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#7190834 - 06/06/18 11:06 PM Tikka Pricing
ckat Online   content
Pro Tracker

Registered: 12/02/09
Posts: 1362
Loc: Lubbock Area
Posted by Darrik of Whittaker Guns on another forum... Glad I bought mine when I did...

" Tikka just came out with a new MAP policy effective June 6th. They didnít increase cost, theyíre just insisting dealers sell the gun for more money. Itís the strictest MAP policy in the business. No more email for price, no more telling customers to call for the best price, no more advertised sale prices. It MAP or else.

Needless to say, Iím pissed. Most of you know where we were on pricing before the end of the programs a couple months ago on the SS T3X Lite. Now MAP is $748.00. Thatís almost $200 more than they were.

We were a seven figure volume Tikka dealer. I expect our sales to decrease 75-90%. Honestly, I hope they see numbers plummet nationwide. Itís hard to swallow when a manufacturer tells you to gouge a customer.

Iím not sure how our future with Beretta (Tikkaís parent company) will unfold."

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#7190853 - 06/07/18 12:07 AM Re: Tikka Pricing [Re: ckat]
patriot07 Online   content
Veteran Tracker

Registered: 11/06/11
Posts: 2537
Loc: Royse City, TX
Dang, that stinks. I bought my CTR last year. Guess the value just went up. But Whittaker always had stupidly cheap prices and was nearly always the best place to buy Tikkas. $748 for a SS Lite is pretty crazy. Blued CTRs were going for $799 last year.

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#7190958 - 06/07/18 07:20 AM Re: Tikka Pricing [Re: ckat]
Korean Redneck Online   content


Registered: 06/24/09
Posts: 2612
Loc: Houston
So they basically contacted u, a retailer, and said that all tikka rifle prices must go up immediately?

Forgive my ignorance as I have no idea how retail fun pricing works or what MAP is?


Edited by Korean Redneck (06/07/18 07:21 AM)

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#7190966 - 06/07/18 07:31 AM Re: Tikka Pricing [Re: Korean Redneck]
BOBO the Clown Offline
decoy

Registered: 04/19/07
Posts: 43840
Loc: Metroplex
Originally Posted By: Korean Redneck
So they basically contacted u, a retailer, and said that all tikka rifle prices must go up immediately?

Forgive my ignorance as I have no idea how retail fun pricing works or what MAP is?


No basically Tikka called and said you are screwing over every other dealer out there. To make things fair across all dealers, you have to sale it for no less then what the Pricing agreed to when you became a dealer or no longer be a dealer.

Nothing new.

If Cabelas, Basspro, Academy did nationwide ads selling for same highly reduce price as Whitaker was... it would diminish the value of the brand, and crush all the smaller dealers that couldnít survive on such reduced margin.

Also eventually all dealers would drop Tikka because the product wouldnít meet margin requirements. Especially in slower times of year when floating costs of the slow moving rifles exceeds profit

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#7191031 - 06/07/18 08:18 AM Re: Tikka Pricing [Re: ckat]
garyrapp55 Offline
Tracker

Registered: 12/26/11
Posts: 962
Loc: Ft. Worth
Why can't other dealers sell as low as Whittaker?

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#7191042 - 06/07/18 08:25 AM Re: Tikka Pricing [Re: ckat]
Nogalus Prairie Offline
THF Celebrity

Registered: 11/22/10
Posts: 25041
Loc: Corsicana
Itís just capitalism at work. Manufacturers need to make money too. Tikka thinks this retailerís pricing/volume sales model hurts them overall. So they are taking action.

In most cases the manufacturer has the hammer, unless the retailer is so huge the hammer switches over to them (i.e. Wal Mart, who whipsaws manufacturers because they are in control).
_________________________
Originally Posted By: Russ79
I learned long ago you can't reason someone out of something they don't reason themselves into.



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#7191048 - 06/07/18 08:29 AM Re: Tikka Pricing [Re: garyrapp55]
Nogalus Prairie Offline
THF Celebrity

Registered: 11/22/10
Posts: 25041
Loc: Corsicana
Originally Posted By: garyrapp55
Why can't other dealers sell as low as Whittaker?


In theory they could, but most are not set up to have a high volume, low margin sales model. No sense in selling 20 rifles a year for little to no margin. Not worth the hassle.

Itís this type of dealer Tikka is trying to protect with this policy. Make it a level playing field for all so other retailers donít stop carrying Tikka rifles.

Tikka is betting that enough folks will still pay $750 for their rifles they will be better off overall in the long run. Itís probably a good bet.
_________________________
Originally Posted By: Russ79
I learned long ago you can't reason someone out of something they don't reason themselves into.



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#7191058 - 06/07/18 08:35 AM Re: Tikka Pricing [Re: Nogalus Prairie]
garyrapp55 Offline
Tracker

Registered: 12/26/11
Posts: 962
Loc: Ft. Worth
Originally Posted By: Nogalus Prairie
Originally Posted By: garyrapp55
Why can't other dealers sell as low as Whittaker?


Itís this type of dealer Tikka is trying to protect with this policy.

Is this Socialism or Communism, it's been a long time since I studied that course?

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#7191059 - 06/07/18 08:35 AM Re: Tikka Pricing [Re: ckat]
WileyCoyote Offline
THF Trophy Hunter

Registered: 09/01/04
Posts: 5594
Loc: The Dogwood Capital of Texas
'55 ......volume discounts, early buy and take early delivery/short payment terms discounts that help the mfg'er to blow out left over inventory from the previous year/billing cycle, additional discounts on model change leftovers re: T3 vs T3x's yadda yadda yadda.

In a 2 tier distribution system, like the Liquor Industry still is, that the firearms mfg'er/importer used to be governed by, they could not sell direct to a retailer, but only to an ATF Licensed Stocking Distributor, who sells to the Retail Outlets. The Firearms Industry had followed that type of distribution since before WW II, EXCEPT for the Mfg'ers who did not sell to Distributors at all in the Either/Or System, ex: Weatherby Browning Ithaca, Beretta etc, only sold to Authorized Dealers under different terms & contract and could , under the FTC Rules at that time be forced to maintain a MSRP retail pricing...nothing new here except mebbe FTC regs have changed again with the current administration from the looser Regs in the recent past to be more like the Bidnizz atmosphere of the 1960's. The Auto Industry is looking at how to get around the FTC regs rights now to allow mfg'ers to sell retail customer direct and cut out the Dealer program's overhead.

Edit: WalMart OTOH skated around the issue when they created an In House "Arkansas Independent Distrubitors, Inc" company, located in the basement of the Buyers Building in Bentonville...who usually only worked with Mfg'er company Officers, and where I got fired for writing a $3.25 million dollar order for a $3.24 item, that had a 5% commission in it...'cause my company wanted to keep my commission for the Company Officers bonus program. Still tickles me that they got bought out by Beretta, who promptly fired all them AH's, with no parachutes that had been promised.

As a Spt Goods distributor's rep in the late '70's and early '80's & and an Importers rep in the mid to late '80's I had both kinds of product to sell, and sold to both sides t distribution channel. Every Spring during "Booking Season" at the Distributor and later at the Importer, all of my Credit worthy dealers in both kind of distribution channels were offered the opportunity to order annual commitments product, with a 2% cash discount and a due date in the Fall, that could be discounted with early payment on a sliding scale based on the month of the early payment...that mirrored the discount and extended dating programs we recieved from the various mfg'ers. To make things yet a little more confusing...only my Long Gun Mfg'ers offered long dating terms. Ammo however was a different deal, like most of the scope/accesory and cleaning supply mfg'ers. So there No One Size Fits All answers here.

Some Mfg'ers in those days who had multiple gun lines worked both side of the street like Browning, who was Dealer direct only in the Browning label products, but offered long term extended dating on their Winchester products...look at the FTC Rules for how any product can be sold in the US.
Ron
_________________________
"These are the times that try men's soul's"...Thomas Paine

"Those who fail to learn from History are doomed to repeat it" ....Santayana

"You ARE entitled to your own opinions...you are NOT entitled to your own Facts" ...Daniel Patrick Moynihan

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#7191072 - 06/07/18 08:44 AM Re: Tikka Pricing [Re: garyrapp55]
Nogalus Prairie Offline
THF Celebrity

Registered: 11/22/10
Posts: 25041
Loc: Corsicana
Originally Posted By: garyrapp55
Originally Posted By: Nogalus Prairie
Originally Posted By: garyrapp55
Why can't other dealers sell as low as Whittaker?


Itís this type of dealer Tikka is trying to protect with this policy.

Is this Socialism or Communism, it's been a long time since I studied that course?


Itís all capitalism. Manufacturers are a part of the capitalism system also, not just retailers. It all works together.

Communism or socialism would actually mandate Tikka keep selling to retailers who want to sell them cheap so people can have Tikka rifles at a cheaper price. In capitalism, no one mandates anything - the players simply make the decisions they think are best for their long term interests. Which is whatís happening here.
_________________________
Originally Posted By: Russ79
I learned long ago you can't reason someone out of something they don't reason themselves into.



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#7191081 - 06/07/18 08:49 AM Re: Tikka Pricing [Re: garyrapp55]
Jgraider Online   content
Pro Tracker

Registered: 06/13/15
Posts: 1136
Loc: West Texas
Originally Posted By: garyrapp55
Why can't other dealers sell as low as Whittaker?


They can, they just choose not to. Whittaker's takes a volume sales approach, while others may not or apparently don't want to. Maybe Whittaker's does a better job running their business than everyone else and this approach works for them.

This is a stupid move on Beretta's part, and I'd bet money their sales volume takes a beating.


Edited by Jgraider (06/07/18 08:51 AM)

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#7191083 - 06/07/18 08:50 AM Re: Tikka Pricing [Re: ckat]
ckat Online   content
Pro Tracker

Registered: 12/02/09
Posts: 1362
Loc: Lubbock Area
As a consumer, it sure was nice to be able to buy a new SS Lite for around $600. It looks like those days are long gone...

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#7191087 - 06/07/18 08:51 AM Re: Tikka Pricing [Re: ckat]
Buzzsaw Offline
THF Celebrity

Registered: 06/29/11
Posts: 13764
Loc: Frisco, Texas
Tikka made famous by a few here, ruined pricing for everyone, they aint that good food

lose $100 selling the gun, make back $200 in ammo and supplies, business 101


Edited by Buzzsaw (06/07/18 08:52 AM)
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#7191098 - 06/07/18 08:55 AM Re: Tikka Pricing [Re: ckat]
ckat Online   content
Pro Tracker

Registered: 12/02/09
Posts: 1362
Loc: Lubbock Area
CTRs are now $998 for blued and $1059-1148 for SS.

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#7191104 - 06/07/18 08:59 AM Re: Tikka Pricing [Re: Jgraider]
Nogalus Prairie Offline
THF Celebrity

Registered: 11/22/10
Posts: 25041
Loc: Corsicana
Originally Posted By: Jgraider
Originally Posted By: garyrapp55
Why can't other dealers sell as low as Whittaker?


They can, they just choose not to. Whittaker's takes a volume sales approach, while others may not or apparently don't want to. Maybe Whittaker's does a better job running their business than everyone else and this approach works for them.

This is a stupid move on Beretta's part, and I'd bet money their sales volume takes a beating.


Sure it will. But short term volume is only part the equation.
(I get thatís very simplified and there are other factors that come into play, but thatís the basic strategy taking place here - not wanting a bunch of smaller retail outlets to have to stop selling Tikkas because they were priced out by the volume guys, thus hurting the brand in the long term.)
_________________________
Originally Posted By: Russ79
I learned long ago you can't reason someone out of something they don't reason themselves into.



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