Non-gouging gun stores in Bay Area

[cantcme]

So once again, what is fair mark up before you start name calling?

[gemoose23]

So once again, what is fair mark up before you start name calling?

I personally don't know LGS margins, but it seems Brownells and Midway are willing to survive with selling at MSRP. (my local shop tries to survive on 20% margin on handguns)

Coming from my knowledge of Big Box Retail Electronics it would mean overall 30% margin minimum.

There was no name calling, I just see this LGS Oath that their replacement costs are going to be higher. Yet, there are other sellers of the like for like product that are selling for the same prehype MSRP amount.

I'd love to see Magpul come out and say, their MSRP is now $45.00 a 30rounder, that would tell me that their costs are going up which have to be relayed to the LGS. But checking magpul site still shows $14.95, that to me just shows that replacement costs are not now higher.

I have no issues with LGS making buckets of money, make as much as you can, I prepared for myself . LGS should not blame some other false reason why they are making buckets of money.

[jonzer77]

I see this argument a lot, but I am wondering why companies like brownells/midwayusa are not worried about "higher replacement costs". I am using Magpul AR15 30 round magazines as an example of commodity since both sell them, take back orders on them, LGS sell them as well, etc.

Brownells sold 3+ years worth of magazines in the last few weeks, as a business owner if I sold 3 years worth of product in 4 weeks. Wouldn't that just put me ahead of my sales predictions?

When you purchase product to resale I would maintain a "cost of goods sold" account where the purchase price of the goods I owned are maintained. When I sell the magazines I deduct their value from "cost of goods sold" the result is gross profit.

To all the gun stores that have to increase prices, because the future is scary, they all don't mention that they too happen to sell every single last Magpul AR magazine in their stores which could be their 3,6,9,12 month magazine allotment resulting in more Gross Profit in one month than they expected.

If replacement value is going to be higher on Magpul AR15 Magazines, why do some places allow backorders at the prehype pricing?
If as a business I cannot sell Magpul Magazines anymore, it is time to recognize it, adjust my business, adjust my expenses and continue making Profits. If sounds nice when LGS says they need to plan for the future rent and their employees, but they just sold 6+ months worth of merchandise in 4 weeks, if they do not have profits now, they might want to keep their prices high even after the hype/scare.

Stores do not carry three years worth of inventory on hand, that would be stupid. Stores carry enough to cover the anticipated demand because if they have inventory on hand not selling, then they are paying interest on that for nothing. No one expected an event like this and the insane demand that followed so prices are up, it's just the way it goes. This type of panic buying isn't sustainable and will eventually subside as long as there isn't any new legislation passed. If legislation is passed, whatever is being banned will skyrocket in price and these current panic prices will be considered cheap. Just look at the price of a machine gun manufactured prior to 86'.........an M-16 that cost $800 now sells for $18,000, talk about markup.

[Sicarius]

[QUOTE= Just look at the price of a machine gun manufactured prior to 86'.........an M-16 that cost $800 now sells for $18,000, talk about markup.[/QUOTE]

Um... you meant gouging... hehe
Kevin

[Barbarossa]

Bullseye Castro Valley. I recently bought a LPK from them.

Cards wouldn't work because my dog chewed them, and I was $1 short on cash.

They let me have it for what I had on me.