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I've been curious. And I've been told things I simply can't believe about usual mark-ups the average gun store sells at: "stores sell guns at 50% of the price they paid"; or 30%. It CAN'T be that high. I figure it's fairly small: 10%-15&. (By the way, I'm speaking here only of new guns).
It helps to know the average "dealer's cost" if you want to bargain on a new gun

What are your thoughts?

Thanks.
 

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I couldn't say for certain as there are many variables involved. Small shops will have a lower markup due to lower overhead (common sense), larger shops with a LOT of inventory and employees will probably start somewhere around 20-25%, once again dependent on overhead. Box stores, the sky is the limit, IMHO, unless they move VAST amounts of inventory. I'm guessing my FFL's mark up is probably somewhere around 8-10% maybe a tad more BUT he has the best prices in a 100 mile radius from me which include Abilene and Lubbock and has taken a LOT of customers away from the couple of LGS' in those cities due to customer service and price. We're talking new guns not trade ins. I bought a S&W 66-1 in better than 90% condition last year from him that was $150 cheaper than any I had seen at gun shows, LGS and the internet. Offered only from my perspective in this corner of West Texas.

ADDED: I should have mentioned, and was remiss in not doing so, that my FFL guy makes a better/bigger profit on accessories, ammunition, CHL classes and private firearm lessons thus making his small business a one stop shop. Add in transfer fees and he does quite well for himself. His overhead is minimal. The one drawback is that I won't be buying any old Colts from him as he just doesn't see any unless they came from someone that shipped them to him for me :)
 

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At least years ago, I would say 30% or more. I remember seeing a Marlin 39 retail at $99 on sale for $67. Also, when buying a new gun, I would expect a 25-30% discount. Seems today dealers stick nearer to their retail price than years ago.
 

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I often get asked by friends and other who buy used guns from me "Hey Man, can you get me a New Such and Such?" and I always have the same response. "Go buy it on Gunbroker, it will be cheaper". I tried to get into the new gun game but the large dealers who buy in bulk get such huge incentives, they buy a few guns and get a few free! I have called my distributors and got my price for 1 gun and went online and found them for $50 cheaper with shipping included!

To answer your question about mark up, it all depends on how many that particular shop buys.
 

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I know a few local collectors and dealers that don't get out of bed for less than 20% profit margin on new guns. Cabelas only pays 70% of used value max per the Gun Library so I guess you can say they operate at 30% minimum on resale.
 

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The gun store in Las Vegas on Tropicana has had the same policy for years. 10% over cost. Cost is figured this way:

If a gun dealer cost was $500.00 they would add the cost of shipping say $52.00 + 1.00 for administrative book entry.
the gun cost now $553.00 x 10% or $55.30 your cost $608.30.

Obviously it's best to order more guns to distribute the shipping cost..If shipping cost's were $52.00 it makes sense that if you had 10 guns in the shipment you have to add $5.20 per gun Plus the $1.00 or your final cost is $506.20.

New guns came in every day, and it didn't matter is it was a special order, as there was always enough Guns in the shipment to offset shipping per gun.

Distributors like Davidson's, Lipsey's Ellett Brothers, and others may or may not having a flat shipping fee already added into the gun thus no shipping charges. I don't know anyone getting frr guns these days. Wal-Mart buys so large that the negotiate the price for their guns before ordering large quantities.

There use to be a Distributor that use to handle full line Sporting good to dealers.."Eagle" I believe and if you would place a big enough order you could qualify for a Colt or S&W that was in high demand. That type of racketeering went by by thanks to a law suit filed years ago by the N.A.S.D.(National Association of Stocking Dealers). I'm not saying that it doesn't exist today, but they are not as blatant about their promotions.

Stocking Dealers generally are frustrated by the Buying Public. We are finicky; we want one of everything on display and many times a dealers gets stuck with stuff that doesn't sell and he has to sell it at a loss later as a closeout to make room for merchandise that does sell. Then there is overhead. Yes it use to be easier to sell out of your house. Some jurisdiction and new licensing almost prohibit that.

Reality would be perfect if a Stocking Dealer never went more than 30 days without a complete rotation of inventory...LOL.. like that is going to happen !

Fees, charges, State and local licensing fees in some areas are almost prohibitive. Places like Las Vegas where competition is fierce couple with those huge gun shows that fill up with Californians looking to buy things they can't get in California keep prices competitive.

Here in the Boise area, every Pawn Shop, sporting goods dealer and gun store sells firearms, but they seem to attract a certain types. We have some specialty stores aimed at the Black Guns and a couple of dealers who have a reputation of getting quality used collector pieces. ( Bring the Credit Card..LOL).

Gun prices here by in large are a bit higher, but most will negotiate the price a little, especially for frequent flyers.:rolleyes:

PS Ammo at that same Las Vegas gun store is figured at 50% so a $10.00 box of ammo now will cost you $15.00.
 

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My father had a gun store years ago which was part of the family hardware store/general store and sawmill in my hometown (population less than 1000). I remember him telling me about how it was near impossible to compete with the Big stores. Where He could order maybe 5 certain rifles,they would order a truck load of course at a much discounted price from the manufacturer. Same with any other commodity. He barely made a living from the store.The more you buy,the cheaper the unit price.
I dont know what the going new gun markup rate is for "bigger" stores but Id GUESS around 10%. From what Ive seen on used guns it is alot more. I know a big store that marks some of them up over 2 times what they paid.
It varies depending upon the gun also.
 

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I'll agree with the others who have said small dealers don't make much money on sales of new guns. I am a non-stocking dealer and 90% of my business is doing transfers for things that folks have bought on GunBroker. The other 10% is new guns. Of those, a few have been cases where I happen to stumble on one at one distributor when all the others are sold out. Many of the new guns are special orders from manufacturers that don't use distributors (Rock River, LMT, DS Arms, etc). In all the other cases, I'm only able to charge $10 or $20 over cost and be competitive with GunBroker or Budsgunshop.com. Since I have to charge sales tax and recoup shipping, as often as not, Bud's and my price are pretty much even. As others have stated, they along with the big chain stores get better wholesale/distributor pricing, so they are able to make more money than I could selling new guns for the same price. Hope this helps.
 

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I talk to and know many dealers around here really well. Most will order guns for you at exactly 10% above wholesale (their dealer cost which will vary a little). If it is a item in stock, that they had to put their money out for, then usually its closer to 20%. The big number you are hearing are probably on used guns. Most dealers want to make a minimum of 15-20% on used guns, and some want to/try to operate at the 30% level. I know one dealer that buys at 70%, and I am still trying to figure out who sells all these NIB Colts for 70% of retail value LOL...:bang_wall:.... Of course a dealer would have to make more on a well used model 700 hunting rifle that may sit a year or two (probably more like 50%) then a NIB Python that will be gone in a week and I know they take that into account. Most will pay 85-90% for the latter since they know they will get their money fast, and then if they trade on it, its even better for them...
 

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Discussion Starter #10
FROM OP:

All very interesting, sounds like - almost the same as cars - you don't know for sure just walking into a store.
 
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