LaRue increase prices across the board

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LaRue Tactical sent out an email announcing 7.5% – 12.5% price increase across all their product line. They claim it is because the government is printing a lot more money (by which I assume they mean inflation).

Normally I am a lot more diplomatic, but I am going to call complete BS on this.

Over the past year, in the United States, inflation has (officially) been stable, interest rates are about the same, steel is a little cheaper. I don’t know how many raw materials, if any, LaRue imports, but regardless the USD has strengthened over the past year.

LaRue is a capital intensive company. Take a look at their facility.

I think demand for LaRue products has been high for quite some time, and is increasing, and they have determined that they can make more money if prices increase. I happen to love profit. I am pleased they are making a profit, I have no problem with this , I am expecting gun-related prices to rise over the next 6 months, this is Economics 101. What I don’t like is companies claiming an indeterminable force, like the treasury printing presses, are forcing them to raise prices.

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Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Nathaniel

    Err, no, actually the price of goods has increased by 28% since 2003.

    Source:

    http://www.usinflationcalculator.com/inflation/current-inflation-rates/

    • http://www.thefirearmblog.com/blog/ Steve (The Firearm Blog)

      2003 … thats 8 years ago during the height of the assault weapon ban. I would expect a price rise (inflation) since then!!!

      • ty_a

        Inflation is an increase in the monetary base. Rising prices are a symptom of inflation. Calling a rise in prices “inflation” is like saying that wet sidewalks cause rain.

      • Nathaniel

        They specified a timeline of 9 years.

  • Lance

    Don’t care there making excuses to rip more gun owners off to make a profit and it sickens me!

    • Nathaniel

      This post is about LaRue, not A.R.M.S.

  • Samopal

    I agree, 100% bullshit. Nobody else needs to jack their prices up 12.5%, why does LaRue? They could just as easily say “demand is too high for our products, we have to raise our prices” instead of making up a BS story like this. I’d be fine with that.

    Then again I’ve never really liked LaRue, they don’t seem to be the most ethical or consumer-friendly company out there. I don’t think it’s out of character for them to lie about the price hike.

  • Tim V

    Its a free market if Larue wants to raise prices then that fine. Likewise if you dont want to pay those prices then buy other products. Why is making a profit considered evil?

    • Chase

      Making a profit isn’t evil, after all we all want to make more money so we can buy ammunition. :) What Steve doesn’t like is the giving of suspiciously unlikely reasons for the price increases. He’s not bothered by the price hikes themselves.

    • Woodroez

      Steve’s post states that he’s fine with a company raising prices as demand increases. What he finds issue with is how it they’re trying to do it under seemingly false pretenses. There’s capitalism, and then there’s shysterism.

      I don’t know if he’s right or not, but that’s how I read his post.

      • Kang

        What do you expect them to say?

        ”We’re raising prices because we think you chumps will pay ‘em”

    • http://www.thefirearmblog.com/blog/ Steve (The Firearm Blog)

      I happen to love profit. I am pleased they are making a profit, but I don’t like companies pretending they are not making a profit as a pretense for raising prices.

  • Kris

    prices have been stable, Larue has been pretty consistent for as long as I can remember. They didn’t raise them when Obama was elected like most others. Your comments are the most irresponsible and least thought out I have read in a long time. Inflation has been a major issue. look at the real numbers and not some artificial government release designed to keep cost of living increases down for fixed income.

    If you don’t want to pay don’t. ignore inflation and the current economic issues at your own peril.

  • C3P0

    I’m sure their payroll costs are flat over 9 years. What difference if “steel” is down? Prices for barrel steel and aluminum are up. Don’t think so? look at an Midway or Brownell’s catalog.

    Inflation in the Consumer Price Index is pretty much meaningless for a firearms manufacturer. “a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.” As a average American, how much does your phone bill, haircut (Services) and all your groceries and car payment (Goods) cost over time? There are huge problems with using this as a measure of what a good or service ought to cost compared to what it used to cost X years ago. Namely, Larue Tactical ain’t buying toothpaste and peanut butter to make receivers and rifles. Using rough data for Producers Price Index (PPI) for the “machine shops” category, you’re looking at a 27.5% increase since 2003 (ok. . . that came out about the same)

    But all that is nonsense since it doesn’t take into consideration the other 2 big things: Profit and Quality. Pretty much all the things we buy anymore are getting better in quality. They run longer and more efficiently, the two are usually inter-related.

    Profit: This is capitalism, people. If a manufacturer has a backorder selling at price X, the demand has exceeded the capacity of the manufacturere. The manufacturer can either increase the capacity, which costs money to do and can negatively affect quality if not done correctly, or they can restrict demand. . . by increasing the price or damaging the perceived quality of the product. since the latter is patently ridiculous and doesn’t maximize profit. . .everyone chooses the former. Prices should go up on high quality goods. This is exactly why Harleys cost so much more than Kawasakis.

    Despite whatever reason their press release is stating, it’s right and natural for a firm to maximize profit by charging a price the market will bear. Amen for them marketing to their target demographic.

  • Lord Cthulhu

    “Over the past year, in the United States, inflation has (officially) been stable…”

    Look here for inofficial figures:

    http://www.shadowstats.com/alternate_data/inflation-charts

    How does 6% to 10% per year sound?

    • W

      not good LOL

      if you think that is scary, check out their unemployment statistics.

    • http://kalescliff.blogspot.com/ Thomas Everett Haynes

      Ugh, Ill run the numbers myself. What is our currency based on again?

      • Nadnerbus

        Mostly cotton fiber cotton and wishes.

      • zack991

        Its not back by anything other than a promise that is worth as much as a sticky note that says IOU. GET RID OF THE FED,they have zero legal authority to be making American money by our Constitution to begin with and who do you think is causing the problem. They are by printing more and more useless money.

      • W

        like all currency on the planet, ours is based on debt. that is how interest fractional reserve banking works. Theoretically, debt based monetary systems work if there is infinite resources and population. There isn’t.

        The entire austerity boondoggle is in fact chasing around a 1.14 quintillion dollar derivatives bubble around. Its like trying to stop a broken water main with a band aid.

  • Lord Cthulhu

    Nice Taken reference, BTW :)

  • Derek

    Well I can say that I know for a fact Subways nationwide have raised prices about that much as they have kept prices at the same level for an extended period of time. Its the reality of QE, just announcing QE3 didn’t help the markets. They’re trying to keep their profit margin the same and probably making a little extra to keep prices from fluctuation for another 8+ years so people aren’t getting pissy every year when prices hike up.

  • jd

    Maybe they could save the price increases if they quit rebranding Lawry’s seasoned salt and sending out bottle openers and hats. Great products, but after the Costa rifle pricing I’m having my doubts.

  • bagworm1

    If you read the notice again it says that they’ve held prices steady for almost 9 years. I don’t know if they have or haven’t, but if they have I’d say it’s about time for an increase. Maybe a little late unless they were overpriced in the beginning……

  • http://yahoo Grandpa

    Larue is and has been over priced for years.

    • Bo

      And how much more do you pay for a Wilson, Ed Brown, Novetske,KAC? Its called paying a little more for something custom and not mass produced

  • Pepin the Short

    American sentiment is in a strange situation where we enjoy the products that companies make, but we seem to think that it is evil for those companies to make profit for profit’s sake.

    So, when companies have to raise prices, they either do it quietly, or have to come up with some hackneyed reason why maintaining their overhead doesn’t diminish their status as a paragon of charitable business.

    Frankly, I’m tired of the song and dance, but it’s just a phase.

  • FourString

    I’m not sure if the Taken reference is appropriate to apply to La Rue’s customers… since what Liam Neeson did to his own wasn’t so swell for them LOL

  • jdun1911

    Mark LaRue is in inflationary spiral group. While I’m on the deflationary spiral side.

    For the past 4 years or so he have been actively posting in economic threads on Arfcom. Mark LaRue does follow the subject very closely and believe hyperinflation will come or at the very least high inflation. I will give him the benefit of the doubt because of his beliefs.

    With that said Mark LaRue is aware of the backlash happen in 2008 where a lot of firearms manufactures dealers price gouged. No doubt he wants to walk a safe path and not get accused of price gouging.

    Personally I have nothing against price gouging. It an economic force that can be very beneficial to desperate people in desperate state. What is bad is price gouging + price fixing.

  • Nick Pacific

    I work in steel fabrication. Price inflation is not flat. There are a variety of inputs, and while they vary, prices inevitably have gone up for each one in the past decade. Our suppliers change their prices by the day. We tend to change our rates by the year, and we make up the difference in efficiency.
    His reason is tongue in cheek, it’s obvious. I’m a little disappointed you’d call a business decision “BS,” without first checking to see whether they have actually kept prices stable in that timeframe, and then comparing it to industry averages. All this pointing to inflation calculators is pretty worthless. Similarly you can’t compare the rising price of eggs to the cost of a light mount. You need to look at similar goods pricing. Usually you are pretty good at disseminating information, what gives?

  • http://www.wallsofthecity.net/ Linoge

    I have no particular feelings about LaRue in either direction, but I will say this: anyone who thinks prices for everything – raw materials, transportation, spare parts, etc. – have not increased over the past 9 years (and we are talking nine years, per LaRue’s press release, not one) obviously has not been shopping for groceries in the past 9 years.

    Those prices have been increasing for a variety of reasons, but wholesale throwing out the damage done by “quantitative easing” (i.e. “deliberate and intentional devaluation of the American dollar) is just plain dumb.

    • W

      “Those prices have been increasing for a variety of reasons, but wholesale throwing out the damage done by “quantitative easing” (i.e. “deliberate and intentional devaluation of the American dollar) is just plain dumb.”

      Why is it “just plain dumb”?

      paper money and “quantitative easing”-like rapes are the failed economic policies of every failed empire in history.

      I agree that other factors are in play, namely the peak of several key resources for human industrial civilization, though QE is anything but overexaggerated. Whether or not they fly into the sky, or wreck the ship in the mud, you can bet your ass bankers will make money ($ on the way up and $ on the way down).

  • Slim934

    Why on earth are you using the US government’s inflation calculators?

    They have been systematically biased against showing any inflation for atleast 20 years. They have every incentive to be.

    Use the inflation calculators at shadowstats.com if you want to get even a mildly accurate picture of what the actual price rise (which is a symptom of and not a definition of inflation) has been over time.

    Also firearms manufacture may be an extremely capital intensive industry but you still need human beings to run the capital. If the cost of hiring or retaining labor (which price increases in general, as well as structural reasons such as how employer health care premiums have been going up like gangbusters) goes up then so will the final production costs. this is not to say that that has happened here, but just saying that something is capital intensive does not mean that price rises will not effect it.

    • Zermoid

      Want an even truer picture of what real inflation is, look at Congress’s pay raises. Even though they told us there was no inflation in 09 and 10 and gave SS retires no raise, THEY got COL raises!

  • Gunhead

    They know it’ll be good enough for a majority of their customers, who will chalk it up to Obama.

  • Levi B

    Metal has been high for years, and they have changed how they report inflation to the point where the numbers they report mean NOTHING. Just like unemployment figures–the number that gets press means nothing. Inflation is happening, whether through printing money or fuel costs killing shipping.

  • tincankilla

    I’m with Gunhead: LaRue is using inflation as a justification because it’s a great way to jack up prices while continuing to fuel the anti-govt and anti-Obama paranoia that underlies a lot of gun purchases these days.

    Some of their customers will feel good saying “that damn Obama!” while forking over 10% more cash in solidarity.

    • Bo

      Humor is not any of you folks strong suit. A poke at the state of our economics is all that was. The real issue was stated also in cost related to material,workers wages,and other business related increases. Run a business with few to no increase in price and see how long you last. Its not like he raised your price on something you have on order so you have the option to not order if you choose not to do so.

  • Zach

    Ah, a post written by someone who hasn’t run a business. Yay! What ignorance should I single out here… I think Larue is likely being completely honest. I run a business, and my costs have gone up HUGELY over the last 4 years. My number one cost, after payroll, is health insurance – yes, health insurance, more than any other input like materials or contractors or what not. Health insurance is going up around 10-20% a year and is a huge portion of the total cost now. The Obamacare mandates have kicked in and all the commercial insurers are loading up their premiums to compensate.

    Oh, not to mention that metal, oil, transportation, and most other hard inputs have gone up in price as well, and employees who now spend twice as much on gas and at the grocery store expect to see their pay go up at least a little bit to compensate.

    • jdun1911

      Obama destroy small business. The cost of running a small business like you said have increase dramatically under Obama. I give Mark the benefit of the doubt.

      • W

        how exactly has obama increased the cost of small business? you are talking out of your ass.

        If you had at least two neurons rubbing together, you would realize that there is no difference between clinton, bush, obama, or any other president that has served in office. Regardless of what conservatives are able to ascertain in their twisted dualist reality, obama is very effective at his job: he’s a banking president that serves the banks just like every president before him. he wouldnt be in office if not so…

  • West

    So is Rick Perry writing their press releases now?

  • SpudGun

    I’m with Steve on the BS call about how it’s the ‘Uncle Sam’s’ fault for a price increase. By all means have a price increase to match inflation (real or imaginary) but don’t try and palm it off as if you’re the victim in all this.

    It’s kind of galling as LaRue is probably a much larger and more profitable company then it was 9 years ago and some of that wastefully printed money is being handed to them in the form of military procurements. And by increasing their prices, more money will need to be printed by the Government so they can afford to buy their products.

    I could understand if there were immense R&D costs, but an ACOG mount designed 5 years ago is pretty much the same as it is today. Once you’ve done the design, built the moulds and got the machines going, it should actually be cheaper to sell them. It’s not like they’re putting together the next generation of smart phones and tablets.

    As others have pointed out, there are a myriad of real excuses for raising your prices from health insurance to commodity prices, but to imply that you’re only raising prices because of ‘evil government’ seems counter-productive and the worst kind of band wagonning. Especially considering Texas has no personal income tax and very low business taxes.

    Oh and it’s all Obama’s fault as well, probably.

  • David

    As a business owner, I can say that costs are increasing rapidly. regardless of relatively stable inflation, the inflation is quite high. Many other companies, not necessarily retail (b2c), but certainly first tier suppliers (b2b) are increasing prices everywhere. Since many of my suppliers are in Europe, I’m actually getting somewhat flush with cash due to the recent Euro hit, but other than that, most of my American suppliers are slowly increasing their prices.

    Insurance costs are going up rapidly. Mine are becoming significant because I don’t feel ethical in cutting people’s benefits. It’s part of the reason they came to work for me and I feel like I’d be pulling a bait and switch. I can find money elsewhere. If a company wants to retain key talent with good pay and benefits anymore, they’re just going to have to bite the bullet and write the big check. I don’t think it’s due to any president as they have such minor power compared to congress, but it’s the overall health of the country. People are extremely obese anymore and its disgusting. You can even see it at the range, although its not a great sample size. Trips to the range used to mean maybe one or two people were obese, now easily the majority are. People are getting fat and unhealthy.

    Larue Tactical, If you want to stay in business manufacturing great firearms and firearm accessories, and the price increase is justified to keep the quality, then as a business owner I understand, and will gladly pay it for your products. The first two years of my business was spent fending off naysayers on internet forums because everyone wanted the product to be cheaper, unrealistically cheaper. I stuck to my guns and everyone is on my side now.

    Quality is inexpensive insurance. Lets just say that I’ve got a box full of cheap redundant stuff somewhere to remind me just how expensive cheap can actually be.

  • Lex

    A large portion of gun owners are easily manipulated by anyone who bad mouths the government? I never would have guessed. LaRue has uncovered a unique tactic in making people thank them for getting fucked in the ass.

    • jdun1911

      Comeback when you start paying taxes and owning a business. Than we can an honest discussion if big government is good or bad for business.

  • Brandon

    I don’t doubt that their costs are rising, but blaming it on ‘Uncle Sam’ is just exploiting anti-Washington sentiments among guns owners to deflect criticism.
    Just my two cents

    • jdun1911

      I wonder how many socialist, liberals, and pro Obama view this blog.

      Let be perfectly honest. Under Obama the cost of doing business has skyrocketed. Payroll taxes, health cost, and minimum wage has gone up to a point where it best to not hire at all.

      • Albertus

        Ok, I think this blog’s title contains “not politics”, please post your agenda somewhere else.

      • Brandon

        Yeah that’s clearly political. In fact you’ve gone off on your little rant half a dozen times.

  • Albertus

    WTF? they should leave politics out of business. With a degree in economics I can say that their statement is pure CRAP.

    • David

      As a BS in Econ as well, from a target school no less, I can say that It’s not entirely crap. Yes, blaming the US government as a whole is bologna. However, blaming the Federal Reserve (a private non-government entity, remember) for their most recent quantitative easing (printing money), would make sense. Quantitative easing, without fail, leads to inflation, how much so is a complicated matter, but it leads to it. Since the treasury department must first request a loan from the FED for there to be printing of money and since most people associate the FED with the US government, it wouldn’t be too far of a stretch to include the FED, the Treasury department, and the recent QE under the broad definition of “Uncle Sam”.

      Is it a generalization and unfair? I think so. There are so many other factors that go into the costs of labor and materials, but inflation is one of them. My business’s biggest cost increase has come in the form of group benefits, and I don’t blame the US government for that, I blame the current unhealthy American lifestyle and built environment.

      Do LaRue make quality products? I certainly think so. Are they just trying to milk the customer out of extra cash? Probably not based on my experience with them. I think they needed a reason that people could understand and the lates QE by the FED is certainly part of the reason. Not to mention its a way to express dissatisfaction with the way the government is currently run, be it the president, congress, etc.

      • Stella

        How about they just want to make more money, or want to pay their workers more (hah!)? They don’t need to justify raising already high prices: they are a private, for profit company and can price however they want. The BS is unnecessary and just turns people off.

    • jdun1911

      Seriously how many pro Obama, Socialist, and Liberal post here?

      The fact is big government destroy jobs and consume wealth.

      • Albertus

        Is it you Ted Nugent? Please Stop watching FOX “News” and educate yourself.

        Sorry fellows, I had to…

  • Kenny

    From my perspective this is not complete BS.

    Inflation is not stable. Don’t believe the Bernanke; M2 and M3 money supply is through the f***ing roof, and if you don’t think the Fed is bailing out Spain and the ECB behind the scenes, you’re not living in reality.

    Have you seen the price of coffee?

    Have you looked at the cost of petroleum (which is in all of LaRue’s processes) over the last 4 years?

    While this may be clever marketing, it’s probably got some truth to it. We’re headed for a deflationary crash, or we’ll have QE3 to the moon which destroys us even worse and drives steel, aluminum, coatings and labor prices to much higher than 12 percent.

    Stack lead in your basement, then stack physical SLV.

    • Lex

      Yes the cost of doing business has risen but it didn’t rise overnight. Holding their prices steady for a while then making a huge jump now is a political and marketing tactic, pure and simple.

    • GreenPlease

      M1, M2, and M3 are monetary aggregates.

      MV=PY where:
      -M= Monetary Base
      -V=Velocity
      -P=Price Level
      -Y=Real GDP

      MV=Money Supply
      PY=Nominal GDP

      Multiply these two graphs:
      http://research.stlouisfed.org/fred2/series/M1?cid=25
      http://research.stlouisfed.org/fred2/series/MULT?cid=25

      Milton Friedman once said the inflation is “always and everywhere a monetary phenomenon” but he’s been proven quite wrong recently. He assumed that velocity was stable and exogenous and only affected by financial innovation.

      Is inflation really through the roof? Is it a central bank’s fault if demand for commodities outstrips supply and raises the price? Is it the central bank’s fault if we’re extracting heavier crude oil that requires more physical infrastructure per barrel than crude oil 10, 20, 30 years ago? Is it the central bank’s fault if we’re mining lower and lower grades of copper ore every year? If a central bank’s mandate is price stability (such as the mandate of the ECB) should it target an aggregate of prices or should it target the price of commodities? Perhaps the price of labor?

      Sorry for the rant but I’m tired of central banks being blamed for price increases that are really just due to scarcity.

      • W

        Greenplease, i like your post. A LOT.

        “Is inflation really through the roof? Is it a central bank’s fault if demand for commodities outstrips supply and raises the price? Is it the central bank’s fault if we’re extracting heavier crude oil that requires more physical infrastructure per barrel than crude oil 10, 20, 30 years ago? Is it the central bank’s fault if we’re mining lower and lower grades of copper ore every year? If a central bank’s mandate is price stability (such as the mandate of the ECB) should it target an aggregate of prices or should it target the price of commodities? Perhaps the price of labor?”

        That is the needle that unravels the entire bundle of yarn. Milton Friedman and the other charlatans in the “high priesthood of money” are sold into the idea that resources are unlimited. There can be no economic growth that there was once because any growth will collide with finite energy.

        Oil is a perfect example. The world peaked oil production in approximately 2005 and we will experience decreased production from now on (yet the world will require 40% more energy to sustain our economic growth in the next decade or so). Expect no economic growth (in my opinion, that is a good thing; the current system needs thrown out flat on its ass). And im not even touching on the real implications of damaged ecosystems, peak minerals, water, and other commodities every fool thinks appears out of thin air.

        Not to get off into a rant, but what i described affects everything…even Larue.

        “Sorry for the rant but I’m tired of central banks being blamed for price increases that are really just due to scarcity.”

        Im afraid the problem is much deeper and you’re correct. Scarcity, or rather, inappropriate waste so inherent in free market capitalism that leads to inefficiencies, plays a big part into the equation. It is reality.

    • Zermoid

      Also stack up primers! You can cast bullets, you can reload and reuse brass, you can even make black powder if you had to, but I cannot come up with a way to make primers!

  • Tony

    And you wonder why foreign products are taking over the market

  • D

    It’s a pretty crass appeal to people who blame the government for everything. If you say “we’re raising prices cause we can!”, that alienates people. If you say “the evil government you already hate is making us raise prices!” then that appeals to people more, and makes you sound like a victim instead of a profiteer.

    • jdun1911

      How old are you? Do you know for ever $1 that government take away form you you only get back 10 cents on the dollar of services. You know where the 90 cents. Government unions that does nothing.

      Government create more problems than it solve.

      Small government means less taxes, more wealth, more freedom, more jobs, etc.

      Big centralize government always leads to dictatorship.

    • W

      the blame that needs placed on government is allowing the crooked fuckers to be manipulated by the bankers and special interests with no legal consequences. Our “justice” system is just to blame for being manipulated.

      I didn’t elect fucking General Dynamics Land Corporation or Halliburton or Bank of America…but boy are they sure influencing the person i voted for…

      Larger government and government jobs are a broken window fallacy. If you dont know what that means, read the works of Frederic Bastiat and research it. You cannot create by destroying or stealing.

      • Zermoid

        You do also know that the Federal Reserve, the people who print our money and control the economy, are a PRIVATE BANK! They are not part of the Govt! In essence BANKERS are running our country, as sad as that is.

      • W

        haha yup. the federal reserve is about as federal as standard oil was…not federal at all. :D

  • Ryan

    Apparently some people don’t have a sense of humor.

  • Common Sense

    If you don;t like the cost, or the increase, regardless of reason, you are not forced to buy the product. Funny thing a capitalism, it usually give the consumer options, and oh, btw I am one of those worthless, lazy, do nothing government employees on Uncle Sam’s payroll.

  • Mike

    Inflation isn’t an issue? That must be why I’m paying more and more for everything I buy.

    I call BS on your BS.

  • DP

    Steve, you make a point to stay out of politics. Looks like you need to stay out of commerce as well. Go check the current prices of bar steel and high-end milling equipment and repost.

    Love your blog, but this post made me rethink things for a second. Attacking a highly-thought-of company with misdirected opinions is no way to make friends!

  • fred

    Not to be aggressive.. but you used the BS word.

    bah.. stick to firearms…

    Inflation is not what the loving gov says it is…

    Look it up.

    http://www.shadowstats.com/alternate_data/inflation-charts/

    Money printing does cause inflation..

    http://goldsilverrealestate.com/wp-content/uploads/2011/09/m2.png

    • GreenPlease

      I give shadowfedstats props, I really do. I subscribe to their service to provide me with an alternate data feed. However, referencing a gold and silver site for information about inflation isn’t intellectually honest. They don’t have your best interest at heart. They’re trying to sell something just like everyone else.

      Also, gold and silver are both faith based currencies just like the dollar, euro, etc. Gold and silver only have value because people ascribe value to them. They’re valuable because of tradition. If scarcity is your argument then why not iridium, rhodium, ruthenium, or tellurium? Those are all scarcer than gold and actually useful to boot. Why not platinum or palladium (again, useful) or thorium (hold a lifetime’s supply in your hand)?

      The inflation “in gold terms” argument is bunk. Gold production has been flat or declining now for over a decade. If you price things in gold in a growing economy the result will be deflation (gold buys more and more every year). The thing about an economy is that it requires participation and deflation doesn’t exactly incentivize participation.

      Is gold an asset class? Sure. Will it continue to go up in value? As long as the herd thinks its valuable. Just don’t talk about “inflation” in terms of gold or silver. If you’re going to use a commodity to price economic activity consider something more universal and useful such as oil or perhaps a standardized unit of energy such as the BTU.

      • W

        Inflation because of QE3 or other austerity is a symptom, not a cause, of inflation and subsequent deflation.

        The entire money system works by the fallacy of infinite supplies of resources and humans, which is scientifically and mathematically incorrect. Money is best quantified by the debt set against it, this is where you get fractional reserve banking.

        The problem is that resources and the planet are finite. Our economic paradigm is dependent on inefficiency/waste i.e. planned obsolescence of products, employing workers whose jobs can be easily replaced by machines, and the need for constant growth and consumerism to avoid economic failure, which is one of the many ironies of the free market system.

        Without delving into the works of the Zeitgeist movement from Peter Joseph, Michael Ruppert, Dmitri Orlov, and many, many other accredited critics of the current system (which I could write a volume of books and dissertations about), it is obvious the blame for increasing prices should be placed solely on the shoulders of those that have thrived for a century from stealing from the impoverished and exploiting good moral characters in the most elaborate pyramid scheme in human history.

      • W

        sorry hit submit too soon…

        greenplease, you are absolutely correct. you cannot eat gold, put it in a gas tank, or build your house with it. Resources are a true measure of wealth, which is why fractional reserve banking is falling flat on its ass. it was inevitable.

      • Zermoid

        I too have long thought that of gold, sure it has some uses, in computers, jewelry, aerospace, but if TSHTF and your friend has 20 ounces of gold and you have 20 ounces of bread, and he’s starving, I’ll bet he’d be willing to trade his gold for your bread!

        Sure gold can be used for making lovely things, but if your biggest problem is staying alive the next 24 hours how useful is it then?

      • W

        gold and silver are still the antithesis of a resource-based economy as described by Jacque Fresco, which is, in my opinion, the next step for human evolution away from the current system we have now.

        In terms of a more realistic setting aside from Fresco’s Venus Project, often ridiculed as “utopian”, i think once the money-based economy collapses, mankind will revert back to barter and trade and debt economics, which is a feudal based system that led to the creation of the system we have now. Its a vicious circle.

  • GreenPlease

    IMO, a much better statement would have been:

    “The market for firearms and related products is currently very tight. Many of our items are out of stock and/or have long lead times. With demand so high, we feel the only fair way to ration our production is through a price increase and allowing the market for our products to find a natural equilibrium. We value our customers and want you to know that additional profits resulting from these price increases will be reinvested into Larue to continue to bring you quality and innovative products in the future. Thank you for your understanding.”

  • VBA

    I agree! To blame it on Uncle Sam printing money is $4it! If you’re gonna milk people then stand up and declare your intention publicly. To hide behind some bs excuse is cowardice.

    I’ve read most of the post, and you people are splitting hair, arguing over minute details. As far as inflation is concern, most of you don’t even know the difference between Core CPI and NON-Core CPI. So please stop arguing with each other on what the real number is for inflation.

    Companies will come and go, more so during tough time. The companies that value bottom line will pay attention to their customer and they will prevail. Take a look at Walmart, they strive to keep prices down, even in tough economic condition. This is why people flock to walmart and they are only second to Exon in term of revenue. So instead of looking for means to lower production cost, LaRue decides to hike their prices and blame it on the government. They won’t see a penny from me. Bunch of cowards.

    • Zach

      Yeah, sure. Walmart’s products are mostly made-in-China junk. Remember 20 years ago when they advertised all their US-made stuff? That’s long gone. Most of their food is marginal at best. People shop there because it’s cheapest and in many towns it has destroyed all the preexisting local stores, so there’s really no choice.

      One of the things I really like about the US gun industry is that it’s still possible to buy US-made products that are made well and, although not the cheapest, reasonably affordable. There are very few industries where that is even possible any more. I would much rather a company maintain quality and raise prices. I will decide if it’s still a good value proposition. But they if they drop quality to hold prices, I’ll be looking elsewhere for sure, and will have fewer decent options.

  • Dillen

    To not have a price rise before now is impressive. As a business owner, I can tell you that COSTS are increasing. Perhaps not in steel or some other raw consumable material, but definitely in electricity, gas, fuel to get to work, ammo to test their rifles with,…..the list goes on. If you cant see the rising costs in those areas being a sign of inflation, I cant do much for you and your mind wont be changed.
    I have had to raise my billed amount in my business to reflect the increases in my costs (and I am a 100% service oriented business)…even with my increased billed amounts I am taking less home only to hear from my customers how my mild price increases are making it harder on them.
    Perhaps LaRue’s method of delivery was slightly off, and I suspect it was slightly in jest, but the reaction some are having is a little “de te de”.

    • WeaponBuilder

      I agree 100%! To NOT raise your prices for about 9 years is impressive.

      Certain costs such as Steel and Aluminum may not have risen a full 7% to 14% ALONE, but a business doesn’t operate with just ONE material. People have to consider that the cost of certain forms / grades of Titanium have also gone up over 400% since early 2009!!!

      For every so many parts that LaRue produces, he has to replace his tooling as it wears out. Titanium Nitride, and Titanium CarboNitride coated Mill Tooling has gone up AT LEAST 6%… When you figure the cost of the tooling going up 6%, the cost of the metals going up, and depending on where your operations are based, the cost of Electricity going up, and the costs of LABOR going up… I can easily see 7% to 15% cost increases for business operations.

      Heck, I’ve raised prices about 1% to 2% per year to keep up with inflation. This is normal business practice or you start reporting Losses to the IRS. A 1.5% increase over 9 years would be about 13% to 14% just to keep up with inflation.

      You should be glad LaRue kept his prices where they were for so long. Don’t like his prices? Buy foreign made Chinese parts and deal with their terrible Quality Control. My buddy’s Chinese optic mount screws stripped out just last Saturday when he FINGER tightened it! If their ‘quality’ Chinese scope mount can strip with mere finger torque – keep that crap away from me, my local law enforcement officers, and our Soldiers & Marines!

      You guys can praise Wal-Mart and all the chinese junk you want. I don’t presently own a LaRue mount, but I applaud his dedication to his clientele. He may have worded that message a little tongue-in-cheek with some sarcasm, but don’t Zumbo him for raising his prices.

  • Jim Williams

    LaRue’s claims seem to fly into the face of the facts. If they choose to raise their prices, that is their right. There are many reasons one could cite–government’s printing money is not one of them.

  • Garrett

    “What I don’t like is companies claiming an indeterminable force, like the treasury printing presses, are forcing them to raise prices.”

    If you agree with that statement you need to go watch…

    on youtube.com

    The Money Masters
    America: Freedom to Fascism

    and read

    G. Edward Griffin’s
    The Creature from Jekyll Island

    Gov. is destorying our dollar every day which means it takes more dollars to equal the same value.

    They’ve held off for so long on raising prices which is commendable

  • Zermoid

    Slightly un-related, but I recently had a toggle link on my Lee press break, the press was bought over 10 years ago and looking in the parts list that came with the press it was $8, I called to find out what the current price was.
    To my amazement it was still the same price!

    That’s a good company to deal with!

  • Simon

    Price of gold (per ounce)
    6/17/2003 $352
    6/17/2012 ~$1600

    No inflation???? what planet are you on? Our currency lost tremendous amount of value.

    • Mike

      This might be a shock, but the USD is no longer linked to the Gold Standard. For DECADES.
      The price of Gold goes up and down according to market forces, it’s not a direct indication of inflation/deflation.

  • NickB

    I wonder how the fire arms biz does in times of austerity? Remind me to ask Greece next month

  • TargertTarget

    Maybe they should just stop including so much extra useless crap in their packages. I.e. tactical paprika, goofy bottle openers, lolconstitution, and the yokel yee haw bumper stickers…….

  • Jay.Mac

    Quote – Steve – “2003 … thats 8 years ago during the height of the assault weapon ban. I would expect a price rise (inflation) since then!!!”

    So in other words, you agree with what Larue are saying and that prices should rise over the course of nearly a decade?

    For 9 years Larue have kept their prices stable but now they are being forced to pass on the increased cost of doing business to their customers. Frankly I’m astonished that they haven’t increased prices before now. Goodness only knows how much their cost of business has risen over the past near-decade. Gas prices alone have increased from $1.86 to $3.37 over the past 8 years (source – http://gasbuddy.com/gb_retail_price_chart.aspx). I’m sure that their employees have also seen their wages increase over that time too and then there’s electricity costs, taxes, etc, etc, etc.

    Sounds like a perfectly valid reason for Larue to increase their prices for the first time in nine years.

  • alex

    Based on the openly hostile and borderline violent behavior of some of the responses I think there are people in this comment area that simply can’t handle themselves and certainly make me uneasy that they own firearms.

    LaRue has been a good company – They make good products and charge a fair price – And unlike LWRC who jacked up prices for obamathon has been pretty steady. Gas is double the money it was then. They have workers and you can’t not give them a raise. Materials go up. Even the property tax they pay has gone up. Yes they could keep prices down by manufacturing in China like some people seem to think they should do. I dont think outsourcing jobs to save a few bucks on some luxury goods is really a great idea.

    And while there statement should be treated like the offhand casual statement they are known for people here can’t seem to handle themselves or tolerate it. Which shows what a childish bunch of people are on the internet and points to the true cause of the recession people who can’t handle a simply reality and panic.

  • Jamie Northam

    This has to do with one thing, and it is not inflation, it is having fan-boi magnet Costa on the payroll.

    I have nothing personally against Costa except his idiotic shooting stances and his equally idiotic beard, but it costs Mark Larue a pretty penny to keep Costa happy with beard trimmers and North Face wind breakers.

  • corey

    Wow, well my advice is, don’t buy a LaRue then… Go buy something that the price hasn’t risen in the last 9 years, or the last 1-2 years for that matter… I know this is old, but in the time since you posted this, most AR’s doubled in price and have fallen again. Yet LaRue’s prices didn’t change at all during that time… Might want to take that into consideration.