How are some private builders able to sell rifles so cheap?

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ryno31

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Keeping in my mind that I'm still relatively new to the AR world I have a question I was hoping to get some feedback on. How can some private builders put together very high quality rifles then turn around sell those rifles for much cheaper than it would realitsticaly cost myself to build them? I know its always cheaper to buy an upper and lower seperatley....I get that, but my personal example being the rifle I just purchased. The builder told me every little thing he put on/in it and when I calculated everything up on my own by doing an internet search of each componet (I did try to bargain shop a little but in no way to the extent I would if I was actually buying the parts) and they came in at over $1500 but yet I only paid $1360 for the rifle, everything on it is brand new. So I'm wondering if some builders are able to get parts at cost from manufactures or if there is some other way that in the future I could put together the same quality rifle my builder did at his cost. My apologies if the question is unclear or just an irritating noob question but its been bouncing around in my mind for a day and a half.
 
Builder are likely by necessity dealers (otherwise it would be a hassle to stock lowers). That means dealer prices. Most of them also know that its unlikely that they will be able to sell their rifles for a premium since they have no reputation to speak of. A local builder here advertises that he sells for 10% over cost. Whether that is true or not I don't know but his ARs start at about $1100 for nice components.
 
dunno. did he engrave his name on your rifle? did he pay the excise tax?
 
Taliv, I couldn't tell you if he paid the excise tax or not but he didn't engrave anything on it. Personally I just like to think I got a good deal:) I would like to learn whatever the tricks of trade are when building high quality AR's on the cheap though.
 
The tricks of the trade are using junk parts.

Period.

If you think you got a deal, you most likely didnt.


There is no majic, and dealer prices arent THAT low.
 
I know everything the builder put in it and none of it was junk or previously fired/bargain bin/blemished product.
 
Same ol, same ol.

Buy cheap, sell cheap.
Until you run out of money.

Some of them bought parts years ago and are still using them.

I used to be able to build a 1911 pistol for about $125 dollars and sell them for $200 or so.
I made about .05 cents an hour for my time.

But that was then, and this is now.

It would cost me over a grand to buy the same quality parts to build one today.

There is also something to be said about private builders not paying the same 11% Federal Excise Tax big companies have to pay.

If they build less then 50 guns a year, they don't have to pay it.

Your $1,360 purchase * 111% = $1509.60.

rc
 
I know everything the builder put in it and none of it was junk or previously fired/bargain bin/blemished product.
dom1104 makes a good point and I'm sure this happens often since it can be hard to tell exactly which parts where used.

Why not list the parts you're talking about here so the rest of us can get a better idea exactly what we're talking about.
 
Noveske N4 lower, cmmg lp kit with different roll pins and springs because in the builders opinion they suck (I wouldn't know anything about that), BCM 14.5 inch upper (Non-NFA), BCM bcg, gunfighter charging handle, KAC ras quad rail, KAC rail covers, kns anti-rotation pins, Adv Technology mil spec buffer tube, Spikes t-2 buffer, magpul trigger guard, mp vertical foregrip, mp pistol grip, magpul acs-L stock, mbus rear sight. Pretty sure thats it....like I said to the best of my knowledge everything is new. I wouldn't call any of those parts crap, maybe not top of the line but not crap. I didn't exactly bargain shop when I added everything up from different websites but I didn't use the highest asking prices either.
 
What did I tell ya?

If that KAC ras didnt formerly belong to uncle sam, picked up on ebay for 50 bucks I will eat my hat.
 
I'd say you got a pretty darn good rifle for $1360! I built something very close with a BCM upper except went KISS with MOE handguards intead of the KAC rails and came in at a little under $1100 - so yeah you did great! I didn't add up the cost of the parts except to figure what those rails would add to my build and can tell you got a good deal.

Again, a really nice rifle.
 
I'd say you got a pretty darn good rifle for $1360! I built something very close with a BCM upper except went KISS with MOE handguards intead of the KAC rails and came in at a little under $1100 - so yeah you did great! I didn't add up the cost of the parts except to figure what those rails would add to my build and can tell you got a good deal.

Again, a really nice rifle.
Thats odd, here I am thinkin he got riped off by at least 200 bucks.

I will have to bust out a calculator.
 
Well my $1100 build came in like this:

BCM 16" midlength upper (not hammer forged) with BCM BCG and Gunfighter CH, rear MBUS and MOE handguards comes in around $700.

My stripped lower with a Daniel Defense LPK, BCM receiver extension with H buffer, STR stock and MOE+ pistol grip came in around $380.

His 14.5" with a permanent muzzle device would add $ over my screw on A2 birdcage.
 
Well I can tell you this, if I built him that gun tomorrow, I would have made 345 dollars selling it for that price.

Wether thats a good deal or not I guess depends on the market.

I would feel pretty good making 350 bucks on a 1000 dollar item that didnt take 15 minutes to put toghether....
 
Armorer or even basic LE/Mil pricing, many can save around 20%-25% or more over retail on parts for a build. So if you end up paying ~10%-15% under retail and the remaining percentage is his profit, it is more than fair for his time to procure parts and build the rifle.
 
Years ago we had a Jewish roofer named Sammy Feinhandler put a new roof on the ranch house in Jack Creek, NV. I remember him being asked how he could do it so inexpensively. He said he lost money on every deal he made but his profit came from the volume. Must have been true since he stayed in business for years and his company is still going many years after his death.
 
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