Fox, Parker, Smith, Ithaca, Lefever and Remington all tried low grade guns to keep alive in making doubles. They all failed. High volume at low profit just does not work long term. It is like selling your eggs or hatched chicks when you are in the chicken business. The cash generated might keep you afloat for a while but in the end it kills your business.
They are just being realistic and have run the numbers. There is not enough volume or profit to make it just selling basic entry level guns. On top of that currency fluctuations have to be very dangerous for any long term planning. So they are betting that long term they can make more money selling fewer guns that have a bigger margin. Hope they are right.
