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The reality of gun availability during ECR

CrackPot

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I am going to try and not rant on this topic, but I have to admit I am severely tempted. As a FFL and MA Dealer, I regularly take questions along the line of "can you order me a...". While this was a great question in 2019, in 2020 it is out of touch with reality.

ECR (election, covid, riots) have changed the landscape of how the firearms supply chain works and a significant way. Maybe if I try and lay this all out, people will be more patient with their dealers and the desire to obliterate ignorant but otherwise good/nice customers will abate.

Back in the good old days (pre-March 2020), the distribution of firearms followed a predictable path. Manufacturers build firearms and sold them to distributors. Distributors hired lots of account reps who they assigned dealers to and they sell firearms to dealers. Dealers then sell firearms to the general public. Some boutique manufacturers will eschew distribution and sell directly to a network of dealers that they sign up (think Nighthawk or Les Baer). But in general the modal is MFG -> DIST -> Dealer -> public. If a dealer wants something, they look at what their multiple distributors have in stock and orders the gun from whoever has it in stock. Customers would get guns in 2-3 days after asking for them if the dealer did not already stock the gun.

Allocation: All distributors have a variation on the concept, but the basic mechanism is the same. Guns that are new, hard to get, are in high demand would not be in open inventory to order off the web portal, but are "allocated". This means that when the distributor receives an allocated model, they assign them to account reps who then can sell them to the dealers they cover however they want. Some distributors "bundle" where you have to buy some boat anchor that is in open inventory to get access to allocated inventory (if you buy this savage bolt rifle in .419 caliber that no one has heard of, I can sell you 4 Ruger 57s). Having a good relationship with your account rep and focusing your business on a single or two (if you have enough volume) distributors would give you access to allocated inventory. Your account rep learns what you like and prioritizes getting you stuff that fits when you have a good relationship. Everyone wants the new glock, but he knows you like high end 1911s...

New releases, rare guns, etc are all that would be allocated. Glock 19s, S&W M&P shields, etc are all sitting in open inventory and the distributors have 100s of each in stock. A distributor would have tens of thousands of guns in stock at any given time and almost all are in open inventory. As a benchmark, my primary distributor has SKUs (unique models) for ~1000 semi auto 9mm pistols on their website. At any given time they would have 600-700 of these models in stock (at least one) and 100 of these they would have 100+ copies in stock (yes, that is 10,000 handguns just in 9mm in stock). That is all pre-covid.

Now ECR. I watched this distributor go from 600+ models in stock to 500, 400, 300, 200, 100 and then things settled. Covid restrictions seemed to be working and people calmed down. They only had 10 guns with 100+ copies and 100 unique (talking just 9mm) in stock, but things were stable. Then the riots hit and BLM went crazy. 100 become 90 became 50 became 10. Part of this was because things sold out but also because they moved a lot of SKUs from open inventory to allocation. Almost everything is now allocated. Almost nothing is in open inventory anymore unless it is some unusual gun that only your weird uncle Tom would buy while on a bender.

As I type this my primary distributor has exactly 3 semi auto pistols in open inventory (p210, p210 target and CZ 75 TSO in 40S&W). They have ZERO pump action shotguns (they used to have 24"+ models for hunting, but hunting season wiped those out). Open inventory consists of bolt, lever and single shot rifles and accessories (just not mags for popular guns). EVERYTHING else is on allocation.

So no dealer can "order" you anything right now unless you want a Christensen Arms Ridgeline 300 Win Mag for $2100 or similar. Each morning my account rep from my primary distributor calls me up and offers me some guns. I say yes to some and no to others. I grab stuff that I know a few colleagues want (S&W 380 shield EZ and similar stuff I dont stock or sell) because it helps us all and increases the good stuff I get on allocation. I get what they offer. I cannot predict when I will be offered anything. I am dependent on something being made, sent to my distributor, sent to my account rep and him offering it to me. That is a precarious path to getting firearms. I am not complaining because I have inventory and I am selling guns, but if you call me up looking for a mossberg 500 with 2 barrels, 12g, in blue, not black and with unicorn sights, I am not going to be able to help you. If you call up for a 12g pump action shotgun under 20" I have some options, but when you are over specific I am unlikely to be able to help unless you get really lucky.

I no longer predict availability. I no longer take deposits. I no longer "order" guns. I do my best to get interesting stuff into stock and sell it to people who come and give me money. If I do anything I list as "I no longer" then I would be doing YOU a disservice because there is no way I know when something will be available again.

Be kind to your FFL.
 
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The allocation part is very interesting. I didnt know it worked that way, I learned something new.

I work with distributors in a different world. I am the factory and sell through the channel. But we never have anything "allocated". Our partners can call and order whatever they want and we either have it in stock or have to wait.
 
This was actually really interesting to read and to get a better understanding of how inventory works for an FFL

The landscape has changed for a LOT of businesses and industries and yet gun people specifically keep acting like it hasn’t e.g. still thinking they can call up an FFL and order a specific hard to find gun or walk into an FFL and walk out with a case of 9mm for $250
 
Or make enough money during the good times to be able to afford inflated pricing during the bad times.

Everyone with ammo acting like they have incredible foresight because they bought ammo at 250 a case and now it’s worth 600. Tesla stock can jump more than that in a week. Make money, buy what you want.
 
Waaaahhh.....im an FFL and my business has been interrupted. Guess what, everyone's business is teetering.
I'm actually doing great, I'm on track for a great year. ECR hasn't affected my business at all, I can't keep up with demand. I'd be working 24/7 and still turning away work if I had the labor supply.

I think OP's explaining how the industry works to laymen in hopes they understand why they can't get a glock 19. I feel his pain. Clients don't understand there isn't availability of certain materials in my industry, no matter how much I spend with my distributor. The chain's too long and the very top end is holding up the entire chain.
 
The allocation thing is why I always try and buy through my local FFL, if at all possible. Just like car dealers, allocations of the “good stuff” is usually dependent on volume of sales. So if I have a choice of buying a gun off the internet or paying a few more buck to get it from my FFL, I’ll get it from the FFL, just to increase his numbers. This is even less costly than it was a while ago, since now even the internet sellers have to charge MA sales tax. I always call and check with my FFL before I order off the internet just to see if he can get a gun for me, even when I think it highly unlikely. If it turns out he can, great. Otherwise he at least gets a transfer fee out of it.
 
I am going to try and not rant on this topic, but I have to admit I am severely tempted. As a FFL and MA Dealer, I regularly take questions along the line of "can you order me a...". While this was a great question in 2019, in 2020 it is out of touch with reality.

ECR (election, covid, riots) have changed the landscape of how the firearms supply chain works and a significant way. Maybe if I try and lay this all out, people will be more patient with their dealers and the desire to obliterate ignorant but otherwise good/nice customers will abate.

Back in the good old days (pre-March 2020), the distribution of firearms followed a predictable path. Manufacturers build firearms and sold them to distributors. Distributors hired lots of account reps who they assigned dealers to and they sell firearms to dealers. Dealers then sell firearms to the general public. Some boutique manufacturers will eschew distribution and sell directly to a network of dealers that they sign up (think Nighthawk or Les Baer). But in general the modal is MFG -> DIST -> Dealer -> public. If a dealer wants something, they look at what their multiple distributors have in stock and orders the gun from whoever has it in stock. Customers would get guns in 2-3 days after asking for them if the dealer did not already stock the gun.

Allocation: All distributors have a variation on the concept, but the basic mechanism is the same. Guns that are new, hard to get, are in high demand would not be in open inventory to order off the web portal, but are "allocated". This means that when the distributor receives an allocated model, they assign them to account reps who then can sell them to the dealers they cover however they want. Some distributors "bundle" where you have to buy some boat anchor that is in open inventory to get access to allocated inventory (if you buy this savage bolt rifle in .419 caliber that no one has heard of, I can sell you 4 Ruger 57s). Having a good relationship with your account rep and focusing your business on a single or two (if you have enough volume) distributors would give you access to allocated inventory. Your account rep learns what you like and prioritizes getting you stuff that fits when you have a good relationship. Everyone wants the new glock, but he knows you like high end 1911s...

New releases, rare guns, etc are all that would be allocated. Glock 19s, S&W M&P shields, etc are all sitting in open inventory and the distributors have 100s of each in stock. A distributor would have tens of thousands of guns in stock at any given time and almost all are in open inventory. As a benchmark, my primary distributor has SKUs (unique models) for ~1000 semi auto 9mm pistols on their website. At any given time they would have 600-700 of these models in stock (at least one) and 100 of these they would have 100+ copies in stock (yes, that is 10,000 handguns just in 9mm in stock). That is all pre-covid.

Now ECR. I watched this distributor go from 600+ models in stock to 500, 400, 300, 200, 100 and then things settled. Covid restrictions seemed to be working and people calmed down. They only had 10 guns with 100+ copies and 100 unique (talking just 9mm) in stock, but things were stable. Then the riots hit and BLM went crazy. 100 become 90 became 50 became 10. Part of this was because things sold out but also because they moved a lot of SKUs from open inventory to allocation. Almost everything is now allocated. Almost nothing is in open inventory anymore unless it is some unusual gun that only your weird uncle Tom would buy while on a bender.

As I type this my primary distributor has exactly 3 semi auto pistols in open inventory (p210, p210 target and CZ 75 TSO in 40S&W). They have ZERO pump action shotguns (they used to have 24"+ models for hunting, but hunting season wiped those out). Open inventory consists of bolt, lever and single shot rifles and accessories (just not mags for popular guns). EVERYTHING else is on allocation.

So no dealer can "order" you anything right now unless you want a Christensen Arms Ridgeline 300 Win Mag for $2100 or similar. Each morning my account rep from my primary distributor calls me up and offers me some guns. I say yes to some and no to others. I grab stuff that I know a few colleagues want (S&W 380 shield EZ and similar stuff I dont stock or sell) because it helps us all and increases the good stuff I get on allocation. I get what they offer. I cannot predict when I will be offered anything. I am dependent on something being made, sent to my distributor, sent to my account rep and him offering it to me. That is a precarious path to getting firearms. I am not complaining because I have inventory and I am selling guns, but if you call me up looking for a mossberg 500 with 2 barrels, 12g, in blue, not black and with unicorn sights, I am not going to be able to help you. If you call up for a 12g pump action shotgun under 20" I have some options, but when you are over specific I am unlikely to be able to help unless you get really lucky.

I no longer predict availability. I no longer take deposits. I no longer "order" guns. I do my best to get interesting stuff into stock and sell it to people who come and give me money. If I do anything I list as "I no longer" then I would be doing YOU a disservice because there is no way I know when something will be available again.

Be kind to your FFL.
Great post. Hopefully this means a big win for Trump with more people supporting the second amendment.
 
Or make enough money during the good times to be able to afford inflated pricing during the bad times.

Everyone with ammo acting like they have incredible foresight because they bought ammo at 250 a case and now it’s worth 600. Tesla stock can jump more than that in a week. Make money, buy what you want.

Everyone with ammo DID have incredible foresight.......and were smart enough to act on it when ammo was abundant. It's not like there hasn't been four prior lessons on the issue in the past 15 years. The fact that it's worth $600 a case now has nothing to do with anything.......the fact that they have ammo is the determining factor and payout of having that foresight.
 
That is interesting. Is it the same model for ammo?
Yes. Ammo goes through the same mfg->dist->dealer->public model. There are some shortcuts for dealers to get direct from mfg if you buy by the pallet (think 100,000+ rounds)

I also over simplified relative to off shore manufacturers where we add a manufacturer rep in the country who actually imports and then moves to the distributor, but that detail is not important to the real issue which is distributors and allocation.
 
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Yes. Ammo goes through the same mfg->dist->dealer->public model. There are some shortcuts for dealers to get direct from mfg if you buy by the pallet (think 100,000+ rounds)

I also over simplified relative to off short manufacturers where we add a manufacturer rep in the country who actually imports and then moves to the distributor, but that detail is not important to the real issue which is distributors and allocation.

Helpful data.
100,000 rounds of 22LR is only 300 or so boxes of Federal Automatch, or fewer than 60 of the Lake City 1800 round crates of 5.56 I recently bought. Still a large $ outlay
 
Or make enough money during the good times to be able to afford inflated pricing during the bad times.

Everyone with ammo acting like they have incredible foresight because they bought ammo at 250 a case and now it’s worth 600. Tesla stock can jump more than that in a week. Make money, buy what you want.
Over time if a skinflint/johnny one box simply bought an extra box every time he or she bought ammo, most of those whiners would have thousands of rounds in reserve. It's not rocket science nor does it require a lot of wealth. We had two plus yeara in the trump slump when 9 and other ammo was cheap. Basic math says a 2 year johnny one box reserve would be 2600 rounds. Not a ton of ammo but all of the whiners i know don't even have 1k around right now... wtaf.
 
Wow, that's really interesting to get a behind the scenes look at how things work.

Something that I still don't understand though is what would prevent an FFL from calling up the distribution account manager and asking if a gun is on allocation and requesting one.

If guns are disappearing from open inventory because they are being moved to allocation, surely there must be some request mechanism in place? It would be really awful if every gun on allocation is only distributed at the sole discretion of the distribution account manager and cannot be requested by the FFL.
 
The allocation thing is why I always try and buy through my local FFL, if at all possible. Just like car dealers, allocations of the “good stuff” is usually dependent on volume of sales.
But there is a difference.

When a car dealer gets a rare allocated car the price is adjusted to market, and you may actually see it on display while they wait for a buyer to pay well over sticker. Some dealers do that, but some are more concerned about their long term relationships and reputation and sell at their normal markup - which means someone "unconnected" will never see it. Want to be connected and get the "pssst.... guess what I have in the back room" treatment? Maximize your chances by cultivating a relationship with one FFL even if that one is not the absolute lowest dollar on your monthly gun.

As to allocation - it sounds like getting an in demand gun is following the same process as tickets to the Glock dinner at the Shot Show.

Something that I still don't understand though is what would prevent an FFL from calling up the distribution account manager and asking if a gun is on allocation and requesting one.
Nothing, just like nothing prevents you from calling the Whitehouse switchboard and asking if you can have a meeting with The Donald to discuss health care policy. Getting back to the Glock dinner analogy - just try walking up to the Glock booth and asking for a ticket to the Thursday dinner.

Allocations can dribble down to the sales rep, who gets to make a personal judgment call as to which customers (s)he should stroke in order to maximize the long term commission flow into his/her paycheck. Those favors are not going to be used on a nobody or a hobby dealer. Now if a dealer who has a habit of ordering guns by the hundred or ammo by the millions of rounds the story can be different.
 
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