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Discussion Starter · #1 ·
Time to boycott ATK!!!!!!!!!!!!!!!!!!

ATK Security and Sporting
900 Ehlen Drive
Anoka, MN 55303
763-323-3817 Tel
763-323-3893 Fax
[email protected]
www.atk.com
February 1, 2011
Dear ATK Ammunition Customer:
I would like to thank you for your continued support of the ATK Ammunition brands. We are
now into 2011 and continue to see unprecedented cost increases for the raw materials that
make up our products. I can assure you that we have invested significant capital to increase
productivity and lower costs across all of our facilities. However, we are unable to absorb the
rapid increase of these raw material costs.
Due to these historic increases we are forced to raise pricing as follows:
Centerfire Handgun and Rifle 7-15%
Promotional Rimfire 10-15%
Standard Rimfire 5-10%
Shotshell 5-10%
Primers 10%
This increase will apply to any orders shipped after May 1, 2011. The new pricing and
programs will be sent to you in the next few weeks.
Thank you for your continued support and understanding.
Respectfully,
Anthony A. Acitelli
Vice President
Strategy and
Business Development
 

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If you don't like their business just shop elsewhere. If they lose enough customers they'll change their ways. Ammo is going up everywhere though.
 

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If they price themselves out of the market thats their choice
 

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Discussion Starter · #4 ·
I will shop elsewhere. What they say is garbage!!

Third quarter sales in the Security and Sporting group grew 25 percent from $167 million in the prior-year quarter to $209 million in the current quarter, reflecting increased commercial ammunition and tactical equipment sales, including $21 million of new sales from the recently acquired BLACKHAWK! business.

Operating profit in the third quarter increased 12 percent from $27 million in the prior-year quarter to $30 million in the current quarter, primarily reflecting higher sales volume including higher margin products from BLACKHAWK!, and improved operating efficiencies, partially offset by higher raw material costs and softening demand in some areas of commercial ammunition."
 

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Conifer Jack
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Bloodsuckers? Are they supposed to be immune from inflationary factors just because you want their products?

It would seem that those who complain about a company's pricing policies are free to start their own company and attempt to produce those products cheaper.


Jack
 

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Discussion Starter · #6 ·
Bloodsuckers? Are they supposed to be immune from inflationary factors just because you want their products?

It would seem that those who complain about a company's pricing policies are free to start their own company and attempt to produce those products cheaper.


Jack
You should learn to read! Read what I posted about their operating costs. Looks to me like they are having no problem making money.
 

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Got Pb?
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Yep all metal is higher priced. I really cant believe they held out as long as they have without price increases
 

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You should learn to read! Read what I posted about their operating costs. Looks to me like they are having no problem making money.
Actually based on what you posted it seems they are giving their customers the reasoning behind the price increase as opposed to just raising the prices without reason.
Cost go up prices have to go up. Companies aren't in the business of charity.
 

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Discussion Starter · #9 ·
Actually based on what you posted it seems they are giving their customers the reasoning behind the price increase as opposed to just raising the prices without reason.
Cost go up prices have to go up. Companies aren't in the business of charity.
Ya. When material costs were lower they never lowered their ammo prices so that just does not wash with me. A better way is to lay off people and cut salaries of the top people if they are serious about saving money!
 

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Ya. When material costs were lower they never lowered their ammo prices so that just does not wash with me. A better way is to lay off people and cut salaries of the top people if they are serious about saving money!
So you would rather they fire people just so you can pay the same price? :shocked: That's ridiculous.
Well at least we know where you stand.
 

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Discussion Starter · #11 · (Edited)
So you would rather they fire people just so you can pay the same price? :shocked: That's ridiculous.
Well at least we know where you stand.
I certaintly would. If you want to keep my property taxes from going up then get rid of some of the cops and teachers instead of laying off the janitors in the school. Guess you must be from another planet or independently wealthy. I'm not!

Besides I could care less about where you think I stand.
 

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Ya. When material costs were lower they never lowered their ammo prices so that just does not wash with me. A better way is to lay off people and cut salaries of the top people if they are serious about saving money!
So if prices on materials were lower and you think they were high on ammo prices, then why were you shopping with them?
They don't have to lower their prices if costs go down. However, you're welcome to take your patronage elsewhere.
 

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Discussion Starter · #13 ·
So if prices on materials were lower and you think they were high on ammo prices, then why were you shopping with them?
They don't have to lower their prices if costs go down. However, you're welcome to take your patronage elsewhere.
I think you need to take a class on economics to understand.
 

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Bloodsuckers? Are they supposed to be immune from inflationary factors just because you want their products?

It would seem that those who complain about a company's pricing policies are free to start their own company and attempt to produce those products cheaper.


Jack
Seriously. Companies are in business to make money.:dunno: So you raise prices or cut cost to make a profit, econ 101. Free country, don't buy from them. I stopped being on the ammo hamster wheel years ago. Stop complaining & reload your own. Lots of component options. I can afford a box or two of factory SD ammo every 2-3yrs.:upeyes:
 

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Conifer Jack
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You should learn to read! Read what I posted about their operating costs. Looks to me like they are having no problem making money.

Oh I know how to read, as long as there are no big words and plenty of pictures.

I also understand business... at least that makes one of us. Over looking for the moment that we operate under a capitalistic model which affords businesses to make their own decisions as to acceptable profit margins based on ROI, among a myriad of other factors.

You voice your displeasure at a rise in prices but look at it from a unilateral position based on your personal desires. Anyone can read a 10-Q or a 10-K but very few have the ability to either interpret the numbers or extrapolate them out for five, ten or twenty-five years.

Is this particular company located in a state operating under a budget deficit which will require an inordinate property tax increase in the coming year or years? Will that not effect the company's bottom line?

Does the company pay a higher than industry salary to it's employees to help insure loyalty and retention? Does their business model include scheduled raises, matching qualified plan contributions, employee daycare, paid holidays, overtime, etc. that would all be placed at risk if an acceptable profit margin were not maintained?

Dealing in vast amounts of raw materials, copper, etc. is the company placed in the position of having to hedge their continuity of inventory supply by commodity investments? If so don't they need liquid cash reserves to meet unexpected but highly regulated and enforced margin calls?

Unless they have mastered the mystical properties of Magic Carpet transportation their raw materials are shipped by common carrier subject to the ever changing fuel costs, hazardous materials regulations and constantly changing state transportation permit fees. Are you suggesting that this company, any company for that matter, not look to the future and anticipate rising operational business costs?

How much of their production equipment is nearing the end of its useful life and must be replaced within the next three to five years necessitating a sizable capital expenditure? Will depreciation schedules change unexpectedly in an attempt to reduce the national deficit and suddenly leave the company with a unrecoverable cash flow problem?

Did their original business model plan for a six-percent rate of return on liquid assets but now, and for the last several years yield ony one and a half percent?

We could go on and on but I sense you have no interest in knowing how businesses actually operate but would rather complain because for some reason you feel you should have the power to determine how much a business should make even though they were the ones that put their money, time and talent at risk.

Again, if you feel you can do it better and cheaper while still maintaining an acceptable ROI you are free to mortgage your home and give it a shot. Good luck.


Jack
 

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I will shop elsewhere. What they say is garbage!!

Third quarter sales in the Security and Sporting group grew 25 percent from $167 million in the prior-year quarter to $209 million in the current quarter, reflecting increased commercial ammunition and tactical equipment sales, including $21 million of new sales from the recently acquired BLACKHAWK! business.

Operating profit in the third quarter increased 12 percent from $27 million in the prior-year quarter to $30 million in the current quarter, primarily reflecting higher sales volume including higher margin products from BLACKHAWK!, and improved operating efficiencies, partially offset by higher raw material costs and softening demand in some areas of commercial ammunition."
So they sold 25% more product and had a 12% increase in profit. Meanwhile they acquired a new product line (with a higher profit margin). Sounds to me like the higher profit product line is now carrying most the profit despite the increase in overall sales volume.
 

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Is this particular company located in a state operating under a budget deficit which will require an inordinate property tax increase in the coming year or years? Will that not effect the company's bottom line?

Jack

Bravo Jack. Not to mention high medical benefits cost. Brought on by that obama person sig voted for. :whistling:
 

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Time to boycott ATK!!!!!!!!!!!!!!!!!!

I don't think so.

Due to these historic increases we are forced to raise pricing as follows:
Centerfire Handgun and Rifle 7-15%
Promotional Rimfire 10-15%
Standard Rimfire 5-10%
Shotshell 5-10%
Primers 10%

I notice how you failed to mention how they were priced compared to the rest of the market. Does that increase bring them in line with their competitors or might they still be a bit under? Hmm.
 

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Bravo Jack. Not to mention high medical benefits cost. Brought on by that obama person sig voted for. :whistling:
No love for PBO, but bankrupt states is not his fault. Look to the public employees, their high salaries & benefits, plus complete incompetence by most state govt spending programs. There is too much overlap in govt functions, too much red tape, it is the nature of the govt. They make nothing & provide little in the way of service. Their job? To push paper so some other govt employee has a job.:dunno: Govt. is the only place where if you can't do your job, they hire another boob to help you. In most private sector jobs, if you can't do the job, they'll fire you & find someone who can. I've worked both public, private & union jobs, so it isn't just hyperbole. Public setor & unions suck the efficiency out of any type of job. Without a thriving private sector, everthing else collapses.:steamed:
 
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