AnsomMag.com |

Magazine Article

  

By Mark Hawver
Editor



Foreign Military Surplus
Costs Rise, Margins Shrink as a Strong Euro and a Weak Dollar Beg The Question, "What in The World is Going On?


For Fox Outdoor Products, European surplus is their bag, baby -- but it's only in bags, not apparel, that the company finds foreign surplus to be profitable, according to Dan Fox.

"European surplus apparel has never been a good investment for us, mostly due to problems with steady supply and certainly with the odd sizing of apparel that makes it literally a poor fit for the U.S. market," Fox said.

Fox explained that their company's strength is in bags and packs, and European items in those categories do very well for them.

"Whether it's from Norway or Sweden or France or Germany or England, bags and packs and sometimes blankets sell nicely with the rest of our line," he explained.

Fox also noted that the cost of goods has risen due to the stronger Euro, and that costs associated with shipping and importation have also reduced the appeal of foreign surplus goods. He also indicated that domestic mail order and specialty retailers have captured a lot of the unique items from overseas.

Maurice Huffman of Swiss-Link, Paradise, California agreed that the cost of goods has risen, but that the unique nature of many of their products and their well-established position in the marketplace helps overcome rising prices.

"It's hard to convince people to pay more, but we're still getting a lot of great new products, including collectibles and other exclusive items that help us get past price problems," said Huffman.

Items that are impossible or hard to find from other suppliers keep Swiss-Link in a good position.

"Swiss Army blankets, gas cans, high quality Swiss watches and some really cool collectibles are selling very well for us," according to Huffman.

South of Paradise in California is RDD. U.S.A. in Los Angeles, where Ed Diskin operates a military surplus wholesale business, a retail store specializing in law enforcement apparel and gear, and a new company offering high tech lighting products.

About foreign surplus, Diskin believes that RDD is well regarded for the sheer variety and range of military surplus sourced from a great many European nations and the Middle East, particularly Israel.

1 2 next