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Selling quality pistols new in the low $100's, waranty repairs with no questions asked, sending out replacement parts and extra parts free of charge and not even charging for shipping, paying return postage on waranty repairs, free mags with every repair...

How do they even turn a profit?? Better question... how can people justify hating them??
 

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Mass production, low overhead and keeping customers happy and coming back. Not wasting money on retooling and changing the design every few months.
Simply make a good product at a fair price and a loyal following. If you have the 9mm you, at some point will want the 995 carbine to go with it. Then you may want the .40 then the carbine for that and the .45 and at a little further out date, the carbine for that.

OK, go buy the hat. LOL
 

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volume. HP is in the top three gumakers by number of handguns made. i think only glock and smith and wesson make more handguns than HP does. if you sell 100 pieces and make 5$ each for profit, you can sell 1000 pieces at 1/10th the cost and make the same amount of money. and core had a good point, out of that high number probably less than 5% come back during any given year for repair. also HP shooters are two types: either a first time gun owner who buys a nhandgun, leanrs to shoot it and leaves ti n the bedside table after that, or a high volume shooter who knows a bargain when they see it. the later group has high loyalty and will go back over and over to re-buy a cheap, good product. id say its an even split between the groups.

SW
 

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I would imagine that they make a great deal off of the sale of magazines, too. Even selling the mags for $15 - $18, considering how little actually goes into manufacturing them, the profit margin must be pretty great. And how many of us only have the factory magazine? Heck, the first time I shot my 995, I got home and immediately called and ordered 2 more, and two more for my JCP. And I am placing an order this week for myself and my father-in-law for more mags for our C9s and 995s. That must add up over time.

I would love to see how many guns they are selling a month now. Long Live Hi-Point!!
 

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You hear a lot of remarks from people about the warranty and great service. What you don't hear a lot about is people like me who've owned 4 of their guns and never contacted them for anything--I've never had a problem with guns / magazines /etc.

The large majority of buyers probably never have a problem.
 

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You would be surprised how little that it actually costs HP to make their guns. I have no inside knowledge of their costs, but I can tell you from my time in manufacturing, that when you have a multi-tier distribution (manufacturer -> wholesaler/distributor -> retailer) that you can expect the actual cost to be 1/3 to 1/5th of the suggested retail price.

I know my gun retailer can get HP C9's for $99 his cost. That's buying from a distributor, who is also making a profit. HP is probably selling to them at no more than $70 per gun, and that's at a profit for HP. These guns are CHEAP to make.

And the warranty for HP ensures sales volume. How many of you would have bought a $150 gun if it had no warranty? How many times have you read, "and it has a lifetime warranty, so even if it breaks, you're not out the money?"

The warranty makes people comfortable buying the gun, and that helps volume.
 

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I got told in a gun shop here in Tacoma (that I no longer patronize) that Hi Point had the largest profit margin of any manufacturer. My response? "So? Your point?" I really don't care if Hi Point is making money off my purchase of one of their pistols.....is that not the point? What I care about is the fact that my Hi Point has never failed me, and if it ever did have a problem, the people that made the "ridiculous profit" off my gun will be giving some of it back in warranty support and the free mag they are throwing in when I get it back. Better than many other companies that charge ridiculous amounts of money for their guns and then refuse to support their customer when they call up saying it doesn't work worth a damn. Hi Point seems to have found a business model that works and I don't have any bitterness about that. Isn't that the American way?
 

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I got told in a gun shop here in Tacoma (that I no longer patronize) that Hi Point had the largest profit margin of any manufacturer. My response? "So? Your point?" I really don't care if Hi Point is making money off my purchase of one of their pistols.....is that not the point? What I care about is the fact that my Hi Point has never failed me, and if it ever did have a problem, the people that made the "ridiculous profit" off my gun will be giving some of it back in warranty support and the free mag they are throwing in when I get it back. Better than many other companies that charge ridiculous amounts of money for their guns and then refuse to support their customer when they call up saying it doesn't work worth a damn. Hi Point seems to have found a business model that works and I don't have any bitterness about that. Isn't that the American way?
Good point
 

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Good old fashioned capitalism..........

Let's see:
1. Have a product that works and works well.
2. Manufacture that product efficiently in order for the price point to beat the competition by a mile.
3. Have real live knowledgeable people who communicate for the company.
4. Develop a business model based on serving a specific customer base, and refusing to morph out of that niche.
5. Ignoring nay sayers.
6. Recognizing the POWER of a GREAT warranty to develop and keep a customer base.
7. Making their product in the USA.
8. Making a product that works so well that customers like me have never had a problem, and I own 4 Hi Points.
 

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Why am I not surprised that a Tacoma, Washington business would characterize Hi Point of having, "...the largest profit margin of any manufacturer."

In that part of the US the word "profit" may only be spoken in back rooms and alleys, after dark. The concept of "fairness" has been elevated to nearly religious importance and it dominates all discussions of taxing, spending and doing business.

I would choose not to do business with the "fairness" crowd, since I do not care how much profit Hi Point Firearms makes. The fact that Hi Point does make a profit means that they will stay in business. That is good for them, their employees, their community, the State of Ohio, America and me!

Hi Point's products and customer service speak for themselves. The extra clips I ordered (postpaid) arrived FEDEX in three days and they're perfect. I hope they're all getting rich out there!
 

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I honestly don't care how much profit any company makes on any product. What is of more importance is, can I afford it? If it is a product I need/want and I can afford to buy it, how much profit they make from it is irrelevant to me.

I would be willing to bet that a small percentage of weapons that HP sells actually come back in for warranty service. Some because the owners don't use them, some because the owners don't know any better, and some like mine and some others here, simply do not have an issue that would require returning to the factory.
 

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Everyone has pretty much covered it. The combination of a simple blowback design, polymer, and cast zamak 3 means that the individual guns don't cost that much to produce.
Dealer prices on their guns in the catalogs I get run from $99 to $159, and a bit more if it is a carbine with extras. I don't have an idea what the manufacturing costs per gun may be. I don't doubt they are making a solid profit though.

Just for comparison, I'd bring up this tidbit I recall reading. In the heyday of the cheap Raven, George Jennings was cranking those suckers out at $10 each when they were selling for about $50.
 

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The "real American way" is how. \
Doing business the old fashioned way. Making an affordable, simple, reliable, product that alomos anyone could afford is what made Henry Ford a legend. Making overly complex automobiles that cost as much as a starter home is not. Being convinced by advertisers and marketers that these expensive things are what we need is not. If Coke or Pepsi spent on advertising what Hi-Point does we could still buy a soda for a nickel. I am not slamming any auto or beverage company but rather the whole culture that has developed in our country.
 

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I would say that they are on the lower scale of profit margin. That's why some dealers won't carry them, because they don't make that much profit compared to other firearms. HP doesn't inflate their suggested retail. Another asset for the consumer.
 

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Here's a question for all of you who have called a company for gun repair or questions.

Have you ever called HP during business hours & didn't get through to them immediately? Or did you not get your questions answered quickly by experienced help?

Now, have you ever tried to call any other gun manufacturer for anything & how was your experience with them?

I have only had good experiences when calling HP. Quick, personal contact on the phone(no automated crap), immediate help & very fast shipping of 100% warrantied parts.
 

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volume. HP is in the top three gumakers by number of handguns made. i think only glock and smith and wesson make more handguns than HP does. if you sell 100 pieces and make 5$ each for profit, you can sell 1000 pieces at 1/10th the cost and make the same amount of money. and core had a good point, out of that high number probably less than 5% come back during any given year for repair. also HP shooters are two types: either a first time gun owner who buys a nhandgun, leanrs to shoot it and leaves ti n the bedside table after that, or a high volume shooter who knows a bargain when they see it. the later group has high loyalty and will go back over and over to re-buy a cheap, good product. id say its an even split between the groups.

SW
I do believe Hi Point could make money selling their pistols for $250 -$300 , but they clearly wouldn't sell as many. Would they make as much money? I'm not sure!
 
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