Gents, as Americans we all think in terms of large numbers when we think of manufacturing and that combined with our individual economics tend to color our thinking. The small "best" Spanish makers are likely producing less than 1000 guns a year, maybe less than 750 (Garbi, Arrieta/PA, Grulla). Just counting Spain, the UK, America, and Argentina the potential customers are in the hundreds of thousands. There is competition from Italy et al, but these are still the last makers of the bespoke side by side English style guns at anywhere near a reasonable price. Used guns, like used cars, are always a better economic decision but egos must be filled, right?
There is demand, but what we are seeing is that the lower margins on the 550 and 570 like guns are not enough to keep the small makers going. A strategy is to limit production to higher grades (Garbi and Arrieta/PA), shift the supply curve down so you can bring prices up, and concede the low end ($5k'ish if you can call that low) to Uggie and AYA both of whom make a lot of their own parts rather than source from other suppliers.
That is really the only option if you won't do what is necessary to reduce costs and you can't increase volume because there just isn't any way to increase skilled workers over the short to medium term. The Americans, the Italians, the Brits, and the Turks are all incorporating CNC machines that have high capital costs but produce lower marginal costs over time. I don't think that would be in the Basque character.
Last edited by robc; 02/12/13 06:04 PM.
