Will Airsoft prices drop, our doller is on Par?

[ProbeJax]

Originally Posted by amano999

Yeah it was a pain in the butt too. Looked online and emailed so many retailers all didn't have it in stock. Was lucky that someone saw my thread and messaged me, so I bought it. Feels really nice with the stock.

Yeah, I was going to grab one a few months ago, but none of the retailers could get any of the folding stock version, so I decided to not get one entirely. The stock makes it look completly different.

[ILLusion]

You might as well ask:

- If our gas prices will drop to match the US (US gas prices were always way cheaper than Canada, even nowadays with the on-par dollar)
- If hardcover and paperback book prices will match (they never have, and at times you're paying a 30-40% premium for just buying in Canada, even though books aren't prohibited importation goods)
- If vehicle prices will match (again, not a prohibited good, and as detailed through several news channels, this has caused a lot of grief with Canadian dealerships across the border in recent years. Cars are simply cheaper in America)
- etc.

There are a lot of factors besides the simple dollar that determines the cost and value of a product. Logistics being one of them, supply and demand being the other. In the grand scheme of things, the cost of the license required to bring in the goods is petty compared to the other details required to run an airsoft business.

Considering the lead-times required to run an order for restricted goods, you may want to pose your question 3 months down the road, when goods start arriving that were purchased when the dollar dropped.

Kick in the proverbial "supply-and-demand" curve, and you can see that the prices won't change much.

Some retailers may charge an insane amount for guns, but guess what? They still sell out.

[onem]

Of course they run out, they only buy 10 of an item most of the time. Then they dont restock for months and when they do its 10 or less. look at walmart. when they run out they restock in a few days. Airsoft is the same way in Japan. When a store there runs out the restock in a few days. when we run out we have to wait for international shipping becuse our stores only buy limeted quantity.

Theres something to throw in. Limeted quantity will yeald less profit, Unless you mark up the cost. Now a large quantity will allow you to mark down the cost of the goods to the consumer and allow you to make a large profit. In the end having more of something makes you more money. And making it cheap makes you even more money.

The only thing holding up gas prices is the government of canada. And the only thing holding up airsoft prices are the retailers trying to earn as mutch as they can. Im not blaming them we all want to make money. But right now is the time to make a butt load of cash. You buy allot of stock, sell it all cheap and reap in the dow!!!!

Don't go through Asia go through America its going to be cheaper on shipping. And if your going to go through Asia go to the manufacturers and get a bulk order. It's cheaper through the states if your going to buy from a second party retailer.

Look at Sterios in Canada. One company will list $200 and another will beat that price by 5%. What governs that? Just becuse you can charge an insane amount, dosent mean you have to.

[Viperfish]

Originally Posted by onem

Of course they run out, they only buy 10 of an item most of the time. Then they dont restock for months and when they do its 10 or less. look at walmart. when they run out they restock in a few days. Airsoft is the same way in Japan. When a store there runs out the restock in a few days. when we run out we have to wait for international shipping becuse our stores only buy limeted quantity.

Theres something to throw in. Limeted quantity will yeald less profit, Unless you mark up the cost. Now a large quantity will allow you to mark down the cost of the goods to the consumer and allow you to make a large profit. In the end having more of something makes you more money. And making it cheap makes you even more money.

The only thing holding up gas prices is the government of canada. And the only thing holding up airsoft prices are the retailers trying to earn as mutch as they can. Im not blaming them we all want to make money. But right now is the time to make a butt load of cash. You buy allot of stock, sell it all cheap and reap in the dow!!!!

Don't go through Asia go through America its going to be cheaper on shipping. And if your going to go through Asia go to the manufacturers and get a bulk order. It's cheaper through the states if your going to buy from a second party retailer.

Look at Sterios in Canada. One company will list $200 and another will beat that price by 5%. What governs that? Just becuse you can charge an insane amount, dosent mean you have to.

Only downside with that is many guns sold in the US dont have trades and they all come with glazed orange tips, and alot if not all players hate that.

[surebet]

Um, am I the only one that sees that our dollar is gaining on the American dollar, not the yen?

[Styrak]

Originally Posted by Kohaku

Only downside with that is many guns sold in the US dont have trades and they all come with glazed orange tips, and alot if not all players hate that.

Also (directed towards original poster that this was a reply to), where do you think guns from the States come from? Most likely Asian retailers, and then they put a markup on them. So why not just buy from Asian retailers?

[ILLusion]

Originally Posted by onem

Theres something to throw in. Limeted quantity will yeald less profit, Unless you mark up the cost. Now a large quantity will allow you to mark down the cost of the goods to the consumer and allow you to make a large profit. In the end having more of something makes you more money. And making it cheap makes you even more money.

That's an understood practice in any reselling business - wholesale prices are always cheaper, but if it's that obvious, doesn't that make you wonder WHY they bring in limited quantities if they could make extra massive amounts of money on top?

Capital isn't endless, neither is warehouse space to store the goods, and it's possible that the importation permits actually have restrictions put on them that limit the quantity of guns that can brought in at any one time.

Back to the capital topic as well, sitting on the capital while you wait for it to sell also prevents that equity from being invested while it's sitting in product inventory. That's lost earning potential, that any smart business should take in to consideration when marketing their goods.

Anyways, I don't retail those restricted goods, nor do I plan to, so I don't know all of the intricate details behind it. But as a parts & accessories retailer, I have enough of an understanding of that side of the business to realize how much of an extra step is required to retailer in the bigger stuff.
It's just the way the business is, as are many other businesses. And yes, the government does have a huge hand in the pocket as well. Ultimately, airsoft retailers are businesses and have to pay income taxes on the goods they sell. The more they sell, the more the government takes. Surprise surprise. It'd be nice if airsoft retailers could work under the table, but if a crackdown ever rained down on them, forget about charges for selling airsoft, they'd have to worry more about tax evasion charges.

For an idea of some overhead costs, have you ever looked at the income tax rates of Canadians versus Americans? As well as land/warehouse ownership costs?

As a retailing business, there is a lot of overhead costs that simply make it not feasible for many products to be cheaper than their American counterparts.

Granted, I would be turning a blind eye if I were to say that supply and demand did NOT drive the prices in the Canadian market more than anything. Truth of the matter is, that's the largest driving factor.

Personally, if I were looking for a gun right now, I would gladly pay the asking price - complaining about it will leave you with nothing. Including no gun in your hand. Want to get that gun? Work harder to scrape up the extra dough. You just gotta do what you gotta do.

[jaymz1911]

Just a small note: Isn't the Canadian Goverment making it harder to import airsoft in the country? And also... Isn't the retailer at risk selling prohibited devices to the gp? Plus I don't see a price drop in airsoft in Canada what so ever...

[Manmaries]

I thought onem was dead or dissapeared today i am sad.

[Hectic]

Originally Posted by ProbeJax

Actually, I have a friend in the process of attempting to start up his own airsoft business. He says the liscense will only cost him about a grand and 500 each year, and that he could still make a pretty decent profit charging lower prices then 007 and A&A.

One factor your friend may not have considerd is the fact that he will have to pay tax and dutie on the stuff as it crosses the border that will drive the price up quite a bit.

[Brian McIlmoyle]

Because they can.

They can sell as many guns as they bring in... They could likely increase their prices by 25% above what they are now.. and still sell everything they bring in.

Its a business... not a charity... they don't bring in guns so you can play.. they bring in guns to make money. The more the better.

Sure there are Licensing issues... storage and security...Duty and Taxes.. all this serves to make guns landed in Canada more expensive than most other places... but at the end of the day... they cost what they cost...

I know people who are jumping through the hoops necessary to get import licenses... sure the application fees and actual license fees are not that expensive... but what does months of time jumping through hoops cost?

Also... its not like a fishing license... you have to already have a viable business.. and illustrate a reasonable need for an import license.... if the CF
O even sniffs the possibility that you plan to retail to the public... you will NEVER be approved. Even any connection to the "Airsoft community" is the kiss of death for any props license application.

[MadMax]

Maybe seeing two of Canada's major retaillers and a couple minor retaillers busted with weapons trafficking charges has made some retaillers take a good hard look at more secure business alternatives. Federal prosecution might be a reason why nobody wants to get into airsoft importations in a big way to reduce prices to the consumer.

[Skruface]

Originally Posted by onem

And that hole " We are paying for there Props license " With lower prices more perchases can be made and in the long run more money for there license. Were one person can only afford one gun a year, now with lower prices they can aford two or more and might be buying alot more within the year. Insted of having to wait a year just to buy one gun they can save up and buy many throughout the year. See more money for there license.

One problem is that some retailers (A&A comes to mind) bought stock a year ago or more when we were sitting on 70/dollar. A&A has a full metal M16VN that I'm sure Mark has had on his site for well over a year. Maybe he paid $400 after shipping from HK for a gun - there's no reason he should be expected to take a 30% loss now that the dollar is up.

On a related note, you can't compare airsoft retail practices to buying "object x" the "real world". Sure, McDonald's can drop their prices to reflect a stronger dollar on Big Macs because they sell 10,000 per day. In an airsoft retailers' world, he might only sell a dozen guns per month, and only make a small profit on each. He can't afford to eat the 30% difference, or he makes nothing for his time, effort, and headaches.

The biggest issue with importing airsoft in Canada is supply and demand. We simply don't have a big enough player base in Canada buying high-end guns (maybe 2000 players tops, and I suspect it's probably closer to half that; this is an unscientific guess, and does not include WelfAirsofters who want guns under $150, or buy Crossman).

In the end, it becomes an issue of "put up or shut up". If anyone here thinks they can do a better job and get guns to people for cheaper, then put your money where your mouth is and open a store. There's a few such people doing it already. I've bought guns from them, and I'll be standing in line to buy from you if you can offer the same level of service and reliability at a cheaper price. Otherwise, you have no grounds to complain about pricing.

[Jackie Boy]

One problem is that some retailers (A&A comes to mind) bought stock a year ago or more when we were sitting on 70/dollar. A&A has a full metal M16VN that I'm sure Mark has had on his site for well over a year. Maybe he paid $400 after shipping from HK for a gun - there's no reason he should be expected to take a 30% loss now that the dollar is up.

It Doesnt matter if he had the gun for over a year. He is oviously not selling it anytime soon with the price he has on it. If there was a retailer who sold airsoft guns for a price lower than the other retailers,they would get alot of buisness...trust me, my friends here want to get into airsoft BUT to them it is way to expensive and I wouldnt blame them.

[Brian McIlmoyle]

Originally Posted by Jackie Boy

It Doesnt matter if he had the gun for over a year. He is oviously not selling it anytime soon with the price he has on it. If there was a retailer who sold airsoft guns for a price lower than the other retailers,they would get alot of buisness...trust me, my friends here want to get into airsoft BUT to them it is way to expensive and I wouldnt blame them.

I want to get into space exploration... but I can't afford the space ship.. so I guess I can't.

If you can't get over the bar... then you stay outside.. its that simple.

Participation in any activity is not a right... you have to earn it.. including the money necessary to buy the required kit.

The existing retailers have limits on how many guns they can bring in at a time... as would anyone else who intends to get into retailing airsoft guns.

so... if you can only get so many.. and there is not enough to service the demand... why would anyone choose to make less money on each sale?

Lower prices make sense in a competative market.. like it was 2 years ago with 8 retailers all looking for our money... the only edge you have is to drop margin.. and make it up on volume... but if the volume is capped... by import restrictions... dropping margin... only reduces total revenue... thats just bad business....

This coupled with the "quantum state" with respect to the legality of retailing airsoft guns... why would anyone risk fines, and imprisonment with every sale if they were not making as much money as possible with every sale?