Percentage Of Profit For FFLs
- Thread starter SmeeAgain
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Most of the guys I know in the business say about 10% to15% on firearms. Traditionally ammo, clothes, hunting/shooting gear and other accessories see a 50-100% markup. With things like they are now ammo may not be quite as profitable at the retail level.
captain awesome
Member
I can offer a little insight here. I dont own a brick and mortar store, but run an FFL out of my house. I charge less than most gun shops do, and my profit margins are around 7-12 percent. I average about $35 profit on a glock 19, my cost before shipping on them is $440. I sell them at $520 out the door. about $40 of that goes to sales tax. if I only order the one glock at a time I pay at least $15 for shipping depending on which wholesaler I buy from. Some wholesalers offer discounts on certain brands if you order enough of them and will offer free shipping if you meet certain criteria. If I where to do that at one of them my shipped price for a Glock 19 would be $430. if I had a small gun shop to run, employees to pay, a property mortgage or rent, other business costs, not to mention making a decent income for myself, I would would expect to need at least $1500 a day in profits. which would mean roughly $15000 in sales per business day. say the profit margins are larger at 20%, you could cut that number in half, at $7500 in sales a day. i have seen deals online for large retailers for tac packs (gun, holster, case/lock, 2 -12 round mags and 1 -15 round mag) on sig P365 xls for $550 before tax. My cost on a normal p365 xl is 527 before shipping, and that doesnt include the holster or extra 15 round mag. I know they are getting them cheaper than I am, by how much I'm really not sure. but high sales volume can make up for low profit margins.
Around 10-15%. Gun stores only sell guns to get people into the store to buy things with better profit margins, like clothing and cleaning supplies. Ammunition is even worse. I once did a study for a gun store and his wholesale price on about half his stock was more than Walmart was selling it for retail. Of course he was buying it from a distributor in 10 box cases. Walmart buys it from the factory by the trainload.
Plus the money is in USED, traded gun. Like a Pawn Show. 100% markup!
I tried to get my friend LGS/Pawn to carry more accessories. For every gun he sold he could sell a cleaning kit, solvent etc, can case, holster etc but they never bothered.
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SmeeAgain
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FFLs provide a much needed service to our communities.
For the hoops they are required to jump through, one would expect to at least make a reasonable profit.
As it stands, it looks like many exist merely as a public service.
To the FFLs here... THANK YOU!
For the hoops they are required to jump through, one would expect to at least make a reasonable profit.
As it stands, it looks like many exist merely as a public service.
To the FFLs here... THANK YOU!
Riomouse911
Member
Almost 20 years ago I recall buying my 686+ on GB from a big seller in Iowa and having it shipped to a pretty good sized LGS in Murrietta, Ca. for the transfer.
I vividly remember the manager (owner?) remarking that my gun+shipping price from the GB sale was lower than his per-unit cost from his distributor.
After my buy, the store drastically raised the cost on receiving and transferring internet sale guns. They saw the writing on the wall and had to adapt to a changing marketplace or fail.
Stay safe.
I vividly remember the manager (owner?) remarking that my gun+shipping price from the GB sale was lower than his per-unit cost from his distributor.
After my buy, the store drastically raised the cost on receiving and transferring internet sale guns. They saw the writing on the wall and had to adapt to a changing marketplace or fail.
Stay safe.
illinoisburt
Member
A couple local large shops (not chain stores) here have set fees of $100 on any transfer of a firearm they normally stock or show available from their distributors. I was told this was direct result of price imbalance on ARs pre-Trump, though whether this was true or not was debatable like most other gibberish the counter guys tend to offer but does seem plausible.
CoalCrackerAl
Member
My LGS has a Remington 870 anniversary edition for sale 670.00 OTD. I was there when it was traded. He gave 500.00 for it. After sales tax and nics He's making about 120.00 off it i estimate. Item 11. https://gatorsusedguns.com/longguns
The 760 he has on there for 1500. I thought he was off his rocker. At cabelas with out a scope they are 1700 and 1900 with a scope.
The 760 he has on there for 1500. I thought he was off his rocker. At cabelas with out a scope they are 1700 and 1900 with a scope.
dogtown tom
Member
As a home based dealer, I love those guys!
A $100 transfer fee isn't going to engender customer loyalty or encourage the customer to buy from that shop. In fact, customers understand that they are being punished. I know, I have those buyers sitting down at my dining room table every night. The local brick & mortar stores with high transfer fees are basically telling the customer to go see Hart.
When I have a customer buy a silencer elsewhere and ask me to do the transfer, I gladly do it. I also use it as an opportunity to show him how much I could have saved him if he had bought from me.
The price imbalance has nothing to do with preTrump, post Obama or pre Biden and everything to do with a LGS not understanding that their competition isn't the shop across town, but every online gun store in America.
CoalCrackerAl
Member
Gators does 10.00 transfers. Other shops are 15-25.00 in the area. One does 50.00 for online purchases. He charges 25.00 other wise.
Insignificant bill
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The reason I do my transfers with youAs a home based dealer, I love those guys!
A $100 transfer fee isn't going to engender customer loyalty or encourage the customer to buy from that shop. In fact, customers understand that they are being punished. I know, I have those buyers sitting down at my dining room table every night. The local brick & mortar stores with high transfer fees are basically telling the customer to go see Hart.
When I have a customer buy a silencer elsewhere and ask me to do the transfer, I gladly do it. I also use it as an opportunity to show him how much I could have saved him if he had bought from me.
The price imbalance has nothing to do with preTrump, post Obama or pre Biden and everything to do with a LGS not understanding that their competition isn't the shop across town, but every online gun store in America.
dogtown tom
Member
<-----it's her you come to see.
Insignificant bill
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You figured me out. I love dogs
I've never thought a gun shop would be a good business model and this thread supports my view. I really wish you guys luck and I usually buy from local stores, especially used consignment guns. My local shop charges 15% or $50, whichever is more, on consigned guns. Gun customers are usually tight fisted and like to hang on to their money.
Captcurt
Member
I would be a happy camper if I could make 10% on a gun. Like Captain Awesome, I work out of my home and find it hard to compete with my friend and owner of the LGS. He has been in business for over 50 years and has better sales reps than I. He has access to items that are allocated at prices below what I would pay if they were available to me. So, I accidentally found that I could make more profit selling guns online on consignment. Now when he gets some high-dollar guns that are low-market items locally I list them for him. He gets the local sales and I do the online. Works swell.
Most stores around here charge at least 10% mark up on guns. Ammo and accessories go for 25%-35% profit. Noone locally gets MSRP on anything. Some have tried, but they are no longer with us.
Most stores around here charge at least 10% mark up on guns. Ammo and accessories go for 25%-35% profit. Noone locally gets MSRP on anything. Some have tried, but they are no longer with us.
Thats a big one, my ffl buddy is in the same boat. Even stuff on his allocation list is often pulled by retailers with more influence than he has.
The other big attraction is consignment. Sure you only get a relatively small percentage of each sale, but the important thing is you have none of your money tied up in the gun.
A $100 transfer fee isn't going to engender customer loyalty or encourage the customer to buy from that shop. In fact, customers understand that they are being punished. I know, I have those buyers sitting down at my dining room table every night. The local brick & mortar stores with high transfer fees are basically telling the customer to go see Hart.
I can see them not wanting to do a transfer for a gun they typically sell in their shop. But doing transfers for used guns or face-to-face sales is another circumstance.
I was dealing in a small mom and pop shop nearby, and was 100% loyal to them for gun purchases and bought supplies from time-to-time. Then I bought a K31 on Gunbroker and inquired if they would do the transfer. Sure, $60. Haven't been back since. Went down the street to a guy who is happy to do it for $25, and still charges that.
It's their business and they can charge what they want, but I'd be happy to get people in my store. I wouldn't mind it of they set aside certain hours for transfers or explained I'd have to wait if a customer came in during the transaction, but to gouge me sent me packing.
BTW the first firearm I bought there was a RRA Varminter for about $900. He told me he made $80 on the sale.
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