Retail Margins On New Guns and Used Guns.

[arakboss]

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.

The State has caps on pawn loan rates. You could argue for lower rate caps? While we're at it we could argue for rental rate caps, etc.

No thanks! Let the free markets do their thing. If an industry is not providing something desired it will die out.

 

[Kruel J]

The State has caps on pawn loan rates. You could argue for lower rate caps? While we're at it we could argue for rental rate caps, etc.

No thanks! Let the free markets do their thing. If an industry is not providing something desired it will die out.

The caps should be no more than maximum CC rates. The "free market" exploits downtrodden people.

 

[arakboss]

The caps should be no more than maximum CC rates. The "free market" exploits downtrodden people.

Take it to Salem, I am sure you will find plenty of support from the same pols trying to restrict our firearm freedoms.

It's funny how free market principles are so easily rejected and regulation embraced when someone starts feeling sorry for someone else.

 

[Nosferatu]

Pawn shop interest rates are regulated at the state level. For example, this is the WA RCW:

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PDFRCW 19.60.060

Rates of interest and other fees—Sale of pledged property.

All pawnbrokers are authorized to charge and receive interest and other fees at the following rates for money on the security of personal property actually received in pledge:
(1) The interest for the loan period shall not exceed:
(a) For an amount loaned up to $9.99 - interest at $1.00 for each thirty-day period to include the loan date.
(b) For an amount loaned from $10.00 to $19.99 - interest at the rate of $1.25 for each thirty-day period to include the loan date.
(c) For an amount loaned from $20.00 to $24.99 - interest at the rate of $1.50 for each thirty-day period to include the loan date.
(d) For an amount loaned from $25.00 to $34.99 - interest at the rate of $1.75 for each thirty-day period to include the loan date.
(e) For an amount loaned from $35.00 to $39.99 - interest at the rate of $2.00 for each thirty-day period to include the loan date.
(f) For an amount loaned from $40.00 to $49.99 - interest at the rate of $2.25 for each thirty-day period to include the loan date.
(g) For the amount loaned from $50.00 to $59.99 - interest at the rate of $2.50 for each thirty-day period to include the loan date.
(h) For the amount loaned from $60.00 to $69.99 - interest at the rate of $2.75 for each thirty-day period to include the loan date.
(i) For the amount loaned from $70.00 to $79.99 - interest at the rate of $3.00 for each thirty-day period to include the loan date.
(j) For the amount loaned from $80.00 to $89.99 - interest at the rate of $3.25 for each thirty-day period to include the loan date.
(k) For the amount loaned from $90.00 to $99.99 - interest at the rate of $3.50 for each thirty-day period to include the loan date.
(l) For loan amounts of $100.00 or more - interest at the rate of four percent for each thirty-day period to include the loan date.
(2) The fee for the preparation of loan documents, pledges, or reports required under the laws of the United States of America, the state of Washington, or the counties, cities, towns, or other political subdivisions thereof, shall not exceed:
(a) For the amount loaned up to $4.99 - the sum of $1.50.
(b) For the amount loaned from $5.00 to $9.99 - the sum of $3.00.
(c) For the amount loaned from $10.00 to $14.99 - the sum of $4.00.
(d) For the amount loaned from $15.00 to $19.99 - the sum of $4.50.
(e) For the amount loaned from $20.00 to $24.99 - the sum of $5.00.
(f) For the amount loaned from $25.00 to $29.99 - the sum of $5.50.
(g) For the amount loaned from $30.00 to $34.99 - the sum of $6.00.
(h) For the amount loaned from $35.00 to $39.99 - the sum of $6.50.
(i) For the amount loaned from $40.00 to $44.99 - the sum of $7.00.
(j) For the amount loaned from $45.00 to $49.99 - the sum of $7.50.
(k) For the amount loaned from $50.00 to $99.99 - fifteen percent of the loan amount.
(l) For the amount loaned from $100.00 to $249.99 - thirteen percent of the loan amount.
(m) For the amount loaned from $250.00 to $499.99 - ten percent of the loan amount.
(n) For the amount loaned from $500.00 to $999.99 - eight percent of the loan amount.
(o) For the amount loaned from $1000.00 to $1499.99 - seven and one-half percent of the loan amount.
(p) For the amount loaned from $1500.00 to $1999.99 - seven percent of the loan amount.
(q) For the amount loaned of $2000.00 or more - six percent of the loan amount.
(3) For each thirty-day period, a pawnbroker may charge:
(a) A storage fee of $5.00; and
(b) An additional fee of $5.00 for storing a firearm.
(4) Fees under subsection (2) of this section may be charged one time only for each loan period; no additional fees, other than interest allowed under subsection (1) of this section and storage fees allowed under subsection (3) of this section, shall be charged for making the loan.
A copy of this section, set in twelve point type or larger, shall be posted prominently in each premises subject to this chapter.

 

[arakboss]

There is another group that doesn't like the lending industry.

The Strange Connection Between the CFPB and Antifa | RealClearMarkets

Financial regulators and Antifa leaders might seem like strange bedfellows, but it seems the creators of the Payday lending regulations at the Consumer Financial Protection Bureau (CFPB) had a...

www.realclearmarkets.com

 

[Kruel J]

There is another group that doesn't like the lending industry.

The Strange Connection Between the CFPB and Antifa | RealClearMarkets

Financial regulators and Antifa leaders might seem like strange bedfellows, but it seems the creators of the Payday lending regulations at the Consumer Financial Protection Bureau (CFPB) had a...

www.realclearmarkets.com

Spin it however you like. Paint with the broadest brushstrokes to make sure you cover it.

 

[titsonritz]

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?

I won't let them do that. I know how to fingerprint myself all by my little lonesome. I'm with you on Pawnshops, no thanks.

 

[Kruel J]

I won't let them do that. I know how to fingerprint myself all by my little lonesome. I'm with you on Pawnshops, no thanks.

You're not given a choice at the shop I was referencing. They insist that it's law and they "have" to do it for you. As someone who doesn't like physical contact from complete strangers, this keeps me from being a patron.

 

[titsonritz]

You're not given a choice at the shop I was referencing. They insist that it's law and they "have" to do it for you. As someone who doesn't like physical contact from complete strangers, this keeps me from being a patron.

Then they are lying. I'd be gone. too.

Just like these pricks that try and say they have to scan your ID to buy a six-pack of beer, cause its law. BS you are lying.

 

[phildyson]

You can kinda guess it's not very high because you don't see big discounts on guns when they go on sale. Now rifle scopes is a different story...they often slash prices 50% even more on discontinued models. it's the accessories that keep the lights on.

 

[Tarawa86]

You're not given a choice at the shop I was referencing. They insist that it's law and they "have" to do it for you. As someone who doesn't like physical contact from complete strangers, this keeps me from being a patron.

Heh, I remember that thread. I think the consensus was that they fingerprinted as in the image below.

 

[91490]

Some of you all don't appear to be very good at math? So you bought a pistol for $100.00 and sold it for $3500.00, hmmmmmmmm. don't think so.
I have been a FFL for over 50 years and never hit any of the numbers some of you are referring to. I have been a business owner other than firearms for over 50 years as well and volume always dictates margins. Otherwise there is no reason to be in business if you aren't making any money.
The person above who said to not buy a firearm only ammo and accesrrories isn't doing the owner of the gun any favors as the poor guy still has $500.00 or whatever locked up in gun inventory that he can't use to buy ammo or accessories.
A little common sense on this forum would go a long way.
Just an old guys logic, don't care if you like it or not.

 

[Member 53328]

I'm so sad he has me on ignore….. not. I know where he works and I won't be doing business there ever again.

You lost another customer. Congrats.

Not a huge fan of knowing this member watches the classifieds like a hawk and if you go in with a recognizable item (even to do a transfer with another member) he knows you by your user name and then has access to all your personal information.

I have trust issues.

 

[eustace_stelio]

I tried getting the boss to give me a target margin percentage to aim for and he won't do it. His answer is, he wants to make as much money on each sale as the market will bear. To him it doesn't matter how little he paid for an item, he wants as much as he can get, when it sells.

I could sell almost every used firearm he has in stock if he would settle for a few hundred percent margin. He won't, so most of the firearms sit until the right buyer comes along.

The like new Ruger-5.7 I bought for a buck would have a 10,000% margin, even if it sold for $100. It will likely go for $400+.

The buy deals that come through the place are ridiculous and it always surprises me what people are willing to accept for their firearms.

A $1 gun selling for $100 isn't 10,000% margin.

Edit: I stand corrected, you are correct.

 

[Knobgoblin]

Wow.
Lot of deeply ingrained prejudice against pawn shops here. Never realized this was a thing. I enjoy them, even when I don't buy anything. Always different stuff to see. Not like walking into the same Denny's breakfast experience that you get in a " normal " gun store.
I am a bit of a dirtbag tho. Lol

 

[eustace_stelio]

Wow.
Lot of deeply ingrained prejudice against pawn shops here. Never realized this was a thing. I enjoy them, even when I don't buy anything. Always different stuff to see. Not like walking into the same Denny's breakfast experience that you get in a " normal " gun store.
I am a bit of a dirtbag tho. Lol

When I was playing music more and in bands I went to a few pawn shops in my old home town expecting to find some nice vintage guitars or amps. Was a a rude awakening lol. Nothing but junk and quite depressing.

Never really bothered going to any here on the west coast so may be different out here.

 

[dinky450]

Then they are lying. I'd be gone. too.

Just like these pricks that try and say they have to scan your ID to buy a six-pack of beer, cause its law. BS you are lying.

Lmao I thought I was the only one telling the guy a plaid panty to go fly a kite. It ticks me off every time and normally walk out without anything as I've pissed them off.

 

[arakboss]

I won't let them do that. I know how to fingerprint myself all by my little lonesome. I'm with you on Pawnshops, no thanks.

They haven't been doing hand holding for years. It was a short lived bad judgment call on their part. If they ever try doing it again I won't be participating in it either.

 

[arakboss]

A $1 gun selling for $100 isn't 10,000% margin.

Edit: I stand corrected, you are correct.

My wife gave me this formula to determine gross margin. Sell price x 100 ÷ cost of item.

Example: item cost $5 and sold for $175.

175 x 100 = 17,500. 17,500 ÷ 5 = 3500% gross margin.

 

[Kruel J]

They haven't been doing hand holding for years. It was a short lived bad judgment call on their part. If they ever try doing it again I won't be participating in it either.

It's either been only two or three otherwise the dude was just trying to get fresh with me. Regardless I'm glad they ditched that policy. They still charge for color copies?…..that they keep….