Average Mark up?
I would like to know the average percent the local gun shop owner marks his guns up to. Im speaking of a good local FFL Dealer thats not in it for just the money but the shop owner who just wants to pay the bills and make a descent living?
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Used guns: 100+% from what I've seen.
New guns: whatever the next customer through the door might be willing to pay.0 -
In my oppinion it is nobody's business what a person has IN their items they are trying to sell.....if its pots and pans, fruit, duct tape, or firearms. If the person is asking fair market for their items then what does it matter what money they have IN their items they are selling? People get to decide what things sell for by actually BUYING the items....or not buying them. If a person sells a gun to a store for $100...and the store sells it for $120 or $500 it really isn't a set number. I also think asking what a person makes on selling a gun is no different than asking how much another person makes per hour at their job....which is a little personal to ask. 0 -
quote:Originally posted by Locust Fork
In my oppinion it is nobody's business what a person has IN their items they are trying to sell.....if its pots and pans, fruit, duct tape, or firearms. If the person is asking fair market for their items then what does it matter what money they have IN their items they are selling? People get to decide what things sell for by actually BUYING the items....or not buying them. If a person sells a gun to a store for $100...and the store sells it for $120 or $500 it really isn't a set number. I also think asking what a person makes on selling a gun is no different than asking how much another person makes per hour at their job....which is a little personal to ask.
I'm in 100% agreement with you Locust Fork. I'm sure your walk-ins feel the same way, too, especially, if they wanted the market value of any firearm you might buy from them, with a reasonable mark-up for the store, of course.0 -
I do not know the exact percent of markup on new firearms, but from what I gather it is not all that much. Most dealers make their profit from used inventory, very similar to car dealers. In my opinion, the "new" gun market is much more competitive because of auction sites like this making it easier for the informed buyer to make a more wise purchase. 0 -
The internet hasn't done anything to the new gun market. Its the chain stores that have all of the new guns in stock marked for sale at the prices I (and other small stores) have to pay to get the gun for. They are selling Mossbergs for the exact same price my distributor wants to sell them to me for. That is the new gun club footed idea of marketing. Here is a gun Springfield has advertised the dog-crap out of and everyone wants.....Academy will sell it for $450...when I call to get a couple in stock I find all of my distributors want $430 for it!!!!
I'm the penny auction...no reserve...seller (in most cases.) What I sell most of my auctions for is up to the buyer. As far as the store goes....I have NEVER ever ever gotten MSRP for any item ever sold. Not even the super hard, very rare items. We have always been the store that prices items according to what we have IN them. We sell Glocks at wholesale...not marking them up one cent...if you bring me a Glock to trade in I will break your little heart when I tell you what I can put in it. Its up to them whether they accept my offers on trades. I do have a LOT of repeat customers....so I must be doing something right.0 -
quote:Originally posted by kimi
quote:Originally posted by Locust Fork
In my oppinion it is nobody's business what a person has IN their items they are trying to sell.....if its pots and pans, fruit, duct tape, or firearms. If the person is asking fair market for their items then what does it matter what money they have IN their items they are selling? People get to decide what things sell for by actually BUYING the items....or not buying them. If a person sells a gun to a store for $100...and the store sells it for $120 or $500 it really isn't a set number. I also think asking what a person makes on selling a gun is no different than asking how much another person makes per hour at their job....which is a little personal to ask.
I'm in 100% agreement with you Locust Fork. I'm sure your walk-ins feel the same way, too, especially, if they wanted the market value of any firearm you might buy from them, with a reasonable mark-up for the store, of course.
We must all understand that "profit" is not a dirty word as it is the life blood of every business; however, the above scenario of buying a gun for $100 and selling for possibly FIVE times the amount might question business ethics. How would you feel if you were the one that sold that gun for $100 to a dealer knowing the value, then walk back into the store a few days later seeing it on the shelf with a $500 price tag? If it were me, I would feel taken advantage of and probably do future business elsewhere.0 -
I think saying "I want to sell this gun"....how much are you thinking of selling it for...."I want to get $100"....I can do that...(this person is also saying...."I am not a gun person and will not be shopping for anything anytime soon.")
Not that this EVER happens anyway.0 -
quote:Originally posted by Jeepgod2002
quote:Originally posted by kimi
quote:Originally posted by Locust Fork
In my oppinion it is nobody's business what a person has IN their items they are trying to sell.....if its pots and pans, fruit, duct tape, or firearms. If the person is asking fair market for their items then what does it matter what money they have IN their items they are selling? People get to decide what things sell for by actually BUYING the items....or not buying them. If a person sells a gun to a store for $100...and the store sells it for $120 or $500 it really isn't a set number. I also think asking what a person makes on selling a gun is no different than asking how much another person makes per hour at their job....which is a little personal to ask.
I'm in 100% agreement with you Locust Fork. I'm sure your walk-ins feel the same way, too, especially, if they wanted the market value of any firearm you might buy from them, with a reasonable mark-up for the store, of course.
We must all understand that "profit" is not a dirty word as it is the life blood of every business; however, the above scenario of buying a gun for $100 and selling for possibly FIVE times the amount might question business ethics. How would you feel if you were the one that sold that gun for $100 to a dealer knowing the value, then walk back into the store a few days later seeing it on the shelf with a $500 price tag? If it were me, I would feel taken advantage of and probably do future business elsewhere.
I hear what you are saying. The fact that Locust Fork has a lot of repeat customers says a lot as for what might be a fair deal between a store owner and their walk-in traffic wanting to sell their firearm(s).0 -
Locustfork, your a lady and I'll treat you as such. I didnt ask you jack squash what you or any other dealer makes. I ask for average mark up you know 20-30% on a gun. I have no problem with people asking me my salary, maybe they ask because their interested in my line of work and thats great. Dont know and dont care to tell my salary. I jsu ask a general question within reason about the average mark up of a firearm. BTW there is a difference in making friends and return customers and making money. I will leave it at that.
BTW: I didnt ask a individual person my question, I ask the Forum as a whole!0 -
Average industry markup is 5-15% depending on the firearm.
Higher end custom stuff is maybe higher.
Then you have what is knownas the industry fatlady who sells new firearms for 1-2% above cost just so they can undercut everyone else.0 -
just look at old factory wholesale and suggested retail flyers. as stated, 12 to 15% is common.
demand changes everything.0 -
In our area, most dealers charge full retail (MSRP). 0 -
Dealers around here normally sell $40-$100 above cost. 0 -
For once I agree with Locust Fork. It is none of your business. If you want to know, get an FFL and get a business loan. Do you ask the same question at the grocery store? 0 -
Dealers in my local area normally charge 15 to 20% above their cost for a new firearm.
Used is for what ever the buyer is willing to pay. I have saw a couple put out a used gun with a ridiculous price. Only to start lowering it a few dollars every so often until someone buys it.
These guys have more to contend with then just feeding their family. Taxes, Insurance, Utilities, Hired help (in some cases) all take a chunk out of the bottom line before the family gets fed.
Cabelas in Wheeling normally tries to charge at least 650 to 900% above what a firearm is worth.0 -
quote:Originally posted by He Dog
For once I agree with Locust Fork. It is none of your business. If you want to know, get an FFL and get a business loan. Do you ask the same question at the grocery store?
I was working with a Grocery store manager one time and he told me that the average grocery store makes 1% and 2% if they are lucky after all bills and wages are paid.
They rely on Volume.0 -
Could be MVP, but 2% of a lot adds up. I doubt any gunshop has the volume of the average supermarket. 0 -
I've found that I make more money on used firearms and accessories than I do on new guns. We charge 10% on new firearms. 0 -
Thanks for the replies, I was just curious from looking at Ruger's catalog and their MRSP. Thanks again!
Best!!0 -
I'm just suprised to see the words....lady and jack squash in the same phrase. We must be pretty emotional about the markup of firearms.....or like to say jack squash whenever possible.[:D] 0 -
it isnt anyones business what a gun dealer pays for his product....used.
because of business laws and commerce laws to protect consumers, suggested retail is what most dealers are suppose to be targeting. wholesale tends to be confidential but any rocket scientist can figure out that an honest merchant is pumping it 15% over a wholesale; and, rightfully so. overheads do need to be paid.
its the PRIVATE SECTOR that makes the killing. joe x buys bubba y's gun and jacks it anything he wants to sucker z, especially if all he paid for it was an old hammer. in that case, z's demand runs the game and its truly is no ones business, except if bubba finds out joe x got 400.00 for it.[:0][:I] they best be friends.
i mean lets look at my safe moving job coming up.
im driving 200 miles r-trip to move it out of a friends house so they can sell the house with it removed. they are giving it to me to move it. so, i take it home and sell it for 500.00 to some guy in the local paper. its none of his business what i paid for it. if he wants it for 500.00, its his. if not, i got a safe for someone else. [;)]
always remember the golden rule of business:
"profit is made at the time of purchase."
"buy low, sell high."0 -
i think it is a good ideal to share this knowledge of your mark up, at least don't get so offended by the question reason being the typical gun store mark up on guns is by far one of the lowest mark ups in the retail industry, most retail stores are 100% mark up, i was actually shocked when i found out, i asked a store owner the same question once, i felt it showed honesty, and still feel it is no where near enough
that 1% profit is bs, sure that's the way it comes out with the proper cpa doing your taxes0 -
also too, remember, vendors that move items fast with high traffic get breaks on wholesale costs.
if all you move is 2 guns a year, expect high wholesale. move 1000, expect to be rewarded by the wholesaler.
all one has to do is walk in a store and you can tell what kind of volume someone is doing. just measure the dust.[;)]0
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