Nashville Police trade-ins??

[TripleDigitRide]

Its all about mark up the local sherifs depto can get a new glock 18 witch is the full auto is the carry gun here and they get if from glock for 300 and all other glocks at same cost I just bought a old winchester m1 carbine from them there goin to m4a2 for long guns Its all about mark up

The local police are carrying the full-auto Glock 18? I didn't realize that.

[Jasongar8]

Its all about mark up the local sherifs depto can get a new glock 18 witch is the full auto is the carry gun here and they get if from glock for 300 and all other glocks at same cost I just bought a old winchester m1 carbine from them there goin to m4a2 for long guns Its all about mark up

It would surprise the hell out of me if a PD's standard issue weapon was a Glock 18.

[Guest mosinon]

if you're really wondering why Glock can make a pistol for $25 and sell it for $500 it is time to look in your inventory and see if you have a Glock. If you do you know the answer: Because that is how much people are willing to pay.

Everyone seems to labor under the idea that companies price their products at cost * profit percentage. That notion is pure crazy. Companies price their products at the point people (dealers, distributors, whoever) is willing to pay.

There are demand curves and stuff in play but let's take the case of Glock and assume that they can make their weapon for $25.

We'll keep this simple and imagine every other equivalent gun sells for $600. The easy thing to to think is that Glock would sell their gun for, I dunno, $250. That's a nice profit, you'd be happy right? $225 per! And at that price they would dominate the market!

No so fast. The market is limited, we'll say 100 guns a year (to keep it simple). So if Glock sells every single gun out there at $250 the total revenue is $25,000. Which is sweet, they made $22,500.

On the other hand if they price it at $500 and take 80% of the market (they sell 80 guns) they total income is $40,000 which leaves a profit of $37,500. The decision, in this simplified scenario, is a no brainer. You'll trade the loss of market share for the extra profits.

Of course, it isn't quite as simple as the scenario above. That's why folks advertise and all. It is also why pricing a product based on how much it costs to make is pure crazy.

And recall that if something seems too cheap people assume it is inferior. It is likely, due to economies of scale, that a Hi Point costs more to make than a Glock. But people think of hi point as a lesser brand because Hi Point sells cheap.

Well, maybe they cost the same to make, I dunno, what is the going price for ugly?

And there's nothing wrong with making a profit, even a big one. That is just good business.

[I_Like_Pie]

I still don't think we have established the fact to some people that that - Glock, efficient as they may be, does NOT only have only $25 dollars in each gun. That may be the price of the metal and plastic in raw state from a supplier. You folks are smoking something if you think that is all they have sunk as cost.

Heck...there was a lawsuit where the man himself had to disclose the amount in each gun and it was approaching 7 times that much.

[Guest HexHead]

There was an article in, IIRC, Forbes (although it might have been Business Week) about Glock written about 5 years ago. It stated that Glock's cost $75 to build. Given inflation, I'd say they probably have about $79 in them now.

[DavidD]

I still don't think we have established the fact to some people that that - Glock, efficient as they may be, does NOT only have only $25 dollars in each gun. That may be the price of the metal and plastic in raw state from a supplier. You folks are smoking something if you think that is all they have sunk as cost.

Heck...there was a lawsuit where the man himself had to disclose the amount in each gun and it was approaching 7 times that much.

There was an article in, IIRC, Forbes (although it might have been Business Week) about Glock written about 5 years ago. It stated that Glock's cost $75 to build. Given inflation, I'd say they probably have about $79 in them now.

Hex is right, here is the link Top Gun - Forbes.com

[chadbuddy]

I have a family member who owns a pizza resturant and he told me that including labor and everything it costs him about $2 bucks to make a large pizza that he then turns around and sells for $20.

If there wasn't a substantial markup on merchandise, then there wouldn't be any companies willing to go through the hassel to make, market and sell them.

[Guest clsutton21]

I have a family member who owns a pizza resturant and he told me that including labor and everything it costs him about $2 bucks to make a large pizza that he then turns around and sells for $20.

If there wasn't a substantial markup on merchandise, then there wouldn't be any companies willing to go through the hassel to make, market and sell them.

holy ****. a $20 pizza? Is the crust made with $1's?

[Smith]

Most products are cost based pricing, but luxury items are a little different. Jewelry for instance has the largest markup of just about any product. Here's why, if it is cheap it won't sell. When a jewelry store wants to move something they don't put it on sale, they bump the price until it's in demand. (This is coming from a regional fine jewelry manager of Macy's who is a personal friend) Think about it. Guns are similar. How many times do jokers here and especially on arf.com say something stupid like "you get what you pay for?" There is a psychological association with how much you spend and what you get. Think about the numerous fads in clothing we paid top dollar for in the day that you now pickup on clearance at TJ Maxx for next to nothing. The trick is to make it seem even. Then you can charge what you want.

[Guest mosinon]

Most products are cost based pricing, but luxury items are a little different. Jewelry for instance has the largest markup of just about any product.

I'm unsure about the veracity of that statement. Most products are not based on cost, at all.

The gas station sells gas based on their cost but the cost of the gas is based on the price of crude. A barrel of crude crude oil costs about three bucks to get out of the ground.

A movie ticket costs 7 or 8 bucks but the cost to produce and promote movie varies widely.

The price a Wal MArt charges you for something is generally less in Athens TN than in Farragut.

And don't forget the price of ammo and guns. Those went way up and have been coming back down with the election.

The truth is that almost nothing is priced by cost, it is all priced by what the market is willing to bear.

When it comes to retail you might see cost based pricing, maybe, but the notion that the price you are paying is reflective of the manufacturing cost is misguided.

There's nothing wrong about this, it is just how everything works.

[kwe45919]

Most products are cost based pricing, but luxury items are a little different. Jewelry for instance has the largest markup of just about any product. Here's why, if it is cheap it won't sell. When a jewelry store wants to move something they don't put it on sale, they bump the price until it's in demand. (This is coming from a regional fine jewelry manager of Macy's who is a personal friend) Think about it. Guns are similar. .

Not quite.

As far as jewerly goes, pending on if it's a lab creation item or the actual stone (along with the 3 C's /color,cut,clarity) plus the aquired setting it's in helps to determine the cost of the item along with the geographical location. Considering stores like Zales, Kays etc. buy stones, gold, platnium in bulk, they get it cheaper then we could. The rarity of the design of the setting also makes a difference in pricing. One reason a set of 1ct diamond earrings can cost $200 at WalMart vs. $800 at a "jelerly" store.

I worked for Kay's Jewelers 13 years ago and became a certified Jemologist through thier managment program. After seeing what it cost for them vs. what people were charged/paid for, I stopped getting the wife jewerly. I think of all that cash I spent on her stuff over the years I was there compared to what I would have paid with out my company discount.

[Shima]

Let's get off of the mark up subject and back on the subject of police trade in pistols. This is a handgun forum not jewelry, pizza, office supplies or whatever. If you have info related to the OP, please share, but for discussions about general mark ups, post it in the general non gun section of TGO. Thanks.

[DAdams]

Robertson's Trading Post just had a bunch of Walthers (P99 AS and QA) on Gun Broker. I am assuming they were LE buys. They were around $350. Minimal wear. Perkiomen now in TN formerly PA seems active in running down LE sales and reselling.

Unfortunately for we in TN both these place are in TN hence here comes the sales tax. Still not bad though a P99AS with night sights for about $425 including shipping tax and transfer, beats $700+ for a new one.

Again both these outfits sell on Gun Broker and Robertson's has a retail operation and Perkiomen is by appointment only but you can see their wears too. Lots of rifles and they seem to be a well funded FFL.

[Derek]

Eastside Gun Shop. The Rabbi gets quite a few. Plus hes one of the best to chat with. Great guy, great guns.

[Derek]

There was an article in, IIRC, Forbes (although it might have been Business Week) about Glock written about 5 years ago. It stated that Glock's cost $75 to build. Given inflation, I'd say they probably have about $79 in them now.

Thats right man. i read the same story on another forum.