Your leadership of S&W

[BillCA]

Flight of fancy stuff here.

Another thread that pointed out S&W's stock is now just under $3 a share got me to thinking about some of the mis-steps and silliness that S&W has done over the years.

So here's the basic question - If you were CEO of S&W what kinds of changes would you make to the corporation?

For the sake of this thread - we all presume the #1 act would be to remove the much-hated internal lock. So... what changes would you want to implement at S&W to produce quality products and generate interest in your products?

Keep in mind that besides their handguns, S&W also
- Owns Thompson-Center firearms
- Makes high quality police handcuffs
- Offers outsourcing in Forging, Heat Treating, Plating and Finishing metals (supplies services to other businesses)
- Operates a shooting-sports center in Springfield, MA.
- Offers numerous training classes in firearms use.
- Produces an AR-15 rifle and i-bolt rifles (based on Thompson-Center work)
- Sponsors a NASCAR team (as advertising write-off most likely)

If you just want to stick with what guns S&W should produce that's fine too. But I ask people to really think about what S&W should be doing.

 

[Webleymkv]

Well, the first thing I'd do is to expand the "Classic" line of revolvers (including reintroducing the K-Frame .357 Magnums) as there seems to be a large demand for them. Also, I think I'd start taking some of the existing revolver platforms in different directions (i.e. a 5-shot L-Frame .41 Magnum seems like a good idea that may sell well)> Next, I think I'd pursue some more agressive marketing strategies with police departments (similar to what Glock did) particularly with the new M&P pistols as I think that may be a source of many missed opportunities. Adding to the police market, I would re-introduce pump-action and semi-automatic shotguns, take another look at select-fire products, and perhaps look into a tactical version of the I-Bolt so as to be able to offer a complete line of firearms for police applications. Finally, I'd look into getting back into the ammunition market as well as the firearms accessory market (slings, holsters, optics, etc.). It would seem that being able to negotiate almost all their firearms related equipment with one company would appeal to many police departments.

 

[NYH1]

I think they should expand their SW1911 line with a few more cartridges. I have a SW1911 45 ACP and absolutely love it. I would really like to have one in 9mm, maybe even 10mm!

I'm not really a revolver guy, but I think their revolver line is solid. From what I've heard their MP15's are pretty good rifles. I think their MP15's and their M&P service pistol would make a great combo for law enforcement.

My friend is on our cities police force (about 500 officers). They've used S&W handguns for as long as I can remember. From 357 mag. revolvers and now 45 ACP pistols. They've alway's used 45 ACP's since switching to semi auto pistols. 4506's a while back, then a few other stainless full size models over the years. Now they use M&P 45 ACP's and were talking about getting the MP15 rifles.

They make good products, especially for law enforcement. If they can expand that business it would really help them. Our city PD swears by S&W products!

Just my $.02.

 

[B.N.Real]

Forget the Nascar advertising.

Smith and Wesson is the most recognized handgun name in the world.

Reduce the product line to those guns that actually sell well enough to make a profit.

As much as I'd like to see the lock gone on the revolvers,the reason it's there is to protect the company financially so I can't see them ever going away-but it sure would be nice to see them go.

Reduce the calibers they offer but it's a hornets nest in that.

How can you compete if you don't offer a competitive product?

Sell Thompson Center arms and the product line that goes with it(assuming Thompson Center arms is losing money).

If the companies bleeding money,you have to cut costs.

Close down the training classes unless the users pay for them.

Increase the use of the outsourcing department as fast as possible at a profit.

Make sure that the Smith product retains a very high level of quality no matter what.

If the 1911 line is'nt making a large profit,stop making them.

The 1911 is one of the most copied guns in history.

To try to insert a quality 1911 into a field that has so many other alternatives make little sense.

Smith makes great revolvers and now makes great polymer semiauto's that have been accepted by police departments around the country.

Expand the polymer line and add two Kel Tec type pistols (9mm and 380acp) to it.

Work on the triggers of the M&P line,to make them the absolute best in the business.

The economy is going to get really harsh in the coming years.

Smith and Wesson will have to trim many things and refine others to survive.

The trend has been for other healthy companies in the same business to purchase companies like Smith and Wesson at this exact time of weakness.

I fully expect that this might happen and if it is'nt stopped,I would'nt be surprised to see the Chinese buy it.

And that would be very sad.

 

[AZAK]

S&W needs to get back to what has worked for them in the past.

They used to have a reputation for quality products. They need to regain that reputation at all costs; including cutting what does not work/ getting rid of the "garbage guns" that are in their line up.

Forget the internal locks. Actually make a stand concerning sue happy lawyers.
A gun is dangerous in its inherent nature and by design. So is a knife; don't see warnings and internal or external locks on them. People accidentally and intentionally cut themselves and others with them.

Begin making great revolvers again, this has always been their strength.

Make sure that all of their guns have sweet triggers right out of the box, always.

Actually build a reasonably priced .22 entry level handgun that is consistent in great quality.

Actually build a reasonably priced semi auto pocket carry that is of a quality design and construction.

It all depends on the mindset that S&W adopts: S&W is in it for the long haul, by doing it right even if that means losing a lot of the offerings, or is a business/commodity that is just there for the share holders in it for the quick buck.

 

[Yellowfin]

I think their entry into the AR15 market is a good one. They need to lower the price on it and make it competitive with the rest of the market, particularly the 5.45 version. What seems to be missing from S&W is the competitive drive. I'm not sure it's at all a priority to them.

 

[pogo2]

Sad story

If you go to the link below you can see a stock price graph for Smith & Wesson:

Smith & Wesson stock data

The price has gone from over $20 per share to $3 per share within one year. Of course the overall market is down in this period by 25% to 30%, but S&W has done a lot worse. So they need to do something different.

 

[Smaug]

Bill, to me, the key to this question is to get the right people in charge of the company.

This doesn't mean some hot-shot MBA or desk manager type. It means someone who has spent a lifetime with us shooters, participating in gun culture.

The best bet would be to find someone who has been with S&W for a long time who works there because he likes shooting and being involved in shooting. Hire him an MBA advisor, but one who can be overridden once in a while.

Now, as to the original question:

I would do a forum-wide thread title search of "S&W", "Smith & Wesson", and "Smith and Wesson". I'd probably spend a few weeks reading, taking notes. There would surely be several topics that would keep popping up. Things that make us gun guys angry.

The first step would be to poll TFL, THR and every other gun forum I could find with your exact question. I'd sign up anonymously, post something just like your original question and see what the response is.

Here are my gut feelings on what they should do.

- Stop pimping their name out to other industries. For instance, their outside casting industries and so forth. Getting into rifles, shotguns, etc. seems OK. Ruger was initially only known for his 22 pistols. Now they are known for all types of guns. No reason not to branch out as long as it isn't so far out as to water down their core business. I have a S&W folding knife. It is OK, but it gives the impression that the name is for sale. Mr. Smith & Mr. Wesson would not be impressed.

- Stop being so liability-concious. Examples are long-reset triggers on the new S&W M&P and the internal locks. I think Ruger handled the lock issue much better. Instead of making the guns ugly by building the lock in, they provided a separate lock. Those of us who will use it will use it. Those who won't can simply use the lock on our shed and the gun won't ruin the aesthetics of the gun. Simple but effective. I'm sure they have a team of sharp lawyers who can handle whatever comes up.

- In relation to this, stop settling out of court. If a few of these money hungry sue-ers were to be publicly beaten by S&W, (maybe even counter-sued) maybe people wouldn't be so anxious to sue big gun companies.

- If the company nose MUST be stuck into politics, side with the 2nd Ammendment team. We are the ones buying the guns, after all.

- Get back to core values. S&W used to be known for high quality all around, without having to pay Custom Shop fees. There's no reason to be afraid of having actual humans work on guns. The more modern our society becomes, the more we learn to appreciate how well things were done in the past.

Here on TFL, we also have to consider the possibility that maybe we aren't S&W's biggest customers. We like the old, used S&W revolvers a lot. S&W doesn't get a dime from that. Buying one new revolver or pistol is a drop in the bucket compared to a police department buying 50 or the Army buying tens of thousands. If we want to leverage our voice, we should ask the forum owner to arrange a group purchase. If we bought as much as a police department buys, (and could prove it by a big single purchase) maybe we would have a vote like they do!

 

[Sevens]

sorry for the thread drift, but it's on topic IMO

I realize that this is like answering "red" to a question that stated, "Pick a number" but with the active Ruger thread, and now two active S&W threads, I have to wonder how it is that Colt isn't much, MUCH more of a topic.

If you want a classic American gun maker who has shot themselves in the foot, ran a company in to the ground, and peeved off every gun owner in the country, look no further than Colt.

Where S&W, Ruger, Remington and Winchester have done made some curious moves and evolved in their own strange way, nobody in the country or the industry has taken such an empire and turned it inside out quite like Colt has done.

Or is this just an old discussion since Colt hasn't been an industry leader since the 80s?

 

[zenner22]

The "Classic" Line of revolvers should be made EXACTLY like their older versions, meaning not only no lock, but I'd like to see the firing pin back on the hammer too. If they made revolvers like that I'd be buying the "Classic" model 29 they introduced. If it is a "Classic" line, make it genuinely that.

 

[sholling]

About the only changes that I'd make now are getting rid of the locks and hiring more marketing reps. You never see S&W reps working sales and events around here. Plenty of SA and Glock reps but no S&W reps.

Right now I think what you're seeing in the stock price are two things. Political uncertainty that I won't go into here, and a push for market share. The i-bolt etc were an over-reach for this point in the game and should have waited. Probably a better move would have been to acquire Browning.

IMO the M&P15 (AR15) is part of an aggressive bid to take back the law enforcement market with a suite of M&P offerings and was a brilliant move. At the rate that they are taking back share I may just pick up 100-200 shares (or not) come November.

 

[gretske]

Of the $72m in S&W's firearms revenue, $64m is through sporting goods distributors and retailers, who take a healthy chunk of the margin. Although the unquestioned market leader in past years, S&W's market share in the more lucrative government market is now small compared to Glock, for example. (Glock is private, but there are estimates that it sells $50m in the U.S., probably as much, or more, overseas.)

If I were the president of S&W, I would concentrate on moving my existing products, like the M&P, to government. They had a big management shake up a couple weeks ago, and an new VP-Sales was promoted. He should be focused on governmental sales. If they held their own in the retail channel, and got half of Glock market share in gov. sales, they would increase sales 25% and profitability would at least double.

 

[Niantician]

I own a S&W poly pistol, and a S&W Perimeter Mountain Bike. The bike is of higher quality. When was the last time a S&W product really made some noise? I would say when the 500mag came out. Springfeild, Ruger, Taurus, they're in the gunmags every other month with a new innovative product. If I was S&W, I would get in the news. I"d offer the M&P in 10mm, and then a 17HMR semi autmatic

 

[BillCA]

Keep it coming folks. I'm seeing some interesting comments here and I'm sure someone will get specific on what they think would be a good strategy.

Just some other information for those who might not look it up:
$295.91 M - Total Revenues (4/2008)
$104.92 M - Gross operating profit
$ 14.80 M - Income before taxes (EBT)
$...9.12 M - Net income
34.80% - Gross Margin (TTM)
11.40% - Operating Margin (TTM)
3.10% - Profit Margin (TTM)
(TTM=Trailing Twelve Months)

Also, for what it's worth, firearms manufacturers are not allowed to sell directly to retail FFL's. S&W sells to distributors at a "wholesale" price which is usually substantially below the retail price of the gun.

 

[HiBC]

If I knew enough to answer this,I'd be making a lot more money.
I saw bags of wood pellets for smoking meat with the S+W name on them.
Some companies have a Mission Statement that says what they are about.It helps them focus.
S+W,a worlwide leader in the mfg of high quality smoked meat chips,knives,?????????

Sometimes,its good to ask,What are we really,really good at?
And then do that.

 

[Spenser]

I'd agree with a few of the propositions here. Back to their basics, with awesome revolvers out front. Drop some of the fluff from the product line, which unfortunately would probably be the entire third generation line. More classic revolvers as noted, and really up their offerings with 1911's. Drop the internal locks on their products. I like the direction they are going with the M&P line, especially the new revolvers and the Nightguard stuff. I think they'll turn it around before too much longer. They have proven they are interested in what the shooting public wants, which is a good thing. With the notable exception of the stupid internal locks, but I still have hope....

 

[HiBC]

Its been so long,I forgot the details,but during Clinton days,S+W made some decisions that caused a portion of gun buyers to turn away from them.
I think that was when the Brits owned S+W
Especially since the Supreme Court made it's 2nd Ammendment ruling,it might be a good time for S+W to make a strong campaign stating they support my right to buy one of their handguns.

Then,on at least some of the line,like the Model 29,make the current prduction guns the best ever.Make the one you make today the most desirable series,not one from 20 years ago.

Would the cowboy shooters support a Schoeffield? They are one of the more active shooting groups.

S+W has a DA revolver niche.Thats their identity.DA revolvers are great,but LEO's and the public are packing semi-autos more often.
I don't know about everyone else,but a double stack 10mm Commander with a titanium frame might be an offering.Under $1000.

 

[Bogie]

I'd cut the NASCAR crap first...

The locks second.

I'd start up a spinoff brand for "entry level" firearms.

I'd hype the "custom shop" stuff, and make sure it really -is- custom shop.

I'd implement a program, similar to the drug testing crap, where random employees are spot-checked with the paraffin test for powder residue.

Do it in public, in the lunchroom, and everyone, from CEO down to Janitor, has a chance of getting picked.

They get three strikes.

 

[M1911]

I'd implement a program, similar to the drug testing crap, where random employees are spot-checked with the paraffin test for powder residue.

Do it in public, in the lunchroom, and everyone, from CEO down to Janitor, has a chance of getting picked.

They get three strikes.

You lost me. If they have gunpowder residue on their hands then the get fired? Or if they don't have residue on their hands they get fired? What, exactly, is the problem that you are trying to solve?

 

[zxcvbob]

Apologize to gun owners for selling us out with that (Clinton?)settlement, and declare it null and void because the government has already broken the terms of the agreement. (I know it will end up in court if they do that.)

Get rid of the internal locks; put a Taurus-style hammer lock on some models for people that want locks, no lock on others.