><p></p>
[QUOTE="AKguy1985, post: 2046831, member: 824"] Cheaper than dirt is trying to cover their butt They said: Consumer reaction to the political rhetoric after the shooting in CT caused a rush of online orders at Cheaper Than Dirt! which led to the largest backlog in the company’s history. Cheaper Than Dirt! management had no choice but to suspend firearm sales while examining ways to meet customer demand and maintain the careful and lawful processes established. Firearm sales require a significant amount of individual attention compared to the automated system for non-firearm products. Firearm orders were being placed faster than the inventory system could update, potentially leading to an overselling situation and cancellation of orders on a very large-scale. Ammunition and shooting accessories orders more than tripled, resulting in week-long shipping delays. Since firearms sales are a much smaller portion of its sales and require more resources, the decision was made to utilize personnel in areas that would make the most impact servicing customers. The past three weeks have been spent catching up on the tremendous backlog of orders, training additional staff and increasing inventory back to acceptable levels. Firearm sales will resume on a limited basis beginning Tuesday, January 8, based on available inventory. The selection will increase as more firearms become available. Specifically, firearms that are in high demand are not currently available from manufacturers due to the lack of inventory. This includes most modern sporting rifles. Cheaper Than Dirt!’s goal is to maintain the level of service customers have come to expect. Then in the comments section they said: It business economics for us. Pricing is based on demand, inventory, future resupply, plus speculative replacement cost. Let’s use magazines as an example. We plan to buy a 12-month supply of a magazine. We know how many we sell in an average month’ we buy 3 months worth and put in a purchase order for more magazines to be delivered every 3 months to round the year. We have room for a 3 month supply, but not 12 months worth. It also ties up the inventory expense in 3 month periods, not 12. Our business model is to always have inventory. It does nothing for the customer or company to have out of stock items. Ideally, the last magazine is sold as the truck delivers the next batch. All is great. Now demand goes absolutely crazy. We’re burning through our inventory 10 times faster than we planned. There is a true panic taking place right now. Pricing is used to slow sales and maintain inventory levels. You can see pricing go up sometimes several times in one day to slow sales. We want to have inventory until our next shipment arrives. We calculate the sales vs. time, and do our best to have inventory until we are resupplied. The customer is now competing with other customers for the same magazine. At $10 each, every single one would be gone within hours (Brownell’s sold out in 72 hours is one such example). At $40 a piece, they may be around long enough for a customer to buy one or two before they are all gone, or we get more in. To stay in business, we need products to sell. As a customer, you want products to buy. Then there’s speculation, just like gas and milk prices. How much will it cost us in the future to buy that same items? We sometimes look at the worst case scenario, and price items high. Right now, there’s no inventory to be purchased quickly at decent prices, so we have to wait for purchase orders to be fulfilled. Manufacturers are still making products, but it takes weeks to get it to their distributors, and then to us. Now this sound all doom and gloom, but it’s not. The exact opposite works too. We have 40,000 magazines on the shelf, and sales are a trickle. Then next shipment is due in 10 days. Demand is low, inventory is high, and we need room for the next shipment. To make room, we slash the price and hope they move out quickly. This has happened in the past. No one was complaining when we had a glut of magazines and sold them off at $5.00 a piece. [/QUOTE]
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