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That dealer was an idiot.
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Normally, I'd agree, but at the moment, it depends on where you are. The industry is seeing a huge spike in demand for OMGHICAPGONNABEBANNED rifles and pistols, but the demand for revolvers (outside of pocket guns) is just not there at the moment.
The dealer may have been looking for product to sell at an easy profit in a reasonable amount of time, and a service revolver isn't it.
Now, in that shape, with the box...
I'd have forked over $400 in a heartbeat. Even if I didn't want it personally, and even though the market's soft, that would be something worth sitting on for awhile.
(Around here, before the current crisis, that gun would fetch $600 easy.)