Consigment v. new purchase markup.

[Spyder]

I know that its going to vary by shop, but about how much do dealers get out of each, for their own pockets? I usually try to buy from my local guy anytime I can and if I want something new, I'll pay a little extra to keep him in business. How much profit is in a general consignment fee though?

[hawk1]

As you answered yourself, depends on the shop. Some will add 10-15% to whatever the seller wants. You could find stores that add more or less than those percentages.

[FortCourageArmory]

On consignments, I get 20% of whatever the gun sells for and the seller sets the price so they know what they are in for. On "my" guns, I mark them up as much as I can without appearing to gouge. That might sound like a flipant answer but it depends on a variety of issues. Availability, desirability, going rate, etc. all play into that final price. The only real difference is on "my" guns I have wiggle room to bargin on the price. Consignment guns require me to consult back and forth with the owner. So, there really isn't a firm answer for your question.

[CSACANNONEER]

On consignments, I get 20% of whatever the gun sells for and the seller sets the price so they know what they are in for. On "my" guns, I mark them up as much as I can without appearing to gouge. That might sound like a flipant answer but it depends on a variety of issues.

It sound like normal bussiness practice for a bussiness that wants to pay it's overhead and make a profit.

[tenpercentfirearms]

On consignments, I get 20% of whatever the gun sells for and the seller sets the price so they know what they are in for. On "my" guns, I mark them up as much as I can without appearing to gouge. That might sound like a flipant answer but it depends on a variety of issues. Availability, desirability, going rate, etc. all play into that final price. The only real difference is on "my" guns I have wiggle room to bargin on the price. Consignment guns require me to consult back and forth with the owner. So, there really isn't a firm answer for your question.

That is the nice thing about setting your prices at MSRP or even $50 higher than normal. I just had a Franchi 720 on the rack for $889. It had been there too long so I told a guy it was his for $700. Sold!

Let people think you are getting a deal by marking them up a bit high. So as consumers, it never hurts to ask if you can get some off. Unless it has AR15 in front of it at this point in time. No deals!

[JeffM]

I don't have a shop but when I sell a gun I usually start out with "Well, Tenpercent will charge you $xxxx, so I'll give it to you for $xxxx minus 20%"

[Rudolf the Red]

I charge 5% over wholesale or internet price with a minimum of $20.

[tenpercentfirearms]

I charge 5% over wholesale or internet price with a minimum of $20.

Rudolf is starting to remind me of Semi-Auto Sam. It doesn't matter what the thread topic is, we are going to here about the new Original Mag Lock every time he posts.

Rudolf you'll have to do a search on Semi-Auto Sam and Mag Lock to get this one. All the old school Calgunners will know what I mean.

[hawk1]

Rudolf is starting to remind me of Semi-Auto Sam. It doesn't matter what the thread topic is, we are going to here about the new Original Mag Lock every time he posts.

Rudolf you'll have to do a search on Semi-Auto Sam and Mag Lock to get this one. All the old school Calgunners will know what I mean.

What's the deal Wes, do you have to continue to berate Rudolphs business plan? From what I recall, you did the same with your higher 10% concept.
Do you feel that he will corner the market and take some of your business away?

Also, you should really read up on the definition between here and hear.
Two totally different meanings...

[Rudolf the Red]

Rudolf is starting to remind me of Semi-Auto Sam. It doesn't matter what the thread topic is, we are going to here about the new Original Mag Lock every time he posts.

Rudolf you'll have to do a search on Semi-Auto Sam and Mag Lock to get this one. All the old school Calgunners will know what I mean.

I was just responding to the OP's question. If this was the Girls and Guns thread, you would have a legitimate point, but since it is not, you have a illegitimate point, and in addition, this was 1 minute of my life that I will never get back.

[tenpercentfirearms]

Touche Hawk! I too have been careless with my homonyms.

The joke went over both of your heads. You did not do your Semi-Auto Sam research. Semi-Auto Sam came up with a new mag lock idea and he would advertise it in just about every thread. We would be talking about duck hunting and Semi-Auto Sam would make a post about his new mag lock that was about to produce. He found a way to advertise his business in any topic.

Re-reading it I see the original post did say "I know that its going to vary by shop, but about how much do dealers get out of each, for their own pockets?" So Rudolphs stating what he gets out of his pocket is valid but I am not sure if it is a good way to generalize what gun shops make.

As far as the question "How much profit is in a general consignment fee though?" No relevant answer. I didn't give one either and was just commenting on Fort Courage's comments.

Hawk, Rudolph will never be a threat to my business just like I will never be a threat to his. To think so is foolish. There is plenty of business to go around for everyone. A guy selling guns out of his house in the sticks for 5% is not going to steal anyone's business except the local shop in his close proximity. However, if the kitchen table guy can't get guns in stock, he can't really compete with the guys who have guns in stock ready to go. No matter how cheap his price is.

Plus over time Rudolph's success will change his business model. If he starts to get a "corner" on the market, his being busy all the time for 5% might suddenly not be worth it anymore. I know that from experience.

These are lessons in the free market system. New entries pop up all the time. How many make it?

And finally to Rudolph, you are in control of your actions. If you wasted a minute of your life, it was because you chose to. Or do I control what you type now? Am I that persuasive of a typer?

Just screwing with you. Lighten up.

[Spyder]

Yea, understood. I didn't word my first post very well...just trying to figure out if its worth it for my local guy to do consignments. Like, if I see something that's on consignment that I want, but I find it on gunbroker for a hundred bucks cheaper, is he going to rather I buy it from him because he'll make more money, or is it so little on a consignment that it doesn't matter.

Damnitt...my brain still isn't working right cause I don't know if that makes sense. Maybe...Are consignments worth your time?

I like to buy local if I can but if I get a screaming deal on an internet order, I'll buy it. I'll spend more for the same thing if its the local guy getting the profit, to a certain extent, but I'm not looking to throw money away.

My brain sucks in this thread. Sorry. =]

[randy]

Rudolf and the rest of you if you want to take a few shots at Wes in January there's a three gun match in Piru that Wes should be attending.

As always Wes let me know what you need to borrow.