What would you do if you owned Colt's Manufacturing LLC?

[Aragon]

What would you do if you were wealthy and were able to purchase all the assets of Colt's Manufacturing LLC for a price that could pretty much be serviced by its current sales? Where would you take the company?

To be honest, I don't know much about Colt's current situation with its union (the UAW) in CT so I don't know if I would move the company or not. I also wouldn't necessarily drag things down south in the pursuit of cheaper wages.

I would obviously stay in the AR, M1911 and SA revolver markets as they are today. Maybe trim down the total model numbers just a bit -- although I would introduce a .22LR SA revolver. If they are selling, I would continue to offer bolt action rifles too, although it wouldn't be a primary focus.

I would want to bring out a new version of the Woodsman .22 pistol that was at least as good as the Ruger MK III, Ruger 22/45 and the Browning Buckmark. Name recognition in the .22 market is important -- it spurs other sales. Similarly I would want to offer a quality .22 based on the AR and not simply resell that Umarex junker.

Very cautiously following plenty of market research, I would also get back into the DA revolver market including .22LR DA revolvers.

Depending on the market, once the company was truly healthy I might introduce a line of plastic fantastic pistols. These would be high quality, utilitarian pistols targeted at Glock. If that went well, I would consider looking into designing plastic fantastic bullpup rifles and shotguns.

If the designs panned out, there is no reason why a Tavor-like rifle or shotgun couldn't be offered at around $750.00 while still earning a good margin.

That would be it.

 

[Vern Humphrey]

What would you do if you were wealthy and were able to purchase all the assets of Colt's Manufacturing LLC for a price that could pretty much be serviced by its current sales? Where would you take the company?

If I were smart enough and astute enough to become that wealthy, I would be too smart and too astute to buy Colt.

 

[WestKentucky]

Most certainly would restructure. Probably fire the majority of executives and hire on a quality control team and a group of finial advisors. Then steer the business away from the AR/1911 rut that they are in. Bring back a revolver line, bring back a few of the classics, and jump into the kit gun market selling guns easily converted to other configurations or other calibers. Imagine selling basically a glock 26 that can increase grip size simply, then accept the longer mags, only do it with a different platform.

 

[P5 Guy]

Move south.

 

[Aragon]

If I were smart enough and astute enough to become that wealthy, I would be too smart and too astute to buy Colt.

Who suggested your wealth was a product of your own intelligence? Certainly not me.

I did say buying the assets of Colt "at a price that could pretty much be serviced by its current sales." If one were astute/shrewd enough to pull off that sort of deal, Colt could then be almost immediately flipped for a handsome profit.

I guess you missed that upside...

 

[Old Fuff]

If I were smart enough and astute enough to become that wealthy, I would be too smart and too astute to buy Colt.

That makes two of us.

Unless I was a going firearms manufacturer with solid financials. (Such as FN/H, SIG or Beretta). Then I might consider buying the trademarks and current manufacturing tooling and equipment, and incorporate Colt's current line to my own. But I would think long and hard before doing any expanding of the line.

And if the asking price was too high I'd forget it and leave the grief to somebody else.

 

[Aragon]

Most certainly would restructure. Probably fire the majority of executives and hire on a quality control team and a group of finial advisors. Then steer the business away from the AR/1911 rut that they are in. Bring back a revolver line, bring back a few of the classics, and jump into the kit gun market selling guns easily converted to other configurations or other calibers. Imagine selling basically a glock 26 that can increase grip size simply, then accept the longer mags, only do it with a different platform.

You're right -- the majority of senior management would have to go. They would be gone anyway if only the company's assets were purchased.

Is there is problem would Colt's current product quality? I don't think so.

 

[Hammer059]

I'd sell everything, pay for college, build a new house on our land in Kansas, buy more land in Kansas, and buy lots of firearms & ammo.

Also, I'd like a new moped and my dog would like a fenced in yard.

 

[Aragon]

That makes two of us.

Unless I was a going firearms manufacturer with solid financials. (Such as FN/H, SIG or Beretta). Then I might consider buying the trademarks and current manufacturing tooling and equipment, and incorporate Colt's current line to my own. But I would think long and hard before doing any expanding of the line.

And if the asking price was too high I'd forget it and leave the grief to somebody else.

Did you miss/not understand this sentence: "...were able to purchase all the assets of Colt's Manufacturing LLC for a price that could pretty much be serviced by its current sales?"

 

[bannockburn]

Move South (within the U.S. that is), and hire a bunch of employees away from Ruger and Glock.

 

[Deaf Smith]

Shut it down, sell off all the assets, and build a state of the art plant in Texas.

You ditch the unions, modernize the machinery, and rebuild the name all at once.

Simple, no?

Deaf

 

[Aragon]

Shut it down, sell off all the assets, and build a state of the art plant in Texas.

You ditch the unions, modernize the machinery, and rebuild the name all at once.

Simple, no?

Deaf

No, not simple. The operation would already be shuttered if you bought the assets of the company rather than a going concern.

You seem to be under the impression that Colt employs outdated equipment for the guns it still builds. I don't believe that's true anymore.

"Ditching" the UAW might not be all that easy (and painless) either. Nor would losing all of Colt's skilled labor.

I won't even address the horror of having to live in Texas...

 

[dbmjr1]

I'd change the way they look at the marketplace.

I'd pay artisans to make $2,500 revolvers, one at a time. Polished to that beautiful blue.

I'd stop making junk.

I'd bring the 1911's to their pinnacle of quality, beating all comers like Kimber and the ilk.

I'd fire the first person who included plastic in any design.

I'd ask top dollar, produce a top dollar product, and encourage skilled laborers to make unique firearms, with a fit and finish above anyone else.

Oh, and I'd bring back the 1903 and 1919 too, in limited quantities.

Then I'd have another beer.

 

[Old Fuff]

Colt could then be almost immediately flipped for a handsome profit.

Not unless a line of revolving credit of substantial size was extended so they could get away from payment-in-advance status with critical suppliers. Then they could make larger numbers of current (but very limited) products, but nothing that's centered on the most profitable segments of the current overall market. And they would have to do this while up against some very formidable competitors.

I guess you missed that upside...

Not at all. Other then a famous name they have nothing to bring to the table.

 

[Aragon]

I'd change the way they look at the marketplace.

I'd pay artisans to make $2,500 revolvers, one at a time. Polished to that beautiful blue.

I'd stop making junk.

I'd bring the 1911's to their pinnacle of quality, beating all comers like Kimber and the ilk.

I'd fire the first person who included plastic in any design.

I'd ask top dollar, produce a top dollar product, and encourage skilled laborers to make unique firearms, with a fit and finish above anyone else.

Oh, and I'd bring back the 1903 and 1919 too, in limited quantities.

Then I'd have another beer.

Colt doesn't make "junk" today.

 

[Aragon]

***

 

[leadcounsel]

I'm so puzzled why Colt has abandoned the guns that made them so coveted.

When you think of Colt you think of quality 1911s, timeless revolvers, and AR15s.

Yet, they are nowhere near competitive in the 1911 or AR market, and stopped making revolvers.

So, they need to figure out how to be competitive in these areas first and foremost. That will require some production innovation, or they'll die off.

 

[Aragon]

Not unless a line of revolving credit of substantial size was extended so they could get away from payment-in-advance status with critical suppliers. Then they could make larger numbers of current (but very limited) products, but nothing that's centered on the most profitable segments of the current overall market. And they would have to do this while up against some very formidable competitors.

LOL! It would all depend what the BUYER brought to the table -- many of which would already have plenty of operating capital.

Not at all. Other then a famous name they have nothing to bring to the table.

You're clearly not getting this... If a deal could be crafted today amongst everyone who owns or is owed money by Colt to sell its assets for a price that could largely be serviced by its current operating income (which would require a deep discount for all), the assets would sell very, very quickly.

Once it was a going concern again it could easily be flipped for a premium.

 

[Aragon]

I'm so puzzled why Colt has abandoned the guns that made them so coveted.

When you think of Colt you think of quality 1911s, timeless revolvers, and AR15s.

Yet, they are nowhere near competitive in the 1911 or AR market, and stopped making revolvers.

So, they need to figure out how to be competitive in these areas first and foremost. That will require some production innovation, or they'll die off.

I tend to agree. They're definitely competitive in the M1911 and AR markets but they should DOMINATE them and they don't which is a problem.

They make SA revolvers but turning their back on all DA revolvers was indeed a mistake.

 

[Vern Humphrey]

Who suggested your wealth was a product of your own intelligence? Certainly not me.

You don't get rich by being stupid.

How many morons do you know who are multi-billionaires?

 

[Officers'Wife]

Interesting premise...

First I would move the company headquarters the heck out of Connecticut to a nice "right to work" state such as... well, Indiana.

2nd) I would completely separate the "government" and "civilian" market. Possibly even to the point of putting the former under a different trademark.

3nd) I would go though the patents and do a number of marketing surveys. Those products that the civilian market find desirable begin tooling to produce.

4th) Find a number of QC people so anal they had to be toilet trained with a whip and restraints.

5th) Redefine customer service as service to the customer with notice from factory to office if the customer isn't happy than nobody else is happy either.

Once the reputation is rebuilt find a bunch of OMB's, give them their own shop full of tools of mass construction and have the message on every possible surface- "Our products cannot be improved." An act which a true OMB would react in much the same manner as getting between a cow and her calf.

 

[Aragon]

You don't get rich by being stupid.

How many morons do you know who are multi-billionaires?

Where did "muti-billionaires" come from? One need not be a "multi-billionaire" to be wealthy.

To answer your question I know a good number of wealthy people who aren't exactly brilliant (although they would recognize the value of buying the assets of Colt at a price that could be serviced by its operating income) who got their money the old way -- through inheritance and interest.

 

[Aragon]

Interesting premise...

First I would move the company headquarters the heck out of Connecticut to a nice "right to work" state such as... well, Indiana.

2nd) I would completely separate the "government" and "civilian" market. Possibly even to the point of putting the former under a different trademark.

3nd) I would go though the patents and do a number of marketing surveys. Those products that the civilian market find desirable begin tooling to produce.

4th) Find a number of QC people so anal they had to be toilet trained with a whip and restraints.

5th) Redefine customer service as service to the customer with notice from factory to office if the customer isn't happy than nobody else is happy either.

Once the reputation is rebuilt find a bunch of OMB's, give them their own shop full of tools of mass construction and have the message on every possible surface- "Our products cannot be improved." An act which a true OMB would react in much the same manner as getting between a cow and her calf.

I'm curious -- why would you cleave apart commercial and government sales like that? Colt just brought them back together. I don't see other gun makers cutting up their companies like that either -- although most have gov't sales/supply office.

Also, why the comment about "QC people?" Colt seems to be building very high quality products these days. Besides, high product quality comes from excellent designs, materials and workmanship -- and not inspection which is a terrible waste.

 

[PhilMc]

I would fire most of the top people in the company, then turn it into an employee owned company. No stock holders, no investment groups ( loan sharks ) etc.

Would run it like they did with Motown Records, everyone gets a vote when making a new product to market. One no vote and the idea goes back to the drawing board. There is no room in today's market for just another gun. The gun company's that are doing well today have listened carefully to there customers, not told them what they like. Years ago Colt dropped the revolver market and Ruger grabbed it and the rest is history.

Company's that survive reinvest in themselves, not just suck the profits out of them. Colt has a great and proud history but has not always made the best decisions. If they are to survive they must stop doing what they always did and expect different results!

 

[Aragon]

I would fire most of the top people in the company, then turn it into an employee owned company. No stock holders, no investment groups ( loan sharks ) etc.

Would run it like they did with Motown Records, everyone gets a vote when making a new product to market. One no vote and the idea goes back to the drawing board. There is no room in today's market for just another gun. The gun company's that are doing well today have listened carefully to there customers, not told them what they like. Years ago Colt dropped the revolver market and Ruger grabbed it and the rest is history.

Company's that survive reinvest in themselves, not just suck the profits out of them. Colt has a great and proud history but has not always made the best decisions. If they are to survive they must stop doing what they always did and expect different results!

The problem with that is that it should be potential customers and not simply employees who are asked such questions. I do agree though, market research is critical.