Margin on guns?

[natman]

My take on that is that they simply don't pay folks a reasonable price on a used gun. The price offered is almost insulting. Like cars, most people take the path of least resistance and with cars that usually means you trade as well as buy.

Never sell your gun to a dealer if you want top dollar or even remotely close to it. Just like selling your car to a dealer, only do it if it's worth it to you in speed and convenience. Otherwise sell it privately.

[TailGator]

We need to get away from the thought that a 10% markup is the same as a 10% profit, too. The markup pays for a mortgage, utilities, repairs, interest on inventory, employee salaries, wear and tear on display cases and cash registers and such, all before the owner makes a dime. My bet is that a 10% markup is a net loss for a small gun shop. I don't know how they are making it with internet sales keeping prices down. And for that reason, I don't begrudge them the bigger markup on used guns and accessories.

[Bond007]

I don't know how they are making it with internet sales keeping prices down. And for that reason, I don't begrudge them the bigger markup on used guns and accessories.

I agree.

Getting below MSRP is harder in California where you can't easily buy online, but to me it's worth paying the MSRP to help keep a gun store a short walk from my house. I hope they're in business a long time.

[22-rimfire]

I also feel that way about local gun shops. Their pricing does have to be fair however. That doesn't mean they beat or match the online pricing for new guns.

I also realize that a 30% markup does not mean a 30% profit.

Most people that buy a handgun and find a holster they like at the same gun shop will pay the asking price on the holster just like they would at Walmart. The price is the price; No questions asked. Ammunition may be a different story depending on how frequently you buy.

[Wyoredman]

Just a recent experience that fits in with this discussion:

I was recently in the market for a S&W J frame Bodyguard for my wife. Davidsons' has the gun for $432.00. My local gun shop had it in stock for $472.00. A $40.00 differance. When I considered the transfer fee of $25.00 for the Davidsons' gun, the savings was cut to $15.00.

I decided that the extra $15.00 spent in my town was better than sending $432.00 out of state.

I think about things like that.

[Brian Pfleuger]

The kicker for me is sales tax. As a business owner, I fully realize that they have no choice but it still directly affects the price. Using Wyoredman's example, that $15 difference at $472 becomes over $52 after adding the $37+ (8%) sales tax. $15 extra, I'd pay. $52, I won't.

[Wyoredman]

8%! Ouch, thats steep! I thought 4% was bad!

[K1500]

Yes, despite the fact that most states require an individual to record online transactions with businesses done out of state and remit the appropriate sales tax, most folks dont do it. This can kill a brick and mortar store, even if they can match the online price.

[Brian Pfleuger]

Originally Posted by wyoredman

8%! Ouch, thats steep! I thought 4% was bad!

Yeah. It sucks. They have these commercials now with our illustrious governor and businesses who supposedly just moved into the state and they're saying "No other state could do for us what NY State did!"

I always thought, how is that possible? This state is an awful, AWFUL, AWFUL place to do business... and then I started thinking like a politician, you have to lie by implication while telling the truth with words...

Sort of like if you're running a business and the mafia makes you pay 50% protection tax. They come in one day and tell you they're lowering the tax to 49% and you're going to make a commercial for them. You can honestly say "No other organization could do for me what the mafia did!" because no other organization was charging you a protection tax in the first place, obviously no other organization could LOWER the tax, so you're being totally truthful in words but lying by implication.

Same thing here in NY.

[Beagle45ACP]

I think many rely on used gun sales. At the LGS that I frequent, I once saw the owner purchase a little Beretta .22 or .25 for $75 and when I saw it on the shelf a few weeks later, the price on the tag read $250. Whether he actually got that price or haggled it down a bit, it's still not a bad deal on the part of the LGS.

[RickB]

The kicker for me is sales tax. As a business owner, I fully realize that they have no choice but it still directly affects the price. Using Wyoredman's example, that $15 difference at $472 becomes over $52 after adding the $37+ (8%) sales tax. $15 extra, I'd pay. $52, I won't.

In Washington state, FFLs are unpaid state employees, required to collect state sales tax on gun transfers. I used to save 9% by ordering online, but now I have to pay the 9% to my FFL when the gun is transferred.

[sc928porsche]

Pawn shops usually run 100% mark up or more. Watched a man pawn his mod 94 for $75. 4 months later the same rifle was put on the sale rack for $275. It sold later that week.

[wayneinFL]

In Washington state, FFLs are unpaid state employees, required to collect state sales tax on gun transfers. I used to save 9% by ordering online, but now I have to pay the 9% to my FFL when the gun is transferred.

Some dealers in Florida do that, too. How does the dealer know how much you paid for it, unless the sellers sends an invoice?

[5.56RifleGuy]

They shouldn't collect tax in FL. I think they may just be sticking it to you.

Well, unless it is some local tax thing. Ive had a lot of tax free transfers.

[22-rimfire]

I suspect the sales tax in FL thing is pure profit for the dealer making the transfer.

Sales tax in TN runs about 9 > 9.5% depending on city and county increment. But there is no income tax. I would rather pay the sales tax any day than an income tax.

I have not done many transfers, but there was no sales tax charged on the transfer (or in other words, the price paid out of state).