This article was originally posted on Thefirearmblog.com
Utah-based SilencerCo recently announced a dealer direct purchase promotion, allowing individual FFL/SOTs to buy a package of silencers at reduced rates. Labeled the ‘2017 Dealer Kit’, interested dealers can buy five silencers at reduced rates and receive two additional silencers “free”. I have omitted the discount figures in the graphic below in case they are somehow proprietary.
The move is a departure for the iconic silencer manufacturer** – in the past SilencerCo has relied heavily on a distributor network to get suppressors onto the shelves of dealers and in to the hands of customers. Similarly, with the introduction of the Maxim 50 muzzleloader last month, SilencerCo offered direct sales to consumers, initially bypassing their distribution network. Although it appears that the Maxim 50 is now available through both wholesalers and a few dealers.
An informal poll of some SilencerCo dealers and distributors reveals apparently high levels of stock of their products, by some accounts an 18 month supply. If that is truly the case, a dealer direct promotion would seemingly undercut their normal wholesalers, further suppressing sales (pardon the pun).
Without additional information on the program, we are left only left with speculation and conjecture. Is this a paradigm shift for the headlining silencer company – moving towards dealer direct sales and away from their distribution network? Or, along with recent layoff news, is the new promotion a technique to generate much needed cash flow quickly in a downturned NFA market. (I don’t think I need to get into the emotional swings we’ve all experienced through 41P/41F or HPA/SHARE Act ‘hopes and dreams’ in the last two years.)
Additionally, multiple sources have been discussing the rumors that SilencerCo has sold off their headquarters and manufacturing building and surrounding land to a third party – another strange move if true. I reached out to SiCo for comment on the sale and received a response from President Jason Schauble:
SilencerCo is not moving its location. SilencerCo is a privately held entity and therefore does not publicly comment on internal financial matters.
With ATF/NFA wait times dropping, the hope is that consumers will get back in the game, silencer industry sales will gather steam, boosting manufactures numbers. In addition, with the 2018 SHOT Show only 2.5 month away, excitement over new product announcements should start to build, energizing the current customer base and drawing in new potential owners. And SilencerCo never seems to disappoint with their SHOT Show debuts and displays.
** Correction: The Dealer Kit promotion is sold through distributors as a drop ship package.