MSRP versus distributor’s SRP

[Split_overlap]

Can anyone enlighten me as to why MSRP on firearms would vary from what the manufacturer lists online and what gun retailers are told by their distributors? I recently walked into a couple of reputable local gun stores knowing the online-listed MSRP of two particular models and brands of handgun—a CZ and a Beretta—that I was interested in ordering. In both stores the sales people looked to their distributor’s database for MSRP numbers, and they were always higher than what the manufacturers themselves suggested. I understand that distributors can suggest retail prices according to supply and demand in a region, but then that should be called “DSRP,” not MSRP.
Am I missing something here?
Always willing to be educated. Thanks.

 

[JohnBT]

The S in MSRP stands for Suggested. The distributor buys from the manufacturer and sets another suggested price. The the dealer sets another price. They're all fantasy numbers. The only thing that matters is what you actually have to pay.

 

[303tom]

http://en.wikipedia.org/wiki/Suggested_retail_price

 

[NewFrontierArmory]

You shouldn't ever be paying MSRP for a gun. Its a wild number the mfg throws out to create a higher preceived value.

 

[Split_overlap]

Thanks guys. I understand that msrp is merely a "suggestion." It wasn't my intention to pay that amount, but rather as a starting point from which to calculate an offer. The main point of my question was about why the gun-store sales people I spoke to looked up "msrp" and it was higher than the manufacturer's online-posted msrp. One guy swung his monitor around to show me the number. He honestly believed that that was the msrp and that Beretta's website was wrong.
Even while posting the question here I began to figure out that apparently the sales people are looking at something produced for them by distributors...that it isn't really msrp at all...it would be "dsrp."
I just wanted to see if you all can confirm that the distributors produce their own suggested retail prices. It does seem to be the case.
Thanks

 

[Onward Allusion]

Everything is negotiable.

MSRP is a nebulous number thrown out by the Mfr so that a perceived value is created for the consumer. This is why some lucky distributors of the NAA Ranger sold them for $700 as soon as they got 'em. This is also why the Prius went for 3K to 5K above MSRP during the oil scare. It all comes down to econ 101.

If the seller thinks there is demand for it, they will charge a higher than MSRP price.

 

[oneounceload]

Depends on when the maker last updated their actual wholesale to their listed retail. A gun in demand can be higher than MSRP if the public clamors for it.

In anything, the buyer sets the actual price

 

[RhinoDefense]

MSRP is based upon speculation by the manufacturer.

The retail price based on the retailer's cost from the distributor is based upon market conditions.

 

[CoRoMo]

Many guns can be bought new, online, right around the wholesale price these days. That has been my experience anyway.

 

[Wanderling]

Many guns can be bought new, online, right around the wholesale price these days. That has been my experience anyway.

Precisely. Just like any other commodity.

Just find out the best deal you can get online, show it to the store owner, and ask him what can he do to get your business. While they won't always price match, they can at least lower their price enough to make it somewhat competitive. Although it's the sales tax that kills the deal.

 

[NewFrontierArmory]

To answer your actual question......MSRP that you see online from the actual MFG "SHOULD" match what the distributor lists as MSRP.

 

[hardluk1]

And thats why even during high demand it pays to find a great dealer that sells all firearms below at a discount..

 

[JohnBT]

"MSRP that you see online from the actual MFG "SHOULD" match what the distributor lists as MSRP."

I'm not in the business, but I have simply assumed they added on delivery costs from the distributor - just like a new car dealer does.

 

[hardluk1]

I may have payed msrp when a young'un but I have have never had to pay full retail. Allway found a dealer that discounts there fireams and only used 2 dealers in 28 years.

 

[DoubleTapDrew]

They are not only charging you MSRP but above MSRP? I'd find a different dealer. If it was their dealer cost I could see adding in a bit of $ so they make a profit but unless they are actually paying the distrbutor MSRP (if that's the case they need a new distributor) that's rediculous.

 

[robert2035]

msrp is the target price, the only place that sell based on msrp is manufacturers and cabellas, dont pay msrp.

 

[Charleo0192]

Depends on when the maker last updated their actual wholesale to their listed retail. A gun in demand can be higher than MSRP if the public clamors for it.

In anything, the buyer sets the actual price

Not quite. If you hold exclusive, or close to it, access of an item people want, you get to set the price. The company(s) who own the diamond mines do this all the time.

 

[Wanderling]

Most LGS are way overpriced here and it makes no freaking sense.

I bought my G17 from Glockmeister in AZ. They, as I understand, are a B&M store with strong internet presence. They were not the cheapest online but cheap enough and with good reviews. The gun cost me $499 delivered, no tax, and I paid $15 for FFL transfer from a local guy. The cheapest LGS carried the same gun for $550 ("special" no less) + tax + $40 transfer. Now I understand that tax is inevitable, and would be OK if it was $499+tax locally. But seriously, $65 on top of that is greedy and cost them my business.

 

[Onward Allusion]

Charleo0192
Not quite. If you hold exclusive, or close to it, access of an item people want, you get to set the price. The company(s) who own the diamond mines do this all the time.

In a free market economy without guberment regulations it is pure supply and demand. DeBeers and OPEC are cartels.

 

[Psa1m144]

Sounds to me like the store is not understanding what MSRP is. If their prices are higher or even equal to the real MSRP I would definitely find a different store. I use sites like Gunbroker and Cheaperthandirt to find an average price for a particular firearm. If a store cant match those prices+shipping+transfer then I walk right out. I usually get guns lower than what it costs to order online, you just need to know how to look and where.

 

[brickeyee]

MSRP is not binding on anyone, buyers or sellers.

Manufacturer's can try to shut of anyone in the distribution chain that discounts though.

Even if illegal, it is very hard to prove (look up 'fair trade price).
Anyone in the distribution chain that bucks the companies desires can quickly find it verify hard to get stock.
Things suddenly become 'back ordered.'