How much markup?

[coop44]

I was in retail gun sales for quite a while, the only way we made money was to sell ammo, cases, cleaning gear, holsters, custom sights, bases, scopes. there was no profit to speak of in the guns (new). Used guns, on the other hand, we made a little more on. We depended on volume.

At times we would buy a quantity of guns from one supplier, knowing that some could be had cheaper elsewhere, but the additional shipping and hassle wasn't worth it.

the local dealer is doing you a service, if you continually show up just to pull his chain and not buy anything I can understand why he is inflexable on price. You actually have to be a customer to get service, otherwise you are just some flake off the street.

when shopping I factor in my time and gas, if I find something local for 10% over what I have seen it for 30 miles away I'll probably buy from my local guy

 

[Rascals]

If they cant ahggle so much then why do they sell to firemen and policemen at such a low price. One of my cop buddies brags about his 370.00 brand new glocks and if you even look at the signs at Keiths they addvertise the price break for cops.
well what about us others who have done great service to our country and they say no. So make your choices.

 

[Mikej]

Holy bubblegum! So now I find out that I'm wasting gun dealers time and pulling chains....I somehow didn't think that Fisherman's, Northwest Armory, Gun Broker, Albany Guns and High Desert thought that. I kind of assumed that we're ALL firearm enthusiests and enjoy anything "firearm" related. If I get the slightest feeling I'm a burden to a gun shop I'll be sure to stay away!

Mike

 

[cyclesarge]

If they cant ahggle so much then why do they sell to firemen and policemen at such a low price. One of my cop buddies brags about his 370.00 brand new glocks and if you even look at the signs at Keiths they addvertise the price break for cops.
well what about us others who have done great service to our country and they say no. So make your choices.

First, I believe GLOCK is actually absorbing the LEO discount, and it's only on certain guns/packages.
Second, if cops use Glocks (or whatever other manufacturer's gun) it's an enticement for civilians to buy the SAME guns = more sales.

 

[cyclesarge]

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

Then why did you go to the show?

 

[cyclesarge]

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?

Your first example said Keith's had the lowest price in the market in this case the gun show.
I've seen plenty of people haggle down the price and then walk away at gun shows, maybe they came back and bought (I don't know). Gun shows are pretty fast paced and busy so the vendors really don't have a lot of time to spend with another one "customer", I imagine it's pretty hard to read who's wasting your time and who's got money in hand and ready to buy.

Another thing to consider is that not all dealers pay the same for the same guns depending on their volumes and the deal they get from their distributers.

Also, as has been pointed out before, customer service is MORE than just getting you the lowest possible price. If you don't think it is just order your guns from the internet and pay a local dealer to transfer the gun to you.

 

[Bam]

It is sad when a person takes another's prices personally.

 

[iamme]

If they cant ahggle so much then why do they sell to firemen and policemen at such a low price. One of my cop buddies brags about his 370.00 brand new glocks and if you even look at the signs at Keiths they addvertise the price break for cops.
well what about us others who have done great service to our country and they say no. So make your choices.

Yep the manufacturer absorbs the break in price. Hell most places offer a flat LE/MIL discount, is that a reason to be upset also?

 

[DoubleTapDrew]

So how much profit is fair on, say a $1,000 AR-15? The dealer bought the gun from the manufacturer or distributor, it's taking up space in his display, the money he spent on it is tied up until it sells, he's got 3 full time employees and high rent, power bills, taxes, etc.

 

[19 Adam]

One of my cop buddies brags about his 370.00 brand new glocks and if you even look at the signs at Keiths they advertise the price break for cops.

LE has been exempt from Federal excise taxes on firearms. They used to require a letter on police department letterhead but now you just show valid police ID. The savings is substantial for both the store and the officer.

 

[TonsOfOregonBrass]

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

The funny thing is you spent more on Gas and time trying to save $9... I dont know about you , but i value my time at over $9 an hour, and it probably took you a couple hours to walk around and try to save $9 or even $19. Ow and if you have a problem with your gun, it is probably an even further drive to take it to the dealer you bought it from rather than the local guy who is $20 more, but will offer much better service.

Mark up on new guns is %3-5%, %10 on hard to find or get items. by the time you take into account all the other expenses the owner usually only takes in 1% to .5%.... I dont make a lot in my store, just enough to feed my family.

if you think about it, you were asking them to take 1.5% loss on something that he is making 5% on. if he is only making 3% you are asking for half his profit off the gun. Going to the gun show costs a lot. To take 1/3 my inventory to the store i would have to sell around 20 guns just to cover my expenses and that is just to break even on the gas, parking, food, drinks..... if i have anyone there with me i now have to sell 25 - 30 guns to cover their wages. and around 40 - 50, just to pay myself anything. Plus i still have to pay someone to run my store while i am gone.

Bottom line is there is not a lot of markup on guns. it is usually cheaper to buy at the store as there is not added expenses. it costs me almost the same to have my store open as it does to close it.

 

[aflineman]

Do you haggle at Walmart? How about the local market? I do haggle a bit for firearms at my local dealer, or in a trade. I do not haggle much for new firearms though. I know the margins are not really there. I do sometimes ask then to throw in ammo or a holster sometimes. I know the margins are a bit better on those. Just my $.02

Most LE/Mil discounts that I have received have had to be ordered in. They normally could/would not just sell me one off the shelf.

 

[fuhr52]

When we had a gun shop in town I did most of my business with them. Guess I didn't do enough cause they couldn't keep the doors open. I know in this economy it's tough. Keep in mind real profit is what's left over after all the bills are paid.

 

[tlfreek]

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

i hear ya. but when its all said and done did you recover the 19 bucks in gas and time researching this. I do hard research on big savings cars, bikes electronics, but for 20 bucks eh. we're even wasting more time talking about it. funny eh.

 

[Rascals]

Well what about the firemen? What about others that due service for the Country and they just dont care? Why is it that they expect me to lower my rate for the Country but cant lower a rate for some of us? I buy where I get treated well. No special treatment no money spent there. I like loyalty to loyal customers.

 

[iamme]

Well what about the firemen? What about others that due service for the Country and they just dont care? Why is it that they expect me to lower my rate for the Country but cant lower a rate for some of us? I buy where I get treated well. No special treatment no money spent there. I like loyalty to loyal customers.

The key you're missing is loyal customer- kinda hard to become one without throwing some business there way.

 

[MrNiceGuy]

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.

You can't understand them letting you walk. I cant understand you choosing to walk.

I'd rather spend the extra $19 up front.

When you figure in the extra time, gas, and effort put forth to save $19, i'd say you actually spent more.

 

[22many]

Then why did you go to the show?

Variety, needed some other parts, entertainment, time to kill, ect, ect. And on the way home I just happened to stop by a gun shop that I've been wanting to check out for awhile.

 

[22many]

i hear ya. but when its all said and done did you recover the 19 bucks in gas and time researching this. I do hard research on big savings cars, bikes electronics, but for 20 bucks eh. we're even wasting more time talking about it. funny eh.

Actually, I don't really look at going to the gun show as money lost. I needed ar parts, and I have a couple hours to kill. I mainly like to go to see what's new, average prices, and running into friends.

I guess you can look at it as extra money spent. I just look at it as entertainment. Plus, I'm retired......what else am I gonna do? Lol....

 

[22many]

You can't understand them letting you walk. I cant understand you choosing to walk.

I'd rather spend the extra $19 up front.

When you figure in the extra time, gas, and effort put forth to save $19, i'd say you actually spent more.

This thread really wasn't about the $19 dollar savings that it has turned into. I posted it more for a look into the dealers not wanting to come down on prices at all. I'm sure there are some dealers that can't, and that's fine. But I would have expected keiths to at least make a sale as they seem to have the biggest selection. After all, I have bought about 20-25 guns from Keith in the past. Never complained about prices, and never complained when I bought 3 guns at one time and him charging me the bg fee for each gun instead of grouping them together.

Regardless, there are some very good points in this thread and thanks all for explaining the inner workings of a gun dealer.