Ruger Sales Plummet

[gun sane]

They're blaming a lack of demand and heavily discounted sales by other makers. Maybe they ought to give Obama a few bucks to start a new gun control push.

 

http://www.bloomberg.com/news/2014-10-30/sturm-ruger-falls-as-slowing-gun-sales-crimp-profit.html

[btq96r]

They're blaming a lack of demand and heavily discounted sales by other makers.

 

aka:  the free market

[Oh Shoot]

Thing is, article not clear as to whether it's simply back to about same growth rate as pre Sandy Hook/legislation attempts, or maybe to be more pertinent, the growth rate pre Obama?

 

Who in the industry hasn't experienced significant growth since BHO came aboard, and a veritable boom in the last couple of years? That sort of thing always leads to a glut ... if the EBR prices get much lower, they're gonna sell for scrap metal prices before long.

 

Only ammo itself is still in significant growth cycle seems to me, with resultant high pricing and/or limited availability. I understand all the problems behind cranking up new production facilities and everything on .22LR for a "short term" shortage, but seems to me if someone had done it 2 years ago when it first go scarce, they could have bought a county or three by now with the profits.

 

- OS

Edited October 31, 2014 by Oh Shoot

[Chris]

My understanding is that this is simply a return to pre-insanity sales patterns.

[Smith]

Keep in mind Ruger oversold the last few years. They blew past their sales goal by a large margin and their sales goals were the loftiest they had ever attempted. Probably just a statistical leveling out.

[GTownGeorge]

Strong balance sheet and no debt.

[Mike.357]

I have done my part to keep Ruger in business.  Heck I was even supplied with a 25 round magazine.  Bill Ruger probably spun in his grave with that promotion.

 

and can you imagine how those that paid 2k+ for an AR a few years ago feel?

[satalac]

I have done my part to keep Ruger in business. Heck I was even supplied with a 25 round magazine. Bill Ruger probably spun in his grave with that promotion.

and can you imagine how those that paid 2k+ for an AR a few years ago feel?

I really wish I had sold my AR then. Easy money.

[No_0ne]

They're blaming a lack of demand and heavily discounted sales by other makers. Maybe they ought to give Obama a few bucks to start a new gun control push.

 

http://www.bloomberg.com/news/2014-10-30/sturm-ruger-falls-as-slowing-gun-sales-crimp-profit.html

 

This is not unique to Ruger, all the manufacturers are having the same problems, thus the price cuts.  Black Friday could get really interesting this year ...

 

Thing is, article not clear as to whether it's simply back to about same growth rate as pre Sandy Hook/legislation attempts, or maybe to be more pertinent, the growth rate pre Obama?

 

Who in the industry hasn't experienced significant growth since BHO came aboard, and a veritable boom in the last couple of years? That sort of thing always leads to a glut ... if the EBR prices get much lower, they're gonna sell for scrap metal prices before long.

 

Only ammo itself is still in significant growth cycle seems to me, with resultant high pricing and/or limited availability. I understand all the problems behind cranking up new production facilities and everything on .22LR for a "short term" shortage, but seems to me if someone had done it 2 years ago when it first go scarce, they could have bought a county or three by now with the profits.

 

- OS

 

While the gist of this post is true, not all forms of ammo are in short supply, or highly priced.  Look at what's happening with many rifle calibers, and even some pistol, prices are in free fall lately due to overproduction and reduced demand ...

 

And what makes you think that 22lr makers aren't already profiting greatly?  I want a business where my entire production run is pre-sold for years in advance, without any expenditures in additional equipment; if I were making the stuff I would be raising prices, without spending a dime to increase production.  This is the essence of true capitalism ...

 

Keep in mind Ruger oversold the last few years. They blew past their sales goal by a large margin and their sales goals were the loftiest they had ever attempted. Probably just a statistical leveling out.

 

Also true, it was hard mot to oversell in the market of the last few years ...

 

Strong balance sheet and no debt.

 

Ruger's hallmark, and why their company can survive these peaks and valley's in the market, with plenty of cash on hand and zero debt to service, they can ride out the storm better than most manufacturers ...

Edited November 1, 2014 by No_0ne

[vontar]

Maybe they should come up with something new.  Perhaps their own version of a PMR 30.  Maybe a Magnum built on the design of the 22 Ruger mark 1,2, 3 series.

Maybe they need to hire me as an idea man.

BTW remember this thread if they come out with that.

Edited November 1, 2014 by vontar

[Motasyco]

If Ruger's prices were to come down a little I may not be able to maintain my resistance to purchasing a Redhawk.  Just saying, in case they're listening.

[peejman]

Business is cyclic? Ridiculous levels of growth aren't sustainable over the long term? Say it ain't so!!

[none]

They're blaming a lack of demand and heavily discounted sales by other makers. Maybe they ought to give Obama a few bucks to start a new gun control push.
 
http://www.bloomberg.com/news/2014-10-30/sturm-ruger-falls-as-slowing-gun-sales-crimp-profit.html

Sales are actually up at my house. Last week I got a brand new gate lock from them. Even came with two 25 round magazines scope mounts and an unexpected item a rail mount. Over all very happy.

[A.J. Holst]

Business is cyclic? Ridiculous levels of growth aren't sustainable over the long term? Say it ain't so!!

And real estate ALWAYS appreciates! Lol

At the lower end of Ruger's price point (400 and below) the handgun market is fierce with quality domestics and impressive imports from South America and Turkey.

[nightrunner]

And real estate ALWAYS appreciates! Lol

At the lower end of Ruger's price point (400 and below) the handgun market is fierce with quality domestics and impressive imports from South America and Turkey.

Yeah, because buying American made isnt important to many people anymore

[tartanphantom]

Maybe they should come up with something new.

 

 

What? Ya mean something like the "improved" R51?? (snort, giggle)

That one was a real "winner". :rofl: :jester:

Edited November 3, 2014 by tartanphantom

[Caster]

It's high school level economics.  Very basic.  

 

A market that spikes quickly, falls quickly.  

To maintain high sales for a given market, everything must rise slowly.  

Recent gun sales rose like a tsunami.  It's no surprise the bottom fell out just as quickly.  

[Oh Shoot]

Maybe they should come up with something new.  ..

 

Ruger adds new stuff more than any other manufacturer I know. Pretty amazing diversity really, especially when you figure in all the different calibers within each product line too.

 

- OS

[musicman]

Ruger adds new stuff more than any other manufacturer I know. Pretty amazing diversity really, especially when you figure in all the different calibers within each product line too.

- OS

No doubt this is true. I'm not really a fan of Ruger's products, though I have had a few in the past. However, I respect the company. All kinds of rifles except lever guns, nice double shotguns, revolvers and pistols of all types. Not too many companies out there that have solid offerings in so many categories, in mass production.

It saddens me that S&W can't do the same, as I am a true Smith addict. The iBolt was a non-starter. I would love an M&P family of pump and auto shotguns to go with the rest of my M&Ps. They made shotguns years ago, wish they would do it again. As overall sales dwindle, companies that do not participate in some categories can find new growth in branching out to those other divisions. Of course, if they do it wrong (R51, iBolt, etc) results can be pretty disastrous and bleed red ink at a time when it cannot be afforded.

[Schadenfreude]

What? Ya mean something like the "improved" R51?? (snort, giggle)
That one was a real "winner". :rofl: :jester:

You do realize that was Remington not Ruger ? Edited November 4, 2014 by Schadenfreude

[BigK]

There's a lot of Ruger products I'd love to have...most of all the NRA edition of the 10/22 Take-Down.

 

I don't think they're hurting. They knew the bubble wouldn't last.

[tartanphantom]

You do realize that was Remington not Ruger ?

 

All the more reason for the "fool smiley"... :jester: :jester: :jester:

 

Remington, Ruger, what's the difference??? I guess I'll take my caning now,  sir... :stick: :doh: