The LE SKUs (generally the 3XXXXX SKUs, both rifle and pistol) undergo additional QC steps over the non-LE SKUs.
The LE guns sold to individual officers have the FET paid on them. The ONLY guns exempt for FET tax are guns sold to state/local AGENCIES (oddly, federal agencies pay the FET tax on guns they buy, but not the military).
The LE guns are less expensive because the manufacturer wants it that way. We are S&W's largest LE/Military distributor. We make less than $30/gun when we sell a M&P on the LE program.
Not where I work. Any cop who shows up with his ID gets a LE gun w/o FET built into the price. Since we pay $80 less for them, we pass the savings onto the cop. We make the same profit on LE guns as regular guns. We pay $80 less, so we sell them for $80 less. We are not a LE dealer, but from time to time, a distributor will call us up with some to sell. We then have to send a copy of the cop's ID to the distributor with the ser # of the gun to prove to the distributor that a cop did buy the gun. The cop still pays state sales tax. Other places may do it differently, but that's how we do it. The distributor who sells us these LE guns has no problem with that. GARY
I'm not doubting what you say, but I can recall similar claims of extra QC (even separate production area) for the Remington 870 Police shotguns, and some saying this was more manufacturer puffery than truth. Can you please elaborate on what exactly is done when the LE guns "undergo QC steps over non-LE SKUs"? Have you seen this first hand or have other evidence that gives you confidence claim of extra QC are true? Again, not douting you, but you seem to be in a unique position to know more about this than others, given your LE volume and inquiring minds do really want to know.
As for SKUs, the one I posted above appears to be correct after checking G&R's web site to verify. The SKU for LE M&P Shield 40 and 9 are listed as 180020 and 180021 respectively. Could that be interpreted to mean (based on the extra QC steps you mentioned) that perhaps only 3XXXXX SKUs go through the LE production line (if indeed it is a separate one) or extra QC?
Thanks for the info. I am only repeating what the distributor tells us. I didn't think there was an extra $80 the distributor could eat. GARYRegardless of what you think is happening, those are not FET out guns. If they are, then it is a violation of federal law. Whether a particular LE gun is tax out or in is indistinguishable by the packing it comes in. It's tax status appears to only be known to S&W, the ATF and God.
What you are buying are LE Program guns which a S&W LE distributor is sub-distributing. The most assuredly have FET in them. S&W drop ships FET tax out guns directly to departments ONLY after receiving a FET tax out certificate and matching PO for exactly the number of guns going to that department. Anyone who diverts tax out guns to individuals would be guilty of federal tax evasion.
Note: I am not saying whether the law is good or bad. Nor am I criticizing you for selling LE program guns (I actually think it is good!), I am just stating the law and how S&W (and most other manufacturers) handle FET tax out guns.