Retail Margins On New Guns and Used Guns.

[cameron25]

I'm a small FFL so I don't have the buying power other have, nor do I really want it at the moment.. but it seems to vary greatly depending on manufacturers, for me at least. Some I get 30% and some it's more like 10-15%. Usually better margins are more expensive guns. Much better margins on average on the SOT side of things in my limited experience. No idea on used margins

 

[arakboss]

I'm a small FFL so I don't have the buying power other have, nor do I really want it at the moment.. but it seems to vary greatly depending on manufacturers, for me at least. Some I get 30% and some it's more like 10-15%. Usually better margins are more expensive guns. Much better margins on average on the SOT side of things in my limited experience. No idea on used margins

Once you start selling used guns you never go back. I promise you will see better margins over selling new stuff. Give it a whirl.

 

[RVTECH]

When government interference moved into the gunshows it changed the entire market, restraint of trade kills markets.

Not only gunshows but on FTF sales as well.

Probably 75% of my gun trades and purchases were pre SB 941.

Mr negative here sees a time coming that Oregon will be just like kali when it comes to gun sales, few and far between.

If 114 becomes law it will be. Not only for those who will most likely NOT get a permit to purchase but it will be a shock for those who will still be unaware of it.

I was NOT surprised at how many had no idea about SB 914 after it passed - and I am sure there are still many who do not know about it.

 

[Kruel J]

Once you start selling used guns you never go back. I promise you will see better margins over selling new stuff. Give it a whirl.

Pawn shops are different from regular FFLs in that pawn shops bring in people with a more "desperate" financial situation. People go pawn their stuff for pennies on the dollar because they have no other choice or no time to explore other options. People walking into their LGS......not so much. You aren't going to hear about 3500% markups from your LGS.

Pawn shops, IMO, are the armpit of the gun world. I've used several for transfers but I would never consider using one to "sell" anything. In fact, the only reason I've stepped foot in a pawn shop is to do a private transfer. Pawn shops and payday loan places are, to me, in the same category of "legally" exploiting people when they are most desperate.

 

[RVTECH]

I wonder if the pawning of guns would reduce if 114 were to become law.

My point being if a person were to pawn a gun, and not get it back, and is not going to get a permit to purchase then he or she is down a gun (or more) they cannot replace.

 

[arakboss]

Pawn shops are different from regular FFLs in that pawn shops bring in people with a more "desperate" financial situation. People go pawn their stuff for pennies on the dollar because they have no other choice or no time to explore other options. People walking into their LGS......not so much. You aren't going to hear about 3500% markups from your LGS.

Pawn shops, IMO, are the armpit of the gun world. I've used several for transfers but I would never consider using one to "sell" anything. In fact, the only reason I've stepped foot in a pawn shop is to do a private transfer. Pawn shops and payday loan places are, to me, in the same category of "legally" exploiting people when they are most desperate.

I am surprised to hear you feel that way. You are normally so upbeat about things.

 

[Kruel J]

I am surprised to hear you feel that way. You are normally so upbeat about things.

Logic and facts have a way of putting things in perspective.

 

[arakboss]

I wonder if the pawning of guns would reduce if 114 were to become law.

My point being if a person were to pawn a gun, and not get it back, and is not going to get a permit to purchase then he or she is down a gun (or more) they cannot replace.

That will definitely happen. Some customers already abandon the gun loan idea when they find out they will have to do a background check to get their firearm back. If they have to get a permit to purchase as well, fugget about it. It will probably wipe out the firearm loans almost completely. It might increase sales to pawn shops and LGSs though. The pawn shop and LGSs won't need a permit to purchase.

 

[arakboss]

Pawn shops are different from regular FFLs in that pawn shops bring in people with a more "desperate" financial situation. People go pawn their stuff for pennies on the dollar because they have no other choice or no time to explore other options. People walking into their LGS......not so much. You aren't going to hear about 3500% markups from your LGS.

Pawn shops, IMO, are the armpit of the gun world. I've used several for transfers but I would never consider using one to "sell" anything. In fact, the only reason I've stepped foot in a pawn shop is to do a private transfer. Pawn shops and payday loan places are, to me, in the same category of "legally" exploiting people when they are most desperate.

Take some of this with you next time you visit a pawn shop for a transfer. It might change your view of them.

 

[Kruel J]

Take some of this with you next time you visit a pawn shop for a transfer. It might change your view of them.


View attachment 1433289

Do you think if I spray enough I won't have to pay for a color copy or have my hand held while I do prints?

 

[arakboss]

Do you think if I spray enough I won't have to pay for a color copy or have my hand held while I do prints?

If you get enough in their eyes, pease pick a day when I am not there.

 

[Kruel J]

........please pick a day when I am not there.

Deal!

 

[Hueco]

I don't understand why people get pawn loans rather than use credit cards. It seems like anybody who can fog a mirror can get a credit card these days. The interest on the highest rate credit cards would be cheaper than a pawn loan.

I am well acquainted with CC's - as I'm sure you know from my other posts on this topic. I tend to get new ones when large purchases need to be made or if there is some kick butt offer on travel rewards. Might as well fly the family somewhere nice for free if I have to spend money anyway, right?

Well, this cross country move I did last year cost just over $10k with all said and done. Probably closer to 13 tbh.

So, I started looking for a CC that would let me charge up for a month and hold at 0% for 12 months with 0% on balance transfers as well. Found an Amex that fit the bill and signed up. They maxed my new card at 5k, the bastards. Even with an 820 credit score and current 6 figure line of credit utilized at 3%, they refused to raise the limit. So I went back to card shopping - enter a Capitol One. Instant Denial. Reason: I just took out a new card and they refused to issue me one within 30 days of that event.

All this to say: CC companies, for as much they appear to be a free for all, aren't.

I can completely see why desperate people pawn things as a last resort option. It'd be nice to live in a world where such desperation wasn't a thing…but until then…

 

[arakboss]

I am well acquainted with CC's - as I'm sure you know from my other posts on this topic. I tend to get new ones when large purchases need to be made or if there is some kick butt offer on travel rewards. Might as well fly the family somewhere nice for free if I have to spend money anyway, right?

Well, this cross country move I did last year cost just over $10k with all said and done. Probably closer to 13 tbh.

So, I started looking for a CC that would let me charge up for a month and hold at 0% for 12 months with 0% on balance transfers as well. Found an Amex that fit the bill and signed up. They maxed my new card at 5k, the bastards. Even with an 820 credit score and current 6 figure line of credit utilized at 3%, they refused to raise the limit. So I went back to card shopping - enter a Capitol One. Instant Denial. Reason: I just took out a new card and they refused to issue me one within 30 days of that event.

All this to say: CC companies, for as much they appear to be a free for all, aren't.

I can completely see why desperate people pawn things as a last resort option. It'd be nice to live in a world where such desperation wasn't a thing…but until then…

I remember checking out a subreddit for the Churning crowd. The serious ones definitely know how to pull one over on the CC companies. I have heard lenders have tightened up things recently.

 

[Kruel J]

I am well acquainted with CC's - as I'm sure you know from my other posts on this topic. I tend to get new ones when large purchases need to be made or if there is some kick butt offer on travel rewards. Might as well fly the family somewhere nice for free if I have to spend money anyway, right?

Well, this cross country move I did last year cost just over $10k with all said and done. Probably closer to 13 tbh.

So, I started looking for a CC that would let me charge up for a month and hold at 0% for 12 months with 0% on balance transfers as well. Found an Amex that fit the bill and signed up. They maxed my new card at 5k, the bastards. Even with an 820 credit score and current 6 figure line of credit utilized at 3%, they refused to raise the limit. So I went back to card shopping - enter a Capitol One. Instant Denial. Reason: I just took out a new card and they refused to issue me one within 30 days of that event.

All this to say: CC companies, for as much they appear to be a free for all, aren't.

I can completely see why desperate people pawn things as a last resort option. It'd be nice to live in a world where such desperation wasn't a thing…but until then…

Maybe some more regulation in the pawn/payday loan industry is in order. I never understood how they were allowed to charge astronomical interest rates.....takes desperate people and puts them in an even worse spot really........

 

[Hueco]

Maybe some more regulation in the pawn/payday loan industry is in order. I never understood how they were allowed to charge astronomical interest rates.....takes desperate people and puts them in an even worse spot really........

A society with an indebted underclass is not a functioning one, unless maybe revolution is your end goal.

But the middle class doesn't love the rich so much as they hate the poor - and that's an American value and tradition.

Our whole system needs an overhaul - pawn and payday loans are just one brick in a wall that needs to be torn down. Good luck to anyone taking on that task.

 

[kmk1012]

Pawn shops are different from regular FFLs in that pawn shops bring in people with a more "desperate" financial situation. People go pawn their stuff for pennies on the dollar because they have no other choice or no time to explore other options. People walking into their LGS......not so much. You aren't going to hear about 3500% markups from your LGS.

Pawn shops, IMO, are the armpit of the gun world. I've used several for transfers but I would never consider using one to "sell" anything. In fact, the only reason I've stepped foot in a pawn shop is to do a private transfer. Pawn shops and payday loan places are, to me, in the same category of "legally" exploiting people when they are most desperate.

Not sure why you feel this way about pawn shops. There's one in Salem that was selling those $3.99 plastic harbor freight ammo cans for $9.99 a while back. They only showed heavy wear on them, LOL.

 

[Kruel J]

Not sure why you feel this way about pawn shops. There's one in Salem that was selling those $3.99 plastic harbor freight ammo cans for $9.99 a while back. They only showed heavy wear on them, LOL.

Such a good deal, can you grab me a few?

 

[arakboss]

Maybe some more regulation in the pawn/payday loan industry is in order. I never understood how they were allowed to charge astronomical interest rates.....takes desperate people and puts them in an even worse spot really........

Just say no to regulation. Less is better.

 

[Kruel J]

Just say no to regulation. Less is better.

I agree 100% with that sentiment......but without FINANCIAL regulations we would all be screwed. Banks could charge whatever they wanted and loan rates would be unachievable for most people. If banks have to follow regulations and comply with maximum interest rate caps so should everyone else.