MSRP -vs- Dealer Cost -vs- LE Cost

[sirgilligan]

I was wondering if someone can share information on different manufacturers pricing?

For instance, Brand X has Model A.
Model A is an Elite package, black finish, extended beavertail, night sights.
MSRP: $1,158.00
LE: $820.00
Dealer: $698.00

The dealer typically prices the Model A for around $875.00. That would be 25% profit for the dealer. MSRP is about 40% higher than dealer cost.

This is just a made up example to represent the information I am looking for.

A friend told me that he typically can make 5% - 10% on Glock and S&W Semi-Auto pistols. Not much room there for negotiation! So, for some brands volume has to be high.

Any info out there?

 

[Arkansas Paul]

A friend told me that he typically can make 5% - 10% on Glock and S&W Semi-Auto pistols. Not much room there for negotiation!

Yeah, most of the small shops around here make the big money on used stuff.

 

[9mmepiphany]

I've had several friends who had FFLs...some had brick-n-mortar store, some on-line only, others who did both...and they were very happy if they were making 10% on a new gun.

B&M store mainly made money on accessories and ammo, on-line dealers had lower cost due to reduced/limited inventory and overhead

The profit margin is higher on high demand/limited availability guns which sold at full MSRP or luxury item like Beretta O/U shotguns (where even 10% of $10K is a chunk of change)

 

[psyshack]

BS on 10% margins on guns at the LGS. Thats not worth opening the doors for. I have FFL friends that make far more than 10% out there front door in the living room smiling all the way to the bank. And still under cut the LGS best price by 20 to 30%. If not much more.

Lets take a $1000 MSRP whatchahmacallit gun. And everybody has to have it. And the stooge's are paying MSRP for this new whiz bang wonder gun. And it's never in stock.

It cost Znit & Booger $300 ea. to manufacture the wonder weapon. This includes design, lawyers, manufacture, life time warranty. There spiting wonder guns out like a goose with the runs. They sell each of these wonder guns to Mr. Evil Wholesaler at 35% margins, $462 ea. Give or take 10%. Mr. Evil sells the wonder guns to mom and pop / chain store contract at 35% to 25% margins. IE $711/$616. Mom and pop put it in the case for $1000 you haggle and walk out getting wonder gun for $950. You beat the man for $50 and your good to go. You are at chain store pricing. Might have even beat Pearch Puff.

You can push this chain of events 5 to 10% any way you want. But the out come is the same. EVERYBODY'S MAKING MONEY!!!!!!! Mom and pop LGS has to make the money on there gun sales. Ammo and #9 aint going to do it all. Yeah used guns, scopes and a few other items are higher margin. But every shop I know always has more new guns in stock than scopes, rings and used guns all put together.

I have seen the raw numbers in this game. Mom and pop may buy more Ropars from Lepiod than Darvidson. So they get a better deal on Ropars. But they may get the squeeze put on them for a few Zint & Boogers. It would be in your best interest to buy a few of those Zint & Boogers and OOOO the deal I can make you on these Cows. But you really need to work with Evil Lepiod here on this order or I can't do the Ropars at the same pricing. It seems they will have to go up a bit. See we know where Darvdson is on what you need. There out of the Ropars, check there site or give them a call. And remember we always ship cheaper than Darvidson.

I have seen all of this for years.

Next time LGS say's there only making 5,10 or 15% on a new gun. Ask to see the PO they bought it on. Play dirty with the dirty! Bet you will not see it wrong or write. Or come back with yeah,,, I bet your baby needs a new pair of shoes don't they. 30 years old and still sponging off you. And walk out.

 

[ISO1600]

and most of the time, LE/Military pricing (unless you are talking agency bulk buys) is like getting free shipping. In the case of Buds, sometimes it is more. Go look- their LE shop's price on a Rem700 SPS tactical is $20 more than their regular store.

 

[Zak Smith]

MSRP: $1,158.00
LE: $820.00
Dealer: $698.00

The dealer typically prices the Model A for around $875.00. That would be 25% profit for the dealer. MSRP is about 40% higher than dealer cost.

To clarify, a pistol that sells for $875 with dealer cost 698 would be a profit margin of 20% (that's 177/875), not counting credit card fees, which would reduce it to approx 17%.

 

[GunTech]

Keep in mind that LE doesn't have to pay FET on a letterhead buy.

 

[nelsonal]

Yeah, most of the small shops around here make the big money on used stuff.

Auto dealers are the same way, used car sales is vastly more profitable than new (but new car sales usually is the source of used cars).

 

[GRIZ22]

MSRP: $1,158.00
LE: $820.00
Dealer: $698.00



Keep in mind that if an LE agency is buying 5000 of those guns direct from the manufacturer the agency price might be $475. The maunfacturer is still making money.

 

[9mmepiphany]

Sorry for the confusion...I meant B&M store to mean they have a store front, normal hours, they have stock that can be handled and a lot of their business is through walk-in customers.

By on-line only, I meant that they meet the requirements of the ATF for a lic holder, but that the bulk, if not all, their business is on-line or by appointment...they usually have no standing stock and usually use catalogs to order items. My main FFL takes no walk-in business at all. It is all by referral and appointment. He has passed every ATF inspection. His explanation to me was that ATF schedules inspections

 

[PRM]

People are going to make a profit to stay in business. I don't mind that ~ just don't make the whole mortgage payment off of one sale.

I've sold a few guns on commission through a friend who has an FFL ~ but, trading with a retail seller??? Around where I'm from you might as well make it a gift and go ahead buy what your looking at, cost will be about the same.

I don't see a lot of difference whether its cars or guns. That's why I drive a Jeep with 130K miles on it and plan on dropping a new motor in it when this one goes. All the guns and ammo I have bought in the last five years have been on-line purchases. I've always had to work hard for what I got and unless the local guys are competitive in price ~ I'll walk every time.

 

[ProCarryNAustin]

It was my understanding that most dealers bought from distributors and their cost can be dependant on the quantities over a period of time and/or quantities in a specific order. There are also different polices and special programs for military/first responders/LE/GSSF-Like where cost or replacment/reimbursements are done differently. I really do not believe there is a simple cost per item any more in any industry.

 

[nalioth]

His explanation to me was that ATF schedules inspections

They schedule them as a courtesy.

They're not required to make an appointment.

 

[9mmepiphany]

I misunderstood your question to mean they had to have a store front...I thought Brick & Mortar was understood to mean that and thought it would be understood when I used it in comparison to an on-line business

They schedule them as a courtesy.

They're not required to make an appointment.

I just saw my FFL today and you are correct. They usually call him because they are seldom able to catch him at his FFL address. His firearms transfer business is based solely on appointments...he is also a forensic firearms expert...does research and provides testimony

 

[mbott]

Keep in mind that LE doesn't have to pay FET on a letterhead buy.

Not true. Any firearm sale to an individual officer, either on a Letterhead purchase or as a face to face transaction, involves the individual officer paying the Federal Excise Tax.

--
Mike

 

[silversport]

right...FET savings only if the department is buying and will own the purchase...individual officers pay taxes...
Bill