I thought Magpul discouraged selling over MSRP?
Originally Posted By SafeSide:
Thanks ATC for dropping in and sharing your experience. I thought it would be fair to give some answers and perspective to your post, so other folks can form an educated opinion...
1) The $13/box on PMC Bronze 223 ammo is indeed "ridiculous" when compared to buying ammo prior to 11/6/12 or so. My searching on GB and other gun targeted sites show it selling at auction for $12.50-15 per box (When bought by 500 or 1000). Our costs are up, as are our prices, but we have not sold out yet and there is no shipping to come into the store to buy some (sales tax yes, so maybe this point is moot). The same ammo I saw at the Roanoke gun show (same local market) for $16 per box and people were buying what little was available. We are trying to keep the cost as low as possible, but the industry (as a shooter for a long time and a dealer for 6 weeks) is almost unrecognizable as I'm sure you are aware.
2) Your quote for the x39 is wrong. That ammo is currently in stock at $7/box. Yes, not like the "glory days" of 2012 but below what other folks are selling it for, and we have a good bit to sell so we aren't likely to get cleaned out for several more weeks.
3) The Pmag on the rack (which we currently have about 25 pmags and 50 metal 30rd mags) are expensive right now. For us and for you. But we have some. We are selling them for $10-15 less than the average GB/eBay price. Below that, I lose money. I'm not sure the right move here, but having some available seems to be a plus as it is clear they are cheaper locally than on the internet (how often is that true?) While some may assume we are gouging, the fact is we are making few dollars per mag now than we were when we initially ordered them through normal distribution channels in November (based on the cost of our last batch).
4) After our FFL is approved (should be 3-5 weeks if the ATF sticks to their projected timetable which is questionable), we will be applying for our Class II SOT as a dealer and manufacturer. "Trying to get into the NFA stuff" is accurate when referencing the business, but "already very familiar with registering, transferring, owning, and collecting NFA stuff" would be a more accurate depiction of our experience (as individual owners, through our multiple trusts, etc). We see this as a part of gun ownership that is underserved and where a lot of people are under- or miseducated and hope that its a good sector of the business.
Again, thanks for coming into the store. Its going to take us some time to get things running the way we want, and the uncertainty in the market is making it unclear how everything will turn out. As local boys who thought it would make sense to turn a passion into a business - and fill a need in the community - I hope we get some positive response from others in addition to the criticism.