Colt to refocus retail production on handguns

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hso

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https://www.shootingillustrated.com/articles/2019/9/12/the-truth-about-colts-ar-15-production/ said:
Recently, a story broke regarding an email communication from RSR Group, a firearm distributor that carries Colt firearms, that Colt notified them of its intention to discontinue production of all Colt long guns for the retail market in an effort to “focus on military and law-enforcement demand.”

This news caused many firearm enthusiasts to claim mismanagement on the part of company executives and to claim that Colt hasn’t changed its ways, a reference to popular perception that Colt’s 2015 filing for bankruptcy stemmed from the company’s focus on government contracts at the expense of the consumer market. However, the real story is a simple case of capitalism in action.

“We listen to our customers,” said Paul Spitale, Colt’s senior vice president for commercial business. “The whole basis for our reorganization was consumer feedback.”

Over the last few years, the market for modern sporting rifles has seen a significant decline in demand, leading to some of the lowest prices ever seen for new-in-box AR-15s.

“What’s true today is that the MSR market is much more price-driven,” Spitale said. “We’ve seen a pretty sharp decline in rifle sales, given our price points, resulting in significant inventory build-up held by our distributors.”

Colt considers its business anchored to four foundations of the market: government contracts, law-enforcement sales, international sales and the retail market. Though the company lost its primary contract for military-issue M16s and M4s in 2013, the company still retains a robust contract base that keeps production going.

In fact, according to Spitale, Colt’s manufacturing capacity for AR-style rifles is currently tied up in producing guns for outstanding contracts. Given this demand and given the lack of demand from the retail side of the market, Colt’s determination to suspend retail production is good business sense. M16s and AR-15s are different rifles, and to tie up production capacity in producing commercial semi-auto-only guns that nobody’s buying at the expense of outstanding military contracts is just bad business.

Meanwhile, Colt is re-focusing its efforts on another segment of the market that has seen increased demand and continues to be a big driver for the company: handguns.

“We’re going to focus on the products that our consumers are asking for. We’ve expanded our 1911s and our revolver line, and that market has been very positive for us,” Spitale said.
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If Colt's distributors have a backlog of inventory on the shelves they probably won't have them for long if this information spreads, but Colt has not been very price competitive in retail MSR sales for years.
 
It's going to be hard for anyone to sell AR 15s in this market for 3-4x the price of something like PSA or the build it your self kits that are just as reliable and dependable for the basic AR shooter. I could see doing this from a business standpoint, as the only other alternative is coming out with a budget series, which I don't think colt is willing to do.
 
That's funny being that their AR15s have been sold out at most places since they announced then...

I wonder what they're charging L.E. and the military per rifle, and why everyone else is able to manufacture a basic milspec AR for $300-$700 +/- but can't selling theirs for less than $900 on up?

Figure they'd make more money dropping prices and making a less of a profit vs not selling anything and making no profit at all.
 
hso said:
If Colt's distributors have a backlog of inventory on the shelves they probably won't have them for long if this information spreads, but Colt has not been very price competitive in retail MSR sales for years.
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I really don't know how many AR's are being sold right now, but Colt AR's have always been expensive and they are always behind in adopting the latest advancements. I remember the era when you bought a Colt M1911, if you could find one, and spend big dollars modifying the thing. You other choice was a Llama or an AMT 1911, which were not good choices at all.

bvLj1Gy.jpg


Then, Kimber came in with the Custom Classic which came with all the features you wanted. That hit the market like the Chicxulub meteor.

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I remember the one and only time I saw Colt on Commercial Row at Camp Perry. They had a big display of rifles, HBAR's particularly, and I asked the Colt Executive (as it turns out he was a big wig) about the barrel twist. These rifles were all 1:9 twist barrels. A 1:9 twist barrel would shoot bullet weights up to 69 grain, but the 69 grain bullet was too wind sensitive to be used past 300 yards and what you needed, for the 80 gr SMK's, was a 1:8. I asked the Colt executive why they did not make a 1:8 and he proceeded to tell me they were selling all the 1:9 twist rifles they could make and he deliberately treated me as though I was too stupid to understand the big picture. Well here Colt was, at an event, and none of their inventory could be used in the Competition! Just whom was the idiot!?

Colt has been and was always ten years behind the market, all they really have had is their name. When they were wedded to Government contracts, they could overcharge the taxpayer, but they got divorced.
 
beeenbag said:
It's going to be hard for anyone to sell AR 15s in this market for 3-4x the price of something like PSA or the build it your self kits that are just as reliable and dependable for the basic AR shooter. I could see doing this from a business standpoint, as the only other alternative is coming out with a budget series, which I don't think colt is willing to do.
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The only compon
Slamfire said:
I really don't know how many AR's are being sold right now, but Colt AR's have always been expensive and they are always behind in adopting the latest advancements. I remember the era when you bought a Colt M1911, if you could find one, and spend big dollars modifying the thing. You other choice was a Llama or an AMT 1911, which were not good choices at all.

View attachment 860498


Then, Kimber came in with the Custom Classic which came with all the features you wanted. That hit the market like the Chicxulub meteor.

View attachment 860499

I remember the one and only time I saw Colt on Commercial Row at Camp Perry. They had a big display of rifles, HBAR's particularly, and I asked the Colt Executive (as it turns out he was a big wig) about the barrel twist. These rifles were all 1:9 twist barrels. A 1:9 twist barrel would shoot bullet weights up to 69 grain, but the 69 grain bullet was too wind sensitive to be used past 300 yards and what you needed, for the 80 gr SMK's, was a 1:8. I asked the Colt executive why they did not make a 1:8 and he proceeded to tell me they were selling all the 1:9 twist rifles they could make and he deliberately treated me as though I was too stupid to understand the big picture. Well here Colt was, at an event, and none of their inventory could be used in the Competition! Just whom was the idiot!?

Colt has been and was always ten years behind the market, all they really have had is their name. When they were wedded to Government contracts, they could overcharge the taxpayer, but they got divorced.
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Exactly... All they have going for them is their name right not... The only reason why some are willing to pony up that amount of cash for their ARs, 1911s, and revolvers is because their past reputation, resell value, and nostalgia. They seem to recognize the market is price driven, yet their handguns are just as uncompetitively priced as their rifles...
 
It seems that Colt has been outflanked by other manufacturers in all aspects of its product line. Is Colt even a factor in the domestic gun market any more?
 
I live in a High Tax area. Manufacturing of most things has long since moved away. We still have plants that make all sort of things. What you don't see are manufacturing of low tech stuff. The tech and quality has gone up significantly. Hence they can afford to operate in such a high tax environment. The margin on high tech high quality is more $$$. If Colt can't make a proper margin on their AR's, then why keep going after a market where you can't compete and move to one where there seems to be a resurgence of interest like Handguns where you can? Its hard for us armchair CEO's to determine a companies effort without seeing the full picture. Could be they are making a decision that might be their death in the market, or just good business sense? Time will tell.
 
Colt was SUPPOSED to move to Florida a few years back - land and tax incentives were negotiated and approved, etc. They were supposed to be bringing in about 350 high-paying jobs to the Space Coast at a time when they were hurting due to the end of the space shuttle program. Then they backed out. I have no need for a Colt when there are better examples at a lower cost already out there.
 
Styx said:
I wonder what they're charging L.E. and the military per rifle, and why everyone else is able to manufacture a basic milspec AR for $300-$700 +/- but can't selling theirs for less than $900 on up?

Figure they'd make more money dropping prices and making a less of a profit vs not selling anything and making no profit at all.
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I was wondering the same thing and went looking. This is what I found. LE6920 $905.05.

Between high prices, lack of innovation, and a belief that there will always be enough people out there willing to pay their price no matter what, they don't have a very attractive business model.
 
cheygriz said:
There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man's lawful prey.

John Ruskin

Just food for thought.
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That's true in a lot of cases, but not when it comes to ARs being sold today that are all follow the same basic specs... You can even get a PSA AR with a CHF chrome lined FN barrel that's just as good as the Colts being sold for hundreds less. A lot of theses ARs (lowers, uppers, barrel, finishes, etc) are being built to the same specs or better than what Colt is putting out for a fraction of the price.

Like I already pointed out, the only real quality difference between a $300ish +/- PSA AR and a $1000 Colt is the barrel. For a civilian who isn't going to be firing in full auto, the barrels PSA uses will last most people for several years if not a lifetime of ownership (I have several ARs and no way I'll shoot out the barrels in each). Plus, even if you ever shootout a nitrided barrel, you could replace the barrel with a new one a few times over for the price difference between a Colt CHF barrel. Round for round, the Colt barrel would be more worn than the nitrided barrel when it's all said and done.
 
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Are Colt handguns going to be for looking at or for shooting?

In 1996 I brought my Holy Grail gun. A new nickel plated Colt SAA in 45 Colt. On the first range session the nickel plating blew off of the front of the cylinder in less than 50 rounds. So I sent the cylinder to Colt and they replated it.

Then the nickel of the frame started peeling off so this time the whole gun made trip back to Colt where they replated it.

I then sent the gun to Bob Munden. Gun came back with a beautiful action and a note saying “Your gun does not shoot with a hoot.”

I soon figured out why. The chamber throats measured .457 - .458”.

I sent the gun back to Colt requesting a new cylinder with proper size throats. Gun came back with a note saying “Gun is in factory specs.”

I did discover that the only bullet that would shoot fairly accurately was Remington soft lead bullet with a hollow base. The skirt would open up enough if the velocity was kept low.

I sold the gun for about what I had in it. I still want a 45 Colt SAA 45. I
still have a set of real Stag grip. But it is unlikely to ever happen as Colt has not improved their quality in the last 23 years.
 
I will hold out for a commander length, railed 1911. Even more points for the LW frame. I know they premiered at SHOT a couple years back, have yet to find one. Otherwise, what Colt does isn't going to register on my radar.
 
I don't have strong feelings on this because that would require I was vested or interested in Colt and the sad truth is that they never made it that far with me.
 
Colt can't compete with so many other gun manufacturers, who provide a
good as (or better) product for less, and I have several older Colt's which
(thankfully) have held and even increased their values. The new Colt's
are good, but I don't think they'll hold or grow their value as the older
models have, so I'll buy other brands for less, and in the long run be
better off (value wise).
 
George P said:
Colt was SUPPOSED to move to Florida a few years back - land and tax incentives were negotiated and approved, etc. They were supposed to be bringing in about 350 high-paying jobs to the Space Coast at a time when they were hurting due to the end of the space shuttle program. Then they backed out. I have no need for a Colt when there are better examples at a lower cost already out there.
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Colt seems to be one of the few gun companies who haven't been able to extricate themselves from the Northeast. It is likely the root of their problems. Going back to revolver production is probably their best bet. The street price of the Cobra line seems to be around $150 more than the GP 100 line. Reasonable enough most will consider them.
 
Colt should consider that the optics of this move look bad. The antigunners are already crowing that they forced Colt out of the AR business. Colt should not have announced this publicly, or at least should have been more sensitive to the timing. But I get the distinct impression that Colt doesn't care about the overall fight for gun rights. They have never stood up against criticism from the antigunners. Just look at their history of "politically correct" modifications to the AR.
 
OneFreeTexan said:
Alright, so now we have buried Colt and are at the graveside service,,,,Everyone happy now..???
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That's pretty funny.

So many Colt haters, some who don't even own one. Yeah, they don't have a clue how to market, board members (partners) skim off profit for consulting and management, file bankruptcy often to avoid debt to suppliers and screw shareholders, product support is non existent, on and on. Has to be the worst gun mfg. on the planet no doubt about it.

People still buy them though. Rifles are gone from the usual internet suppliers almost overnight.

Collectors scooping them up like silver dollars. Worthless. ;)
 
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Colt making new handguns will be like making new Murphy Brown episodes.

Most of the snake guns weren’t really hot sellers when they were freely available. They only became collectible once the supply was fixed. People were buying them as investments, not shooters.

I just don’t see people paying a premium for new production Colt handguns until they inevitably stop making them again. Paradoxically, the Colt collectors world depends on Colt NOT making guns to keep their value up.
 
They may survive as a military supplier. But why anyone wants their ARs at the price they charge is beyond my ken. There are a number of manufacturers with as good or better quality for cheaper.

Concentrate on handguns? That will work well... not. Expensive Cobras only have so big a market. And they won’t break into the already saturated 1911 market. And new guns? As evidence against that, I give you the Colt 2000...
 
So, I found this researching on the net:

18 Nov 2018 Army contract.
Colt’s Manufacturing Company LLC, West Hartford, Connecticut, was awarded an $88,607,109 modification (P00008) to contract W15QKN-15-D-0102 for M4 and M4A1 carbines. Work will be performed in West Hartford, Connecticut, with an estimated completion date of Sept. 25, 2020. Fiscal 2019 and 2020 operations and maintenance, Army funds in the amount of $88,607,109 were obligated at the time of the award. U.S. Army Contracting Command, New Jersey, is the contracting activity.


19 September, 2019 Foreign Military Sales contract

Colt’s Manufacturing Co. LLC, West Hartford, Connecticut, was awarded a $41,924,594 firm-fixed-price Foreign Military Sales (Afghanistan, Bahrain, Djibouti, Federated States of Micronesia, Hungary, Jordan, Kuwait, Lebanon, Macedonia, Marshall Islands, Palau, St. Vincent and Grenadines, and Tunisia) contract for production for the M4 and M4A1 carbines. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of Sept. 18, 2024. U.S. Army Contracting Command, New Jersey, is the contracting activity

Total of $130, 531,703.

Colt has $130 MILLION dollars of government contracts to fill. They might be busy for a while.
 
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