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Old January 24, 2013, 02:19 PM   #1
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Manufacturer and distributor rationing

As most of you understand, there is actually increased production of ammunition, magazines, lowers etc, right now. Supply is up, it just can't keep pace with increasing demand. Not only that, but supply of other things, like oddball ammunition and non-tactical things is down as production shifts to fill the gap.

I heard from a local shop owner, via his monthly newsletter, about the basic rationing system used, or at least his interpretation of it.

The manufacturer has 10,000 to ship. He has 10 distributors so he thinks it's fair to give each one 1,000. The distributor has 10 inside sales people. So he decides that it is fair to give each one 100. Now the sales person has let's say 100-150 accounts. He/she can divvy up the product in any way they want. So, if I am high on the food chain, and/or have a great relationship with my sales person, I might get some. If not... well you see the problem.
So, supply is up, sales are up, margins are up, profits are up, but probably not for your small local dealer. I'm not normally a "shop local at all costs" person, rather preferring to shop from whatever source offers me the best value considering all aspects of the sale, but in this case there is strong selection based on the supply side of the market. Supply selection is usually good for consumers and demand side selection usually isn't. If you have a local shop you like, try throwing them a few extra dollars. Buy some cleaning supplies or such even if you won't need them for a while.

If you have a local shop you don't like, maybe they ticked off the distributors sales people with their rudeness also and they won't be around much longer.
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