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Re: BYE BYE Gander??? [Re: JCB] #647451 04/23/09 01:45 AM
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i keep seeing the argument about our ammo being too high and yes i can somewhat agree with yall on that, but if you walk into our stores (at least the sugar land store) we are almost out of most ammo bc it is getting bought up so quickly. and places like walmart and academy selling their ammo so cheap is ruining their margins. their selling it right at or even below cost and is actually bad for their store.



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Re: BYE BYE Gander??? [Re: txbowhunt7] #647452 04/23/09 01:53 AM
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Quote:

and places like walmart and academy selling their ammo so cheap is ruining their margins. their selling it right at or even below cost and is actually bad for their store.




If what you say is true about them selling at cost or below then that would be a loss leader!

A loss leader is something that stores sell at or below cost just to attract customers! What better loss leader at this point in time is there than ammo!!?? I cant tell you how many times I have been in Wal-Mart, or Academy just to look of ammo because I knew if they had it then it would be cheap! I usually walk out with something else everytime I go in those places, and thats exactly what a loss leader is all about!

Loss leaders are all about getting you in the store!! But I seriously doubt they are selling at or below cost, or ruining thier margins!


Re: BYE BYE Gander??? [Re: txbowhunt7] #647453 04/23/09 02:00 AM
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Give me a break! The dumbest folks I have ever talked to in a store selling guns were the ones in GM Tyler,TX. You would think folks selling guns would know what single action vs. double action means without the customer having to explain.


Re: BYE BYE Gander??? [Re: JCB] #647454 04/23/09 02:21 AM
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Quote:

A loss leader is something that stores sell at or below cost just to attract customers! What better loss leader at this point in time is there than ammo!!?? I cant tell you how many times I have been in Wal-Mart, or Academy just to look of ammo because I knew if they had it then it would be cheap! I usually walk out with something else everytime I go in those places, and thats exactly what a loss leader is all about!





That sounds like a smart way to do business to me. I read an article a while back where Toys-R-Us was complaining about Wal-Mart. TRU said that Wal-Mart was selling their toys at cost to get people in the store. The problem is that TRU couldn't afford to do that since they were specialized. TRU actually wanted the Government to step in and force Wal-Mart to raise their toy prices! In todays business world specialized = extinct. Come to think of it, it usually means the same thing in Nature.

Here's a helpful hint. Go to Wal-Mart and ask the counter person to scan the empty ammo slots with their hand-held scanner. The back of the scanner will then tell you exactly when that specific ammo was ordered, how much was ordered, and the day it will be delivered.



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Re: BYE BYE Gander??? [Re: AdgerC15] #647455 04/23/09 02:28 AM
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I friend of mine in business school did a research paper on Gander Mountain and told me that they actually have a higher profit margin than Cabela's and BP because they don't mess with the internet sales much (high shipping costs, lost productivity & efficiency, etc). Academy is a jack of all trades kind of store that doesn't have the specialized equipment that outdoors people often need (bow techs, greater selection of firearms, etc), so that's a big detractor in my book; they are cheaper though, no doubt.


Re: BYE BYE Gander??? [Re: scattergun] #647456 04/23/09 02:49 AM
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Give me a break! The dumbest folks I have ever talked to in a store selling guns were the ones in GM Tyler,TX.




look at the town though! lol.



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Re: BYE BYE Gander??? [Re: ETXbuckman] #647457 04/23/09 03:07 AM
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Quote:

I friend of mine in business school did a research paper on Gander Mountain and told me that they actually have a higher profit margin than Cabela's and BP because they don't mess with the internet sales much (high shipping costs, lost productivity & efficiency, etc). Academy is a jack of all trades kind of store that doesn't have the specialized equipment that outdoors people often need (bow techs, greater selection of firearms, etc), so that's a big detractor in my book; they are cheaper though, no doubt.


ive always wondered why there online selection is nowhere near what cabelas and bass pro. makes sense


Re: BYE BYE Gander??? [Re: txbowhunt7] #647458 04/23/09 04:09 AM
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Quote:

i keep seeing the argument about our ammo being too high and yes i can somewhat agree with yall on that, but if you walk into our stores (at least the sugar land store) we are almost out of most ammo bc it is getting bought up so quickly. and places like walmart and academy selling their ammo so cheap is ruining their margins. their selling it right at or even below cost and is actually bad for their store.




Interesting that you know the cost of our ammo and our margins!

But we too share the same dilemma as your company, the availability of ammunition is extremely difficult now. We have bought from vendors with whom we have never done business, and in some cases, have bought out their complete inventories! Our buyers are being extremely diligent in the search for ammunition, both here and abroad!

We are not selling ammo at a loss and never have. Now-a-days, ammo is somewhat of a "drawing card"; it is,however, a method of getting customers into the stores....to buy other products. Although Academy and GM have about the same number of stores(still open)....probably the major advantage we have over GM, is that our distribution costs are usually much lower, which helps in being able to operate profitably on lower margins. The measuring device for retail operations is sales per (square)foot, where Academy has been in the top five major retailers of its type for the past 5 years.

One of the reasons,where GM continues to "shoot itself in the foot", is the location of their stores! Some are adjacent to Academy, some are in locations that are miles from no where; how can these stores become and remain profitable. Case in point, the store in Corsicana, Texas. Everyone in the central Texas area thought that the GM store was going to Killeen or Waco. At that time, the only competition in the area was the Academy store in Temple. The Killeen area was, and still is, one of the fastest growing areas in the state.... but GM decided to put its nice big store on I-45 in Corsicana, with a surrounding area population that might reach 100,000 people!

The solution as I see it, Gander Mountain needs to downsize its operation, considerably. Become a "regional" operation, rather than a national operation; reduce its executive and management staff; hire a top notch marketing company; eliminate its high cost, slow moving merchandise; focus on the key product markets within its region.

Other wise, it may be another dark future for Gander Mountain.



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Re: BYE BYE Gander??? [Re: jdickey] #647459 04/23/09 04:24 AM
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Some are adjacent to Academy




I stopped at the Academy in College Station last Sunday afternoon. The parking lot was packed and they had 5 or 6 registers running. Across the parking lot in GM, I don't know how many registers they had running but there weren't 5 cars in the parking lot. If you take a consumer with no knowledge of either store, where do you think he/she is going?

I'll use the analogy of stiper fishing on Texoma. If a fisherman (aka consumer) is hunting a school of stripers (aka product), are they going to head for a large group of boats or just sit all alone in open water and hope something swims by? Same concept. The best fishing is where there are the most fishermen.

If GM had any brains, they'd market all their empty parking lot space as a Park and Ride spot. At least people would think there were shoppers inside.



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Re: BYE BYE Gander??? [Re: PrimitiveHunter] #647460 04/23/09 02:54 PM
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It's the same way with restaurants. If the parking lot is full that is where I am most likely to eat.

Me and a friend went into a local tavern (beer joint) one day and were surprise to see that we were the only customers in there. Come to find out they have people park their cars there and leave them just so it looks like the place is jumping.


Re: BYE BYE Gander??? [Re: DCS] #647461 04/25/09 05:57 AM
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I will not ever return to GM in College Station! Last time I was in there they had one box of Nosler 150gr ballistic tip bullets(50 per Box) for $49.95! Just bullets not loaded ammo. I came home and ordered five boxes from Midway for less than $17 a box. Then one day I stopped in to get some primers this is before all of the madness started, I ask the store person about some primers and he told me I need to go to The Home Depot or Lowes for primer but they had camo paint! So thats it I will never go back hell with them yankees even though I am half yankee myself.



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Re: BYE BYE Gander??? [Re: drj3828] #647462 04/25/09 05:44 PM
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Let's play "pile on GM". Last week, I needed some of the 20 round 223 plastic ammo boxes. I bought all they had at an Academy in Houston. 9 of them cost me $19.49 including tax. In desperation, I went to the GM in Sugar Land. Bought 6 of the exact same boxes. Cost me $25.92. The worst part is that now that I've amassed enough to hold 500 rounds, I've decided I don't like them.



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