I will take a shot at trying to explain part of the sporting goods business.
First off most of the dealers(retail) around the country normally buy their yearly orders in January and February. They go to shows like SHOT, and wholesaler trade shows. They normally put in orders that are called "Dating" orders. In other words they order in a bunch of product, and normally they can get extended credit terms, some as long as 9 to 10 months, at minimum interest payments. So normally their shelves are bare this time of the year anyway. This is by design.
One of the shortage reasons is that a lot of dealers were afraid to put in large "Dating" orders this year(and last) because of the economy and credit problems. Sporting goods dealers for the most part are conservative, hard working people who do not like to take chances. They have been burned before, so they are careful. So when all the politicians are calling for a Depression. Their conservatism goes into overdrive. And they got caught with their PANTS DOWN.
The manufacturers do their manufacturing schedules based upon these early orders. So actually the entire system was "in a way" screwed up from the start.
Then along comes Obama. There ends up being more buyers for products that the dealers were afraid to order at the shows for fear of being stuck when their dating contracts came due.
I worked in the wholesale sporting goods industry for years. I have been through several different types of cycles like this over the years.
I also believe that these shortages are also a bit "manufactured" by the manufacturers, and the dealers. They realize that if they keep things a bit tight then they can demand a higher price(higher profit). It is common sense if you think about it. I have several good friends who are sporting goods retailers. And they have told me that they are keeping a few items in the store room-and not putting all of it on the shelves. I am not saying big dealers are doing this, but I would bet that some of them are.
I do not think the manufacturers and dealers actually expected this big of an "Obama" effect. And now they are trying to catch up, and they will, just be patient. This has happened before, just not to this extent.
Shortages and higher prices also depend on what part of the country you are in. We have some shortages here in WV, but if you have a little patience you can get what you want, the shelves are just a bit thinner here, however the prices have not gone crazy here yet.
I just bought 1,000 CCI BR primers, 1# of RL15, and 1# of RL 22 for $82,50 out the door. That is not a very inflated price. Only a few bucks more than a year or two ago.
I am not saying that this explanation is "the whole thing in a nutshell", but it is a large piece of the pie. Dealers are scared out there. Just look at how many of them are struggling or going out of business(even in this frenzy). Tom.
First off most of the dealers(retail) around the country normally buy their yearly orders in January and February. They go to shows like SHOT, and wholesaler trade shows. They normally put in orders that are called "Dating" orders. In other words they order in a bunch of product, and normally they can get extended credit terms, some as long as 9 to 10 months, at minimum interest payments. So normally their shelves are bare this time of the year anyway. This is by design.
One of the shortage reasons is that a lot of dealers were afraid to put in large "Dating" orders this year(and last) because of the economy and credit problems. Sporting goods dealers for the most part are conservative, hard working people who do not like to take chances. They have been burned before, so they are careful. So when all the politicians are calling for a Depression. Their conservatism goes into overdrive. And they got caught with their PANTS DOWN.
The manufacturers do their manufacturing schedules based upon these early orders. So actually the entire system was "in a way" screwed up from the start.
Then along comes Obama. There ends up being more buyers for products that the dealers were afraid to order at the shows for fear of being stuck when their dating contracts came due.
I worked in the wholesale sporting goods industry for years. I have been through several different types of cycles like this over the years.
I also believe that these shortages are also a bit "manufactured" by the manufacturers, and the dealers. They realize that if they keep things a bit tight then they can demand a higher price(higher profit). It is common sense if you think about it. I have several good friends who are sporting goods retailers. And they have told me that they are keeping a few items in the store room-and not putting all of it on the shelves. I am not saying big dealers are doing this, but I would bet that some of them are.
I do not think the manufacturers and dealers actually expected this big of an "Obama" effect. And now they are trying to catch up, and they will, just be patient. This has happened before, just not to this extent.
Shortages and higher prices also depend on what part of the country you are in. We have some shortages here in WV, but if you have a little patience you can get what you want, the shelves are just a bit thinner here, however the prices have not gone crazy here yet.
I just bought 1,000 CCI BR primers, 1# of RL15, and 1# of RL 22 for $82,50 out the door. That is not a very inflated price. Only a few bucks more than a year or two ago.
I am not saying that this explanation is "the whole thing in a nutshell", but it is a large piece of the pie. Dealers are scared out there. Just look at how many of them are struggling or going out of business(even in this frenzy). Tom.
