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Sturm, Ruger & Co. Inc. Message Board

  • theguru_onstocks theguru_onstocks Apr 18, 2012 5:45 PM Flag

    Order stoppage strategy explained:

    It's very strange for a company to stop taking orders. They might say "be patient ... we have a backlog." Here's why they wanted to announce an order stoppage:

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    • granny_pushes_up_daisies granny_pushes_up_daisies Apr 19, 2012 10:53 AM Flag

      "I just read somewhere they have three buildings they dont even use- if they get a Govt contract they can use that space. "

      You know, I hadn't thought of that. I have a shed and a spare room so perhaps I will apply for a government grant.




      Once I was the grasshopper but now I am the master

    • richer_than_your_mother richer_than_your_mother Apr 18, 2012 10:21 PM Flag

      Most guns are on back order.

      Ruger has probably 5 out of 5 of the hottest, must buy, guns. So obviously they have more demand.

      1.2 million orders in Q1. I remember they only sold 600,000 guns per year recently.

      This stock is going to $150 per share. I wish the would list some leap options.

    • I just read somewhere they have three buildings they dont even use- if they get a Govt contract they can use that space.

    • granny_pushes_up_daisies granny_pushes_up_daisies Apr 18, 2012 8:35 PM Flag

      RGR will never get a government contract after this because they have shown they couldn't produce the goods.

    • It's better to get out in front of the issue and control the public reaction to the brand. If there were long delays in order shipments without any reason given, the public might get concerned and move on. Knowing that it's because of capacity constraints, that tells the public that the product is so good they can't build enough of them to satiate demand. When the orders book opens back up, I'd be more inclined to order 2 firearms at once instead of one to make sure that I get what I need put into the system. In the end, I would not be surprised to see the order backlog continue to expand at a faster rate.

      It is telling about quality when one product won't be in because of manufacturing backlogs vs. one readily available because of light demand. Which would you want to put down several hundred dollars for?

      • 1 Reply to minireef05
      • I have heard comments to the effect that this will just drive customers to buy other guns. Well, I don't know if the people who think that have done any gun shopping lately. Try it. It's not just Rugers that are out of stock, it is practically every other well regarded gun as well. What is still available from the stores I shopped online is the very off-brand stuff, and the very expensive ($1000+) stuff.

        So RGR is being forthright and protecting their customer image, while not really losing much in the way of sales, either. It doesn't hurt for a product to have an air of scarcity about it. Order two if you can get'em, sure.

        Also: I happen to own a Ruger .177 air rifle. It's a very nice rifle, despite a low price. I was surprised how much gun I got for the money. Just today, I happened to notice that it is made under license in China!

        They could probably solve their production bottleneck overseas and make all the pistols you want. But they won't. MADE IN AMERICA is a source of pride for the company and for its customers.

 
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