Why do gun dealers like to jack up the prices?

[AlexanderA]

Back in the days (as recently as the mid-1980's) when we had hundreds of thousands more "kitchen table" FFL dealers, the cost of transfers (and gun markups generally) wasn't so high. The fact is, today, local FFL's have semi-monopolies, and therefore, lacking competition from those with no overhead, can charge whatever the traffic will bear. I'm convinced that making FFL's more difficult to obtain, and more expensive, was part of a plan to drive up gun prices and squash the market.

 

[Hanzo581]

I never buy anything without holding it either, I go to gun shows\stores and hold the firearms I want, make sure I like it, then order the exact model online. I can completely understand not buying used firearms online sight unseen.

 

[LensWork]

Recently I was looking to purchase an American Classic Commander. I did a price search on Gallery of Guns, and found that a local retailer had the item in-stock. Their price on Gallery of Guns was $40 more than an another FFL holder that is not a stocking dealer, but I was willing to pay this difference to buy an in-stock item that I could handle before buying. I went to the local dealer to purchase the pistol only to be told that their price on GoG only applied if I ordered the weapon through GoG. Their in-store price was $125 more! This I cannot understand as obviously they got their in-stock pistol from the same distributor, so why would they not sell me the in-stock item for the same price they offer online? If I wanted to order it, since they were already $40 more than ordering through another FFL, I would order it at the lower price. The dealer's price on the in-stock pistol was $75 ABOVE MSRP.

 

[BigN]

If I could just waltz into a gun shop and pick up something I really wanted for $35/40 more than online, I'd grab it. I take it home that very day, no fuss no muss. $50 or more is borderline thought...

 

[22-rimfire]

Almost always guns priced through Davidson's (GOG) are ordered and shipped to the dealer. It doesn't take more than a week, but you have to wait. The deal there is that the dealer simply makes their profit and it never really affects their overhead (total cost of instock items).

 

[orionengnr]

My local gun dealer is a small shop, but they do not try to make the whole week's profit off of one sale.
They will gladly do a transfer for $20, and they have done many for me. Almost every time I visit, there is someone there taking possession of a transfer or a new gun--their business model is working.

But I only ask them to do transfers on used guns, usually a non-current model (think pre-lock S&W revolvers). If I want to buy something new I will ask what their price is. It is generally within 10% of Buds, etc, and I will pay that 10% premium to help keep them in business.

They strike the right balance between profit and volume, and have very good customer service. As a result, they have some very loyal customers.

 

[sig220mw]

It's all about over head. The store, unless it is huge, doesn't have a brisk enough turnover in it's inventory. They have probably more employees and more bills to pay so they must charge more. On the other hand you can walk in and handle the merchandise before buying and can also bring it back in if there is a problem.

Also as someone else already said, the mark up on firearms isn't that high.
They are fairly expensive at wholesale.

 

[Sunray]

"...maintaining a warehouse and a website..." No warehouse in some cases.
"...gun dealers like to jack up the prices..." They don't, but they like to eat and live inside just like you do. As mentioned, every dealer has different costs. A small guy doesn't get the same wholesale price or in some cases credit terms from their distributors.

 

[Remo223]

Before internet gun sales became popular, I used to buy guns from an old guy that was almost as good as the internet. He never carried new firearms unless it was something unusual. He had a very impressive inventory of used firearms.

You could walk into his shop and tell him you saw a guy with such and such a gun, then describe it to him, and this guy would tell you exactly what it was. Then he would ask you, "do you want me to locate one for ya?" If you said yes he would locate one and call you when he had it in his shop.

he did this WITHOUT the internet. he was out of town on gun buying trips more often than he was in town. he was amazing!

Then he died.

 

[nosmr2]

They are free to jack up prices and I'm free to shop around.

 

[neededausername]

I think many dealers also build in some wiggle room to the price they quote you. In a high dollar transaction you should always negotiate. The worst the seller can do is say no. In the OPs situation I would just tell the local guy here is the price plus transfer, shipping, etc I can pay if I buy it from J&G. Let the dealer know that you understand he has higher overhead and lower volume so you are willing to pay a little more, but not $100 and ask what he can do. He wants to make the sale.

When I bought my house and was shopping for appliances the store I wanted to buy from didn't offer free next day delivery, but their competition did. I found a manager and told him I wanted to buy a few thousand dollars worth of merchandise, and I wanted to buy it from his store. But if I couldn't get free next day delivery I was going across town. Not surprisingly the merchandise showed up at my door the next at no charge. If you don't ask you wont receive.

 

[Lex Luthier]

Another good reason to get to know the nice folks at your mom and pop gun store.

I ordered expensive Crimson Trace grips for my SIG P229, and the quote seemed a little high, but the vet promised to install them and dial them in. I got a call they had arrived, and were $75.00 LESS than the quote. They did not have to lose that $, but they knew how to treat this customer.

 

[FROGO207]

Profit

 

[wep45]

guns, cabbage, underwear.....................you got to shop around and get the best price.

dont spread this around................its a secret!!

 

[Mike Sr.]

I've yet to find a deal on the 'net' that my local FFL -Guns Unlimited in Omaha- will not beat or match...during the last 5 yr's !

 

[kk0g]

They are free to jack up prices and I'm free to shop around.

Bingo!! We have a winner!

This is the way a free market works. Notice the key word in that sentence; you're free to either pay the price the dealer is asking or not and you're free to buy from someone else if you don't like his price.

 

[22-rimfire]

And more importantly, you are FREE to not buy at all.... as they say, just say "No". This is actually a pretty nice position to be in. Basically they give you a fair price or you keep your money. However, I am a firm believer in utilizing the services of the LGS even if you pay a little more. I like them to continue be in business.

 

[Hanzo581]

I've yet to find a deal on the 'net' that my local FFL -Guns Unlimited in Omaha- will not beat or match...during the last 5 yr's !

Consider yourself lucky, 9 out of 10 items in gun shops near me are 20-30% higher than online at least.

 

[22-rimfire]

Stuff costs more around Baltimore/DC area. But you could almost say that this recession didn't even happen in your area either. Count your blessings.

 

[BADUNAME37]

It could be the actual cost they need to get to stay in business and/or it could be a simple matter of GREED.

Greed can drive some people to do things they wouldn't ordinarily do.

 

[leadcounsel]

One of my LGSs will never get my business again. I spent a lot of money there on buying stock guns (knowing I was overpaying by 10-15%), having guns sent there and FFL transfers, ammo, and accessories.

I even sent my girlfriend there to buy a speical order gun, which they overcharged her on, while I was deployed.

While I was deployed I asked if they would hold a few FFL transfered guns for me if I ordered them and I would pick them up when I came home.

Nope. NOPE???!!! Really?? Well I guess the 'hassel' of FFL transfers was too much for them and they no longer do them.

So long LGS... There are plenty others. I hate to see one go, but never really cared for them anyway as they always seemed put out, rude and condescending ...

 

[JohnBT]

"a world where the internet is an integral part of the market place."

...and then they send you a NIB gun with a gritty heavy trigger, loose sights, scratched finish, knotholes in the grips and tool marks all over, but you saved $100, right?


"I asked if they would hold a few FFL transfered guns"

My guess is there's a shortage of shelf space in the vault or safe.

 

[mgmorden]

...and then they send you a NIB gun with a gritty heavy trigger, loose sights, scratched finish, knotholes in the grips and tool marks all over, but you saved $100, right?

Except that hasn't been my experience, and certainly can't be the norm based on the popularity of internet sales. As a matter of fact, out of close to 20 guns bought online, the only one that I've had ANY issue with is a CZ-75 shooting a bit low. A set of adjustable sights (less than the difference between local and mail order to get those) fixed that.

The simple reality is that for the most part, my guns ordered online have been problem free. Any suggestion that you should expect some horror story if you order online is simple fear-mongering.

 

[Limeyfellow]

If anything prices have been dropping in the stores steadily for the past couple of years after they realised that the Government wasn't going to come and take everyone's guns away and stick them in concentration camps. Those were good times indeed for gauging on the price. Give it a little more time and prices should be back down to normal.

 

[Hanzo581]

...and then they send you a NIB gun with a gritty heavy trigger, loose sights, scratched finish, knotholes in the grips and tool marks all over, but you saved $100, right?

You do know if you are not satisfied with what you are sent you are not required to accept it, right? If you deal with a reputable online dealer they will make it right.

(This only applies to new firearms, can't speak on used as I would never buy a used gun online)