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Thoughts 0n Middle man mark up

Keep in mind, if you read this, I am far from a marketing genius. Further, although I am comfortable as retirement time approaches, that is as much due to good luck as good management. Nonetheless, I will relate some experiences. I've been buying hunting, shooting and reloading gear for over sixty years. I also worked as a gunsmith at a couple of busy retail outlets at just about the time everyone's business model started to change. Some adapted well to the change while others struggled.
In 1976, most goods were purchased from distributors. Mark-ups were almost predetermined as the retail prices were generally set by the same distributors or by the factories. There were some outlet which bought at wholesale or jobber prices and sold directly to consumers. The White Elephant store in Spokane was a pretty good example. They bought components, scopes, and other gear directly from the manufacturer. I bought my first Leupold 24x there for 125.00, as I recall. About eight years or so later, Leupold had gotten enough complaints from normal shops that they changed the way things were done a no longer allowed stores like the White Elephant to buy and sell their scopes at discounted prices. Nonetheless, many other companies would discount their stuff for volume and as the gun selling landscape shrunk and changed, the marketplace also became a little more cut-throat.
At around 1980, the concept of computer supported inventory control also made its appearance. Not long after, "just in time" inventory, where inventory was not stocked but accessed when needed, reared its ugly head. The result was that dealers quit stocking as much inventory, the distributors went broke and there you have it. The consumer may have won to a slight extent, but not really. A middleman was eliminated, but mark-ups increased a bit.
So, what was lost? In many cases, what was lost was the relationships between retailers, distributors and manufacturers. In addition, the relationship between customers and retailers changed as well. I worked at one shop where virtually every one of us were competitive shooters of one sort or another and most were avid hunters. Lost was the knowledge of what other competitive shooters and hunters were looking for. Lost also was the close relationships fostered by representatives of the various manufacturers. Some were a little on the snake oil selling side, but they were still entertaining and informative. Ultimately, all the small retailers who were unable to buy and sell in sufficient volume closed up. The gun stores with the coffee pot in the corner and the gunsmithing shop where you could actually talk to the 'smith and watch him work; they were gone too. The gunsmithing shop which stocked an inventory of parts and could get you and your shotgun back in the field right away; that was gone as well.
I've glossed over a lot but the bottom line is, things have changed, a lot. I'll confess that like most old guys, I kind of miss the old ways of doing business. WH
 

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