Quote:
Originally Posted by dogtown tom
OP has never run a retail business.
Pricing your inventory based on what it cost you will lead you to going out of business. Successful retailers base their pricing on replacement cost.
Ex. Dealer cost is $500, MSRP is $617, he retails item for $525.
That's great as long as he can reorder at $500.
But what happens when he's selling at $525 and the manufacturer or distributor raises their price to $530? Poof! goes his profit.
So what does a store do when the distributor is out of stock? When the manufacturer can't supply distributors with the quantity the market demands?
You raise your retail price to what the market will bear. If that item will sell at $1200 it may be the last one he'll sell for many months. That may keep his doors open for another day.
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I can understand this, but even during normal times my local FFL's are selling guns for $100 more than what I can get them for online and without a sales tax. That being the case every gun I've bought since 2015 has been off the internet. The only guns I would buy from an LGS are used revolvers if upon my inspection they are in good working order.