Abandonment

I've been watching, and reading, about some companies in the AR world and noticing a trend.

Company makes something that's really a niche item.

Customers like the niche item and then discover the company also sells mainstream items.

Customers tell friends because of their positive experience.

Friends, who are not interested in the niche, buy lots of mainstream items.

Company decides that there's no money in the niche, drops it.

People who liked the niche item complain.

Company explains how much money they are missing out on by supporting the niche.

Customers remind company that the niche is what put them in the position to sell so much mainstream.

Company says, "oh well, we're making money on mainstream so we don't need to support you niche buyers."

Customers take that as, "thanks for making this possible, now fuck off!" and stop buying anything from the company.

They tell their friends.

Friends join the boycott. Company begins to lose business and market share.

Company ignores problem.

New company opens to fill the niche.

Customers like the niche item and then discover the new company also sells mainstream items.

Old company goes away.

Repeat...


After location, I would say the next most important rule here is "dance with the one that brung yah." The AR market is fickle and capricious enough without the companies actively pissing it off.

Examples:

Del-Ton. Del-Ton made their niche in selling complete AR kits, less the lower receiver. The kits were good quality, the shipping was relatively fast, communication was good, no order was too small and the customer service was friendly. In the fall of 2008 the decided to become an FFL and offer their own brand of lower receiver and complete rifles. Shortly after that the election rush began. Customers ordering parts were told, "We are a rifle company now, not a parts company." Shipping slowed to a halt and customer service stopped being friendly. People who were on back order got to watch people who had ordered after them receive their goods before them.

The internet allows the customers a place to compare their experiences in the form of forums! A pattern emerged about the order priority. Complete guns were taking priority over parts. Parts that were found in the complete rifle models shipped before parts for other configurations. Larger orders were filled before smaller ones. Threads on their industry page on ARFCOM used to read like, "OMG! My parts are here, THANKS!" now they read, "It's been eight months, when do you think you'll get around to filling my order?"

DO NOT ALIENATE YOUR CUSTOMER BASE!

CMMG is at the beginning of this cycle. They are a barrel maker. Their niche was making barrels in configurations not supported by the other companies. Because of BRD (black rifle disease) the niche customers would often order a mainstream configuration to make it a "one stop shop". Their friends noticed the quality and ordered their own mainstream barrels. Notice the trend following the form?

Yes, the niche is a small part of your business. Yes, down time changing the tooling is like losing money.

Without the niche product, how are you better than the three other companies who make barrels yours? It's called competitive advantage. It keeps the doors open.