Gun Prices

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Originally Posted By: billt460
Originally Posted By: Astro14
I don't think of Glock as low cost. So, for a G19 at $499, that's medium cost, but with exceptional reliability... If you're looking for value, which in this instance I'll define as reliability vs. cost, Glock represents good value.


Good point. Glock represents an interesting example of very successful marketing, as opposed to Ruger's marketing concept. Glock's sell at steady prices regardless of market conditions. Yes, you can find them somewhat discounted, but nowhere near as much as Ruger's semi auto Polymer line. They regulate prices much more carefully. I read somewhere that it costs Glock approximately $75.00 in materials and production cost to manufacture one. That is from the start of molding the frame, to taping the box shut. The profitability is very high, along with production numbers. Glock manages to keep both that way through very skillful production and marketing. Along with fewer changes, and or new additions over the years. (Only 4 generations in the last 3 decades). Where as Ruger seems to discontinue one model, and introduce another every 15 minutes.

As was pointed out, Ruger chooses to make their money in the first year or so of production. Once that is covered, they'll usually either flood the market, (back to build em' cheap, and stack em' deep, like with the current LCP lineup), or else discontinue them and move on to the next model. Both are successful marketing options for both companies. As both Ruger and Glock have proven to be very financially viable over the years. Let's face it, you don't fly around globetrotting in aircraft like this if you're not turning a healthy profit on a good product. (Bombardier GLEX Global Express.... Around $50 Million).


Glock has been successful at really building their own market based on the polymer pistol. They are the absolute premier manufacturer and have making them cheap and high volume without compromising quality and reliability down to a science. Then add on their acceptance by Law Enforcement globally and you have a recipe for success. That is why all Glocks look alike and pretty much function the same way. They have created a really high performance design and been able to market it successfully to a very broad range of people. Think about it...Law enforcement, military, gun enthusiasts, firearms experts, drug dealers, gang bangers and most other criminals prefer glocks.

Who else markets to such a wide variety of people?
 
Originally Posted By: Doog
Glock has been successful at really building their own market based on the polymer pistol. They are the absolute premier manufacturer and have making them cheap and high volume without compromising quality and reliability down to a science. Then add on their acceptance by Law Enforcement globally and you have a recipe for success. That is why all Glocks look alike and pretty much function the same way. They have created a really high performance design and been able to market it successfully to a very broad range of people. Think about it...Law enforcement, military, gun enthusiasts, firearms experts, drug dealers, gang bangers and most other criminals prefer glocks.

Who else markets to such a wide variety of people?


All good points. I should have mentioned the military and law enforcement. The profitability on Glock pistols is so incredibly high, they can afford to offer extremely appealing, (i.e. low cost), contracts to both law enforcement and militaries around the world. And still come out of these deals maintaining huge profit margins that other companies can only manage to drool over. Another thing that has helped Glock is they have not gone public. Choosing instead to maintain private family control over the company, along with all of it's assets. Many times when companies go public, they are taken over by bean counters, (think Marlin, Remington, Bushmaster, DPMS under the Cerberus Capital Management buyout), and quality, along with sales drops off.

One of the best examples of this is after Apple went public. Not long after they changed out so many people, (Steve Jobs being one of them), they managed to all but run it into the ground before they recognized the error of their ways, and wisely brought him back to fix it. While Ruger has remained successful, it is worthy to note that not a single person with the last name of Ruger holds a management position in that company any longer. While Glock has had it's share of internal family problems, the company always has been, and remains under strict family control. They epitomize the saying, "If it ain't broke, don't try to fix it".
 
Originally Posted By: billt460
Originally Posted By: Doog
Glock has been successful at really building their own market based on the polymer pistol. They are the absolute premier manufacturer and have making them cheap and high volume without compromising quality and reliability down to a science. Then add on their acceptance by Law Enforcement globally and you have a recipe for success. That is why all Glocks look alike and pretty much function the same way. They have created a really high performance design and been able to market it successfully to a very broad range of people. Think about it...Law enforcement, military, gun enthusiasts, firearms experts, drug dealers, gang bangers and most other criminals prefer glocks.

Who else markets to such a wide variety of people?


All good points. I should have mentioned the military and law enforcement. The profitability on Glock pistols is so incredibly high, they can afford to offer extremely appealing, (i.e. low cost), contracts to both law enforcement and militaries around the world. And still come out of these deals maintaining huge profit margins that other companies can only manage to drool over. Another thing that has helped Glock is they have not gone public. Choosing instead to maintain private family control over the company, along with all of it's assets. Many times when companies go public, they are taken over by bean counters, (think Marlin, Remington, Bushmaster, DPMS under the Cerberus Capital Management buyout), and quality, along with sales drops off.

One of the best examples of this is after Apple went public. Not long after they changed out so many people, (Steve Jobs being one of them), they managed to all but run it into the ground before they recognized the error of their ways, and wisely brought him back to fix it. While Ruger has remained successful, it is worthy to note that not a single person with the last name of Ruger holds a management position in that company any longer. While Glock has had it's share of internal family problems, the company always has been, and remains under strict family control. They epitomize the saying, "If it ain't broke, don't try to fix it".


Yeah but they are old school European if I am not mistaken. Many European manufacturers hang onto the "build a better mousetrap and they will keep buying" philosophy. That is a cultural idea that they have obviously hung onto. So in the big picture they are in a different stage in their evolution and still have a bias toward making a better and better product. From that idea springs their success. Some 5th generation grand-kid will screw it up by going public...just wait.
 
Originally Posted By: billt460
Originally Posted By: Doog
Some 5th generation grand-kid will screw it up by going public...just wait.


If it takes that long. Gaston is 87.


yep, then in 15 years you'll hear people say...."I wish I could get my hands on an old Glock"....(old colt, old S&W...old Ruger etc,etc..)
 
Originally Posted By: Doog
yep, then in 15 years you'll hear people say...."I wish I could get my hands on an old Glock......


Many, are saying that now. Several Glock enthusiasts, (of which I am one of), prefer the Gen 3 guns to the Gen 4 models. All 6 of mine are Generation 3 Glocks.
 
Originally Posted By: billt460
Originally Posted By: Doog
yep, then in 15 years you'll hear people say...."I wish I could get my hands on an old Glock......


Many, are saying that now. Several Glock enthusiasts, (of which I am one of), prefer the Gen 3 guns to the Gen 4 models. All 6 of mine are Generation 3 Glocks.



and there in lies the lesson.....don't trust accountants and lawyers to make good anything..........
lol.gif
 
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