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Lead Turning Into Gold

Friday, August 17th, 2007

By John W. Rymark

Head of Quality Affairs, Kaltron
 

As you know, we don’t bother our customers very often with emails. When we do it’s usually worth the time to take a look. Something has just come up that we felt was important to pass along to our loyal and valued customers.

Chinese industry is very busy turning Lead in Gold. Well not literally, though by this time we’ve all heard about China’s automobile battery production for overseas and domestic sales. The lion’s share of the world’s available lead is going into automobile batteries. The shell manufacturers can not compete with the battery manufacturers for best lead pricing. For the past three years or so we’ve watched this play out and hoped that the rising price of lead would slow or better yet level off. It has only gotten worse.

B&P Italy has just informed us of another upward surge in lead prices. As before, there is nothing the world’s shell manufacturers can do, but to raise pricing on their shells. We had the price of the next couple of containers of shells locked in, or so we thought. Italy just informed us that soaring lead prices makes previously quoted pricing impossible. Our next containers of shells, at higher pricing, will arrive next month. We’ve got stock at current pricing while it lasts. Though when our current stock is exhausted, we will have to increase our pricing to keep pace with what we have to pay for the shells.

As the prices continue to increase there will be some shooters who will give up accuracy, best patterning, for lower priced shells. They’ll say the only way they can afford to continue their sport shooting is for them to buy cheaper shells. Personally, I’d rather make one or two fewer outings a year and use the best equipment and supplies to better enjoy the individual experience. As I age and have watched persons younger than I succumb to being on the wrong side of the life expectancy bell-curve, I try to make each outing the best that it can be.

I am writing to let our regular customers know what’s happening with the price of shells, why, and to give you an opportunity to save some money. Believe me, stocking up right now at current pricing for this fall and next year’s shooting will be well worth your time.

Thank you for your business. Good luck and good shooting.

John

Posted in Shell Pricing |

B&P 2007; IMPROVES PRICING & INCLUDES SHIPPING

Friday, February 23rd, 2007

By Bob Trownsell

President, Kaltron-Pettibone
 

The world renowned shotgun shell maker, Baschieri & Pellagri (B&P) of Italy, and our company Kaltron, as their exclusive distributor in the States, have very good news for our customers. On February 1st, Kaltron implemented lower pricing on our competition shells and began free-of-charge shipping to the lower forty-eight States.

Over the past few years, one shell maker after another has been forced to raise their prices in response soaring raw materials costs. China has gone from an exporter to an importer of lead. Virtually all of this lead is going into automobile batteries made for the world’s car manufacturers. The relatively small amount of lead used, compared to battery makers, leaves shell manufacturers in a poor bargaining position. The cost of plastic resin has also dramatically increased. We’re all too familiar with increased costs at the gas pump.

B&P is more aware of raw materials costs than most, as B&P sells some of their shell components to both European and domestic manufactures. B&P’s famous Gualandi wad is an example of one of their premium components which enhances the performance of select shells in competitor’s lines. B&P has had to answer to its customers and its competitors alike on manufacturing costs. You might ask, why does B&P offer its components to competitors? This is done to enjoy a better economy of scale. B&P is the only manufacturer to enjoy the total performance of using all B&P premium components and the enhanced results they bring.

We are pleased to announce that we are lowering the price on B&P competition shells and including free-of-charge shipping to the lower forty-eight States. For some time, we’ve had the advantage of being the most technologically advanced and best performing shell on the market, but also among the most costly.

Yet, America thrives on competition and an entrepreneurial spirit. We are a people who try new things and exploit new technologies for their competitive advantage. Thanks to that innovative spirit, in spite of costs, B&P sales have steadily increased to a point that we’ve now established an economy of scale. As more shells were made, the manufacturing cost per shell decreased. In keeping with this spirit, we are passing these savings on to give even more shooters the opportunity of experiencing B&P’s patented Gordon System recoil reducing technology. Please tell your friends, that they now have the opportunity to experience the reduced recoil and exquisite patterning of 100% B&P shells, made totally with B&P components, at improved pricing and with free-of-charge shipping.

Good luck and good shooting.

Posted in Shell Pricing |

WHAT’S HAPPENING WITH THE COST OF SHELLS?

Tuesday, June 27th, 2006

By Don Golembieski

B&P Technical Director
 

I’m Don Golembieski, the Technical Director for Kaltron-Pettibone (Kaltron) which represents Baschieri & Pellagri (B&P) of Italy. As you might already know, B&P makes the patented Gordon System shotgun shells that provide reduced recoil and consistent shot patterns. I couldn’t be happier representing these incredible shells.

I’m from Arizona, so I’m about as American and as plain a speaker as you can get. I’m a precision machinist, gun smith, firearms and ammunition technical consultant, as well as a competitive shooter, and have been all of my adult life. Combining technology with the shear fun of shooting and it couldn’t get any better. So, from time to time I’ll be posting some insights and what’s happenings blogs for B&P.

Well, let’s get down to it. You know, politics, the courts, and world oil prices have made us all pretty dog-gone sensitive and suspicious. So, when anything goes up in price it’s a conspiracy.

Partner, like you, I’m used to being on the questioning side, not the answer giving side. Now I’ll do my best to tell you why the cost of B&P shells have increased so much since the previous distributor.

Would you have ever believed there would be a world-wide shortage of lead? Aren’t they getting that nasty old lead out of everything? No, it turns out that there is more need for lead for car batteries and other products than ever before. China had always been an exporter of lead, and now they only import. The price of raw lead has increased 40% over the past two years. On top of that, the energy and labor needed to make finished lead shot cost even more than the raw lead.

Then there’s the 50% increase in the cost of plastic. The hull, wad, and our patented Gordon System shock absorber in the base of each shell are all made of plastic resin. You guessed it, plastic is made from oil. All you have to do is watch the nightly news and the meter on the local gas pump to see which way that one is going.

If this all wasn’t bad enough, the American Dollar has lost 40% of its value compared to the Euro. Inflation, deflation, manufacturing jobs, whatever, we’ve got to pay 40% more for European products. That’s all that matters.

On the other hand, someone might say why didn’t some of the other brands of shells go up in cost as much as B&P? The bad news for B&P is that their competitors are so big that they’ve stock piled a mountain of shells made when materials cost less. The good news for B&P is, by being smaller they can put a lot more quality checks into every batch of shells, and coupled with the patented Gordon System, they are the most consistent patterning shells in the world.

Like I said, I’ve been a sponsored shooter for most of my life and its consistency, consistency, consistency. I’ve found shooting cheaper, lower quality ammunition costs more in the long run. Was it your lead or the ammunition that missed that shot? From the novice to the veteran shooter you’ll spend a lot more time, ammunition, and money with cheaper shells. Partner, when the next shot really counts, don’t count on the poor pattern of a cheap shell.

Adios, and good shooting.

Posted in Shell Pricing |

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