Walmart vs LGS

[thumperdogg]

Here's a thought. Lets all go hang out at the Walmart gun department just to talk guns. We can eyeball the 8-12 long guns they'll have on display, check out all the handguns we've heard so much about, and get reliable answers to any questions we might have. You guys who are always chirping about the stupid stuff you heard in a gun shop should have a blast!

OTOH, if Walmart has the latest Remsavbushcoltchester Camotactentry for less than you can get it anywhere else with no waiting, no shipping, and no transfer fee, why not buy it?

None of the LGS around here have anything in stock. They say I can order it for you, but I can order it for me and cheaper. The days of the knowledgeable gun shops are over. There are a few, but most of them have people that have no idea what they are talking about. Heck some of them act like they don't even want to make money because they don't even bother approaching you.

 

[IndyColtsFaithful]

I am sure that a LGS can buy ammo and sell for the same price as Walmart and STILL make a profit, maybe not as much of a profit, but still a profit.

If this were the scenario, I would buy ALL of my ammo from my LGS. I am sure everyone I know would. This would = a large increase in ammo sales for the LGS and in turn = more profit. I have had a lot of experience in retail sales as a small business. I used to mark my stuff up high and make a larger profit per item. It didn't take me long to realize that doesn't work. I cut my profit in half and sold 5 times as much product. This earned me way more money than greed did.

I am not saying they should change their business plans, if it works for you run with it, but if it doesn't, adaptation is key to survival.

You're correct. This is called the equilibrium price in the economical world.

 

[Archer46176]

I didn't read through the entire post but WalMart will never monopolize firearms sales and LGSs will never go away do to WalMart. The simple fact is that even though most of us are out for a good deal the LGS has something WalMart doesn't and that is heart and personality. Sure some of them don't have the personlaity some of us are looking for so we find another one to deal with. The LGSs who have employees who treat customers like crap will be the ones who fade away or realize what is going on and get new employees. Some WalMart employees know a little about firearms and hunting equipment but they are spread so thin between departments that they don't have the time to be all that customer friendly and carry on like the guys in an LGS do. To me going to an LGS is like goign to a friends house to shoot the breeze. I will 9 times out of 10 walk out with something just because I am there. Also the LGS will typically be able to get things that a big box store like WalMart will not be able to or will not know how to get. Just my .02....

 

[Titanium Man]

Wow, I'm sorry. I just got up, and through foggy eyes thought it said LJS! I thought WalMart was getting Long John Silvers!!

Ooops! Not interested.

 

[IndyColtsFaithful]

I didn't read through the entire post but WalMart will never monopolize firearms sales and LGSs will never go away do to WalMart. The simple fact is that even though most of us are out for a good deal the LGS has something WalMart doesn't and that is heart and personality. Sure some of them don't have the personlaity some of us are looking for so we find another one to deal with. The LGSs who have employees who treat customers like crap will be the ones who fade away or realize what is going on and get new employees. Some WalMart employees know a little about firearms and hunting equipment but they are spread so thin between departments that they don't have the time to be all that customer friendly and carry on like the guys in an LGS do. To me going to an LGS is like goign to a friends house to shoot the breeze. I will 9 times out of 10 walk out with something just because I am there. Also the LGS will typically be able to get things that a big box store like WalMart will not be able to or will not know how to get. Just my .02....

Wouldn't this theory be the same as the shoe stores, clothing stores, or hardware stores that WalMart has already put out?

 

[bwframe]

I go out of my way and occasionally spend more NOT to make Walmart be my go to store for most anything (other than motor oil, sorry.) They have nearly everything at mostly the best pricing, but if we only support Walmart, they will dictate all pricing.

I guess the question is; are you totally self centered looking only at today? Or are you concerned about the future and how your actions today can affect it?

Another way to look at it. McDonalds used to be "eating out," now it has turned into just "eating." Their food and staff have gotten terribly nasty, their prices are high, yet there are drive-up lines continually surrounding the buildings.

I am totally for the free market with no govt intervention. However, if we only think of ourselves and today, tomorrow we my not have choices.

 

[88E30M50]

Walmart has damaged every industry they've entered into sales agreements with. They have been the cause of a huge number of American jobs being lost. To enter into a sales agreement with Walmart, a company has to reduce it's cost by a percentage each year, otherwise they lose the ability to sell through Walmart. That requirement has caused a lot of companies to move their manufacturing offshore, so they can still sell at Walmart, and yet still stay out of the red. The size of the Walmart market allows them to make demands on suppliers that the local shops or distributors cannot.

I'm guessing that Walmart buys ammo direct from the manufacturer where as an LGS goes through a distributor. I'd bet Walmart gets a special price that some distributors cannot get just because that manufacturer wants access to the Walmart market. That makes it tough for any LGS to compete price wise. This would be more the case for ammo than firearms, as I think most American gun manufacturers are already running at capacity and don't really need to sell via Walmart. But, once that changes and the gun makers start to think they need the Walmart market, we'll see the same thing happen there. Then, as years pass with each year demanding an ever lower wholesale cost, you will see manufacturers start cheapening the products to whatever extent they can to remain profitable.

I don't care for Walmart much and will buy elsewhere whenever possible. Their business model screws the very people that are the most loyal Walmart shoppers. They have driven a large segment of American manufacturing offshore and they are responsible for a fair amount of the decline of many a small American town.

 

[IndyColtsFaithful]

Walmart has damaged every industry they've entered into sales agreements with. They have been the cause of a huge number of American jobs being lost. To enter into a sales agreement with Walmart, a company has to reduce it's cost by a percentage each year, otherwise they lose the ability to sell through Walmart. That requirement has caused a lot of companies to move their manufacturing offshore, so they can still sell at Walmart, and yet still stay out of the red. The size of the Walmart market allows them to make demands on suppliers that the local shops or distributors cannot.

I'm guessing that Walmart buys ammo direct from the manufacturer where as an LGS goes through a distributor. I'd bet Walmart gets a special price that some distributors cannot get just because that manufacturer wants access to the Walmart market. That makes it tough for any LGS to compete price wise. This would be more the case for ammo than firearms, as I think most American gun manufacturers are already running at capacity and don't really need to sell via Walmart. But, once that changes and the gun makers start to think they need the Walmart market, we'll see the same thing happen there. Then, as years pass with each year demanding an ever lower wholesale cost, you will see manufacturers start cheapening the products to whatever extent they can to remain profitable.

I don't care for Walmart much and will buy elsewhere whenever possible. Their business model screws the very people that are the most loyal Walmart shoppers. They have driven a large segment of American manufacturing offshore and they are responsible for a fair amount of the decline of many a small American town.

+1 very well put. If everyone educated themselves on this information, WalMart would not stand a chance.

 

[thumperdogg]

Originally Posted by 88E30M50
To enter into a sales agreement with Walmart, a company has to reduce it's cost by a percentage each year, otherwise they lose the ability to sell through Walmart. That requirement has caused a lot of companies to move their manufacturing offshore, so they can still sell at Walmart, and yet still stay out of the red. [/QUOTE]

Every factory job I have ever had, we have done this to our suppliers. They have to lower the cost every year or we will not buy from them. I am sure that this has caused the same effect, off-shoring and makes Americans lose jobs, but everyone still buys their products.

 

[TopDog]

In my few months here so far I have seen a couple of threads talking about WalMart selling ar's and such. So my question to you all is simply this. Do you think that the WalMart effect will become imminent on the firearms world if we the community start to show interest?

What do I mean? I mean look around in your town that has a WalMart. Say goodbye to 9/10 locally owned shoe stores, clothing stores, grocery stores, home improvement stores, you name it. And not only is a family in your community losing generations of a store but YOU are losing the quality of service you deserve.

Therefore if we show interest in WalMarts firearms they will stock more. Simple theory right? If that happens it will put a damper on your LGS. Eventually fatally crippling it like it has done with all the examples named above.

I'll be the first to tell you I don't want that to happen. What do you all think about this? Should we ban together and stop supporting WalMart? Call me crazy but I'm in.

Your concern about the negative effect on LGS is certainly valid.

However there is a gun buying bonanza going on now and has been since 2008. Manufactures can not even keep up with the demand. At this time I doubt the few Walmart's that have recognized they were missing out on huge sales by not carrying guns and now carry them is not going to have much of an impact on LGS. Now if the greatest gun salesman in the history of America is not re-elected then there might be a big drop in demand for guns. In that case Walmart might have a greater impact. Just my opinion, I'm guessing that a owner of a LGS would feel differently.

 

[Hogwylde]

The only thing Wally World has that my or ANY LGS has is ammo. I don't buy ammo from any LGS's because they mark it up too high. I can get ammo at Wally World for the same price as I get it mail order. So, IF I need it NOW, Wally World gets my business. Otherwise, the cheapest online supplier of what I want in bulk gets my business. If my LGS wants my business, they better start supplying more quantity and variety and at LEAST supply it at online cost minus shipping. I have no need to shop limited variety, low inventory shops with surly personnel.

 

[thumperdogg]

The only thing Wally World has that my or ANY LGS has is ammo. I don't buy ammo from any LGS's because they mark it up too high. I can get ammo at Wally World for the same price as I get it mail order. So, IF I need it NOW, Wally World gets my business. Otherwise, the cheapest online supplier of what I want in bulk gets my business. If my LGS wants my business, they better start supplying more quantity and variety and at LEAST supply it at online cost minus shipping. I have no need to shop limited variety, low inventory shops with surly personnel.

+1 what he said

 

[sepe]

Here's a thought. Lets all go hang out at the Walmart gun department just to talk guns. We can eyeball the 8-12 long guns they'll have on display, check out all the handguns we've heard so much about, and get reliable answers to any questions we might have. You guys who are always chirping about the stupid stuff you heard in a gun shop should have a blast!

OTOH, if Walmart has the latest Remsavbushcoltchester Camotactentry for less than you can get it anywhere else with no waiting, no shipping, and no transfer fee, why not buy it?

I've had more intelligent conversations about guns at the local Walmart gun counter than I have at dealer tables at gun shows or at several gun shops. I've also seen much better safety as far as handling and passing a gun over the counter. If I had a penny for every time I've been muzzle swept in a gun shop, I'd probably be able to fill the a 5 gallon bucket. If we add a penny for each time I'm given some line of BS or completely false information, I'd be filling the bed of my truck.

 

[DRob]

Sorry

I've had more intelligent conversations about guns at the local Walmart gun counter than I have at dealer tables at gun shows or at several gun shops. I've also seen much better safety as far as handling and passing a gun over the counter. If I had a penny for every time I've been muzzle swept in a gun shop, I'd probably be able to fill the a 5 gallon bucket. If we add a penny for each time I'm given some line of BS or completely false information, I'd be filling the bed of my truck.

No doubt about the quality of conversations at gun shows. Muzzle sweeps? That's the #1 activity at gun shows!

I do feel sorry for guys who have no gun shops near them where there is both inventory and friendly conversation. Plenty of both at the LGS I frequent. I can only assume it's a regional thing. My gun-related experiences at Indy area Walmarts are you're lucky to find somebody who has a key to open the display and you generally have to point at what you want because saying it doesn't work.

 

[mammynun]

Ammo is the only thing I buy at wally. The wife, on the other hand...

I buy most of my ammo online. I do buy some ammo at the LGS. I've only bought one (pre-built) gun on the internet, but I'll probably never buy a complete AR anywhere. Pistols, bolt guns, shotguns = LGS, but their ammo prices are (for the most part) insane with a few exceptions.

 

[trapperDave]

I agree with that thought. However the way I look at it is that anything at a local specialty store will be about 10% more. Therefore, maybe a month more of saving? Personally I think it's worth it but that's just me. I believe if WalMart keeps going, goodbye capitalism.

you do realize that is capitalism in action...dont you?

I work hard for my money, ill spend it where it does the most good. Wherever that may be. Not sure what service i need other than the product i wish to purchase. If i have a problem or issue,Im contacted the manufacturer instead of a store to act as middle man. welcome to the internet age. The best service available is self service

 

[Jarhead77]

TOk so I admit this up front ... maybe a dumb nubie question...The WalMart near me only sells ammo...are there WalMarts in Indiana that sell firearms?

 

[HICKMAN]

Ok so I admit this up front ... maybe a dumb nubie question...The WalMart near me only sells ammo...are there WalMarts in Indiana that sell firearms?

yes, out here away from the lib towns

 

[Jarhead77]

yes, out here away from the lib towns[/QUOTE

Well I'll be....I am such a nube.....

 

[thekuhnburger]

Riddle me this, colts fan. Has wal mart not improved consumers lives by offering products at cheaper prices? To you, it is worth it to wait the extra month and save up. So great! Support who you want to support! To someone else living paycheck to paycheck, scraping the bottom of the barrel to buy a firearm, they might not care as much about the knowledge of the staff or the crappy service (yes, it's terrible). For throwing out terms like equilibrium price, you seem to be forgetting about other basic aspects of economics... If Walmart were to put all the LGS out of business and start raising prices, at a point, people would decide to take their business online. Or better yet, an entrepreneur would see the opportunity to beat them in price and make a profit.
Side note: my last firearm was bought at a LGS. I'm not partial to wally world, just trying to show both sides of the argument.