Consignment

[Capt. Speirs]

[10ga-killa]

Some FFL's either charge a percentage or a flat rate. Percentages that I have seen are 20%-25%. Flat rates of $30-$50 per firearm. Yes they are going to have to DROS them back if they want them back. Since it's a consignment sale you can charge $35 for the DROS + fee. As for a storage charge that's gonna have to be up to you. What do you think is fair?

[kemasa]

The fees are only limited for a PPT. If the firearm is transferred as a PPT, then the fees would be limit, but that is only required if the firearm is not on the certified list.

If you have the space, then you get a free increase in inventory. So, you really are the only one to decide what it is worth to you. If the price is too high, it won't sell, so that is also a factor as it can waste your time in dealing with it.

[Norse_Armory]

We don't charge anything to return the firearm to the original owner except for the $25 DRoS fee. If someone buys it, we treat it as a PPT instead of a dealer sale and we only charge the $25 DRoS fee plus our 10% taken out of the final sale price.

[Southpaw]

We don't charge anything to return the firearm to the original owner except for the $25 DRoS fee. If someone buys it, we treat it as a PPT instead of a dealer sale and we only charge the $25 DRoS fee plus our 10% taken out of the final sale price.

So if a dealer treats it as a PPT they would be able to consign off roster handguns, but if treated as a dealer sale they would not? Just curious how the consignment would work.

[dirtyJ]

Yes. When we run a consignment sale, we do it as a PPT and have the consigner come in and sign the DROS paperwork along with adding a copy of his license to the whole deal.

[CA Gun Laws Suck]

Yes. When we run a consignment sale, we do it as a PPT and have the consigner come in and sign the DROS paperwork along with adding a copy of his license to the whole deal.

You could have the consigner fill out a soft DROS and have it filled out signed and thumb printed with a copy of their DL/ID so they don't have to come back in.

[dirtyJ]

That's true, but the consigner is still going to want to come in to get his money. In some cases we'd be happy to mail a check, but most often we prefer to hand over cash and a receipt. Easier paper trail that way.

[ugimports]

That's true, but the consigner is still going to want to come in to get his money. In some cases we'd be happy to mail a check, but most often we prefer to hand over cash and a receipt. Easier paper trail that way.

Do you guys pay out the consignor when the DROS starts for the new buyer? I pay out after the DROS clears so I have them fill out the paper copy when they leave their gun for consignment and fill out their consignment contract. That way they only have to come back if they want to pick up the check vs. coming back to get the DROS started or if the consignment period ends. I give them an option of mailing them the check as well. However, I guess in your case you want every excuse for them to come back into your store so you can get them to buy something

[kemasa]

You should not pay the seller until the firearm is actually picked up. A local place had a firearm on consignment and a buyer bought it, started the paperwork, but before the waiting period was up the police took the firearm due to some issue. I am not sure as to why, but the FFL refused to refund the money. Most likely the FFL had given the seller the money.

The deal is not final until the firearm if picked up. The buyer could be denied, not pick it up or the above could happen. It is best to hold the money. Yeah, the seller won't like that, but it helps to avoid any issues.

[ugimports]

You should not pay the seller until the firearm is actually picked up. A local place had a firearm on consignment and a buyer bought it, started the paperwork, but before the waiting period was up the police took the firearm due to some issue. I am not sure as to why, but the FFL refused to refund the money. Most likely the FFL had given the seller the money.

The deal is not final until the firearm if picked up. The buyer could be denied, not pick it up or the above could happen. It is best to hold the money. Yeah, the seller won't like that, but it helps to avoid any issues.

Do you think there's a risk after DROS clears? I was working under the assumption that if anything sour is going to happen it was going to be confined to the 10 day wait. Hence why I didn't pay out until DROS cleared. I was very clear to the seller on that fact as well. However, now from this discussion I will probably add that specific term into the contract so it's clear when they sign on the dotted, er solid, line..

[kemasa]

What happens if the buyer does not pick it up? You have not delivered the firearm to them. While you could say that they own it, they have not taken delivery and they do not actually own it yet.

What if the police take the firearm due to some issue (as I mentioned) after the waiting period is over, but before the buyer picks it up? You should be able to refund the money to the buyer as it would not be their fault.

What if it turns out that the firearm is stolen and so the police come and take it so that you can not deliver it to the buyer? Do you want to refund the money to the buyer out of your own pocket? Do you want to tell the buyer to go after the seller? It is much easier to wait to deliver the money until after the firearm is picked up.

I would hold the money until the deal is done, meaning that the firearm is picked up. Until that time, many things can happen. Remember Mr. Murphy.

[ocspeedracer]

i think a $50 per gun flat rate is fair, unless they're junk guns

[CSACANNONEER]

I've never heard of a storage or display fee for consignment guns which are returned. If someone tried to charge me for either of those, they would loose my bussiness. Why should someone pay for you to have free stock on your shelves? If you don't want to deal with consignments, don't do it but, don't try to tack on every charge you can think of if you decide to do them. Although, I also believe that you and the seller need to agree on ANY terms and charges before you take possession of the firearms and both of you should honor those terms/charges.

You should not pay the seller until the firearm is actually picked up. A local place had a firearm on consignment and a buyer bought it, started the paperwork, but before the waiting period was up the police took the firearm due to some issue. I am not sure as to why, but the FFL refused to refund the money. Most likely the FFL had given the seller the money.

The deal is not final until the firearm if picked up. The buyer could be denied, not pick it up or the above could happen. It is best to hold the money. Yeah, the seller won't like that, but it helps to avoid any issues.

That doesn't sound right. The buyer paid the FFL (acting as a broker) yet, the deal fell through because of some reason which was outside of the buyer's control and he won't refund the buyer's deposit? Please either out the FFL or, at least, send me a PM letting me know who it was. After confirming the facts, I will not do bussiness with them even if it is my favorite FFL.

Do you think there's a risk after DROS clears? I was working under the assumption that if anything sour is going to happen it was going to be confined to the 10 day wait. Hence why I didn't pay out until DROS cleared. I was very clear to the seller on that fact as well. However, now from this discussion I will probably add that specific term into the contract so it's clear when they sign on the dotted, er solid, line..

Yes, there is always a risk until the firearm is picked up.

[kemasa]

I heard of this deal with the firearm being taken from the person who it happened to. He did not want to sue or otherwise cause problems, which I think is wrong. I can not confirm the story, but I believe it to be true. How would you confirm what happened? Unless I told you who the person was and they decided to say what they told me, you can not really confirm it. I am sure that this FFL would not confirm it.

Yes, the money should have been returned. Yes, the customer should have taken action against this place, but people don't always do what they should do.

I have many customers who won't set foot in that place, all for different specific reasons. It is really unclear as to how they are still in business and it is amazing all the stories I have heard, some from multiple sources. One customer of mine said that he would not go in the place if he *won* a firearm from a FNRA event and that place was doing the transfers. A couple other people told me of an event at a local firing range when a customer was being shown how to shoot a derringer in which the FFL's (ex-LAPD) thumb got in the way of the bullet. I would suspect that could be somewhat confirmed by looking at this FFL's thumb.

I will say that it is a local place and it is not Fort Courage Armory. If this place is your favorite place, then I feel sorry for you.