Opinions on cost

**joe magarack** · January 28th, 2011, 07:29 PM

Was trying to figure out just how much of a mark-up there is on firearms.Now I know this might be all speculation, but I wanted to see what some others had to say.EXAMPLE... I bought a Sig Sauer P-226 E2 a few months ago. The MSRP listed on the Sig sight was 1039.00. The gun was sold to me for 935.00 excluding tax. I have to wonder what the dealer truely paid for the firearm and really how much profit there is in selling firearms. A very good friend of mine is thinking about applying for FFL license, but questions now about is it really worth it. Anyone have an educated guess.....?

**JayBell** · January 28th, 2011, 07:40 PM

as someone who used to work in the gun shop industry, the avg markup for NEW firearms is approximately 10-15% over dealer cost.

pretty much everybody gets thier guns from the same place also, Sports South, Jerrys Sports Center, etc, and the only way any shop will be under is if they got a VERY good promo deal, or got a special price for multi-gun sale.

this is why places that sell USED guns is a lot more lucrative as a business.

as a note, if yer friend is getting a FFL to get cheap guns for himself, he probably wont be getting an FFL, its a license to do business, and has various requirements to meet to ensur this is a business venture.

**Xringshooter** · January 28th, 2011, 09:00 PM

The mark up on new guns is not much, as JayBell said. A large mark up would be 20% from the dealer (wholesale) price and that may be for a wildly popular gun. Typical is 5%-15%. Gun dealers make their money on used guns and accessories.

The MSRP is just that (Manufacturers SUGGESTED Retail Price). Unless the gun is very popular, very few dealers sell new guns for MSRP, others would undercut that price easily to get your business and once in their door they can then sell you ammo, holsters, carrying cases, cleaning stuff, and so on. In my years around guns I have seen very few times that a gun sold for MSRP or over, usually this would only happen if a very popular gun came out that people just had to have or it was a limited run that many people wanted.

The BATFE WILL NOT grant a 01 (dealer) license if you are not going to operate a business. The state (Sheriffs Office) WILL NOT issue a state license to deal in firearms unless you have a valid 01 FFL. You DO NOT have to have a store front operation, although the BATFE would prefer this. You can work from your home as long as you have all the correct permissions/meet all the ordinances of your local government. If you can get these and prove to the BATFE that you are not just doing it to buy guns at wholesale for yourself they will issue a license.

**The_War_Wagon** · January 28th, 2011, 09:15 PM

Originally Posted by JayBell

as a note, if yer friend is getting a FFL to get cheap guns for himself, he probably wont be getting an FFL, its a license to do business, and has various requirements to meet to ensur this is a business venture.

That was the GOOD ol' days, of the $20 basement/hobby FFL.

Thank you very little, KLIN - TON I.