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FFL Transfers


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Posted

I have been shopping around for a Memphis area FFL to do transfers. The places I have been to want to charge (what I feel) unreasonable fees. Guns and Ammo on summer wanted $100. I thought he was joking with me. $40 -50 is the lowest I could find. I keep reading $20 - $30 dollars is reasonable.

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Posted

There are a couple of places here around Nashville that charge $25(and get my business) and then there are some that charge $50 which I think is a little high. It really is up to the FFL's discretion.

Posted

I have paid $20 + $10 Tics several times here in Middle, TN. Sometimes they charge me $2-$3 Tax.

I use Ted's Sporting Goods in Columbia and don't feel as bad since they do other business besides guns. I would check other business like Pawn shops ect. that may do it for a reasonable fee.

Posted
Yeah, RangeUSA is $40 per item and then the $10 background check. It would make sense to me for them to charge a flat rate of $25 or $35 dollar fee for the process.

Why would that make sense to you?

Posted
Why would that make sense to you?

Rabbi, I will respond to this only because I don't know if I really feel like bringing up that other topic.

I can understand the flat fee of $25 dollars to do a transfer

$15 for the "trouble" of bringing in an item and logging it on to your books and $10 for the background check that the state charges.

Posted
Rabbi, I will respond to this only because I don't know if I really feel like bringing up that other topic.

I can understand the flat fee of $25 dollars to do a transfer

$15 for the "trouble" of bringing in an item and logging it on to your books and $10 for the background check that the state charges.

Then you need to go into the business and charge that.

Why is $15 reasonable? Heck why charge anything at all? The ink to write it in the book and the paper for the book only cost maybe 2 cents.

That of course doesnt factor in:

The phone call to fax the FFL, the second phone call to make sure they got it, the third phone call to fax it again, etc.

The time it takes to call the customer and get him to come in.

The time it takes to fill out the paperwork and make sure the i s are dotted and t's crossed.

The time it takes to track down the seller and get him to send/fax/email his photo ID or FFL because the lamebrain couldnt read your instructions and doesnt know the law.

The time it takes to transport the gun from my house to the shop because the lame brain couldnt read and tell the difference between a premises address and a business address.

The liability of having the customer's gun in my safe for 3 weeks until he gets around to picking it up.

The liability of everything having to do with the ATF.

The risk the customer will flunk the background check and then you have to figure out how to deal with the mess.

And all of this so your customer can save $15 on what you would have charged him and screw the state of Tennessee out of sales tax revenue.

Guest utarch00
Posted

Never mind it is not worth it.

Posted

Some dealers think doing transfers will bring them more business in the long run. Some see it as a way to make a little money without tying up any of their own funds. Some see it as a purchaser taking money out of their pocket because they didn't buy the gun from them.

Lots of factors come into this.

But back to the original question,

http://www.gunbroker.com/User/DealerNetwork.asp

and

http://www.auctionarms.com/help/FFLNetwork.cfm

will get you a list of people who want your transfer business.

There are people listed in Memphis who will do the transfer for $20 or less, plus the $10 NICS.

Be sure to ask if they collect the state sales tax. Some do. Some don't.

Guest 0down
Posted

Ding! We have a winner. Thanks, Mars.

Posted
Some dealers think doing transfers will bring them more business in the long run. Some see it as a way to make a little money without tying up any of their own funds. Some see it as a purchaser taking money out of their pocket because they didn't buy the gun from them.

Lots of factors come into this.

Be sure to ask if they collect the state sales tax. Some do. Some don't.

I see it as all three.

Many of my customers started off coming to me to transfer something they bought on GB. I continue to transfer for them but if I have something they like they'll buy it from me as well.

Some customers ask me for stuff like new SIGs, which are "dealer direct" meaning the dealer has to stock x number of guns. That gets expensive so I'd rather make a little off someone transferring that particular gun. Usually they'll end up with other stuff as well but even if they dont, there's always next time. Or they want something exotic, like a 1911 STI--something that would be a lot of trouble and effort for me to get since I dont really deal in that.

Some customers think they are outsmarting the system by buying new production guns and avoiding the dealer's mark-up and the state sales tax. Those are the people I have no use for. One guy transferred 2 guns that I also had in stock. He had done the same thing before and when he called to say he wanted to transfer something he was deliberately vague about what he was getting. And since I charge per transfer, not per gun, he was getting both of them for $30 total. The same guy would rather order his ammo off the internet so he can save .25 cents a box or whatever and so on. I have no use for such people.

Posted
I see it as all three.

Many of my customers started off coming to me to transfer something they bought on GB. I continue to transfer for them but if I have something they like they'll buy it from me as well.

Some customers ask me for stuff like new SIGs, which are "dealer direct" meaning the dealer has to stock x number of guns. That gets expensive so I'd rather make a little off someone transferring that particular gun. Usually they'll end up with other stuff as well but even if they dont, there's always next time. Or they want something exotic, like a 1911 STI--something that would be a lot of trouble and effort for me to get since I dont really deal in that.

Some customers think they are outsmarting the system by buying new production guns and avoiding the dealer's mark-up and the state sales tax. Those are the people I have no use for. One guy transferred 2 guns that I also had in stock. He had done the same thing before and when he called to say he wanted to transfer something he was deliberately vague about what he was getting. And since I charge per transfer, not per gun, he was getting both of them for $30 total. The same guy would rather order his ammo off the internet so he can save .25 cents a box or whatever and so on. I have no use for such people.

Seems to me they are simply trying to get as much 'bang for their buck' as possible... Same as you or any dealer does, only from the other side of the equation. Either party has the right to say 'no' to transactions in which they cannot see any personal benefit. There is always someone who will fill a perceived demand in the marketplace, either as a buyer or seller... Sometimes that forces one or the other to adapt in order to survive, or take advantage of evolving opportunities.

Most people spend money with specific businesses for one of two main reasons:

1. The prices were lower/have greater availability...

or

2. The products/services received were exceptional.

Posted
Seems to me they are simply trying to get as much 'bang for their buck' as possible... Same as you or any dealer does, only from the other side of the equation.

Not really. They are trying to get the lowest dollar price. That's different from getting the best value. Additionally they are probably doing something illegal buying out of state and not paying the sales tax.

I have 2 distributors I do business with. One of them was willing to pick me up at the beginning, even before I ahd the FFL (would sell ammo etc but not guns). I can order something today and generally have it tomorrow. The account rep has over 30 years in the retail end of the gun business and has advised me on things often when I ask.

The other one has a neat web site and a pretty good selection. Often they are $5 less on an item. But guess who usually gets the business.

Guest Terry J
Posted

Im not sure about now but a few months ago Brighton Arms charged 20$.

Posted

Actually, the tax people are supposed to pay on items bought out of state are use taxes.

http://www.state.tn.us/revenue/faqs/salesandusefaq.htm#su13

What is use tax?

Use tax, at the same rates as sales tax, becomes due when the user and consumer of taxable merchandise does not pay tax to the supplier. Examples include purchases of tangible personal property for use from an out-of-state vendor who does not collect the tax, extractions from inventory purchased on a resale certificate for personal use and consumption. Generally, contractors become liable for a use tax on materials used in realty construction even when the contractee first purchases the materials on an exemption certificate. Use tax is due even on purchases made by citizens from another state which are not taxed by the seller.

Are sales made on the Internet subject to sales or use tax?

Yes. Even if a seller does not collect Tennessee sales tax from you, when you ask a dealer to deliver an item to you in Tennessee, you are responsible for paying use tax at the same rate as sales tax.

But it is up to the user to pay those taxes and it is not incumbent upon the transfer agent to collect that tax for the state, as it is for sales tax.

So...when you buy a gun, or other item for personal use in interstate commerce you are supposed to send the state the use tax in the same amount as the sales tax would have been. But meeting this obligation is between you and the state, not you and the transfer agent as much as the state would like to make it so. The Agent may collect the tax for you, but he is not required to do so.

Just check before you use a transfer agent.

Posted

Obviously this is not something which they actively enforce...

From what I gather, this effectively would make any private transaction, even in-state, taxable...

This could shut down yard-sales and flea-markets across the state!

Guest Terry J
Posted

Brighton Arms was 20$ last time i checked.

Posted
Obviously this is not something which they actively enforce...

From what I gather, this effectively would make any private transaction, even in-state, taxable...

This could shut down yard-sales and flea-markets across the state!

I am not sure that private transactions like you describe fall into the category of taxable merchandise because it was already taxed once in the state on its original sale.

But whether they enforce it or not, a citizen here is supposed to do that.

Posted
I am not sure that private transactions like you describe fall into the category of taxable merchandise because it was already taxed once in the state on its original sale.

But whether they enforce it or not, a citizen here is supposed to do that.

If that is the case, then I shouldn't have to pay tax on used firearms.

Guest Greentimber
Posted

Anything more than $20-$25 is BS. If you don't mind the drive to Jackson, Mitchell's country Store and Parkway Gun and Pawn charge $20 + TICS.

Posted
Anything more than $20-$25 is BS. If you don't mind the drive to Jackson, Mitchell's country Store and Parkway Gun and Pawn charge $20 + TICS.

OK. Why is it "BS"? I agree that it would be if one could readily get the same service for $20-25. But if someone has to drive from Memphis to Jackson to save $15 on a transfer, that sounds like BS to me.

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