Aero Precision - (Profiteering, bad business practices) at it's best!

[Turbotezza 1]

OK "gouging" was probably not the correct wording to use, so I've deleted it

 

As many of you guys know Aero Precision (AP) is a company in WA that actually does the actual machining upper and lower receivers. I've had the lowers and uppers and must say their quality is first rate. They have an online store and also supply to others like Brownells, AIM Surplus etc.

 

Like everybody in the business they were swamped with orders and quickly ran out of lowers sometime in early late Dec 2012 or early 2013. They A few days ago they sent an email to previous customers that a new run of stripped lowers would be available for purchace on the website on 1/16. Dispite previously saying they wouldn't increase prices, they did raise the price to $150 (from $99) they posted on their FB page and I quote; "Due to our rising costs from hiring more staff,working longer hours, having material expedited, and purchasing new equipment we had to raise our prices." Some people bitched on the FB page, but it looked like most bought AP's excuse.

 

Ok so 1/16 (today) rolls around and of couse the AP site gets swamped people trying to get their order in. More bitching on FB, with people saying that AP should have seen this coming etc. Then they start raising price again.

 

This post by a poster on FB sums it all up!

 

"Seriously? Aero can go fugg themselves! First, you say you won't raise prices, then you

 

announce an "unexpected increase" to $150 due to expediting, new machines, etc, like

 

those suddenly came out of nowhere. However, I will give that $150 isn't awful right now,

 

so I was going to buy a couple. BUT THEN CAME TODAY!!!!!! You price them at $150 and

 

have no way to service the frenzy you created, website crashes, you say you're out of

 

stock. Ok, that was bs, but we'll call it being unprepared on your part. NOW

 

SUDDENLY YOU HAVE THEM IN STOCK AGAIN, BUT THEY'RE $200? fugg YOU!!!! That

 

is nothing but complete bs. You can't say you're sold out, and then suddenly they

 

re-appear minutes later at a higher price. All of the firearm forums are already lit up with

 

this and you just messed yourself for future business. I'm sure you'll sell out of what you

 

have left at $200 (not to me) because people are desperate right now, but you can be sure

 

people will remember this in the future and even give you a second thought. I hope it's

 

worth it."

 

 

Some poor guys who were in the process of checking out at the old ($150) price, only to find out the lowers were suddenly out of stock and when they tried to do the process, the price has changed to $200.

[voyager9 3,434]

What's the difference between price gouging and supply and demand? Just what side of the transaction you sit.

[Kingsoverqueens 10]

You can't be goughed if you don't purchase the item.

[RubberBullets 65]

I would consider it shady business practices. If you fail that hard at PR to tell a customer that you will keep prices at $99, then raise it to $150 a week later, only to have your site crash and come back with another $50 you deserve to sell those lowers, then head on over to the warehouse and turn off the lights. Just like CTD there are people that will remember this and remind people of their business dealings.

[Recon Racoon 49]

I like big prices and I cannot lie, all ya'll brothas can't deny, when a lower ships in with itty bitty box, and big price tag in your face you get sprung...

 

 

But really, price gouging is just wrong. Vote with your wallet and don't buy. They'll learn when enough people bail. If they don't, then are they really worth buying from in the first place?

[raz-0 1,259]

I would consider it shady business practices. If you fail that hard at PR to tell a customer that you will keep prices at $99, then raise it to $150 a week later, only to have your site crash and come back with another $50 you deserve to sell those lowers, then head on over to the warehouse and turn off the lights. Just like CTD there are people that will remember this and remind people of their business dealings.

 

Do they make their own forgings? Because I'm sure if they don't those must be increadibly easy to get right now with no markup. You guys got used to REALLY, REALLY cheap lowers. $150 is much closer to what was normal for a lower for the last decade than $50-80 we've seen lately. $200 is a premium in a high demand market with increased costs due to scarcity and a potential time crunch for delivery. So...

[RubberBullets 65]

Do they make their own forgings? Because I'm sure if they don't those must be increadibly easy to get right now with no markup. You guys got used to REALLY, REALLY cheap lowers. $150 is much closer to what was normal for a lower for the last decade than $50-80 we've seen lately. $200 is a premium in a high demand market with increased costs due to scarcity and a potential time crunch for delivery. So...

 

Im not complaining about a $200 lower. Youre missing the whole point. The company assured a customer (with screenshot as proof) that they have no intention of raising their prices a week or so earlier. Fast forward to today, they launch at $150 under the auspices of increased material costs, additional equipment purchased, longer hours etc. I get it.. I really do. Then their site crashed due to overwhelming demand and when it came back up they had raised their price another 33% when the site came back up. Hardly a decision from a reputable dealer that wants to foster faith in their brand and company.

[rightisright 3]

If they did what was alleged, it was bad business practice to promise the lowers @ $100 then raise the price.

 

It was NOT gouging.

 

Some people here really need to take an Econ 101 class.

[Zell959 40]

They definetly mismanaged the PR element of adjusting their prices to respond to surging demand, which is an important part of doing it properly.

 

They're not crazy for asking $200, but they ventured into scumbaggery when they made some promises, then abruptly broke them.

[KpdPipes 388]

If they did what was alleged, it was bad business practice to promise the lowers @ $100 then raise the price.

 

It was NOT gouging.

 

Some people here really need to take an Econ 101 class.

 

This at BEST it might be considered "Profiteering" but it isnt Gouging

[Shane45 807]

Consider anything in this industry like any fluid commodity like gold or oil. It will remain fluid until presidents stop talking about enacting a ban and states stop perpetrating bans. I still cant believe there are those out there that want absolute price stability in one of the most unstable times ever!

[mcbethr 42]

I like big prices and I cannot lie, all ya'll brothas can't deny, when a lower ships in with itty bitty box, and big price tag in your face you get sprung...

 

My trigga finga don't want none unless you got wood, hun!

 

Sorry, brother. Not a modern rifle fan. You made me laugh with that line, though.

[GlassFanta 0]

Don't worry, I'm sure the free market will clear this right up!

 

Nah, just kidding.

[Recon Racoon 49]

My trigga finga don't want none unless you got wood, hun!

 

Sorry, brother. Not a modern rifle fan. You made me laugh with that line, though.

 

My job is done then. All I wanted to do was make someone laugh.

[vladtepes 1,060]

my 7in gun is made by them nice stuff..

[H.M. Murdock 0]

What's the difference between price gouging and supply and demand?

 

Essential goods/services vs non essential

 

I'm a capitalist but I have a long memory. If I deem a business unethical in its practices I simply do not support them

[jamesbod 0]

vlad's going to tell you to s*ck it up.

capitalism is good, right?

[hd2000fxdl 422]

vlad's going to tell you to s*ck it up.

capitalism is good, right?

 

Well being I like companies that make money and have a good bottom line, I would say yes. Why is that, well many many years ago I learned that there are so many hours in the day, I can only work so many hours and if it want it get ahead, I need to something more than punch a clock. Now I make between 2.5 to 3 times what I make working by doing nothing but watching ( well a little more than that) my money grow.

 

Now gouging, that's another story, but the prices on goods will fluctuate depending on what people are willing to pay.

 

 

Sent from my iPad using Tapatalk

[Duppie 73]

We've had how many of these discussions on NJGF now? with the same outcome no less. This country was built on a free market system even if it seem like so long ago, you charged what the market would bare and adjusted your prices accordingly. It's different from price gouging which applies to staples and necessities....and No!.... seal hunting in the arctic depending on ammo or inner city residents guarding their ride is not considered necessities.

If you believe that the asking price is too high....don't f#**&^%n buy it and move on. Christ! how many times?

[jamesbod 0]

...and No!.... seal hunting in the arctic depending on ammo or inner city residents guarding their ride is not considered necessities.

If you believe that the asking price is too high....don't f#**&^%n buy it and move on. Christ! how many times?

I'll paraphrase one of the forum members.

Poor folks need guns. Rich folks want guns.

It's easy for us city & urban folks to dial 911 whenever crime happens but what about the poor folks living in rural mountain areas?

Their 911 response from a Sheriff may take 25 minutes driving through the open plains or the desert.

Should poor folks have the right to affordable arms? Like affordable ObamaCare?

Obama's handing freakin free phones for the poor? How about some free govt guns for the indigent?

[Duppie 73]

I'll paraphrase one of the forum members.

Poor folks need guns. Rich folks want guns.

It's easy for us city & urban folks to dial 911 whenever crime happens but what about the poor folks living in rural mountain areas?

Their 911 response from a Sheriff may take 25 minutes driving through the open plains or the desert.

Should poor folks have the right to bear arms?

Obama's handing freakin free phones for the poor? How about some free govt guns for the indigent?

Isn't it past your bed time Son......

[jamesbod 0]

Isn't it past your bed time Son......

I guess we'll not as rich as you are when you pay highway robbery prices

[RubberBullets 65]

We've had how many of these discussions on NJGF now? with the same outcome no less. This country was built on a free market system even if it seem like so long ago, you charged what the market would bare and adjusted your prices accordingly. It's different from price gouging which applies to staples and necessities....and No!.... seal hunting in the arctic depending on ammo or inner city residents guarding their ride is not considered necessities.

If you believe that the asking price is too high....don't f#**&^%n buy it and move on. Christ! how many times?

 

You are again straying away from the intent of the OP's article. Perhaps labeling the thread price gouging was not the best descriptive, but the series of events the company took to jump its price 200% was a shitty business practice to drop on their customers. They have every right to charge what the market will dictate, but they are NOT a company of their word.

[jamesbod 0]

You are again straying away from the intent of the OP's article. Perhaps labeling the thread price gouging was not the best descriptive, but the series of events the company took to jump its price 200% was a shitty business practice to drop on their customers. They have every right to charge what the market will dictate, but they are NOT a company of their word.

aside from not keeping their word, if you price gouge your loyal customers today, you won't have any left later on when demand comes back down. and THAT, is not good business for the owner

[Duppie 73]

You are again straying away from the intent of the OP's article. Perhaps labeling the thread price gouging was not the best descriptive, but the series of events the company took to jump its price 200% was a shitty business practice to drop on their customers. They have every right to charge what the market will dictate, but they are NOT a company of their word.

Agreed.....But perhaps I was being too flippant.They have as much right to charge as much as they deem it worth right now as much as we have the right to complain and consider them profiteers....It's the American way and what built this country. The very same people that complain about "Profiteering and price gouging" will be the first one to rail about Obama and big government's fingers in every facet of our lives,business and future..... the only difference I can see is WE want these items and WE want it cheap.... so WE have 2 choices. Purchase at the asking price or walk away.... now how simple was that I ask you?

[gunguy1960 2]

Good points on both sides, I will say any buisness working longer to meet our demand has to pay their workers time and a half if they are working over 40 hours, that would impact the final cost.

[GlassFanta 0]

aside from not keeping their word, if you price gouge your loyal customers today, you won't have any left later on when demand comes back down. and THAT, is not good business for the owner

 

But is the gun market really a rational market?

 

What percentage of gun sales are driven not by logic or desire, but simply by fear? How many guns, ammo, accessories are bought to "get em while they can" or some such attitude?

 

Make no mistake, the gun business is the fear business.

[Turbotezza 1]

Ok I added profiteering the title.

 

Although some people bitched about the price increase, the thing that set many people off was that after a few hours of selling the lowers at $150, AP decided to change their stock status to "Out-of-stock", only to become "In-stock" again an hour or so lat er at $200.

[hd2000fxdl 422]

 

But is the gun market really a rational market?

 

What percentage of gun sales are driven not by logic or desire, but simply by fear? How many guns, ammo, accessories are bought to "get em while they can" or some such attitude?

 

Make no mistake, the gun business is the fear business.

 

If you're talking investments, well mood and favor can play an even bigger part over performance.

 

 

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[H.M. Murdock 0]

If the gun business is the fear business then how would you describe what happens behind the doors at investment banks and hedge funds? All those gel heads in charge of large piles of cash don't exactly move around money based on rational decisions. Are you comparing the gun business to some Utopian academic simulation where the capitalist players make their decisions using scientifically sound processes?

 

The "get them while they can" attitude is prudent when you believe government interference will negate your ability to "get them later"