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Wednesday, December 3, 2008

Firearm Distributors and Gun Retailers

Jim Shepherd writes in today's Shooting Wire that one of the consequences of the run on tactical rifles is that some of the distributors that service gun retailers end up competing with the folks they are supposed to be servicing. Shepherd writes:

More than one dealer is complaining that one distributor is not only raising prices to dealers, they're selling that same inventory direct to consumers - for the same price. ...As one former dealer told me, "it's always been up to the dealer to make his own money, a distributor can sell to anyone they please as long as the transaction is completed through an FFL." But, he confided, he wouldn't bet on the distributor winning any friends in the dealer ranks. Some call it an example of supply and demand; others say it's no different than the "entrepreneurs" who snapped up all the available plywood in their areas and trucked it to the Gulf Coast following Hurricane Katrina. There, they sold that plywood to disaster victims - at astronomical markups.

You can read all of Shepherd's article here.

Uncertainty is driving gun sales - uncertainty about the economy and political uncertainty. But on the political side, Obama can't do anything the day he takes office and the legislative process means that it will be weeks, if not months before any potential gun control bill comes up for a vote. So for now, as demand for these firearms continue to outpace manufacturing capacity, patience should be the word of the day.

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