Posted: 12/13/2010 10:25:44 AM EDT
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Just came back from the local shop (local to where I work) where I was pricing a lower. Holy shit, talk about marking up an item. Plain jane stripped Spikes lower - $175. When I asked why so much markup, he said he has to make a profit. I told him I agree, but a near 100% markup is ridiculous. Buying direct from Spikes is only $99, and you have to be able to beat that buying wholesale. Hell, his cheap Superior Arms lowers were $150. Looks like if I want a reasonably priced lower, I'm gonna have to drive an hour to find one. |
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there's your explanation comrade |
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Quoted:
Just came back from the local shop (local to where I work) where I was pricing a lower. Holy shit, talk about marking up an item. Plain jane stripped Spikes lower - $175. When I asked why so much markup, he said he has to make a profit. I told him I agree, but a near 100% markup is ridiculous. Buying direct from Spikes is only $99, and you have to be able to beat that buying wholesale. Hell, his cheap Superior Arms lowers were $150. Looks like if I want a reasonably priced lower, I'm gonna have to drive an hour to find one. Guns are actually marked up very little. Most markup from store cost is 300%––if a widget costs me $1, I sell it for $3. $1 covers my cost of buying the widget, $1 covers my overhead, and $1 is my profit. Roughly speaking, anyway. |
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Quoted:
Quoted:
Just came back from the local shop (local to where I work) where I was pricing a lower. Holy shit, talk about marking up an item. Plain jane stripped Spikes lower - $175. When I asked why so much markup, he said he has to make a profit. I told him I agree, but a near 100% markup is ridiculous. Buying direct from Spikes is only $99, and you have to be able to beat that buying wholesale. Hell, his cheap Superior Arms lowers were $150. Looks like if I want a reasonably priced lower, I'm gonna have to drive an hour to find one. Guns are actually marked up very little. Most markup from store cost is 300%––if a widget costs me $1, I sell it for $3. $1 covers my cost of buying the widget, $1 covers my overhead, and $1 is my profit. Roughly speaking, anyway. Never met a guy who owns a Dollar General. Neat. |
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$99 from Spikes. Say $10 shipping. His total cost $109. $66 markup. About 60%. High, but not unusual for specialty retail. More than a few double their cost to get to retail. You are also leaving out the regulatory costs of running a business, permits, licenses, etc., along with insurance, rent, the power bill, wages paid to employees, etc. |
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$99 from Spikes. Say $10 shipping. His total cost $109. $66 markup. About 60%. High, but not unusual for specialty retail. More than a few double their cost to get to retail. Yep. And figure averhead is gonna eat up $30-35 or so of that markup, escpecially in a high tax, high cost state like CA, |
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I'm in the same boat here. A stripped lower is a going price of around $150.
The paperwork is intensive on regulated firearms, and all stripped lowers have to be sold that way. Apparently, there's an exception in MD is you assemble the lower, bolt it to a HBAR upper and then leave the store before disassembling it? I don't know. But you're paying for at least two hours' or labor on the gun store's employees to finish all your paperwork, call it in, wait, take the return call, order a replacement, do all the log-ins and outs on the books... so in effect you're paying the gun store empoloyees $25/hr or so. Which when you factor in Social Security, taxes, payroll, overhead, etc. is reasonable for someone who probably has a take-home of $15/hr ish. When it's significantly cheaper to finish 80% lowers that are $80+shipping+finishing materials (duracoat, extra mills and drills, etc.) than it is to buy a new one, I've decided to just do that. |
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There are a fair ammount of retailers who "Keystone" their inventory (100% markeup on cost). And when you have employees, a B&M, and all the costs associated with it...thats what it takes to pay the bills. We are spoiled on internet retail as many simply drop ship from the mfg and have very little to no overhead.
You have to decide wheather its worth it to keep a local B&M in business by paying higher retail, or pay less and order online. Each has their tradeoffs. |
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Quoted: If you buy one for $99 from spikes, how much is shipping and transfer fees? Shipping is roughly $10. Transfer fees are what kill us. Most shops charge between $50 and $75 to do a transfer and that is on top of the $25 DROS (Dealer Record Of Sale) that is required by the State. |
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If you buy one for $99 from spikes, how much is shipping and transfer fees? Shipping is roughly $10. Transfer fees are what kill us. Most shops charge between $50 and $75 to do a transfer and that is on top of the $25 DROS (Dealer Record Of Sale) that is required by the State. So best case if you got it yourself you are paying $159. He wants $16 more, with no waiting, you can see and inspect it first, and you don't have to do the ordering, coordinate for the transfer, make sure spikes has the recieving dealers FFL, etc. |
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Quoted: Quoted: Quoted: If you buy one for $99 from spikes, how much is shipping and transfer fees? Shipping is roughly $10. Transfer fees are what kill us. Most shops charge between $50 and $75 to do a transfer and that is on top of the $25 DROS (Dealer Record Of Sale) that is required by the State. So best case if you got it yourself you are paying $159. He wants $16 more, with no waiting, you can see and inspect it first, and you don't have to do the ordering, coordinate for the transfer, make sure spikes has the recieving dealers FFL, etc. I have to wait regardless. California has a ten day wait on any firearm bought or transferred through an dealer. Just got a call back from the shop in the town where I live, Spikes are $130 with 10% off now through Christmas. So out the door I am looking at $151.80. Looks like he will be getting my business. |
| Last year through mid year, this year, I purchased several Rock River lowers locally, The most I paid was $149 plus tax, the dealer had them in stock. Once I lucked into them when they had a sale going on at 20$ off. The only other place in town was about $20 higher, cannot rember brand, I think one was a Bushmaster, but did not see any signifacant difference. |