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Link Posted: 10/7/2004 12:57:01 PM EDT
[#1]
I have had my gun licens for about three weaks now and let me say one does not get rich by selling guns alone. When I first got my licens I was thinking their was a good markup but now that I am set up I know that the markup is not that great I would say that is a good deal on the gun. And for some of you that think dealers make like 100 to 150 on an AR your rong sometimes a dealer is lucky to make 30 to 40 dollars on some guns.

Link Posted: 10/7/2004 12:59:42 PM EDT
[#2]
IMO a gun is overpriced if that person wanting to buy it thinks it is overpriced. I don't care what the dealer might think. The market makes it's own values. An item is only worth what an individual is willing to pay for it anyway. So if you can get away with selling at a high price and have the customers still coming in and buying then great, if not you go out of business. If you cannot find a way to sell competitively and stay in business, then you are too stupid to deserve to.

And the customer is always right. Whether we like that or not. In this age of internet sales The customer has to ask himself what is worth it to him. It has nothing to do with the dealer. And the Dealer has to ask him self what is it worth to me in order to sell the rifle. If the two cannot agree then there is no sale. Things like this should not be taken personally for it is only business.
Link Posted: 10/7/2004 1:03:27 PM EDT
[#3]

Quoted:
And if you owned your own business would you appreciate your customers trying to dictate your profits?




Got news for ya... the customer does have a hand in dictating your profits. If you're overpriced enough, you won't have many customers, and therefore less profit. I don't expect to pay cost when I buy guns or guitars. But I also don't expect to pay MSRP (almost did pay that for my Bushy though). I expect to pay somewhere in between the two figures. If the dealer thinks that unfair to him... that's fine. But he generally won't get my business. Which is funny... cause which figure is going to hurt you more as a dealer -- NO profit, or 25%?
Link Posted: 10/7/2004 1:19:00 PM EDT
[#4]

Quoted:

Quoted:

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There are many stores in my rural area that try this stuff. I call one of them the "museum". They never sell any guitars. They DUST them a lot. On the other hand, my friend's store has a lot of turn-over. He says he's not in the business to dust old crap and be a housekeeper.



The local gun dealer I use only charges $10 over his cost - even lets you browse his vendor catalogs.  Or if you're doing a transfer, he only charges $10 for that.

I'm a CPA, and work with a lot of businesses, and was wondering how he made a profit at those rates.  He then held up a 3-inch stack of 4473's - and said that was last week's sales.  In the meantime, another local dealer went out of business this week with a lot of dusty inventory....the one who charged $1500 for SAR-8s, $1100 for ARs, etc.




Oh come on!   $10 doesn't even pay for his time to fill out the paper work.

SteyAug is right - guns are a fairly INELASTIC market.  Lower prices don't equal increased sales, for the most part.

Face it - if that Kimber 1911 is $900 or $990, I'm still going to buy it and I'm still only going to buy one at a time.



If the guy is the ONLY game in town and owns the market it is possible. But at $10 per transfer he's need to do 3-4 per hour minimum to stay in business.



He does more than that.  Every time I walk in there, he's on several phones at once getting the instacheck done.  Basically, people go look elsewhere at the big stores (Sportsman's Warehouse, etc), then come to buy from him.  He has his wife help out with the phones, too.  He told me in an average week, he processes about 300+ 4473s.  Do the math - that's $3,000+ per week, or about $150k per year less overhead, which is probably minimal for such a small shop.  He has a small cramped shop on a busy street.

Granted, it's not a huge business, but he likes what he does and makes enough to make ends meet.  Of course, in a smaller town, it probably wouldn't work as well.  He also gets a lot of business from the surrounding towns as well.

Matter of fact, it's worked so well for him that a second dealer here has started advertising the same deal - $10 over cost, $10 transfers.

That being said, I'd never tell any dealer that he's charging too much.....I'd just shop elsewhere.  And there's another local dealer that I use that has higher prices, but I like the service....that's also worth paying for.

YMMV.....
Link Posted: 10/7/2004 1:24:49 PM EDT
[#5]
Link Posted: 10/7/2004 1:32:11 PM EDT
[#6]

Quoted:
The dealer I was referring to (and there are many just like them) are a pawnbroker as well, and they will continue thier ignorant practices as long as thier are people who need to trade grandmas jewlry for beer and bailmoney, but that doesn't make them a good or even reputable gun dealer.



True... the guy who I bought my NIB Bushy from is a pawnbroker. His prices are a bit high. But I deal with him when I have to. He's a decent guy. On the other hand, some other pawn shops try to sell their NIB guns for over MSRP. That's nuts. And the big gunsmith/gunshop in town is the worst. They all act like the customer is a nuisance and hardly talk to you. Too bad that people continue to even patronize a business like that and allow them to continue operating. The only game in town smith-wise though.
Link Posted: 10/7/2004 1:44:58 PM EDT
[#7]
Supply and demand are the critical factors in determining sales prices.  Other factors that affect sales of an item are if the product is available, how good the customer service is, the appearance of the store, how the items are displayed - even what the parking is like for a store or the colors of the boxes the product is in, or how nice the website is.

In this particular market (previously banned / possibly soon-to-be-banned-again rifles), the game is different.  You have to factor in the risk of waiting and possibly not getting anything if the ban comes back and your dealer doesn't have the rifle for you yet.  So, the PERCEIVED value of what you want may be greater.  It's like oil.  When there's a war going on in the middle east, geenerally oil prices go up because of fear that the oil MIGHT not be available later.  

Bottom line... Shop around.  If you can't find it AVAILABLE for less money, then it's a good deal.

Link Posted: 10/7/2004 2:11:47 PM EDT
[#8]

Quoted:
Just to answer the original question, I could buy that rifle for 700 out the door.



IM sent
Link Posted: 10/7/2004 3:32:49 PM EDT
[#9]
I would think its a good price, at least in my area no bans are on backorder.
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