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Smith & Wesson Holding Corporation Message Board

  • mardermj mardermj Mar 1, 2013 9:27 PM Flag

    US dollar degrades 6% yearly since Nixon, SWHC is entitled to a pop in price per unit sold.

    In 1971 I made 10K a year, bought a $3500 car, and a $40K house.
    In 2012 I needed 100K, to buy the same $35,000 car, and the same house was $400,000 nominal.
    You only get that kind of currency degradation masquerading as growth--when you print your brains out to pay debts.
    6% a year, run the numbers. Everything is 10X 1971.

    Which is WHY SWHC should raise prices to wholesalers at least the price of the degradation of the dollar, which is about 12%.

    Car makers are., Homes will be again once we get past the GLUT of foreclosed homes--there is NO glut of weapons, on the contrary, they are scarcer than hen's teeth.

    CEO needs to keep it upbeat and up the price.

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    • You are new to the gun world. It has a very long memory. As an example S&W pulled a #$%$ back in the mid 90's which is only being fixed recently. Do you recall what they did to po its customer and political support,?

      Gun prices have skyrocketed in the last 6 years anyhow. In the last ten years, doubled.

      A wholesale price increase would be viewed extremely unfavorably by retail buyers. Swhc and Ruger are doing the right thing. Just remember, swhc might be able to charge 20% more on a wholesale level, translating into a 25-30% increase to retail, but when the music stops, the retail buyer is going to be very displeased when the pricing drops down.

      Your homework assignment is to find out what swhc did to anger its customer base and almost destroy the company.

      • 2 Replies to mr_magooooooooooo
      • The agreement with the Clinton administration backfired and I think the current administration will be looking far and wide before they get any volunteers to commit that blunder again.

        As far as gun prices doubling in ten years, best look to the value of the dollar. I look at Federal salaries for the true level of inflation, and sure enough, they are almost exactly 200% of 2001.

        That means in real buying power, the value of the dollar degrades at 6% a year, which entitles SWHC to a 12% pop since 2011. That degradation of the currency, called monetary policy masquerades as "growth".

        There is no "growth" only the illusion of growth.

      • That's too easy.

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