How much do gun shops make?

[Moonclip]

Maybe once upon a time.
But with the internet and so much information as to the real value of a prospective seller's used gun, not so much anymore. When a seller can go online and see, for example, on GunBroker.com or GunsAmerica that a similar gun, in the same condition is selling for X and the dealer tells him it's worth X minus, the seller feels slighted. But what's the dealer to do? The idea is to make a profit, keep the lights on and pay the employees, plus be able to have a slight margin to purchase new stock and so the cycle goes on and on.
But if the dealer buys the gun for what it's really worth, then he needs to mark it up to an unrealistic value to make a little money. This tends to put off prospective buyers.
Therefore consignment sales is where it's at now. I'll take 20% of whatever it sells for and I'll do my best to get you the most for it, 'cause a better deal for you is a better deal for me, right? That way no one feels cheated or low-balled.

I sorta agree with you but with some observations. Remember dealers can't buy a lot of non listed handguns out there so they have to do a consignment even if they feel they can make more buying it outright.

And I know a dealer that charges 40% consignment fee and stil gets in a fair amount of consignments! I really doubt though that people checking online auction sites is really hurting gun dealers trying to buy used guns from the walk in. I doubt your average gun seller does so. I think a lot of a gun delaers bread and butter used gun buys for resale is like the widow selling her hsubands guns. A 90yo woman is not generally going to look at gunsamaerica or a blue book and then walk in and demand close to their pricing. And the unscrupulous dealer will financially rape her.

Consignments are a great deal for all I feel. If I'm consigning guns I don't have to deal with shady people or tire kickers myself, the dealer does and he puts my stuff in front of alot of interested customers. The dealer maked 20-30% without and cash outlay of his own. The customer gets a decent deal in some cases, of interesting and older guns that are hard to find in California. I almost never buy new guns, I've only bought one this year IIRC and like 15 used ones, many that were on consignment.

[bear308]

I also don't shoot at firing line range as IIRC it is $18 to shoot if you don't buy thier ammunition which I consider expensive. People buy firing line ammo because of this or beacuse they are casual occasional shooters that don't really keep up with what ammo can be purchased or reloaded for. Also I have had issues with attitudes of some of the help at the HB location so I'd rather spend elsewhere.

It actually doesn't matter whether you purchase ammo from us or not. It's always $18 for the first on a lane, unless they are members. However additional shooters are less. 3 people on a lane @ TFL = $36, # people @ ASR = 36. It'd be cool if it were cheaper, however we are packed a lot. Supply and demand in action.

I have a guy that shoots ~400 rounds of our ammo every week ( been doing so for over ten years.) I understand that it is more expensive than other places, but we are selling it (and it's still the same markup that it started out as).

And I am sorry that you had an issue in HB, they have made a few changes over the last year. You might want to swing in and check em out. If your ever up in my neck of the woods swing buy, I'll set you up with the "special price".

I'd like to apologize for some my muddying of this thread earlier, it didn't need to be responded to, but I have a hard time not responding.

[Blue]

Stormfeather,

I tend to believe the Forbes article. So you overpay for guns.

YES Glocks cost less than $100 to manufacture, I believe the $75 figure, to produce.

Don't like it. Don't believe it? Call them up and ask them. Tel.: +1 770-432-1202. Also, LEO cost $398. I spoke with Craig in Customer Service.

I believe it.

Also, they're made out of country right?

[CRTguns]

Wes and Bill And Myself all say authoritatively, that Glockman is wrong. Does this constitute libel or slander? So be it. Yer wrong dude.

[MedSpec65]

It's the gun and pistol smithing aspect of the business I'm curious about. I've noticed my local dealer is not real anxious to perform custom work on my pistol, especially during hunting season when he's busy tuning rifles. I've got a feeling the market doesn't allow much profit margin on repair and custom smithing work. Also, certified gunsmiths are hard to find.

[FinalBoss]

Top Glock usually has the best Glock prices. TopGlock.com.
Right now they have free shipping too. So, high 400s for a Glock, free shipping, and DROS @ Bright Spot Pawn or Cold War Shooters and you are good to go.

The way I see it, support your local stores but they must realize that they must evolve with the times or close up shop. Offer something that the internet sellers cant (which is a low price). Things like GREAT customer service and a good purchase experience. Just my .02.

[Fjold]

The cost of raw materials and the unit time to produce the gun may be $75, averaging it over the thousands of guns produced.

But add in their corporate overhead including, adminstrative costs, taxes, shipping, insurance, govenrment fees and licenses, advertising, tooling costs, building maintenance, etc.

There are hundreds, if not thousands of other costs that have to be added in to the total costs of the product.

[FinalBoss]

I think the Internet has caused local stores to evolve. It helps level the playing field. That does not mean stores are not going to have higher prices than the Internet. Stores have to pay rent and salaries so they are probably not neting any more than the Internet stores. Internet is fine for things local stores don't sell or if you are "well informed" and know exactly what you want to buy. However, storefronts are much better when you need to ask questions, touch and feel merchandise, compare things side to side, etc. That adds value and is worth paying a little more for. At some point in time all of us had to "learn". I prefer to deal with local / regional dealers and FFL's because they are in business to support me.

That is where "service" comes in. TPF, CWS, Lanworld, and others here provide great service. You are not getting ripped off if you pay a little more with them. Support your local dealer and FFL unless they give bad service (more than just once) or have really bad pricing. Everyone just has to decide for themselves what $ difference on a firearm would cause them to go to an Internet vendor.

Very well put. =)

[CALI-gula]

How much do gun shops make?

Well, they don't make much. Most of the items they sell are made by other companies or manufacturers.

Some gun shops offer re-loaded ammo, so you could say they make that, but overall, they only sell goods that are made by other entities. I know some gun shops that make mountains out of mole-hills, or make Iggy mad, or make people wish they never entered their gun shop, or make up their own gun laws, or make many mistakes, or make up some really good stories about the items they sell (which other people might simply call "lies" or "ignorance") however, you have to give them credit for making something after all.

.

[Blue]

Not enough or they'd be a more popular business.

[Para]

people must make a profit to stay in business. Is there something wrong with that?

You have the choice of if you want to buy from them. The internet makes it really easy.

Its Capitalism wheres the problem?

[thedrickel]

people must make a profit to stay in business. Is there something wrong with that?

You have the choice of if you want to buy from them. The internet makes it really easy.

Its Capitalism wheres the problem?

That's what I say about illegal immigrants and the US labor market

[Para]

good point!

[valleyrat]

or make up their own gun laws

.

True dat. I was at a store in Culver City and overheard a salesperson telling a customer that he "could only shoot his registered AW on state designated locations". I really couldn't believe my ears.