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RB;

It is obvious that you have never been in the manufacturing business. Overhead is not just overhead, direct costs and profits are not just direct costs and profits.

Think about this for a minute.

Miroku makes most all of the rifle and shotguns that Browning markets and has their name on. Miroku also markets a line of firearms world wide that for all intents and purposes are identical to the Browning badged firearms. Since you rarely have to wait for any particular Browning firearm, it is obvious that somebody at Browning distribution knows what they are doing. Both the Browning and Miroku guns come off the same line and you don't need to wait for a Browning and they still have the capacity at Miroku to make their own badged firearms for distribution. They, Miroku, has the capacity to do both quite handily! What if Browning did set up a plant to manufacture only their own badged firearms. It would be far less capacity than whatever Miroku has now, Miroku makes their own guns too! The plant overhead per gun would very likely be exponentially greater if Browning made their own guns at their own plant than it is now using Miroku! It is the rule of economy of size. It costs less per gun to buy a million guns that it does to make only 300,000 yourself! Overhead isn't just overhead. I think Browning long time back decided to do what they do best, market and distribute. Let someone who knows manufacturing do the manufacturing!

I used to have my own construction company to build the products I sell and service. I said I used to! I can get that job done faster, and cheaper by hiring a contract construction crew to do the job for me. Why wouldn't I do it this way? Same with Browning! Why wouldn't they? They get it done better, faster, and cheaper than if they did their own.

That would be my best guess as to why they do what they do.

BP
 
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