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How much markup?

Discussion in 'General Firearm Discussion' started by 22many, Dec 16, 2011.

  1. 22many

    22many PNW Well-Known Member

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    How much mark up do dealers charge? Here's the deal, I go to the gun show today and at keiths and AB guns from corvalis has a gun that I've been looking at for awhile. Keiths has it for $569 and AB has the same gun for $579. $10 dollars apart. I'm thinking "ok, so there's a little room to play on price". I talk to the guy at AB and he says he can go down to $570 if I pay cash. $9 saving? That's it? So I go over to keiths and the guy says he can't budge on price. I offer $550 cash and he says no. Seriousally? Is there that much markup that they will let a sale walk over $19 bucks? From a business standpoint it just doesn't make any sense. Even if they only mark guns up 10% they are still making money. I have found the same gun online for $519 so it's not like it's a great deal at $569 or $579.

    Anybody else run into anything like this before? Anybody know what the major dealer markups are?
     
  2. slimer13

    slimer13 Deer Park Well-Known Member

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    The profit margin on new guns is very little. I am only guessing but I would say its because of the ample availability of good used guns and because firearms retain their value pretty well.
     
  3. lfromsalem

    lfromsalem Salem, OR Member

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    15 to 20% for new is the normal mark-up.
     
  4. Dan-Dee Sales Inc

    Dan-Dee Sales Inc Sweet Home, Oregon, United States Active Member

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    10% if we are lucky. Remember that it costs 1.5-3% to run plastic. Some banks charge all kinds of fees to deposit cash and checks. $60 on a $600 gun does not pay a lot of bills. The dealer also has to pay for all the stuff that everyone knows including his FFL. And still make a profit when done.
     
  5. Tangent123123

    Tangent123123 Battle Ground Active Member

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    It makes sense when you have to factor in rent, taxes, salaries, advertising, utilities, insurance, licensing etc etc etc.

    A small business owner doesn't make a lot of money. If he/she is lucky they can earn a salary but not a lot more. How many guns do you think a small shop sells in a day?

    I may pay $10 or $20 more going to the local guy but I get better customer service and i'm supporting someone local. There's no need to nickle and dime the guy. If $10 on the sale makes such a huge difference to you, then you probably shouldn't buy the gun in the first place.
     
    evltwn, simpleguy, 19 Adam and 13 others like this.
  6. mjbskwim

    mjbskwim Salmon,Idaho Well-Known Member

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    $519+ shipping?+ transfer fees? =?

    The guy on line has a 25 acre site with forklifts running around and 7 million guns....and gets a terrific deal on buying 254682 guns at a time from the manufacturer.
    Yes, he can give a little better deal

    But do you get to touch it? Or did you touch it at your LOCAL dealers already?
    Do you get to do like I did today and sit and chat with other local gun enthusiasts in his store front for a couple hours?
    Did you get to ask one of the top shooters in the world questions face to face? I did that today.
    Maybe have him fix some little thing on your gun?
    Did you get to touch some holster you've wanted to see in person?

    I will pay that little difference to my local shop. Because I want him there.
    I want to hold most of the guns before I buy them.
    I want a selection of ammo when I want it
    I want to walk in and see freedom first hand
    I want all the other little things that come with a local "brick and mortar" gun shop.

    I don't have the money or incline to open and run a shop of my own
    I won't NUT UP and open a shop so I will help pay the rent and lights for the local guy.
    Some really good benefits come from shopping at local shops that will never be had on line

    $40 difference in price isn't worth all the bother of buying on line and coming out maybe $20 ahead
     
    fuhr52, borrowedsig, M67 and 15 others like this.
  7. 22many

    22many PNW Well-Known Member

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    I'm not talking about a $10 price difference. What I'm saying is you have a customer that
    has cash and the vendor isn't willing to budge at all? The funny thing about this whole thing is after the gun show I went to a local shop, bought the firearm, for $550 out the door. What I was willing to pay at the gun show.

    Mjbskwim, I agree. If I have gotten good customer service from a local shop then I will go back and I wouldn't mind paying the extra $$$$ for the expierience. Unfortunally, I haven't found a shop yet!
     
  8. Simonpie

    Simonpie Portland Active Member

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    I guess guns are like motorcycles. I've never seen any other business than those two where it is standard practice to haggle. I can kind of understand it on a unique used gun where the value isn't market determined, but if you've seen the same gun at three different shops, the best price is the best of the three. Besides, if you actually use it much, the price of the gun will be pennies compared to operating expenses. Spend the extra $10 developing a relationship with a shop that won't try to sell you things you don't need.
     
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  9. cyclesarge

    cyclesarge Eugene OR, DUH! We're ALL in the NORTHWEST Well-Known Member

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    Anytime a dealer is out of his normal business site, his overhead has just gone UP. I have to laugh at anyone that goes to one of those "Fairground Auto SALES", their overhead on one of these is HUNDREDS OF THOUSANDS OF DOLLARS over their normal operating costs when you figure in, rent for the fairgrounds, moving all the cars, extra staff, food, entertainment, etc.,etc.,etc. Basically what you are paying extra for at a fairground sale or a gun show is the increased SELECTION, which if you already KNOW what you want you'll probably find a better deal outside the gun show.


    I THOUGHT about becoming a "kitchen table" FFL briefly, the thought of sitting on a $600 gun for 6 months to try to make a GROSS profit of $60 changed my mind. Considering after operating costs, your probably looking at $40 or less. Look at it from the dealers perspective, would YOU lay down $560 of YOUR hard earned cash for a POTENTIAL $40 in profit?
     
  10. shayne

    shayne port townsend Active Member

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    Brand new lcp with ct laser at a show $450 from a dealer .in the same row a private seller sold one for $550 hmmmmmm only a felon pays an extra 100 $ for a gun
     
  11. Partsproduction

    Partsproduction Tillamook Oregon Active Member

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    The owner of Sprague's Sports in Yuma AZ told me markup on new guns was an abysmal 15%, which is certainly abysmal compared to most retail markups in general goods are. He said he makes his gun money in used gun sales.
    Funny that is to me too because the local sporting goods store here in Tillamook will not touch used guns because of a perceived liability issue, owner says when you sell a new gun the manufacturer carries all liability, whereas with used guns he would be liable and he has deep pockets. I like the store, but sure wish he didn't feel that way, used guns are much less likely to be MIM filled gobs of plastic like the new gun shelves all hold now. They are totally boring to me personally.
     
  12. 22many

    22many PNW Well-Known Member

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    Ah, good point cyclesarge. About 2 years ago I walked into keiths storefront looking for a WASR and they had one in stock for $500. A month later I bought the same WASR (the exact one.....had a unique scratch under the lower handguard) from keiths booth at the gun show for $470. This is how I figured that they had a little room to move on price.

    With that experience I just can't believe they would let a customer walk over $19 dollars. After all, they wouldn't be sitting on it for months on end.
     
  13. cyclesarge

    cyclesarge Eugene OR, DUH! We're ALL in the NORTHWEST Well-Known Member

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    Well, Keith's had the lowest price at the show, WHY WOULD they go any lower? I found if you have any logical reason WHY they should lower the price they are a lot more flexible. Saying store "X" (their next closest competitor) has the same gun for $10 more but is willing to come down $9 probably isn't gonna cut it.

    The concept of the gun show is that it is like shooting fish in a barrel, I doubt the dealers are really that concerned you're gonna go buy a gun from a regular store front, you already paid $6 there to get the best deal. Sure SOME people will go else where, but a bunch of people WILL still buy at the gun show. You're probably one of hundreds of people that offered Keith's less than what they were asking, one of dozens that were actually ready to buy at the "haggled price", and one of a few that walked away over $19.
     
  14. Mikej

    Mikej Portland Gold Supporter Gold Supporter 2015 Volunteer 2016 Volunteer

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    Wifey saved $20.00 on an LC9 at the Corvalis store's table over Kieth's at the show in August. They were $10.00 less on the gun and they ate the $10.00 background check. When the rear site came loose it dawned on us that if we really needed service that $20.00 wasn't much savings as we couldn't easily take it into the store for shipping or support if needed.

    Also 22Many, try going to them on the last day of the show, a couple hours before closing. I wouldn't figure they're going to wheel & deal on the first day.

    Mike
     
  15. deadeye

    deadeye Albany,OR. Moderator Staff Member

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    Save your time and fuel money and buy local. I just dont understand why people drive to a show to get something a few bucks cheaper than at a local dealer. The only reason I go to shows is for the out of production/older firearms and parts. Just cause you get it cheaper for the item, that doesnt account for the time and fuel spent let alone the entry fee and sometimes parking fee.
     
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  16. bulzeye

    bulzeye scappoose Member

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    you may have cash, but what you apparently are failing to realize is you didn't have enough cash to purchase that particular firearm.
     
  17. billdeserthills

    billdeserthills Cave Creek, Arizony Well-Known Member

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    I am a dealer in Arizona, I do gun shows as well, and I can tell you bringing my gun inventory out of my store & then setting it all up at the gun show is Far from Free. In fact the first 18 to 20 guns I sell at the show pays me back for the two guys I hire to set up & tear down(put it back in the shop) my guns. That money also pays for all the food the 3-5 people helping me sell guns (at 3 tables) eat, during the two day event. Then there is Parking, here in AZ Everybody pays to park, at least in Phoenix, and I see little point in paying even more money to do shows where I need to further pay for hotel rooms & resturaunts for dinner as well. If you want to know how cheap you can find it, try Discount Guns for Sale - Buds Gun Shop
    but I wish people like yourself would stop wasting my & other's time wanting to play with the inventory and discuss the treasure that you have No intention of ever purchasing locally in any event.
     
    Last edited: Dec 17, 2011
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  18. sadiesassy

    sadiesassy Prescott Active Member

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    Oregon has one advantage - no sales tax
    I always boutght local until I moved to a state that has 10% sales tax.
    While I will try to buy local - Adding another 10% to the price adds up quickly.
     
  19. 22many

    22many PNW Well-Known Member

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    Trust me, I had the cash. As stated, I knew I could find it for $550 and I did at a storefront.
     
  20. 22many

    22many PNW Well-Known Member

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    If you have the item in town at a good price then I'll buy. But when you have it marked up higher than most people and won't budge on price then yes, I will waste your time. I swear, dealers think that if you don't buy from them at their price than your a waste of time. So much for that customer service huh?