Interested in opinions on this article

[Outpost Armory]

http://www.thetruthaboutguns.com/2014/05/firearmconcierge/exploring-ethics-retail-gun-business-part-1/

 

 

Thoughts?

[nightrunner]

I don't agree. Internet tells you what market value is, not just how low or how high it can sell for. I dont think its ethical to sell it way above market value just because most of your customers can and will pay it because you have it and others dont. You have to make a profit but dont rape people on price. If you sell 50 glocks a month for 650 and paid 400 for them when market value is 550, not ethical imo. But shops get away with it all day every day. I avoid those shops for that reason too.

[Ugly]

Capitalism is what it is and it works well, the point of being in business is to make a profit. Personally I have a limit where I'll stop buying when the price is beyond the value to me.
All fields are the same. When I was in construction, there was a cycle of about every 5 years and it would come to a screeching halt. We would work at low profit just to have work.
The worst industry is the jewelry business, their markup is ridiculous.

Personally I find it important to support your local business and often I pay more than I could to do just that.

Spell check or should I say change, sucks :) Edited May 23, 2014 by Ugly

[monkeylizard]

He's making an assumption that customers are educated. That's a huge assumption, and an incorrect one. Gun enthusiasts may know what a "fair" price is for an item, but a first-time buyer or casual buyer doesn't know what MSRP, "normal", and "ObamaReelected-SandyHook-RussiaInUkraine-crazy-time" prices are. We know to shop around. Newcomers to the hobby/market do not. How many of us have a friend or family member ask us what we think about gun X and if $Y.00 is a fair price or not? Most people just don't know.

 

What other items besides guns have a 50-100% change in their non-sale price between sellers even during normal times? Even a new car will only vary by single-digit percentages between area car dealers. If a new buyer walks into that writer's store and sees a G42 for $750, they'll think that's a "normal" price for that firearm. They'll think it's like most other things they buy and assume a 5-10% variation amongst dealers. I don't see a refrigerator at Lowes for $1,000 and assume Home Depot has the same or a comparable one for $450. I can safely assume that Home Depot will likely be within 5-10% of Lowes and vice-versa. Why would a new gun buyer think any differently? I got lucky and found TGO between my first gun store visit to Uselton's and when I was actually ready to buy. This place led me to buy my first guns at GnL. If I hadn't found TGO, I would have paid at least 50% over the "fair" market price at the time.

 

 

Not directly related to the point of his article, but the writer fails at math. That's not 100% markup. It's still 25%.

 

In a certain sense, what Anthony is really saying is that he doesn’t want to be bent over for a 100% markup. Ever. Under no circumstances shall that pass for ethical behavior. However, if he make four trips to a given dealer and the dealer makes 25% markup every time on four items he’s okay with that. At least, that’s what I gathered from his Facebook posts about having to pay above MSRP.

 

 

 

[monkeylizard]

the point of being in business is to make a profit.

 

That's the root of unethical business practices. Profit is necessary, and a good thing, but it's not the point of being in business. The point of being in any business is to provide a good or service to a customer. It has to be profitable to continue to exist, but it's not the reason to exist. Truly succesful people do what they do because they love doing it and have found a way to make a profit doing it. If they didn't need the money, they'd still be doing the same thing if it didn't make a profit.

 

Air is necessary to live, but we don't live so that we can consume air. Profit is air to a business: necessary, but the purpose.

[Ugly]

I can agree to a point, but do you think the foreigner that runs the quickly mart is in business because they enjoy providing 12 packs, blunts, pot pipes and crappy t-shirts brings them joy?

Of course there are those that enjoy their field and have the drive to make a living at what they love, that's great and what the American dream is about. I think many folks are in it for a living though. There are more quickly marts than there are damn near anything else these days.

[bersaguy]

Now folks know why I always ask questions here before I buy a gun or other accessory I might want to buy. I ask questions here because there are people here much more experienced at the gun business of buying and selling / wheeling and dealing so here is where I come for my answers. I do trust folks here far more than a total stranger that may be selling an item I want so I  come here for opinions.............JMHO

[1gewehr]

Like the folks whining about .22 prices at gun shows; the argument boils down to 'how badly do you want it?'

 

If you want it enough RIGHT NOW to pay a high price for an item in short supply, then you will pay it.  Your other choices are to find another one at a lower price, wait for supply to catch up with demand, or do without.  For my part, I have notification requests at several wholesalers for my favorite .22 loads.  When it comes in, I buy it.  Problem solved.

 

Back before Obama got re-elected, I sold two AR lowers I'd had squirrelled away for a while for a huge profit.  Do I feel bad about it?  No way!  The buyer got something that was very difficult to find at ANY price at a time when the supply was threatened to be permanently ended.  And I sold something that was possibly irreplaceable. 

 

The moral of the story is that if you don't plan ahead, you will end up paying more.  Or, if you have to have it NOW, chances are you won't get a bargain.  School kids used to be taught the meaning of the phrase 'caveat emptor' and to have savings accounts.  Now, they aren't taught that, and believe that profit is bad.  It just goes to prove that government schools are the most common form of child abuse.

[Dustbuster]

Nowhere in that article does it mention keeping your customer happy. I get the colt 6920 metaphor, but I believe you'll have impulsive buyers, cost conscientious buyers,and new folks that gotta have one before it all goes away as stated in the article. We saw the rise and fall of useltons, his way or no way or try to sell a family 5000 buck 1911's when they just came in to try shooting 22's.The customers were hardly ever happy, or they made believe to be happy to cover buyers remorse after the fact.they tried everything to get the masses to swallow their erectile 1911's

 

Id rather have my kids eating steaks than hot dogs too, but, a loyal customer appreciates being treated nicely,selling a 400 dollar pistol for 750.00, 350 over msrp wont make up for the guys that come in every week and spend 50 bucks a week over the course of a year. 50 times say 48 weeks is: a lot more than 350.00 in a one time sale. never bite the hand that feeds you.

 

Some stores go out of their way for repeat buyers and offer discounts on things and more, thats a lot smarter than offing a handful of unobtainiums up for crazy markup.

Keep everyone happy and they'll keep coming back, and if they enjoy their experience, and find it valuable and even fun,they wont mind paying more in exchange for fair friendly treatment.buying a gun or accessory should be fun, not a necessary evil.

 

There's a shop i really like that helped me with a rifle i really wanted. I was short on money for it but the mgr said " i see you here all the time" let me see what I can do. Ive spent a few large in that big shop off 24 over the years, he came back and made me a fair offer on it cause he knew i wanted it, appreciated my loyalty, and wanted to move a few. I left w that bad ass rec7.

 

I think weve beat up the "I hate the fat know it all behind the counter" numerous times on here. In the vortex, it still comes back to treating people nicely....its sad that online shops are beating some LGS's on customer svc....where everyone has a perfect steak.

thats my opinion..

Edited May 23, 2014 by Dustbuster

[peejman]

A fool and his money are soon parted. 

 

As others have said, prices are as high as the market will bear.  There's 2 balance points for a business, one with low prices and high volume and another with high prices and low volume. Some like one way more than another. 

 

I have a limited budget and consider myself a "value" shopper.  I don't mind paying a higher price if I think it's worthwhile.  But I won't knowingly be gouged either. 

[No_0ne]

I've never considered your pricing structure as a measure of your morality or (lack of) ethics.  If I don't like your price, I don't buy.  On the rare occasions that I have anything for sale, I proceed the same way.  If it doesn't sell, I have the choice of keeping the item, or cutting the price.

[LagerHead]

I can't applaud loudly enough. In my opinion, anyone who takes less than what is offered is not a very good business person. If Donald Trump offered you a million bucks for the beat up, rusted out Vega sitting on blocks in front of your domicile, which of you would turn him down? Not a single one of you. So how exactly is that different than someone accepting what you consider an outrageous price for a gun? It's not different. They have a product that someone wants to buy for a price someone is willing to pay. Don't like it? Don't buy it. Pretty simple if you ask me.

 

Favorite quote from the article:

I sleep on my right side with my head on top of a pillow full of money.

[bersaguy]

I have always believed that the Retail Market and Buyers Market have always been one in the same. A buyers market is what the market will allow which is what ever a particular person is willing to pay for a particular product or Item. The Retail market is no different. If a business buys an item to resell, that item that business purchased now belongs to that business and that business can put what ever price they choose to on it to sell it. That has been the way this country has operated for as long as I have been alive which is 66 years and I don't look for it to change anytime soon.............jmho

[molonlabetn]

Supply and demand is a real thing... And in a market with little, or inconsistent, supply, a volume dealer may starve. There are formulas for managing such things fairly, and when all else fails it's no foreign proposition to sell or reserve product for the highest bidder. I don't agree with everything in that article, but I don't have to... Its his business to run. As far as ethics are concerned, however... If a buyer and seller agree on a price for a product, and the seller fulfills his end to deliver the product as advertised, there is nothing else to consider. Getting upset about gun or ammo pricing on a product that has become scarce or popular would be as childish and unreasonable as me being upset that I can't buy Google stock now at last decade's prices.

[TrickyNicky]

Well I think this about sums it up: "My perspective? I don’t need their business and I don’t want it."

Wish granted.

[RED333]

Offer a fair price for a service or product and the world will beat down your door.

 

A fool and his money are soon parted. 

 

+1

 

I've never considered your pricing structure as a measure of your morality or (lack of) ethics.  If I don't like your price, I don't buy. 

+1

[RC3]

Very good read.