Saturday (1.07.12) at the GRB Gun Show I saw a Kel-tec KSG for the first time:

A genuine bona-fide KSG in real life
Yes, it is priced a whisker shy of $1800. The price of $3999.99 for David *name withheld* is a friendly jab at another dealer at the show.
As if that wasn’t the find of the show, look what was sitting next to it: the SRM 1216

Kel-Tec KSG and SRM 1216
And it would appear that for $2500 you don’t even get a recoil pad.
BTW, at the same show another dealer had very lightly used (no wear on action bars) Remington 870 Police Magnums for $325-$375. Hmm, which to choose…
Somewhat off topic musings: I don’t know about you but I have a slight internal conflict with regard to scalper’s prices on guns. On one hand, I am a red blooded capitalist and understand and appreciate supply and demand. If the dealer thinks that they can make an extra $1000 above and beyond the MSRP of a gun (the KSG), hey, more power to them. No one is forcing anybody to buy the gun and besides there are millions of other shotguns to choose from. [Maybe you remember the ridiculous prices people paid for Miatas and PT Cruisers when those first came out too.] Furthermore, if the dealer with the KSG had put it out for sale at MSRP, another dealer would have most likely bought it only to attempt to resell it at an inflated price. If you want one at MSRP, then you can wait for supply to increase.
The dealer today was friendly and upbeat and had no problem with me picking up the gun to look it over. I enjoyed talking with them and learned that the KSG was one of the first factory shipment of 250 guns. This one had a three digit serial number starting with ‘1’. So to be clear, I don’t have a problem with the price I saw on the gun today. In fact, I chuckled and wished the dealer well saying, “I hope you get it!” (referring to the asking price) and left happy to know that the KSG is in the pipeline and also happy to have had the chance to finally inspect one up close.
The twinge of conflict I experience is when demand skyrockets (say, for instance, due to a particular person getting elected) and prices increase for the short term that approach the level of gouging. As I’ve stated before, I whole heartily endorse supporting local business whenever possible, however, with the Clinton Gun Ban having sunset only four years prior, in 2008, some local dealers had AR magazines double in price overnight following election returns. On most you could still the the original price tags under the hastily applied new ones. Ammo and gun prices also soared. On one hand, current inventory has to be weighed in the cost of replacement in order to maintain stock. Example: If gas prices increase, the stations instantly raise prices even if they won’t have a delivery for days because the gas in the ground has to be sold at a rate that will fund its replacement in order to stay in business. On the other hand, I have enough friends with FFL’s that told me in the months following November 2008, most prices from manufacturers and wholesalers did not substantially increase. The producers were playing the long game, while some retailers were playing the short game. Unlike gas stations, gun dealers won’t be charged with price gouging in ‘times of crisis’ (hurricanes, etc.) nor do I think they should be. Was the post election price hike a case of simply “making hay while the sun shines” or was it “taking advantage of peoples’ fear”? Neither really, to consider it is just letting emotion get in the way; it’s still just supply and demand and it’s still just business. The dealers might have thought there would be forthcoming legislation that would put them out of business or at least severely restrict there earning potential and needed to stockpile capital for a coming downturn. Even though prices eventually came back in line with most other local shops, the long term result has to do with the customer’s perception towards the business. Not every customer may feel this way but, every time since seeing 11/08 price increases, I remember it when I walk through the door of that shop. I still shop there on occasion (and have directed business there too), the sales guys are knowledgeable and friendly, but I have no illusion of the owner’s ‘friendship’ with customers. When I’m there, I shop based on price only since that’s the rule established by the owner.
What do you think? Is that justified or just petty?
Filed under: Gun Shop Stuff | Tagged: 1.07.12, GRB, gun show, it's just business, Kel-Tec, KSG, opportunist, scalpers, SRM 1216, supply and demand, unicorn | 13 Comments »