No exceptions.

Some statuses and discounts will change Jan. 2nd.

All of the (blue) above is an excerpt from the Dec. 18, 2002 Sgram # 53.

The message to be delivered there is true. Our inside sales, data entry, and inventory/shipping groups have just so many hours in the day and cannot afford to deal with "small orders", "add on’s" , or just this one time, "please’s".

This has been brought about by the success that you and we have had throughout 2002. For the first half of that year, business was up a very pleasant 8.5%, but the year was up 23.5% total. That means that the last half of the year was up a butt bustin’ 43.0%. I think that you can look back at your delivery times and tell that these folks did a hell of a job. It also means that they don’t have the luxury of available time to process a $30.00 order, just add two magazines to your last order, or change that from 6 hammers to eight. If I (and you) want them to be able to continue the level of service that you have both earned and come to expect, we have got to implement some new systems. And we are doing so!

That last half increase also means that we don’t enter this year with near the inventory/sales level ratio that we normally do. (Just a quick look at Current Inventory on the website will show you this.) So we MUST keep our production runs, order entries, kittings, and packings uninterrupted by these small and last minute items. If we don’t, your lead times are going to move out beyond what any of us want.

I’m sure that you understand the process. A person here accepts your order. By FAX, by phone, by mail, by Email. Same thing. They organize it, often through their knowledge of your historical needs and habits. Sometime later (five minutes to a couple hours) the order is data entered into the MRP system, availability is checked, pick tickets are generated, work orders are issued, and whatever process is necessary to get you your product in the most timely fashion is launched. ANY CHANGE requires the same process as a new order, is as involved, and is as costly.

You are business people! You understand the costs in doing something twice. You understand the costs involved in not having what the customer wants when he asks you for it. And you darn sure know what freight costs have done lately. (Up as much as 100% domestically and, sometimes, more internationally.)

As you are aware, we introduced several new model guns last year as well as quite a number of new parts. You may not be (and probably are not) aware that we upgraded several of the old parts, retooled for volume on many parts, and improved the quality on most parts. All this while supplying 23% MORE service to you guys and lowering some prices. Not too bad, huh?

Here’s the game plan for this year, 2003. Call it a MISSION STATEMENT if you choose.

We will be developing and introducing NO new guns during the year. We will be further refining and more strenuously marketing those that are our most recent developments. i.e. Ranger II , Viper , Model 22XX , Tactical , TargetMaster , RangeMaster , TacMaster (tentative name), all of which were designed and/or introduced during 2001-2002. If you are not familiar with some of those, call ME. Not your normal sales contact, they are busy processing your orders, ME. (or E-mail me at sales@stiguns.com)

We will probably do LESS sidebar development under the SAR 15/30 program.

We will continue to retool for volume and quality.

We will continue to add new equipment, fixtures, and manufacturing processes.

We will be upgrading our MRP systems.

We will be instituting a system that we will not call Just in Time , but probably is! (Relax! We’ve got enough history on you guys now that the only changes that you’ll see will be positive.)

We will be ATTEMPTING to establish secure shopping sites for Distributors and Dealers. Just like the big boys. (Ya’ listenin’ Kevin?)

And we will be laying the ground work to raise the minimum order level again next year!

What all this means to you is that price increases will probably not happen for another 2-3 years. (Meaning almost ten years since the last upward adjustment of consequence.) Your delivery time will remain, at least, constant and probably improve even more. The quality of your parts and assemblies will get even better. (Hard to believe, isn’t it?) You ought to see some very fine new product introductions during the latter half of 2004. And you should see much greater support in sale aids, advertising, marketing, and promotion.

What it also means is that, if you are a Distributor, you may have to carry a little more inventory and plan your orders better. (If you don’t, your customer will probably find one of your peers who does.) You’ll have to remember to purchase spare magazines at the same time you order guns. And you’ll have to understand that when your sales contact tells you that the new policy does not allow what you have requested, that they have no choice. They are not the only link in the order processing chain.

What it also means is that, if you are a Dealer, you may have to carry a little more inventory and plan your orders better. (If you don’t, your customer will probably find one of your peers who does.) You’ll have to remember to purchase spare magazines at the same time you order guns. And you’ll have to understand that when your sales contact tells you that the new policy does not allow what you have requested, that they have no choice. They are not the only link in the order processing chain. What it also means to you is that you may need to make this purchase, or any other for that matter, from a Distributor. It shouldn’t cost you any more, and the odds are pretty good that they will offer you a better price, anyway.

What it also means is that, if you are a Retail Customer, you may have to plan your orders better. You’ll have to remember to purchase spare magazines at the same time you order guns. And you’ll have to understand that when your sales contact tells you that the new policy does not allow what you have requested, that they have no choice. They are not the only link in the order processing chain. What it also means to you is that you may need to make this purchase, or any other for that matter, from a Dealer. It shouldn’t cost you any more, and the odds are pretty good that they will offer you a better price, anyway.

Enough about the opportunities ahead for all of us! How about a couple of kudos?

Congratulations are very much in order to Mr. Dawson of Dawson Precision in Leander, TX, and to Mr. Kanavut of K-Tree in Bangkok, Thailand. Each of them was the most improved STI Distributor in their respective categories. Mr. Dawson, domestically, and Mr. Kanavut on the export side. Both were volume front-runners in 2001 and both approximately doubled their STI business in 2002.

Congratulations to Herr Prommersberger of Kuhbach, Germany for his marketing innovation in hosting the 2002 STI European Open Championship. We’re looking forward to being there this year.

Congratulations to Herr Schumacher of Waffen Schumacher in Krefeld, Germany, and to Mr. Kupsch of Wild West Shooting Center in Edmonton, Alberta, Canada for suggesting the bases for four of the six gun platforms that we will be promoting this year. And, again, to Mr. Kanavut for providing a marketing opportunity and venue for another of them.

Congratulations to all of you who took the opportunities, met the challenges, and carry your sales statuses and pricing levels of 2002 into 2003. To those of you who didn’t, 2003 can still be a great year for you and us. I, along with the entire STI crew, am looking forward to it.

Have fun. Sell a bunch. Do good. Not necessarily in that order!

ps: Congratulations are also in order to the entire STI crew just for putting up with you and me! (Especially me!).