What is the markup on Guns?

[GMONEY]

Just curious? Like when I buy retail?

[HowardW56]

Just curious? Like when I buy retail?

[Josh]

depends on where you buy, but usually its less then %25

[HowardW56]

depends on where you buy, but usually its less then %25

[rivviepop]

Also depends on the manufacturers - S&W has a huge markup in their MSRP, giving dealers a lot of room to trim the price. CZ on the other hand has a low MSRP and the dealer doesn't have much room to do anything about it.

[AngelDecoys]

I've found it largely varies from location and FFL. I haven't paid MSRP in years, and often pay close to cost. (I live in the central valley). It will also depend on the relationship you develop with your FFL. I've used several for years so I often will get a gun or two at cost for buying several at a higher rate. Same with out of state transfers.

For example, I'm in the middle of a dros right now where I'm paying 10% over cost. (FFL showed me his cost). Known the guy for years, and hunted with him. Develop those relationships........

[-hanko]

I've found it largely varies from location and FFL. I haven't paid MSRP in years, and often pay close to cost. (I live in the central valley). It will also depend on the relationship you develop with your FFL. I've used several for years so I often will get a gun or two at cost for buying several at a higher rate. Same with out of state transfers.

For example, I'm in the middle of a dros right now where I'm paying 10% over cost. (FFL showed me his cost). Known the guy for years, and hunted with him. Develop those relationships........

It definitely depends on dealer and gun...e.g., CDNN is currently selling FN fifles at ~40% off MAP. CA is different as many guns can't be gotten here, the dealers are aware of it and raise the price accordingly. Speaking w/ CA dealers, apparently the cost of operating a business is such that prices will be inherently higher than just about anywhere in the US.

+1 on loyalty to your dealer; +1000 on a dealer who knows CA laws (few of those).

hth but there's no absolute answer.

-hanko

[bruss01]

If you're buying from a brick and mortar store I would wager it's about 50%. If you're buying online, probably closer to 25%. The brick & mortar guy figures you'll only ever buy one gun and let it sit in a dresser drawer for the next 60 years until your widow sells it at your estate sale. So he has to make all his profit off you up front. There might be the rare "shooter" oriented gun store out there who sells guns closer to 25% markup and makes more of his money off the repeat business of happy satisfied customers. Problem is, I just haven't come across him yet.

[DedEye]

It varies. It isn't much, but it's more depending on overhead. An online mega-warehouse with no brick and mortar store can sell for a lot less money because they have higher volume and less expenses than a small mom and pop gun shop, especially a shop in California.

[djbooya]

Well to just add some input to this thread. I am in the process of planning to open an online CA based store where if everything goes well I will be able to stay in business with a 10-15% markup at most. This includes OLLs, and converting weapon systems like the Sig 556 to CA legal with bullet buttons. I intend to be able to do this by keeping close to 0 stock.. what that means is that while it may take you a few days to a few weeks longer to receive the firearm then a brick-n-mortar store it's your choice where you spend your money. I know there are some folks like me that don't have the impulse urge that must have the gun right now and can wait the additional days to save the cash and use it for bullets or range time. I'm hoping to cater to that market. Once I get going I hope to offer FFL and Gunsmithing services as well. In any case, I plan to run a tight ship and hopefully will be able to make money by volume. We'll see if my plan works! Since I don't plan to have a big retail shop / retail hours I'm hoping to save significant costs that I want to be able to pass on to the customers.

Anyhow, from what I've seen most markups are anywhere between 20-25% on average as most others in this thread have mentioned.

At some point I hope to offer will-call services as well so that folks that purchase firearms will be able to DROS at my location and pickup at my location even if their purchase occurs online. I will be based around the Newark/Fremont/Union City/Milpitas/Hayward area depending where I can secure my office space.

Ideally, I also hope to apply for a hi-cap mag license so I can sell local 10/30 mags for ARs and AKs alike as well as rebuild kits.

Also looking for reliable reload providers as I am hoping to become a good source for cheap reloads as well. We'll see how it all pans out as I move forward with the process.

[Matt@EntrepriseArms]

Just curious? Like when I buy retail?

A lot less than people think. It really depends on the brand and the firearm, but some of the markups are pretty darn low. There really isn't much money to be made in the gun business unless you either manufacture them, or sell in large volume. Let me tell you, manufacturing is not always a big profit generator, either, but there is more potential.

Not to cry sour grapes here, but the internet has changed gun buying forever. People surf the net to find the lowest price, and then ask for a discount on top of that. They get their purchase at near cost, pat themselves on the back, and are happy with their purchase.

As a result, more and more brick and mortar gunshops go out of business. The same can be said for small retailers in many different fields, not just guns. I used to work for a small retail family owned cutlery chain when I graduated from high school. I stopped by one of the stores recently and asked how things were going. "Not good," the owner told me. When I worked there, they owned 6 stores. Now they were down to two, and he told me that he might last another year or so before he had to close it up for good. Why? The internet killed him. People can buy knives at a price that he can't touch, and a lot of these online businesses either have little or no overhead, or they are part of a mega-conglomorate of product lines that one particular business will sell. It was kind of sad, cause when I left that company in 1992, they were on the upswing and opening more stores, expanding their product line, etc.

So back to guns. Many dealers try to counter the internet pricing by charging higher and higher transfer fees. They have to in order to protect their business.

So while I'm not saying not to price shop or blow all your money on inflated prices, if a local guy has the gun for a $25 bucks more than it would cost you to do a transfer, buy it from the local guy.

Cause one of these days there won't be any local guys left around for you do your transfers at.

Thats my rant for the day.

[Darklyte27]

My Savage 10FLP cost me 555$ shipped to my FFL and 50$ DROS. From Buds


A online store in Florida who had a "5$ monthly membership cancel any time" to buy at their cost wanted $ 495.06
Shipping cost: $ 25.82
Total: $ 520.88

His reg cost was 530$

I am sure he prob got them for less than 495$
anyways he canceled my order and kept my 5$ after I asked to cancel it after I placed the order. what a bastard....

[ghost]

from what i was told that there is very little mark up on firearms.most of the mark up and profit was from acessories/parts sales.

[tenpercentfirearms]

I pretty much mark up everything I order 20% and then round up to the nearest $25 mark. Items on the rack tend to be about 30-40%. Most AR15 items I make anywhere from 15% to over 100%. In this business you make what you can on what you can. I have heard the gun business is the worst for mark up, but I seem to be doing ok.

Well to just add some input to this thread. I am in the process of planning to open an online CA based store where if everything goes well I will be able to stay in business with a 10-15% markup at most. This includes OLLs, and converting weapon systems like the Sig 556 to CA legal with bullet buttons. I intend to be able to do this by keeping close to 0 stock.. what that means is that while it may take you a few days to a few weeks longer to receive the firearm then a brick-n-mortar store it's your choice where you spend your money. I know there are some folks like me that don't have the impulse urge that must have the gun right now and can wait the additional days to save the cash and use it for bullets or range time. I'm hoping to cater to that market. Once I get going I hope to offer FFL and Gunsmithing services as well. In any case, I plan to run a tight ship and hopefully will be able to make money by volume. We'll see if my plan works! Since I don't plan to have a big retail shop / retail hours I'm hoping to save significant costs that I want to be able to pass on to the customers.

Anyhow, from what I've seen most markups are anywhere between 20-25% on average as most others in this thread have mentioned.

At some point I hope to offer will-call services as well so that folks that purchase firearms will be able to DROS at my location and pickup at my location even if their purchase occurs online. I will be based around the Newark/Fremont/Union City/Milpitas/Hayward area depending where I can secure my office space.

Ideally, I also hope to apply for a hi-cap mag license so I can sell local 10/30 mags for ARs and AKs alike as well as rebuild kits.

Also looking for reliable reload providers as I am hoping to become a good source for cheap reloads as well. We'll see how it all pans out as I move forward with the process.

LOL. This sounds just like me three years ago. Good luck with your plan. Whatever you do, do not put in your name 15% firearms or anything stupid like that. You will quickly realize all of the time you are spending in the store is not worth 10-15%.

Not only that guys don't want to wait weeks or months for AR15 items. They want it now. If you are only going to buy things as you go to keep your over head low, you might have a hard time selling things. For example I have to order Rock River uppers months in advance. Sometimes LPKs go out of stock for months. Uppers sometimes take weeks. You also have to compete with the online guys who stock everything and can get it to guys without sales tax in less than a week for your same price or less. And don't rely on the manufacturer's time frame for when it will be available. You will learn real quick customers are not impressed when you told them two weeks and it is now on week four and you have no idea where the product is. Of course this isn't your fault, but the customer doesn't care.

I learned early on...if it isn't in stock, I don't sell it. You will quickly find out the customer who is waiting for his products to show up is the worst! They will call you every other day, every day, twice a day. "Did it come in yet?" You can tell them you will call them as soon as it comes in all you want, they don't hear you. They want their products.

Basically, I wouldn't do it if I were you. There is plenty of business to go around, so I am not worried about you driving me out of business. I am telling you from a human standpoint. Don't sacrifice your life and free time for 10-15%. Hell, don't do it for 20-25%. Play video games, go shooting, hang out with your loved ones. You will not own your business, your business will own you.

Guess what I should be doing right now? Shipping. Guess I what I want to be doing right now? Anything other than shipping. So I am wasting time on Calguns. Back to shipping.

[r08ert209cali]

sucks but true

I pretty much mark up everything I order 20% and then round up to the nearest $25 mark. Items on the rack tend to be about 30-40%. Most AR15 items I make anywhere from 15% to over 100%. In this business you make what you can on what you can. I have heard the gun business is the worst for mark up, but I seem to be doing ok.

LOL. This sounds just like me three years ago. Good luck with your plan. Whatever you do, do not put in your name 15% firearms or anything stupid like that. You will quickly realize all of the time you are spending in the store is not worth 10-15%.

Not only that guys don't want to wait weeks or months for AR15 items. They want it now. If you are only going to buy things as you go to keep your over head low, you might have a hard time selling things. For example I have to order Rock River uppers months in advance. Sometimes LPKs go out of stock for months. Uppers sometimes take weeks. You also have to compete with the online guys who stock everything and can get it to guys without sales tax in less than a week for your same price or less. And don't rely on the manufacturer's time frame for when it will be available. You will learn real quick customers are not impressed when you told them two weeks and it is now on week four and you have no idea where the product is. Of course this isn't your fault, but the customer doesn't care.

I learned early on...if it isn't in stock, I don't sell it. You will quickly find out the customer who is waiting for his products to show up is the worst! They will call you every other day, every day, twice a day. "Did it come in yet?" You can tell them you will call them as soon as it comes in all you want, they don't hear you. They want their products.

Basically, I wouldn't do it if I were you. There is plenty of business to go around, so I am not worried about you driving me out of business. I am telling you from a human standpoint. Don't sacrifice your life and free time for 10-15%. Hell, don't do it for 20-25%. Play video games, go shooting, hang out with your loved ones. You will not own your business, your business will own you.

Guess what I should be doing right now? Shipping. Guess I what I want to be doing right now? Anything other than shipping. So I am wasting time on Calguns. Back to shipping.

sounds like my ebay project for diesel parts.people who want the best deal are usauly a pain in the arse.you realy needs product in hand.