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Desperation? Hardly.


They've realized they have a step on the poly market competition.


After 30 years of shooting poly/striker Tupperware, I own ONE. A Walther PPQ 45.
 

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It looks like an act of desperation.
I doubt it. It seems to me like they are sure that if people try one, that they will want to keep it.

It always seemed that the US market was an afterthought for Walther before the PPQ was released. They even had a rival manufacturer handle importation, distribution, and service, with virtually no marketing for around a decade before the PPQ was released. I'm thinking they are doing what they can to expand in this market, and this deal is definitely going to get people talking about it, if not trying one out for themselves. There's probably going to be a lot of new Walther owners in the next few months.
 

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This is a great marketing scheme!

However, my LGS seems to think Walther may be in trouble. But I have no idea why they think so.

Want my honest opinion? Looks like someone may be trying to buy them. Having money tied up in inventory is a big challenge if you don’t want to get purchased. If you can ship a lot of guns and have a 30 day delay in payment, you now transfer inventory costs to accounts payable which is considered a risk to a potential buyer.

I don’t think they want to get purchased and I think they may be using this approach to make them look less desirable on paper.

But again....this is just a guess.

Another guess is that they are having a hard time paying their bills and owe suppliers money. This can impact their terms.

Remember a business is a business. Money rates and cash flow determine health. Nothing else really matters...those other things are just a means to the ultimate end.
 

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All this rampant speculation is funny. :D

Let's see, they built a new place in the states a few years ago, reintroduced the PPK, revamped two entire lines of pistols, made 3 more NEW pistols (PPX/Creed, CCP, PPQ SF), and have factory sponsored shooting teams.

Yeah, I doubt Umarex is going to sell Walther.

The grip of the PPQ and the trigger are simply better than most any other gun on the market, in terms of stock guns. That IS a fact and the public, by and large, have been screaming this in Walther's ear for the last couple of years.

I rest my case. :)

Walther Arms said:
Offer includes all Walther PPQ models: PPQ M1’s, PPQ M2’s, PPQ 45’s, PPQ Sub Compact, Q5 Match, Q5 Match Steel Frame, PPQ 22’s, PPQ Q4 Tac
 

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Often these decisions are made with some market research. I certainly don't know any details, but that research may have shown great name recognition (this is believable, IMO) but a reluctance in the market of potential gun buyers to try Walther pistols because it's an unknown to them.

Think of what Walther Marketing is dealing with at the LGS or Gun Show... We all have heard "Smith & Wesson bought Walther." I *still* hear that one from time to time, even though that rumor stemmed from the now-defunct arrangement of S&W importing and distributing Walther firearms. I've also heard "Walthers are unreliable" (This stemmed from early S&W PPK's, primarily, but hiccups with some of lower-price point products didn't help) but it doesn't matter. All a customer hears is Walther=bad. I often hear LGS employees advise customers "Just buy a Glock" when asking about Walther products--sometimes I believe just because of personal bias. You probably have seen that guy too...he has a Glock on his hip, and is fully decked out head-to-toe in Glock Gear.

In addition, Glocks and M&Ps have done an excellent job at penetrating the law enforcement market in North America. This certainly helps them in the civilian sales. Walther clearly doesn't have that competitive advantage. Yes, we know they sell a lot of pistols to European law enforcement agencies but I don't think that carries as much weight with the US buyer.

At the end of the day, I think the promotion is pretty ingenious. They're going to get paid for the product anyway (even if it's a little delayed). Sure they will have some pistols returned. But then they can sell them again! Either divested on the secondary market, or repackaged as a "Certified Pre-Owned" Walther. The actual cost of the promotion (risk) is pretty low. Probably lower than a discount or rebate, and since it is really aimed and getting people to give them a shot, this might just help pull that customer across the finish line.

After all, PPQ users seem to really love the pistol; I've never read a bad review of one. I'm not saying there's anything wrong with Glock or S&W polymer frame striker guns, either, but I do think Walther pistols are more refined, and I shoot them better. The promo even made me consider which PPQ I was going to purchase next, and I really was never on the fence to begin with!
 

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As to the health or un-health of Walther, remember there are two companies.

Walther Arms is based in the US.

Also, don’t forget exchange rates.

I work for a large multinational global company in strategic marketing. We have years where US health is great and international is bad and the other way around. Of our $20B in sales, 10B is in the US. We live and die by exchange rates.

With Walther not being public it’s really hard to know anything.
 

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As to the health or un-health of Walther, remember there are two companies.

Walther Arms is based in the US.

There's one company. Umarex. Walther is a just a brand.

It's like saying Chevrolet is it's own company.

Walther Arms IS based in the states, but the profits go to Germany... ;)
 

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As to the health or un-health of Walther, remember there are two companies.

Walther Arms is based in the US.

There's one company. Umarex. Walther is a just a brand.

It's like saying Chevrolet is it's own company.

Walther Arms IS based in the states, but the profits go to Germany... <img src="http://www.waltherforums.com/forum/images/smilies/wink.gif" border="0" alt="" title="Wink" class="inlineimg" />
I think you are confusing two things.

Chevy is a division of GM.

But when companies operate in other countries, for taxes, liabilities and many other reasons, they are setup as independent companies.

Exchange rates, tariffs, tax laws, etc....all impact how and why they are setup this way. The US Based company can experience financial Head winds that the mother ship may not....and the other way around.

Walther Arms, INC is an incorporated business in the USA. That’s not an opinion or conjecture, it’s just a fact. It’s a stand alone.

The owners I think may really be an investment group that also own Carl Walther and UMAREX.

Walther Arms, INC is a separate company. They don’t manufacture that I am aware of, but rather perform sales and merchandizing with focus in the US. Their COGS are based on costs from Germany naturally. But they file in the US, pay taxes in the US and perhaps at some point, may even want to manufacture here. Some of the guns I believe already are by S&W.

As to where the profits go, they go to the US Based Company. They pay taxes on the profits and then can reinvest the profits or leave the money in the bank as cash assets. The mother ship makes money in two ways....by moving product and by increasing the capital of the business in the US. At some point, it could then be sold to extract that growth.

There are no profits that get sent to Germany per se. But rather, whoever is making the guns have an internal manufacturing cost, but then transfer those costs to the US. Let’s say the gun costs $100 to make. This $100 might then turn into $200 as a COGS to the us based business. That’s most likely how the German-Based business makes money so to speak.

It’s all quite confusing of course and very complicated.

Anyway, we are getting way deep into the weeds.


https://www.waltherarms.com/about-walther/history/
 

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The bottom line is we do not know the finance health of Walther.

We do know Umarex sells their toy-like guns leveraging the Walther name. That is worth something to them but the profits of Walther proper.

My best guess is this is a Walther attempt at a creative marketing/sales strategy. They seem to be trying different things to get the word out about Walther --- particularly about the PPQ.

I believe they know they have a very competitive product with the PPQ and are doing whatever they can think of to increase their marketshare.

Like I said before though, I'm just speculating like everyone else because Walther's financial health is not a matter of public record.
 

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It's an effort to get noticed in a sea of black poly pistols that tend to include Glock and everybody else.
Can't say I'm charmed by the Walther polys.
BTW, regarding the talk of a buyout, weird stuff happens in the gun bidness, including self-righteous efforts to get enough stockholder seats on the board to direct the company down rabbit holes like 'smart guns'.
Our enemies are nothing if not relentless and creative.
Moon
 

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Good point.


S&W just went down that rabbit hole, a group of vocal nun shareholders forced the issue.
 

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I think gun companies are in a real fix guys.

They can’t please everyone. Know this....technology will advance and laws will change.

Why am I buying as fast as my budget allows?


See above.
 

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Is Umarex/Walther a private company? I believe they are and that is a good thing. There are no stockholders, there is no stock price.
 

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Umarex is a GmbH, literally translates to LLC (limited liability).


Private held org.
 
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