Gun show vendor rant

[blackhawk2000]

I started this as a reply to another thread but I feel it would better reach people as its own thread.

How many non dealers here know what dealers are actually paying for certain items? I don't have an FFL, but some of my suppliers have gun prices that I can see. I also talk with some of my fellow vendors who have FFL's. The smaller ones tell me if they make 10-15% profit they are doing good. Now how many of you would sell stuff at a 10-15% profit margin? The bottom line is, unless you buy in large quantities, you don't make much in profit. Every line of work I've been in that sells stuff, has a 100% markup. Buy something for $1, sell it for $2. Those complaining about prices at the shows, must think guns are the same way. So how many of you want to drop $900 on a gun, sit on it for days, weeks, or months at a time, only to make $100?

Also on the subject of ammo prices....do you know where I buy my ammo? Not from me. I can't get ammo for less than I can get it at Walmart, or online. That's right, not one of my suppliers sells ammo to me, an actual company for less than "joe anyone" can get it for. So unless I purchase a very large amount of ammo, I don't get a deal on it. So tell me why I would buy ammo, for the same price as Walmart, and then sell it to you for less than Walmart price? It must be because you are so likeable.


So if you think you are getting screwed by the vendors at the show, more than likely you are not. We come to the shows to make money, among other reasons. Oh and don't complain if you don't get a discount on the $10 item you just bought. If you buy $100 worth of stuff, and ask me for a break, I'll take a little off, but I still need to make money. Would you work for free?


Now don't get me wrong, not all the customers are like this, but it irks me when people complain about the gun shows, and they have no idea what it takes to sell stuff. So next time you are at the show and have a problem with a price remember, the vendor didn't pay $500 for that $1000 gun.

 

[Sergeant Sabre]

When I was working for Gander Mountain I could log in and view the prices that GM would pay distributors for certain firearms. There were also a few hand-held barcode scanners that would tell you the profit margin.

The margin on new firearms was about 5-10%. Used firearms were generally 20%. Most general hunting items were maybe 15% on average. Clothing was usually at least a 50% mark-up.

 

[Poper]

it irks me when people complain about the gun shows, and they have no idea what it takes to sell stuff.

I understand your feelings, but if it gets to be too painful, you may want to consider alternatives. You have no control over other people's actions or motives. Try to politely brush it off as you would dandruff or a pesky fly and move on to the next customer. You know what they say in sales: It takes a lot of "no's" to get one "yes".

Once upon a time I felt like you about my previous line of work. It was making me irritable and unhappy. I quit it and went down another path. I am much happier and better rested now.

Poper

 

[lite-box]

I know how much they pay.

Some mark their guns up %10-15 and these type generally do sell guns and make a profit but alot go %50-100+ trolling for suckers & impulse buyers... dragging the same guns or overpriced ammo show to show...

 

[blackhawk2000]

Everything irks me. I just saw another thread complaining about gun shows, and had to comment. I enjoy what I do very much.


lite-box: Why is a 50-100% markup at Walmart SOP, and universally accepted, but when a gun dealer does it he is trolling for suckers?

 

[lite-box]

Guns aren't clothes....Do you think Wal Mart is making %50-100 profit margin on guns they sell ?

 

[71Commander]

My biggest complaint about gun shows is; why do they sell coins, radio control toy and stuff that isn't gun related?

 

[Eric F]

10%-15% how about 100% to 200%?

My friend is an FFL he works with 3 diffrent distributors I have his log in and password so I see exactly what he pays including shipping I also know his mark up which is not big at all less than 10%. so based on that I can judge what local shops and gun show dealers are doing with markups and I can say I see 100% to 200% mark ups on alot og stuff.

Bottom line its a business just like when I sold beer there are only 2 ways to make money in sales, Sell high volume at low mark up or sell low volume at high mark up. The second opton only works where there in no or little compitition or when every one else is doing the same thing.

To the OP no offence sir but some dealers are crooked if you ask me very few are low mark up and I have personaly seen arguements prior to doors opening at gunshows between 2 or more dealers using the same distributor with vastly diffrent prices for the same gun. And not a suprise the arguement is you need to raise your prices so I can make money too.......go figure!

 

[JaxNovice]

Why is a 50-100% markup at Walmart SOP

Wal-Mart targets about 17 points on a net basis.

Also- The reason most (not all) Wal-Marts do not sell guns anymore is lack of margin. I know a few wal-mart buyers in AR and they explained this to me.

 

[revolverman357]

At gun shows, I try to haggle a little on guns, but on other things if I think it's a fair price I go ahead and buy it if I want the item. I see the vendors at gun shows as someone who is keeping the hobby alive and has to make a living also.

 

[Ed Ames]

What gives you the idea wal-marts typically make 50-100% margin?

Wal-mart's gross margin averages 21% (as of 2003) to give them a net margin of 5.5%. That average includes clothes and other typically high margin items and puts them well above average for retail which runs around 3%.

 

[ceetee]

I'd like to know what business you can go into where you can have a hundred percent markup. I work in construction, and our margin hovers around 15 to 20% . Occasionally, we can go up to 25% if the job demands warrant it.

 

[Billy_H]

People need to realize that different markets, and even different products in that market, have different sustainable profit margins.

I work for a nationwide wholesaler. Our businesses operate on relatively small profit margins overall. In many cases our products go right into some new element of new construction.

In other cases our items end up in retail stores, again sold at a low margin by us. It is not uncommon to see our customers mark the item up 50-100%. Same product, but because of the nature of our business and their business they can charge more and get away with it.

 

[uneasy_rider]

I am irked by gun store owners who go into the business knowing that the profit margin and mark-up is very small, and then bitch about it on the internet.

Why not pick another line of work if you can't make money selling guns?

 

[thebaldguy]

I look around a compare prices on guns, ammo, and accessories I'm interested in. My goal is to find the best price. Sometimes it's at a retail store, sometimes it's at a gun show.

 

[MinnMooney]

I don't buy on impulse. When I am ready to get some new gun, 1000 rds of bullets, brass or 8 lbs of powder..... I shop and shop. Maybe I over shop but it's easy to do on the internet. I'm not wasting gas. I buy from the lowest priced seller. If everyone is high priced, Hey, what-cha-gunna-do? "Do you want it... or NOT?"

 

[bogie]

So, let me figure something out...

The gun show is paying the dealer to set up there?

Yeah, right. The dealer is plunking down at least $30-50 per table. He's had to buy a cable lock, because folks keep trying to walk off with $200 items. He's gotta have a cell phone with him to call in his forms. He drove a 15mpg truck 60 miles that morning to be there, and he's gonna do that this evening, and tomorrow morning and afternoon.

He's eating from the roach coach food that the place sells, so he's spending another $15 on lunch the two days, along with some really bad coffee.

He's got a 10/22 variation on the table that isn't being made anymore. He wants $20 over what a new similar one is selling for at Wal-Mart. At good dozen people will come up while he's talking to prospective customers, and inform them that Wal-Mart is cheaper.

Three of the customers will know that Wal-Mart doesn't carry this variation.

And right about now, some kid walks up with a box of "bullets" that he bought down the aisle, and he wants to see if they fit in the guns so he can buy hisself a deer rifle.

They're 12 gauge 00 buck "Super Duper Flaming Mankiller" rounds from the table with the big sign and the guy constantly flicking that ()*&)(*&(_&* stun gun.

It's surprising that more gun show table dealers don't go postal.

 

[k_dawg]

Want to see high mark ups.. look at the audio/video industry.

You take some cable that costs you $0.15/foot landed.. and turn around and sell it for $250/foot "audiophile" cable!

 

[Wes Janson]

Also remember that the precise percent markup will vary depending on the cost of the firearm. A 10% markup on a Hi-Point might mean a dealer would be earning all of ten bucks in exchange for the money invested into the product, the time spent ordering, receiving, displaying, selling, and servicing the firearm. If it takes one employee an hour total to do all of those functions for a single sale, and that employee is paid $10/hour, then the business has effectively lost money. So a Kel-Tec may have a higher margin on it than a Kimber.