To the OP: The explanation given you at the LGS is not exactly correct. Typical counter employee who has heard a term, thinks they know, but do not. Or, one who is feeding you a line to explain away why they do not have the gun you want.
If a dealer wants a particular firearm, they go on the distributor's dealer-only computer access. This is not what the public sees if public access is allowed at all. Some dealers ONLY order if the computer shows the item in stock. Some dealers will place a backorder and wait even if none are shown as being in stock. With really hot items, they simply do not show up as available, even on the dealer-only access, as they never make it that far, going immediately into salespeople's private "allocated" files, from which the salespeople fill orders as described.
The dealer only computer system "hides" the available quantity of an "allocated" model, as available "allocated" models are "allocated" to the private files of some or all salespersons based upon procedures at that distributor, whether based upon performance, seniority, or some other factors.
"Allocated" is, therefore, a term invented by distributors. Essentially, any given model can go from "allocated" to not and back again, depending on supply and demand.
Thus, if a model is "allocated" it means that when a shipment comes in at the distributor, they are "allocated" among the salespeople, placed in the private computer files of salespeople as described, who then, depending on the policy of each distributor, either fills their backorders in order received, or who then fills backorders from only bigger accounts until supply gets better, then they fill orders from other dealers.
This is further complicated by the fact that most distributors have two levels of salespeople. The first have accounts of bigger dealers assigned to them, and they get the allocated models. Other sales people just answer cold calls or take orders from smaller dealers who do not have an assigned salesperson. Often, the second type of salesperson simply does not have access to the allocated models, or if they do, it is a much smaller quantity of the popular model.
S&W has been focusing on M&P pistol and rifle production, and revolver production has just not kept up with orders, and it has been that way for a couple of years.
Orders are indeed taken at SHOT Show, but they are taken all year long, so production is adjusted accordingly. In addition, production schedules can change based upon LE or other contracts inked during the year.
I hope that helps explain the process.
EDIT: There is no good reason your dealer cannot order a gun for you from any of the distributors with which they have accounts at any time of year. The sooner they order, the sooner the backorder gets filled.
