Gun Prices/Profit Question

[TripleDigitRide]

I would assume (though I shouldn't) gun dealers who sell more guns would get better deals from the manufacturers, thus giving them a larger profit margin. True, or false?

The reason I ask is, I stopped at an out of the way country market/gun store, just to take a look around. While there, I asked the lady to price an XD40 4" Service for me. They didn't have much stock, in the way of new guns, nor was she very familiar with the firearms aspect of the store. Because of this, she simply handed me the book they use to order from, their prices included. I didn't pay real close attention to many other prices, but the book (looked like a magazine that would have been sent from a distributor or something) and the lady both said their price was $414, and my price would be $525.14, out the door.

Because this place was so small, and undoubtedly has much fewer customers than bigger city store, I'd imagine they can't purchase the guns, themselves, from the manufacturers for prices as low as the bigger city stores could. Yet, they're selling them (the gun I priced anyway) for roughly the same price, if not less in some cases, than some of the local dealers around Nashville.

[GLOCKMEISTER]

I been in the buisness for 18 years... its not all about buying power its also having connections in the industry too. Some lines like Glock have a minimum wholesale... so it wont matter, but usually it up to the dealer. If they are well connected they can get what they need.... that is if its out there.

[TripleDigitRide]

I been in the buisness for 18 years... its not all about buying power its also having connections in the industry too. Some lines like Glock have a minimum wholesale... so it wont matter, but usually it up to the dealer. If they are well connected they can get what they need.... that is if its out there.

You're saying that Glock has a minimum wholesale price, and that's as low as any gun store owner can get them for? Or, if you have connections, you (as a store owner) can manage to get them even cheaper?

[molonlabetn]

A distributor/importer can get guns more cheaply than a dealer, some large dealers become distributors for one or more manufacturers, and thus can gain a better margin on their own retail sales, compared to other dealers.

I think that there are very few Glock 'distributors' who get a better price. One per state if I heard right.

[mac12]

Gander Mtn. has probably the highest prices around, but they may also have the highest overhead. I also don't know how many handguns they sell, but you would think that they would get the good prices from the manufacturers because of their volume. I can see that the mom and pop shops with little overhead could sell cheaper.

[TripleDigitRide]

Gander Mtn. has probably the highest prices around, but they may also have the highest overhead. I also don't know how many handguns they sell, but you would think that they would get the good prices from the manufacturers because of their volume. I can see that the mom and pop shops with little overhead could sell cheaper.

I was kinda thinking the same thing, but like you said, they may have more overhead, but with some of of these sores should be able to equalize that with sheer volume. Guns & Leather for example-- They probably have a fairly high overhead, compared to other stores I've seen, but on the other hand, I've never in my life seen a gun store that's consistently so darned busy. Not being in the business, I'd think they should be able to beat anyone on price. Maybe I'm way off.

[molonlabetn]

Just because they 'can' beat somebody else's price doesn't mean that it's worthwhile for them to do so. They are in business to make a profit, not see how many guns they can blow out for next-to nothing... that would make poor business sense.

[Guest GT_Rat]

The reason I ask is, I stopped at an out of the way country market/gun store, just to take a look around. While there, I asked the lady to price an XD40 4" Service for me. They didn't have much stock, in the way of new guns, nor was she very familiar with the firearms aspect of the store. Because of this, she simply handed me the book they use to order from, their prices included. I didn't pay real close attention to many other prices, but the book (looked like a magazine that would have been sent from a distributor or something) and the lady both said their price was $414, and my price would be $525.14, out the door.

To me that says their primary business is not selling guns. Sure they'll order one up for you but it's not their bread and butter. Since they aren't looking for their gun sales profits to pay the bills they are more willing to sell for less since any profits are just bonus money to them. Of course it may also be a situation where they owner has the license more so he can get his toys at wholesale prices and he just allows orders through his primary business to keep BATF happy that he keeps his FFL for a for-profit business.

[Guest Steelharp]

The biggest profit margin is on used guns, not new ones, trust me...

"This was my grand dad's, and I just don't want it around..."

"I'll give ya a hundred."

"Ok."

(New customer) "Got a rarity here, I'll let it go for $875"

[TripleDigitRide]

To me that says their primary business is not selling guns. Sure they'll order one up for you but it's not their bread and butter. Since they aren't looking for their gun sales profits to pay the bills they are more willing to sell for less since any profits are just bonus money to them. Of course it may also be a situation where they owner has the license more so he can get his toys at wholesale prices and he just allows orders through his primary business to keep BATF happy that he keeps his FFL for a for-profit business.

While in the store, I was trying to figure out if they made more money from guns or groceries. It was a tiny, and I mean tiny place. It was a typical country store, in the middle of nowhere. I'm guessing that the handful of used guns, and the shelf of new/used rifles and shotguns costed much more than everything else in the store. They had nothing. I couldn't stick around long, but while there, 3 other people came in. One came for a holster, one came for some ammo, and the last came for a bologna sandwich. Of course, once I saw that 1/2 thick slice of bologna, I was forced to walk out with one as well.

[TripleDigitRide]

The biggest profit margin is on used guns, not new ones, trust me...

"This was my grand dad's, and I just don't want it around..."

"I'll give ya a hundred."

"Ok."

(New customer) "Got a rarity here, I'll let it go for $875"

Isn't that the truth. They did have some fairly high prices on used guns, but heck, I haven't seen a gun store that didn't.

[Guest rj8806]

Gander Mtn. has probably the highest prices around, but they may also have the highest overhead. I also don't know how many handguns they sell, but you would think that they would get the good prices from the manufacturers because of their volume. I can see that the mom and pop shops with little overhead could sell cheaper.

I don't know about their overhead but you're right, Gander Mtn. is one of the highest priced stores I have ever seen. On the flip side, they keep a decent inventory. Both of my handgun purchases, I went to Gander Mtn., tried each one out that I was interested and then went back to my neighborhood gun store(Farnsworth) and ended up buying from them. While the 2 that I own were bought as used(new to me), my dad did the same thing when he bought his Taurus Tracker .357magnum new. He found the one he liked at Gander, went back to Farnsworth and saved over $80. He did have to wait 3 days for Farnsworth to order and receive it though.

Richard

[Guest db99wj]

yada yada yada, the last came for a bologna sandwich. Of course, once I saw that 1/2 thick slice of bologna, I was forced to walk out with one as well.

That sounds good, haven't had a "good" one of those in awhile....

[DWARREN123]

Bologna sandwich and guns, good times!

[Guest GetoffTheX]

Bologna sandwich and guns, good times!

Every day at Mitchell's Country Store On Christmasville Rd right outside of Jackson. For those of you who've never been there, you better ask somebody!

[Guest I_AM_WOOD]

Every day at Mitchell's Country Store On Christmasville Rd right outside of Jackson. For those of you who've never been there, you better ask somebody!

I drove out there one Saturday expecting a gun store, when i went in and asked about the gun store I was very rudely told i would have to come back when the guy that owns the place was done with his mail route. Since i had driven a good 15 miles out of my way I just politely told the lady I would just go down the Parkway gun shop and spend my money there and I did. Thankfully I have a contact now where i don't have to chase down best prices or good customer service.

[Guest 70below]

Ok, now I NEED to know where this store is.....they better be hooking up the bologna sandwich! Ok, I know most of you are southern folk, but have you ever had pickled bologna or ring bologna? mmmmmmmmm Sorry to babble on your thread....that just sounded too good and I'm hungry.

[Guest GetoffTheX]

Im sure the "Lady" didnt mean to be rude and all since its her and her husbands place. Might have caught her when her "Aunt Flo" was in town, you never know. Mitchells aint the cleanest, prettiest, or cheapest.....but when everyones hangin out after 4pm on any given day at the round table, the **** sure can fly in there.

By the way, I wouldnt eat one of their burgers if you paid me!

[Guest HexHead]

IBecause of this, she simply handed me the book they use to order from, their prices included. I didn't pay real close attention to many other prices, but the book (looked like a magazine that would have been sent from a distributor or something) and the lady both said their price was $414, and my price would be $525.14, out the door.

So her price to you less taxes and NICS fee was about $467, or about 12% profit. Sounds like a reasonable deal to me.

[Magiccarpetrides]

Damn I wish I could make 12% on every sale....argh...the more expensive the item the worse the margin....there is a reason I have no interest in selling new cars anymore.

[LA_357SIG]

I thought this thread sounded familiar. I just found out about Mitchell's and was kinda caught off gaurd about waiting for the dealer to come in after he gets off his mail route.

I did however come back and find Speer Gold Dot for $9.99

Seems like a cool guy. I'll probably buy from him again.

[TripleDigitRide]

So her price to you less taxes and NICS fee was about $467, or about 12% profit. Sounds like a reasonable deal to me.

I didn't get that deep into the math. I just know the book said their price was $414, and after doing a bit of calculating, she told me the total would have been $525, out the door. No, it's not a bad deal, but I paid $499.XX, out the door at Bellshires Hardware on Dickerson Rd.

[The Rabbi]

I didn't get that deep into the math. I just know the book said their price was $414, and after doing a bit of calculating, she told me the total would have been $525, out the door. No, it's not a bad deal, but I paid $499.XX, out the door at Bellshires Hardware on Dickerson Rd.

Wow, $25. The other dealer was obviously trying to rip you off.

[jughead]

i will never understand the public. when i was in business had a good customer do the price shopping thing on me found someone that would do the job 5 bucks cheaper than i would came back and said he wanted me to do it if i would do it for that price. i was way under book for that job. told him so and told him to take a hike.

[TripleDigitRide]

Wow, $25. The other dealer was obviously trying to rip you off.

No, I wasn't questioning the price of the mentioned store. I was questioning pricing in general. I believe $525 is a very fair price, but if I can find it cheaper, I'm gonna take it for the cheaper price.

Call me silly, but I'd rather not throw money down the drain, simply because someone wants/needs to make a few extra buck off me.