dogtown tom
Member
How do you know they made "huge profits"? Do you do their books?Yup... I seen LGS and horders sell above MSRP and make huge profits, and then the pendulum swings. IMHO, it all equals out in the end.
An example: Your LGS bought a Glockchester 1911 for $500 dealer cost, MSRP is $1000. He sells it for $1000. How much profit is he making?
If you believe its $500 you would never survive in business.
You profit is determined by your replacement cost. If he sells that pistol for $1000, goes to reorder and..... oh my, the wholesale cost is now $750 (or horror of horrors...$1000).....that's called bad business skills. He should have been aware of his replacement cost before selling that Glockchester 1911.
Being that he's a small business and likely isn't buying $1Mil a month from his distributor, he may find that product from the distributor is allocated to the larger accounts, meaning he isn't going to replace that pistol for many months, if at all.
In case you haven't noticed, but hundreds of local gun stores fail when there is a gun buying panic. The reason is above. You, like many others see the selling price near or above MSRP and assume the dealer is making "huge profits"....he may be close to shutting down. You don't shut down if you are making huge profits.
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