100 bucks is 100 bucks
I know I don't post on the forums much anymore, at least not under this username as it is for business only, but I wanted to pass on a little bit of wisdom and warn any of you who care to listen before I move out of the area.
I have been in the FFL business in WA for just over 15yrs, started out in Whitecenter, Tukwila and now out here in Belfair. I was more active on Seattleguns before it shut down, I haven't really had time to jump on here as I'm often too busy or I just read posts and don't really post anymore.
I am not really a dealer by definition; I primarily focus on providing coating services, repairs, basic gunsmithing and of course I provide transfer services to my local area residents in rural Mason County. I will also place special orders for firearms, but I am not a stocking dealer. I do all this with my focus on customer service, and making sure everyone gets one on one personalized services. Not the "take a number and we will get to you" approach that many businesses have turned to. This business does not pay enough to survive on, I am medically retired and I do it as a hobby and service more to keep myself sane and busy. What money I make I use to take the kids on vacation and add a couple firearms to my personal collection each year. You really don't make bank doing this.
The number one call I always get is people looking for a deal, and I get it, we all want the best deal, or we are on a "my wife will only let me spend this much" budget, so they call up and ask how much I can get a certain firearm for. I then put down whatever I am working on and pull up my computer and access my distributors to find out if they have one in stock and if so, what the cost to customer is. Usually after spending as much as 15 to 20 minutes to locate and price one out, I get the "I want to support the local guy, but…" and then they proceed to purchase online or wherever… out of every 20 calls I might get 1 to actually purchase thru me.
I get it, online is cheaper, but how much cheaper and what is the overall cost of cutting out your local FFL?
Today I got one of those calls, here's our conversation:
"Hi, I'm looking for a Mossberg 590 in 410, I would rather support the local guy, what can you do for me?"
So, I looked it up and only one of my distributors had one in stock. Now keep in mind, not being a "STOCKING DEALER" means I must go through distributors such as Davidson's, Lipsey's, RSR or one of the others, I have a low tier level on volume, so I don't get much of a dealer discount… and I def don't get direct to manufacturing pricing.
I let him know that I can get one in, and the cost would be $589, which granted, that is MSRP, but my dealer price is $469 plus $14.99 shipping so total cost to me is $483.99 so less than 18% markup to cover an hour and a half worth of work, cost of licenses, taxes and insurance plus putting some in the Kids vacation fund.
Keep in mind the average markup on other retail items is 30-40% nationwide. Firearm sales don't make you rich at 10 - 20% unless you can sell in volume, which I am not set up to do, and of course the average customer expects you to give it away, since they "can get it online cheaper"
Carrying on.
Caller replies that's ridiculous, he can get one for $479 from _______ online retailer and that I'm ripping him off, expecting me to drop my price… I let him know this is the price I can do, and he gives me the "Well, I would like to support the local guy, but 100 bucks is 100 bucks" and that ends the conversation.
So let's hash this out.
My price was $589 plus 8.7% tax (Mason County) would be $640.24 plus $18 fee to WSP
Online he will pay $479 plus tax, plus shipping, usually $20, plus 10% online tax as most online sellers go by the highest tax in the state. So that puts him at $548.90, Good price, but now he must find an FFL to send it to…. From what I hear, that is becoming harder and harder to find in our area. I used to charge $50 for a transfer, but I stopped accepting transfers as of March 1st as I am moving out of state, so I am out of the game. Average cost is $50-$85 per transfer in our area, I have even heard of a dealer in our county charging as much as $125 -$140 per transfer… so now he is up anywhere from $599 - $729 plus the $18 fee to WSP
He could potentially save about $40 or overpay by up $70. But saving $40 doesn't keep your local FFL in business.
Keep this in mind with the new laws coming into effect on July 1st, causing many small and local FFL's like myself to shut down, or absorb higher costs of doing business and pass them onto the customer, the transfer fees are just going to skyrocket and I really hate to see what prices become when the Permit to Purchase scheme, and all the other new FFL regulations get implemented in the following years as well.
If the local population doesn't start to support their small FFL's, they are going to simply disappear or move out of state like I am. The personalized service and knowledge of your local gunsmith will end.
So be prepared, take a number, be nothing more than a number, make sure you have deep enough pockets, and stand in line at the Big Box Stores for your transfers…
But Hey, 100 buck is 100 bucks!
I know I don't post on the forums much anymore, at least not under this username as it is for business only, but I wanted to pass on a little bit of wisdom and warn any of you who care to listen before I move out of the area.
I have been in the FFL business in WA for just over 15yrs, started out in Whitecenter, Tukwila and now out here in Belfair. I was more active on Seattleguns before it shut down, I haven't really had time to jump on here as I'm often too busy or I just read posts and don't really post anymore.
I am not really a dealer by definition; I primarily focus on providing coating services, repairs, basic gunsmithing and of course I provide transfer services to my local area residents in rural Mason County. I will also place special orders for firearms, but I am not a stocking dealer. I do all this with my focus on customer service, and making sure everyone gets one on one personalized services. Not the "take a number and we will get to you" approach that many businesses have turned to. This business does not pay enough to survive on, I am medically retired and I do it as a hobby and service more to keep myself sane and busy. What money I make I use to take the kids on vacation and add a couple firearms to my personal collection each year. You really don't make bank doing this.
The number one call I always get is people looking for a deal, and I get it, we all want the best deal, or we are on a "my wife will only let me spend this much" budget, so they call up and ask how much I can get a certain firearm for. I then put down whatever I am working on and pull up my computer and access my distributors to find out if they have one in stock and if so, what the cost to customer is. Usually after spending as much as 15 to 20 minutes to locate and price one out, I get the "I want to support the local guy, but…" and then they proceed to purchase online or wherever… out of every 20 calls I might get 1 to actually purchase thru me.
I get it, online is cheaper, but how much cheaper and what is the overall cost of cutting out your local FFL?
Today I got one of those calls, here's our conversation:
"Hi, I'm looking for a Mossberg 590 in 410, I would rather support the local guy, what can you do for me?"
So, I looked it up and only one of my distributors had one in stock. Now keep in mind, not being a "STOCKING DEALER" means I must go through distributors such as Davidson's, Lipsey's, RSR or one of the others, I have a low tier level on volume, so I don't get much of a dealer discount… and I def don't get direct to manufacturing pricing.
I let him know that I can get one in, and the cost would be $589, which granted, that is MSRP, but my dealer price is $469 plus $14.99 shipping so total cost to me is $483.99 so less than 18% markup to cover an hour and a half worth of work, cost of licenses, taxes and insurance plus putting some in the Kids vacation fund.
Keep in mind the average markup on other retail items is 30-40% nationwide. Firearm sales don't make you rich at 10 - 20% unless you can sell in volume, which I am not set up to do, and of course the average customer expects you to give it away, since they "can get it online cheaper"
Carrying on.
Caller replies that's ridiculous, he can get one for $479 from _______ online retailer and that I'm ripping him off, expecting me to drop my price… I let him know this is the price I can do, and he gives me the "Well, I would like to support the local guy, but 100 bucks is 100 bucks" and that ends the conversation.
So let's hash this out.
My price was $589 plus 8.7% tax (Mason County) would be $640.24 plus $18 fee to WSP
Online he will pay $479 plus tax, plus shipping, usually $20, plus 10% online tax as most online sellers go by the highest tax in the state. So that puts him at $548.90, Good price, but now he must find an FFL to send it to…. From what I hear, that is becoming harder and harder to find in our area. I used to charge $50 for a transfer, but I stopped accepting transfers as of March 1st as I am moving out of state, so I am out of the game. Average cost is $50-$85 per transfer in our area, I have even heard of a dealer in our county charging as much as $125 -$140 per transfer… so now he is up anywhere from $599 - $729 plus the $18 fee to WSP
He could potentially save about $40 or overpay by up $70. But saving $40 doesn't keep your local FFL in business.
Keep this in mind with the new laws coming into effect on July 1st, causing many small and local FFL's like myself to shut down, or absorb higher costs of doing business and pass them onto the customer, the transfer fees are just going to skyrocket and I really hate to see what prices become when the Permit to Purchase scheme, and all the other new FFL regulations get implemented in the following years as well.
If the local population doesn't start to support their small FFL's, they are going to simply disappear or move out of state like I am. The personalized service and knowledge of your local gunsmith will end.
So be prepared, take a number, be nothing more than a number, make sure you have deep enough pockets, and stand in line at the Big Box Stores for your transfers…
But Hey, 100 buck is 100 bucks!