Price Gouging at FFL/Shop Lately?

[Jed peters]

I have been on a bit of a gun purchasing kick the last 6 months or so, and I've observed something just recently in this last rash of purchasing....

My local FFL is GOUGING customers. This shop has doubled or tripled prices to customers in the last two weeks, even overnight they have been marking up their prices.

What concerns me is this--when everything calms down with whatever legislation that is going to be passed, don't you think that these dealers are going to suffer? Won't they be run out of business?

It's sad that the laws of supply and demand are pushing these dealers into raping customers--sure--they are not forcing anyone to buy....

[psssniper]

[Rhythm of Life]

The ones raising the prices are only grabbing new gun buyers that won't be back after they buy their $1500 m&p sport.... the gun owners who already have the firearms and are the major buying force will remember who wasn't loyal and vote with their wallets.

In the end it will bite them in the butt.

Penny wise and pound foolish.

[kemasa]

It is the law of supply and demand. Once everything sells, the FFL might not have anything to sell nor anyone to sell it too since most people are buying what they want now. There are FFLs who are basically sold out and can't get any more inventory.

What is gouging? If you had an item that was in high demand and people would fight over it, is it not reasonable to include the price? I have seen stories about customers who want to buy items so that they can turn around and make a profit.

People complained about the prices and they could get it lower elsewhere, now elsewhere is either higher or does not have it, so if you find a place that has it, do you really think that the price should be a lot lower than the going rate? Many FFLs have put up inventory on auction sites and the selling prices have been insane. You think that FFLs should not do that?

Are customers loyal or do they typically just go with low bid?

[Don the savage]

Im so tired of hearing "price gouging". I realize most people hate school and hate economics more but some of you needed to pay attention to senior econ. My suggestion is to look up a guy named Adam Smith and then review a concept known as supply and demand. Then look up a guy named Karl Marx and the concept of centrally controlled markets. Then figure out which world you want to live in. Its amazing how many of you want the freedom to do whatever you want as long as it doesnt cost too much or take too much work.

[tenpercentfirearms]

I have been on a bit of a gun purchasing kick the last 6 months or so, and I've observed something just recently in this last rash of purchasing....

My local FFL is GOUGING customers. This shop has doubled or tripled prices to customers in the last two weeks, even overnight they have been marking up their prices.

What concerns me is this--when everything calms down with whatever legislation that is going to be passed, don't you think that these dealers are going to suffer? Won't they be run out of business?

It's sad that the laws of supply and demand are pushing these dealers into raping customers--sure--they are not forcing anyone to buy....

Many people called me a gouger in 2008/2009. I am still in business.

The beauty of this time around is I discovered the beauty of Gun Broker. Rather than have my local customers call me a gouger, I just put everything on Gunbroker for a penny. Hard to call me a gouger when you guys are the ones bidding the prices up to insanity.

And I think that is the key component that you whiners (yeah, let's call a spade a spade) are missing is the demand is out of control right now. We couldn't sell items for that price if people weren't paying it.

The only people consumers have to blame are themselves. I couldn't sell my inventory for such a nice profit if you weren't willing to spend the money.

However, like kemasa so accurately pointed out, now that demand has eclipsed supply, expect to see legitimately high prices as wholesalers and manufacturers start to raise their prices as they competed for the limited supplies and resources out there and also just because they want a piece of the pie.

It is what it is. Gouging it is not. If you don't like the price, don't buy it.

[curvejunkie]

Just a thought on the gouging comment... I received a call from a to be unnamed well known distributor offering me Colt 6920's. Its not someone I use on a regular if at all basis, but i hear from them every now and then.

This was last Tuesday, when everyone was rushing about in full panic and I was offered those Colts at 50% more then I would normally pay. The "my price" eclipsed my "for sale price" by over $200. Whos gouging who?

Truly a prime example of supply and demand. Supply = 0, Demand = panic buy. I have already had people offer to put rifles on consignment for $3500 for a COLT. I politely decline.

[tenpercentfirearms]

Just a thought on the gouging comment... I received a call from a to be unnamed well known distributor offering me Colt 6920's. Its not someone I use on a regular if at all basis, but i hear from them every now and then.

Interesting. Usually the distributors don't fluctuate that much. I had one guy try to ream me on some uppers and turns out he was doing it behind his partner's back. That didn't go over so well.

[curvejunkie]

Interesting. Usually the distributors don't fluctuate that much. I had one guy try to ream me on some uppers and turns out he was doing it behind his partner's back. That didn't go over so well.

Trust me, I was flat out floored when the call came through. He warned me "pricing was kinda high" but damn..... Of course, looking back at last Tuesday, I should of bought every one he had..lol

[IrishPirate]

i'm sure some FFL's are just trying to squeeze as much money out of people as possible, but i think quite a few are realizing that if they aren't making money now, they wont be making any when the inventory is depleted. They still have rent, utilities and wages to pay out even if people aren't buying guns...this means building a reserve so they can weather the shortage. That's just the reality of owning a business, and i can understand it. The greedy ones tend to have horrible customer service, and will tend to drive business away anyways. Let the market work itself out, I'm more worried about where prices are going to settle afterwards. Without a SCOTUS ruling that guarantees no more bans, it's gonna be a sellers market and prices will just continue to climb.

[franklinarmory]

We have dedicated the last month to finding ways to increase production. Instead of charging crazy prices to our dealership customers, we've found ways to increase supply. Our billet lower production will go from 3000 pieces per year to 30,000-40,000 pieces for 2013. Unfortunately other components may reduce our complete firearm sales, but at least we can get the serialized parts out before a ban. Our dealers will likely charge much more than msrp, but they have to if they want to pay their overhead.

[franklinarmory]

...also please don't call to buy direct unless you are a dealer. We only sell to dealers since we do not have a dros account.

[tenpercentfirearms]

Our billet lower production will go from 3000 pieces per year to 30,000-40,000 pieces for 2013. Unfortunately other components may reduce our complete firearm sales, but at least we can get the serialized parts out before a ban.

Jay, be sure to think about the possibility that Feinstein's new AWB that requires NFA registration is not going to allow you to register just receivers. My prediction is it will not and so everyone who has bought every lower out there right now is going to be scrambling to finish them up before the ban. That means selling the 10 extra lowers they bought because they are horders to try and afford a $5000 Plain Jane upper. And you can imagine what lower prices are going to be like compared to complete rifles and all the other parts if said event occurs.

http://www.feinstein.senate.gov/public/index.cfm/assault-weapons

Personally, I don't think the House of Reps is going to go along with it.

[Clownpuncher]

So let me get this straight... demand is high so prices are going through the roof and it is price gouging? OP, I think you're a bit mistaken.
Price gouging is typically associated with necessaties. Kind of like the hurricane is coming so I'll charge $10 a gallon for gas and every service station follows suit. Not because their cost went up, but just because they can. They know that everyone needs gasoline and after the storm ends, people will still come back because, well, people need gas.
As for firearms, they aren't a necessaty and not everyone is raising their prices. When the storm ends, don't go back to those shops if you feel they are taking advantage. But please realize, as illustrated above, the dealers costs are going up from the distributors.
But, that's really the beauty of America, we all want guns to protect our freedoms, one of which is the free market economy. In this case there are really only 3 options you have.
1. Pay the asking price no matter how high or low you think it is.
2. Don't buy the item.
3. Move somewhere else where EVERYTHING is regulated. Of course, you won't even have the option of buying a gun in those places.

[rbetts]

Well, lets see, I am on my 32,961th e-mail/call since the shooting (Outlook has a nifty counter) 99% of these calls are for lowers, Magazines and Ammo. My supply left me at my normal price in about 2 days. Geez, I have nothing to sell. My next shipment of lower receivers came in, (that I ordered in July!) and I placed them on line for sale at one fifth of what they are currently selling for on Gunbroker(I raised my price from $115.00 to 179.00), thinking they would stick around a little longer and all 100 lowers sold in 5 minutes. . . . . . SUPPLY is no longer there. . . . .DEMAND has increased

It's not gouging anything Jed, Its called Capitalism. I WISH I had more SUPPLY to help you out with your DEMAND. Since my SUPPLY is governed by the manufacturers ability to produce the lower, DEMAND at his end has increased. Availability of materials and labor costs will govern his price of the item. If he can't find materials, as everybody else needs them to meet demand too, his prices will raise, raising my prices, raising your prices. Of course there is plenty of supply on the open market. . . .Its called GUNBROKER. Where you can pay double or triple what I would charge you, or where you can see that currently my price is a Screaming Deal!

Or I could just quit selling stuff at my store, and sell everything on gunbroker. Then I wouldn't be GOUGING anyone, I'd just be another guy selling his supply at the current market rate and making top dollar for it.. . . . . . . to a buyer who wanted it SO bad that he was willing to pay 5 times what it was worth. But then again, worth goes up when there are less of them out there because everyone wants them or can't have them anymore. Worth is created by low SUPPLY and HIGH demand. . . .I feel like I am repeating the same story over and over, Sorry in all this mayhem, I must have lost track of my thinking. . . . . .Good thing I have my moral compass!