Who makes all the money on a gun sale?

[icp4life162005]

MSRP was $788. Their "full price" was $858, knocked down to $838 without me asking.

That was just to set the "hook" on your purchase.
Very common sales tactic. Made you feel some sort of obligation and like you were "getting hooked up and looked after".

[Walleye Hunter]

From what I have heard, marines55 does

[DucatiRon]

All pricing is set on volume. Period. Be it the buying from a wholesaler or buying direct.

That is the way now. For just about everything. It's all about big retailers and volume.

Being a small shop with a wholesale account I can tell you that profits on a gun let's say under $1000 just sucks. There is only really decent money on guns 1200 or more. Of course this is at my discount level.

[gnbrotz]

That was just to set the "hook" on your purchase.
Very common sales tactic. Made you feel some sort of obligation and like you were "getting hooked up and looked after".

There was no hook to set. I made contact. Asked for a specific model, times two, then asked for the out the door total so I could bring the right amount of cash. I only looked up the MSRP as a reference, and would have happily payed their "full" price.

I don't haggle on guns, new or used. If the price is too high, I simply move on.

[icp4life162005]

There was no hook to set. I made contact. Asked for a specific model, times two, then asked for the out the door total so I could bring the right amount of cash. I only looked up the MSRP as a reference, and would have happily payed their "full" price.

I don't haggle on guns, new or used. If the price is too high, I simply move on.

I understand your side, just explaining how/why he "helped" you out with that extra discount without you even asking.

[Bang]

I had posted this situation once before, but it is interesting so here goes. Son obtained a gift certificate for $200 from a LGS and gave it to me for a birthday present. It was clearly marked "expires in one year from issue date". (I think that is a pretty shitty business model).

Thompson Center came out with a Compass in 6.5 Creedmoor. I saw them advertised online for around $270. This LGS wanted $399 and had to order it from Smith and Wesson (which had taken over TC). I told them it was available for $270 elsewhere and was met with accusatory disbelief "I can't buy it for that". Faced with an expiring certificate, I had to agree to the price. Evidently, his ability to acquire (wholesale slot) was low, and the customer's money high.

[icp4life162005]

I had posted this situation once before, but it is interesting so here goes. Son obtained a gift certificate for $200 from a LGS and gave it to me for a birthday present. It was clearly marked "expires in one year from issue date". (I think that is a pretty shitty business model).

Thompson Center came out with a Compass in 6.5 Creedmoor. I saw them advertised online for around $270. This LGS wanted $399 and had to order it from Smith and Wesson (which had taken over TC). I told them it was available for $270 elsewhere and was met with accusatory disbelief "I can't buy it for that". Faced with an expiring certificate, I had to agree to the price. Evidently, his ability to acquire (wholesale slot) was low, and the customer's money high.

I'd have sold the gift card and bought the rifle elsewhere.

[wa3ra]

"expires in one year from issue date".

The federal Credit CARD Act of 2009 requires that gift certificates and store gift cards be valid for not less than FIVE years. for five years. Issuers can charge an "inactivity fee" if the card has not been used within 12 months, but that amount is regulated too. See 15 U.S.C. § 1693l-1.

[Steve_NEPhila]

To be pedantic, lets define a term: Profit.

This profit exists after the following considerations: Cost of Goods Sold, Labor, Depreciation (if applicable), rent, utilities, bank fees, shrinkage (stuff disappearing from the store, theft, loss etc), taxes, finance charges if applicable. There is a lot there.

The choice goes like this... Do you like having a local gun shop? If yes, buy from them. If No, do not buy from them. It really is that simple.

[Walleye Hunter]

To be pedantic, lets define a term: Profit.

This profit exists after the following considerations: Cost of Goods Sold, Labor, Depreciation (if applicable), rent, utilities, bank fees, shrinkage (stuff disappearing from the store, theft, loss etc), taxes, finance charges if applicable. There is a lot there.

The choice goes like this... Do you like having a local gun shop? If yes, buy from them. If No, do not buy from them. It really is that simple.

This is true and you have no idea how much the overhead is for a retail store. I can't understand how they even turn a profit.