cory Wrote:Tedward, I'm not saying $75 is unreasonable for a bolt, but there are other factors here.
1 you normally expect a better price when you buy in bulk
2 He wants a large amount of money up front. While this is arguably understandable, we're taking all the risk here with an unknown product. This seems to be an opportunity for Maxim Firearms to get into a market with little to no risk.
In less than 3 days we have 21 barrels spoken for in the Lilja Group buy. That's drastically faster than I originally thought this would happen. (I'm expecting 50 or so to get spoken for and 10% backing out before the order is placed)
I have no doubt a bolt group buy (at the current price) would hit 100, I'd be surprised if that took more than a week. At a price that represented our risk and still made Maxim a profit, a 200 bolt order wouldn't surprise me.
At those numbers I'd imagine he'd be able to purchase all the necessary specialty tools his machine shop needs and still make a good profit on this run.
This is a great opportunity for us to get bolts and for Maxim to get into a new market, making a lot of money in the long run. And for the record I hope Maxim is able to look back 5 years from now and realizes they've made out like a bandit in the Grendel market.
I love free market capitalism and sincerely enjoy seeing hard working companies succeeding and making a good profit. However, that doesn't mean I'm not going to try and negotiate the best deal I can, without sacrificing quality.
We'll just have to see.
As Precision Firearms said, it would cost him $55 before shot peening, heat treat, coating, MPI, and Test Firing and other things he can't do in house so even at $20 ($75 ea.) profit on 200 bolts is only $4,000. He would have to do it in less than a week to make anything. That is why doing 1,000 to 5,000 pieces is what companies do. BUT is someone going to buy that bulk?
[FONT="][SIZE=3]Anyhow, lets see how the cards play out. Maybe someone (firearm companies like TA, AA, LBC or PF.) will decide to have Maxim make a batch, like 1,000 or more so the cost can be absorbed and fill all of their back orders to take the manufacturer out of the distribution equation. [/FONT]
[/SIZE]
