Kel-Tec Raises KSG Price To It’s Distributors

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Kel-Tec has sent a letter to it’s distributors informing them that because they have learned that the Kel-Tec KSG will be specifically named as a banned gun in Feinstein’s proposed bill they have to raise prices to try and recoup R&D costs in the event that the gun is banned.

Kel-Tec has raised the distributor price out of self preservation as have a number of other companies in similar situations. With millions in R&D cost for the development of the KSG the timing couldn’t have been worse. I know we all hope that the current situation will not come to pass and businesses will be able to lower prices and get back to normal business.

 

kel-tec

 

This mades me incredibly sad. The political situation is going to set firearm innovation back a decade.

Thanks to the reader who tipped us off.




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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  • Fritchof

    How about just increasing production of the sub-2000?

  • Hunter57dor

    i agree with that last statement. if even the somewhat mighty keltec is scared of this thing, we are not getting any new tech in people’s hands for a long time.

  • Mike

    Can’t Keltec sue for discrimination, especially if that huge chunky Turkish shotgun (ATAS-15 or something like that) wasn’t named in the planned bill?
    That and I hope the bill gets shot down anyway. Not like Connecticut didn’t copy AWB in their state law anyway.

  • http://www.facebook.com/anders.albertsson.1 Anders Albertsson

    Not like there are any for sale at the promised MSRP anyway.

    • Averum

      Exactly.. You can’t find or buy the damn things anyways. It is like they intentionally kept the supply low to drive up demand. Shady if you ask me.

      • http://www.facebook.com/allanonmage Dan Whaley

        I really don’t think that’s the case. I don’t know that there’s a gun collector out there that doesn’t want one of these things. There was no need to artificially limit supply with demand THAT high.

      • Drik

        The can only make 100 a day. That’s not coming CLOSE to keeping up with the demand. Not shady at all.

  • Wooglin

    The pmr 30 is in the crosshairs too. It is selling for 3 times msrp on gunbroker. These NAZIs won’t be happy until all we have to protect ourselves is a NERF bat

    • http://www.facebook.com/people/Christopher-Blake/100001091151669 Christopher Blake

      Very sharp knives do wonders.

      • http://www.facebook.com/NewAgeOfPower James Du

        Look at England. After they ban legal firearms, knives will be next.

  • Rignerd

    “The political situation is going to set firearm innovation back a decade.” that’s a feature for the gun banners.

    • http://www.thefirearmblog.com/ Phil W “Senior Writer TFB”

      I certainly hope that’s not the case. We should have some very good as well as substantial information during SHOT this coming week.

    • Anonymoose

      The SIG P221 (double-stack P220/.45 P226 concept) was shelved because of the ’94 AWB. Now it’s coming back in the form of the P227 which is supposed to be debuted at the SHOT Show this week, but if this ban passes…well, at least it only has 10-round mags normally…

  • whamprod

    Maybe they can lower the price of the RFB by $300? Don’t need a Starship Troopers shotgun, but an ambidextrous bullpup .308 at a “real people’s” price point would sure make this left-hander happy.

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  • TangledThorns

    There won’t be a ban… there will be a revolution!

    • arron

      I’m ready to be the next generation of minute men.

    • Anonymoose

      I hope you’re ready to INNA WOODS.

    • Barbara

      you or right

  • S O

    (a) Fear of bans drives up demand, so this might be a greedy push for more turnover and profit.

    (b) Companies cannot increase prices at will to recoup fixed costs quicker. They CAN set a market-clearing price, though. Demand for the gun has risen, so they can and do increase the price to the new market clearing price (or rather to what they believe it is).
    The very same behaviour would be as good or as bad business practice if they had had no R&D costs or had them already recouped. Those fixed costs are sunk costs, after all.

    (c) It makes very little sense that a specific weapon type be listed in a bill. Bills / laws have criteria, not type black lists. It would be too easy to circumvent a type black list.

    (d) They make a almost certainly false statement about their ability to produce the weapon in the future. The possibly coming legislation would almost certainly be about domestic sales, NOT domestic production. They could still sell to export markets or possibly LE.

    So to an economist like me, the letter makes a false statement even though they may be serious.

    • unger

      You apparently are unfamiliar with the fact that the ’94 AWB contained exactly such a blacklist (see http://en.wikipedia.org/wiki/Federal_Assault_Weapons_Ban), and that Feinstein’s current proposal includes one too (see http://www.feinstein.senate.gov/public/index.cfm/assault-weapons). Hope your economics are better than your history and current affairs…

      • S O

        I was. It’s surprising, for I’m not the usual suspect for underestimating the stupidity of U.S. politicians.

    • mikewest007

      Actually, the 1994 AWB had quite a few nonexistent firearms on the “banned” list, which pretty much shows how slapcrap it was.

  • Walter E. Kurtz

    Regardless whether a ban passes or not, this administration has already caused great harm to the shooting sports in the US. Skyrocketing gun and ammo prices are making these items cost prohibitive. Fewer and fewer people will be able to afford them, especially in our lousy economic climate. This is no doubt exactly what the gun banners want to see: manufacturers driven from the business and enthusiasts leaving the sport. The fear of bans will remain with us so long as this administration is in power. As a result, we have at least another four miserable years to look forward to. Elections have consequences.

    • http://www.facebook.com/people/Christopher-Blake/100001091151669 Christopher Blake

      They must be gone. There are a number of violations of the constitution that are yet to be addressed. And if Ovomit attempts to EO this one, it will be too blatant to ignore. MMMPOS has got to go.

    • Cymond

      Everything is cost prohibitive because everyone is BUYING and driving the prices up. Brownell’s sold more magazines in 5 days than they normally sell in 3 years. Gun shops are raising prices and are STILL selling guns moments after they are delivered.

      In the long term, an “assault” weapon ban will drive many specialty gun companies (RRA, DPMS, CMMG, etc) out of business or force them to create ban-compliant rifles.

      However, in the short term, the gun business is BOOMING (forgive the pun). If we did this all year, the industry would expand dramatically. I’m not the first to call our current politicians ‘History’s Greatest Guns Salesmen’. A ban may eventually kill some of these companies, but until then, they’re running overtime and double shifts just trying to keep up.

    • qubi

      +1 to Cymond, what’s actually happening is firearms manufacturers have been raising prices because they’re taking advantage of mass hysteria about Obama “banning guns”. Recall that Obama did absolutely nothing about guns in his first term, and only briefly mentioned an AWB in one debate in order to pander to his base. Meanwhile, the fat cats at the top of the gun supply chain have been hiking prices all the while. Retroactively blaming the rising prices (which have been rising for quite some time now) on this administration isn’t exactly fair, regardless of what you think of Obama. Blame it instead on the culture of fear (fear of gun bans) that gun suppliers have been promoting for the past 4 years in order to increase sales and profits. The gun business is, after all, first and foremost a business.

      • Sian

        qubi, I hope beyond hope that this is true and Obama really is an empty suit, unable to affect any change.

        That said, I wouldn’t stake everything on the possibility. Might get a couple extra stripped AR lowers next weekend.

  • http://twitter.com/ilovegrover Thane_Eichenauer

    Kel-tec obviously thinks they can sell all the KSG that are in the distribution chain even with a higher price. If they do sell all their items there isn’t anything (currently) stopping them from exporting new production or licensing the design to another company in another country. Innovation can be imported and exported.

  • LLARMS

    Are they going to refund the money if the bill fails to pass?

    If not, that is not right. That would be a clever way to simply pocket more money under the guise of a political storm. Pretty shady…

    • matt

      So let me get this right, the guy who started a kickstarter just to pull the project is daring to call one of the most innovative firearm companies who coincidentally has one of the best CS teams out there shady?

      BTW how is that lol monstrosity of a hand guard coming along?

  • http://twitter.com/Bacon_Is_King Gabriel Chapman

    2K for one online I saw today. Did anyone check to see how much stock Fienstien holds in ammunition makers?

    • HSR47

      At a gun show immediately after Sandy Hook, I saw a KSG. The asking price was 1,600, and it was gone by the end of the day.

      I saw one at a local dealer (the first one I have seen in a local store) with an asking price of over 1,900.

      • http://www.thefirearmblog.com/ Phil W “Senior Writer TFB”

        They were actually selling the KSG for $1600 prior to the frenzy.

  • http://www.facebook.com/people/Christopher-Blake/100001091151669 Christopher Blake

    They had figured in eventual cost vs immediate cost. That comment: “The political situation is going to set firearm innovation back a decade.”? THEY’RE TRYING TO SET US BACK A CENTURY!!!!!!

    • Sian

      INCORRECT.
      repeating firearms and rifles/pistols able to hold more than 10 rounds were readily available a century ago. Hell you could buy machineguns from the sears catalog.

  • http://www.facebook.com/profile.php?id=767053319 James Patrick

    I look forward to the swordfights.

  • qubi

    I’m not so concerned about “firearm innovation” being set back- plenty of companies that design and produce innovative and excellent firearms are based in countries that heavily restrict or outright ban civilian ownership (not saying that this is necessarily a good thing, just making a point). Kel-Tec is, in a sense, innovative, but if you look closely at their products, all they’ve really done is make already existing concepts civilian-legal in the US (and cheaper with poor QC). This is just a money grab by Kel-Tec, trying to make a quick buck over the current hysteria.

  • rootman

    Perhaps you would not be so sad if you got rid of the “firearmsnotpolitics”. No politics no guns.. enjoy..

    • http://www.thefirearmblog.com/ Phil W “Senior Writer TFB”

      rootman we won’t be changing the no politics rule. It’s just to distracting from staying with firearms only. There are plenty of petitions out there to take part in.
      I’d really like to remind everyone we have left a little more leeway than previously but out and out political comments we can’t have.

      • Murph

        You don’t know how appreciated that is, by me, and others I’m sure. I enjoy reading the articles and reviews, and then reading the comments written by people far more educated than I am. Seems like if you read an article any place else, about any topic under the sun, the comments turn in to a left versus right flame war. TFB is a welcome exception.

        • http://www.thefirearmblog.com/ Phil W “Senior Writer TFB”

          Thank you Murph–we do try and stay on topic and avoid those unneeded
          flame wars you mentioned.

  • Raoul O’Shaughnessy

    Wait…so the new ban affects pump shotguns? So much for it just being about the autoloaders………..

    • Nick

      It’s because one of their focuses is to attack ergos such as pistol grips, thus eliminating all new bull-pups!! There goes my AUG for future purchase…:S

      • Sian

        It’s not just pistol grips, the KSG was specifically named, likely because it’s murdered about 50 billion teenagers (in Call of Duty).

    • smoky

      it’s not about autoloaders….or shotguns…or handguns. it’s about ALL guns, period. of course the liar in chief will say it ain’t so, but he lies, as do all anti-gunners. the end goal is to take ALL GUNS away from us, otherwise they can’t implement their communist dictatorship on us. they are afraid of us as long as we own weapons. ALL communist takeovers and dictatorships began with the confiscation of firearms, and the execution of all who resisted. why can’t the lemming libs understand history?

      • http://www.facebook.com/casey.fleming.77 Casey Fleming

        And that is the truth!!!!!!!!! Obamie the commie is a globalist/nwo pawn. Nothing more.

  • arbitraryopinions

    This proposed ban will be catastrophic for citizens of the United States, look how it has already diminished our ability to construct simple gramatically correct sentences.

    • Barbara

      Not if we can help it .usa

  • Simon

    Quick question, shouldn’t posts like this be filed under news and not the regular blog?

  • thebeeishorrid

    I really wanted to get one of these, but after their slow production and now this…Kel-Tec can kiss my a$$

  • calvinb1nav

    All this gun control nonsense would stop immediately if about a million of us gun owners had the guts to drive to Washington DC and each leave one spent shell casing on the Capitol Building steps along with a sign that said “Next time we bring our guns!”

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  • Boycott Kel-tec

    Kel-tec is very quick to play the victim. Maybe Obama can get you a bailout.

  • nature223

    How incredibly stupidly… asinine.
    never liked them anywho…but sure, alienate any prospective buyer with THIS tactic.
    George Kellgren..you are “THAT guy who replaced Bill Ruger as the Gun Maker asshole award holder for gun ban product tweaking”

  • bbmg

    “The political situation is going to set firearm innovation back a decade.”

    How much genuine firearm innovation actually comes from the US these days?

  • Robert

    $300? Really??!! Who cares when they can’t get the darn product out to suppliers and dealers. I’ve had a few on order with a couple of distributors for over a year and I haven’t even seen one come through the shop yet!

  • tony

    This 80 year old witch should retire to a cave.

    This is maddenning!

  • Anonymous

    Kel-Tec could realistically raise MSRP to $1499 and still expect to sell every KSG they produce for the next five to ten years at a minimum. At this point, setting an MSRP is a joke, a formality harkening back to the days of yore when there was an actual surplus of guns on the market, and companies made some sort of actual effort to advertise their product, rather than simply crating them up and kicking them out the door as fast as possible. Whatever price they pick, the market will still gobble them up.

  • http://www.facebook.com/mark.herzog.90 Mark Herzog

    Who makes the handstop on the KSG in the picture ? Thanks.

  • http://www.facebook.com/dennis.roberts.319 Dennis Roberts

    I took an oath to defend this country from both for both foreign and domestic threats. I will do so if i have to within the boundaries of the USA no matter who or what the threat is. If it’w war then bring it on. Let the sheep run off the cliff i don’t care. If you took the oath also then stand up and be counted.

  • totenglocke

    And then you’d promptly be arrested by DC police / the SS (if you’re lucky) or simply shot on sight. I agree with the idea though, simply saying that it’ll end very badly.

  • Sian

    Ugh. Well it’s not like any are selling for anything near MSRP with the ban freakout in full swing anyway.

  • Ben Branam

    I haven’t found one for sale for less then $1,500 anyways. Their MSRP means nothing to us.

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  • Barbara

    O we do.see if congression stop it first.if not then you see

  • Zapp Brannigan

    Maybe we should all leave a shell casing or two at a school as well, to show them we’re serious. Because threatening violence is surely the best way to show that we deserve to keep the right to own firearms. Because nothing will convince those on the fence about keeping firearms legal that they should remain legal like another demonstration that gun owners are a bunch of potential mass murderers.

    • Brendan O’Brien

      ” deserve to keep the right to own firearms” While I agree with your sentiments as a more effective way to increase our position, which is still a popular position. We don’t need to prove anything. These people are not our parents they are our civil servants and fellow citizens and are restricted by rule of law, not what they feel we deserve.

  • West

    What a racket these guys have going.

    The gun manufacturers have been crying about an imminent ban for four years to increase sales even though Obama barely even mentioned gun control in his first term. And now that a ban might actually happen they are going to make even more money.

  • Jeff

    I’m not at all bothered by this. If the market price spikes, why would a manufacturer be morally bound to continue selling at the lower price? Most dealers feel no compunction about increasing prices. Those dealers who want to be “morally superior” and not “price gouge” their customers are watching their inventory disappear and be resold on Gunbroker, with the profits going to the new middle-man. Why not just be honest and straightforward about the whole thing. Send a letter to your retailers that says, “We are raising prices because….we can.”

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  • nature223

    KELTEC bones us again.. pass

  • GS

    Why not offer a promise for a rebate to customers who purchase at the new higher price now, should the ban bill be defeated?

  • http://www.facebook.com/allanonmage Dan Whaley

    I like how the author used the word “learnt”. Even Firefox knows it’s not a word lol

  • http://www.facebook.com/allanonmage Dan Whaley

    Watch out, ammo is regulated there and needs a permit. No idea if spent ammo still requires a permit.

  • http://twitter.com/Harrysseba Harry S. Sebastian

    Price gouging is price gouging is price gouging. I will not buy Keltec products now or ever.

  • kdawg

    “This mades [sic] me incredibly sad. The political situation is going to set firearm innovation back a decade.”

    A decade? Try about 60 years.

  • Andy

    I have noticed no one else has taken the time to see that
    the KSG is NOT listed in the ban.
    Several other Kel-Tec products are like the RFB, Sub-2000, SU-16 and
    PMR… But look through the bill yourself.
    The KSG is NOT banned. http://www.jdsupra.com/legalnews/summary-assault-weapons-ban-of-2013-b-46205/

  • patrickw

    Here is the thing. If these were being sold for $1k before this, but the MSRP was only $600 and something, Keltec was not profiting on the ones being sold for $1k… that all went to the sellers/middlemen. This is one of very few MFG who have had to raise prices on anything, and in this case, I can completely understand and agree to it, and would pay the slightly increased price to get one… however, the unjustifiable price gouging in general is not on the manufacturers… take a look around, most MSRPs have not changed more than material costs+10%(of material costs) the largest contributor to price increases is the fact that many wholesale distributors, and end sellers are trying to reap maximum profit (supply and demand anyone?) from people willing to pay such high prices. I mean I can find AR15 stripped lowers all day, and buy them at any time… just would cost $300+ for the exact same lower I bought a year ago for $79.99. I can order, and wait for magazines for no more than $15 each (Pmags for $10 each) all day long… but it would take 2-3 months to get them in. If I wanted them today would run $30 for a PMAG, and $250 for a surefire 60 round mag. The manufacturers are not really increasing prices, take a look at their websites. The very few instances where they have, it is to offset potential losses should any bill go into effect… which is understandable, as there is also chatter of excluding firearms manufacturers from some bankruptcy codes/proceedings, which would in turn put owners financially liable, and able to be sued for debt. This is why people should never buy anything for more than MSRP… then people wouldn’t try this profiteering and price gouging that is going on (such as the asshat who bought a stores entire stock of PMAGs for $12 a pop, and turned around selling them at $30 a pop… over 120 magazines). Some wholesale distributors went out of business trying/doing this back in ’93/’94 because many shops stopped purchasing from them.

    Also if you shopped around you could find a new KSG (or order one) for under $800 even today. Hell I ordered one a short while ago for $675… just gotta wait till probably Apr-May before I will see it, let alone it get produced…

  • Pete

    I have the bill sitting on my desk, and it does not mention the KSG or
    any pump shotgun, infact, it specifically states on page 14 Line 19,
    that the bill shall not apply to any pump shotgun.

    13 ‘‘(2) Paragraph (1) shall not apply to the possession,
    14 sale, or transfer of any semiautomatic assault weapon oth-

    15 erwise lawfully possessed under Federal law on the date
    16 of enactment of the Assault Weapons Ban of 2013.
    17 ‘‘(3) Paragraph (1) shall not apply to any firearm
    18 that—
    19 ‘‘(A) is manually operated by bolt, pump, lever,
    20 or slide action;

    Kind of shady Kel tech