3 ms·
I expect they could lower price and remain profitable for the civilian market, however they would then be required to pass along that lower price to the governm
by jmpman 7y ago
I expect they could lower price and remain profitable for the civilian market, however they would then be required to pass along that lower price to the government. Now they’re likely locked into government procurement contracts and they’re able to sell at a high margin. Net profit would decrease by lowering price.
- notadoc 7y agoThis is an interesting argument. I'd imagine in this field that gov contracts are more lucrative than civilian sales.
- dfsegoat 7y agoI don't think they could compete in Civ market. There are far too many AR-like specialty co's out there (DPMS Panther Arms, Rock River Arms etc). - and these have successfully filled both the consumer-grade AR, as well as govt. contracts to lesser agencies. [1,2] E.g. I believe Rock River mfgr's the DEA's standard carbine, or did for a time. 1 - https://en.wikipedia.org/wiki/DPMS_Panther_Arms https://en.wikipedia.org/wiki/DPMS_Panther_Arms 2 - https://en.wikipedia.org/wiki/Rock_River_Arms https://en.wikipedia.org/wiki/Rock_River_Arms
- jmpman 7y agoThe DPMS prices are incredibly low. I’ve seen a DPMS AR for $399, almost 1/3 the cost of a Colt.
- maxk42 7y agoThe government market has completely different requirements. They also don't purchase any ARs.
- jmpman 7y agoThe govt doesn’t purchase ARs? Here’s a contract for a purchase of LE6945 http://documents.tempe.gov/sirepub/cache/1207/ytiv0db3do4thrscwhj1gkmo/1759758909202019090931392.PDF http://documents.tempe.gov/sirepub/cache/1207/ytiv0db3do4thr... A civilian (in most US states) can own one of these, but it does require a tax stamp as the barrel is below the standard length. There’s one for sale on gunbroker right now.