Kel-Tec and its pricing practices

[shawn mccarver]

In a very frustrating move, Kel-Tec sent out a letter dated January 11, 2013 to its distributors informing them that because of pending legislation, they were raising the price of the KSG Shotgun by $300.00. The stated reason is to "combat the developmental costs before the weapon is prohibited."

I have not noticed any other gun manufacturer engaging in this practice, and each person will have to draw his or her own conclusions from this "business decision."

I am not sure how much it matters, as it does not seem that the KSG "double magazine tube" shotgun has been produced in sufficient quantities to matter, but the idea of this practice just hits me the wrong way.

 

[mc5aw]

Go over to GB and check out the asking prices. That $300 premium to MSRP looks like a bargain in comparison.

 

[diamonback68]

I think what they are trying to say is that they have put out a lot of upfront developmental cost that they hope to recoup over the lifespan of the projected guns sales in years to come. If that time frame is cut short due to being banned they are out a lot of money. So they are trying to hedge against that.

 

[shawn mccarver]

I think what they are trying to say is that they have put out a lot of upfront developmental cost that they hope to recoup over the lifespan of the projected guns sales in years to come. If that time frame is cut short due to being banned they are out a lot of money. So they are trying to hedge against that.

Yes, I got that. I just don't like it. Especially in light of their ongoing practice of introducing and advertising guns like the KSG and the RFB and then not delivering sufficient quantities resulting in distributors never having any in stock.

 

[mc5aw]

The past month's surge has been unprecedented, and it seems like new/used pricing rules are being made up on a day to day basis. My LGS has seen huge mfg increases on most rifles, although there is minimal new stock coming in. It's a brave new world, folks.

 

[Dmaxboy08]

those kel-tec .223 pistols on gunbroker are going for 800+ dollars. I can see where kel-tec is coming from tho. They arnt a big company(compared to colt, smith, etc) but yet they have alot of overhead in designing weapons. They got to pay bills, workers, etc as well.
If you had, lets say 100k in the making of a firearm and you havent sold enough to break even and all of a sudden there is a talk of a ban, in order not to go out of business, you got to raise the price. Thats economy for ya

 

[Kanewpadle]

There is a lot of foolishness going on behind the scenes with manufacturers and distributors alike. It's not just Kel Tec.

I cannot blame them. It's the fault of those selfish people that have bum rushed their gun stores in hopes of buying guns and ammo. They weren't really interested before. But because the possibility exists that they may not be able to get certain guns, they suddenly became interested.

At my LGS which is owned by a good friend, he ordered an AR straight from the manufacturer. This was a week before the stuff hit the fan. He was told delivery time was 6-8 weeks. A week after he was sent an email stating that now the delivery time was 6-8 months! AND, they are no longer selling AR parts!

Another manufacturer sent him a letter which stated that they were only supplying their top 15% customers and dropping the rest!!

Like they did when Obama was elected in 2008, distributors are holding back product. Their thinking is that if there is a magazine ban or AWB, they will have plenty of time to sell those products at much higher prices. Again because of selfish buyers.

Ammo manufactures run 24/7. Do you REALLY think there is a shortage? I don't think so. They too are holding back.

During these times it's very difficult for the smaller mom and pop stores to stay in business. So do yourself a favor and support them!!

 

[Out West]

I'm pissed at Kel Tec, but for a slightly different reason. Assuming the magazine ban is reinstalled, I will never get my hands on a PMR 30. Kel Tec has always been a innovative company, but too small to meet the demand for all their products. Lots of great ideas but only a trickle of product getting to market. I'm steamed because they didn't secure the capital necessary to grow their business.

Out
West

 

[DOEBOY1]

I shot a pmr 30 and held a few other keltecs. I think the quality is horrible, you could get a better quality air soft gun. Friend of mine has the one that folds double, cant remember the name, what a piece of junk. The plastic grip is so thin I was afraid it would break. the trigger is scary light on the pmr 30. The concept is great but quality sure is lacking. don't waste your money. Doeboy

 

[jframe]

The Kel Tec thing doesn't really bother me. The one and only gun of theirs that I owned left such a bad taste that I hope to never be tempted to own another.

 

[fat tom]

I'm pissed at Kel Tec, but for a slightly different reason. I'm steamed because they didn't secure the capital necessary to grow their business.

Out
West

Well,why don't you send them a few million?
f.t.

 

[Rule3]

Seems like just another good reason not to buy any KT.

They are in my State and do not wish to see them go under but they have a rep for very poor quality control. Yes they are sort of niche maker but just too much bad reviews on everything, I have the original 380, it went make 3 times before it worked. The Ruger copy is flawless and looks better also. The PMR had so much trouble all the originals had to be recalled for a new barrel.

The original Grendel did not make it, same guy designed the PMR so who knows?? I would not want to feed it 22 Mags anyway.

 

[Etemmu]

Better get used to the idea of inflated gun prices for a while. FWIW, I dont like it either. Hope you already have a decent arsenal on hand so you dont have to get a second job!

I am even more bothered by the lack of 9mm and .223/5.56 ammo both locally and on-line. The Dems finally found a good way to stimulate the economy without stealing from the tax payers and the media is oblivious!

Have you hugged a Democrat today?

 

[Out West]

Well,why don't you send them a few million?
f.t.

Good suggestion. Too bad I just spent my last million on a Mini 14 with 3 thirty round mags. The seller threw in a real nice Ruger key fob - that pretty much closed the sale.

Out
West

 

[o3rugby1]

I will never buy another Kel-tec Again.