Gary G, What, in your opinion, caused USFA to fail?

Started by drjon, February 03, 2016, 02:17:10 AM

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drjon

Also, was there a point at which failure was avoidable. Is there n one who has a master list that can be used as a historical reference for the serial numbers and special orders?

I spoke to you several times when I ordered my Pre-war and for awhile thought your superior product was going to overwhelm Colt.

GaryG

Let me preface the answer by saying this is my opinion only.
Like all businesses, if the revenues can't support the business, the doors get closed.  By keeping just about all the manufacturing in house, it was a very expensive way to build a gun.  Not only do you have the cost of machinery but also the cost of the people to run them.   Also had the cost of the people to to do the final polishing, fitting and assembly.  Add to that the cost and upkeep of the building.  For those that visited the factory, this was a big building.  And by the way, taxes in CT were among the highest in the country. 

On the flip side, the SA market is not a big market.  The Rodeo was was an attempt to capture a larger percentage of that market at the expense of a profit/unit.   At one time there was talk of discontinuing the Rodeo.   The cost to build the Rodeo was about the same as a Single Action less the cost of the TB color case (which wasn't that much - 2 figures).  IMO, every Rodeo that shipped cost the company money.  Other models were introduced (Bisley, Snub, etc) with much higher dealer prices but the run was so small they had no impact on the bottom line. 




Capt. John Fitzgerald

Gary,
As  you stated in a much earlier post, and I paraphrase, "Doug Donnelly found the most expensive way there was to make a single action revolver."
CJF
You can't change the wind, but you can always change your sails.

markg44

At the risk of sounding like a moron, why didn't they at least try raising their pricing. It seems as though people are paying more now than what they were going for retail. With a backlog of orders and a great product , seems like it would have been worth a try.

GaryG

According to the price lists:
4/2007  SA retail  $1245
1/2008  Sa Retail   $975
6/2008   SA retail   $875
1/2009   SA Retail  $975
12/2010  SA Retail  $1150

Sometime in 2008 we had someone come in and convince Doug we needed to lower pricing to get more business.  Price changes happened quickly (decreasing).  Especially in 2007/2008 since retail was now less than what the dealers paid for the product and some still had "older" product on the shelf.

markg44

I guess we all listen to the wrong people at times.

Blair

This is sounding a bit like what happened with Euroarms/ASP.
The owner would often under sell his regular whole sale Import dealers just to pick up a few extra retailer sales.
He still made his money, but was cutting off his primary Big Dealer at the knees. They could not and would not compete with the undercuts from the home Company.
It does not take long for the word to get out within the industry.
My best,
Blair
A Time for Prayer.
"In times of war and not before,
God and the soldier we adore.
But in times of peace and all things right,
God is forgotten and the soldier slighted"
by Rudyard Kipling.
Blair Taylor
Life-C 21

drjon

Quote from: GaryG on February 04, 2016, 02:51:27 PM
Let me preface the answer by saying this is my opinion only.
Like all businesses, if the revenues can't support the business, the doors get closed.  By keeping just about all the manufacturing in house, it was a very expensive way to build a gun.  Not only do you have the cost of machinery but also the cost of the people to run them.   Also had the cost of the people to to do the final polishing, fitting and assembly.  Add to that the cost and upkeep of the building.  For those that visited the factory, this was a big building.  And by the way, taxes in CT were among the highest in the country. 

On the flip side, the SA market is not a big market.  The Rodeo was was an attempt to capture a larger percentage of that market at the expense of a profit/unit.   At one time there was talk of discontinuing the Rodeo.   The cost to build the Rodeo was about the same as a Single Action less the cost of the TB color case (which wasn't that much - 2 figures).  IMO, every Rodeo that shipped cost the company money.  Other models were introduced (Bisley, Snub, etc) with much higher dealer prices but the run was so small they had no impact on the bottom line. 

Thanks Gary!!!!!! Do you have any estimates of production for each model?





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