I enjoyed my time at this year's expo for the National Association of Sporting Goods Wholesalers (NASGW), and a lot more than I expected.
The NASGW Expo is a relatively small show, as far venue footprints go, making it an easy show to maneuver through. It is also a quiet show, especially compared to SHOT Show or even the NRA Show, where attendees are counted in the tens of thousands.
While NASGW is indeed a small show, it is an outsized show in terms of sheer buying power. NASGW is the association for the wholesale distributors in the firearm and ammunition industry. These are the companies that can, and sometimes do, buy firearms by the container load, and then warehouse that inventory to supply retailers around the country (i.e. two-step distribution).
It’s a very important show. Considering the last time I attended an NASGW Expo was something like 20 years ago, I was a bit behind the curve on just how important a show this is.
NASGW is a true business show. It’s a selling show for exhibitors and a buying show for wholesalers. But what is less commonly known is that it’s the show that can often determine whether or not a new product sees the light of day.
A good friend of mine who is one of those ‘sales rep guys’ explained to me how a company he previously worked for had once rolled into NASGW with 10 or 11 new firearms. When they left the show only four of those guns were going to be released, and the remaining models relegated to the engineering vault for future consideration.
In other words, the positive response by wholesalers to a new product is what pushers that product to market. Without strong wholesale support – and the large orders that come from that support – that product won’t, and many times can’t, go into full production.
I’d like to tell you that I was given the chance to peek behind the curtains in all the exhibit booths to see those secretive new products, but that’s just not the case. There’s no telling how many new products were presented behind closed doors that we’ll not see in 2024, or maybe at all.
However, I did get the abbreviated ‘Show & Tell’ in one booth where they walked me through three new handguns. To me, each of them seemed a solid offering, and with price points well suited for this new era of painful inflation.
Circling back on the last day of the Expo, I inquired as to the buyer response, and while all three were well received, one was by far the clear winner among the wholesalers. It was not my first choice of the three, so it will be fun to find out next year which was most popular, and whether the wholesalers or I have a better read on the consumer. (spoiler alert: bet on the wholesalers)
This was not the first time I guessed wrong at the Expo. During Thursday night’s NASGW Appreciation Dinner at which they announced their Appreciation and Caliber awards, I sat next to an executive from one of the NASGW member companies. As award winners were announced I listened carefully to their response to see if they agreed.
There were a couple times it was clear they did not agree. Fortunately, I managed to suppress any urge to ask them who they thought should have won. There were two categories in the Caliber Awards where I correctly guessed the winners – but that and 50 cents still won’t get me a cup of coffee.
Out on the show floor is where I found not just new products but important insights into what to expect in the coming year.
Depending on who you talk to, and what their business model is, you get two distinct views on the current business climate. One group tells you it’s slow, and it’s slow for everybody with new products being the best avenue out of the economic morass in which we find ourselves.
The second group, well, their take is entirely different. Though they may not be having a banner year they are doing well. When I asked why, I got a couple different answers which all seem to revolve around a better, more responsive business model.
Not relying on the old trope of ‘it’s slow for everybody’ – the popular excuse people use as cover for their lack of foresight – companies that are poised to come out of 2023 strong are doing so because of solid planning and management.
In a discussion with one wholesaler, who I certainly won’t name, they all but balked at things being ’slow.’ When I asked how they were managing their way through this year they explained that they use a couple key product indicators and when those sales slow they immediately know to back off on their purchasing. This approach to knowing their customers, their products and their sales trends means they haven’t been sitting on dead inventory, and are about to close out the year in great shape.
Another aspect of the Expo, and NASGW’s role in supporting their members, was the presence of two business entities hoping to find fertile ground amongst firearm industry members. Old Glory Bank and Fortify Insurance were setup just outside the show floor promoting their tailor-made solutions for the firearm industry.
I got the chance to speak with Eric Ohlhausen, the Chief Strategy Officer and President of Old Glory Pay. He explained that they are not simply a banking option for the wholesalers, or even the manufacturers, but offer banking solutions all the way down the sales channel to retailers and consumers.
When I mentioned the Obama Administration’s Operation Choke Point, which put pressure on credit card processors to walk away from doing business with firearm and ammunition companies, and has been the bane of many retailers and online merchants, Eric was quick to point out that Old Glory Bank is poised to fill that need for those companies harmed by Operation Choke Point.
He also talked about Old Glory’s alternative to PayPal, Venmo, Zelle and the other peer-to-peer payment options that all seem to have one thing in common, a complete disdain for the firearm industry and gun owners.
Improving business through better partnerships is an important area of focus for the National Association of Sporting Goods Wholesalers. The manufacturers need the wholesalers, who in turn need the retailers. And each ultimately needs the consumer. And to make those symbiotic relationships work requires an ever growing, and ever evolving, set of business opportunities.
NASGW is doing its part in the ongoing fight to survive the increasingly hostile business and regulatory climate, not just for today but for tomorrow, and with any luck, for the many years to come.
— Paul Erhardt, Managing Editor, the Outdoor Wire Digital Network