Why do people charge so much to ship guns?

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Here's my experience with all this.

First off, I'm a buyer not a dealer. My most recent purchase was a Ruger OA cap and ball. The purchase price was $265. FedEx next day was $35. Total price $295. The seller is in another state about 125 miles away. To save the $35 shipping I could have driven down to his shop, 240 miles round trip in a car that gets 30 mpg at $2/gallon. That's $16 for gas. My employer figures my time is worth a little over $20/hour including benefits. 4-5 hours of time comes to $80. True, I would not be using work time to make the run but I would be doing something else that either needed to be done or that I would prefer to do. In his shop I would have to pay his sales tax, having it shipped to me I owe my state a "use tax" that is half of what his city/state sales tax is. Another $8 saved.

By paying the $35 shipping I saved the cost of gas, some of the sales tax, 5 hours of my time not to mention the fact that if I bought in his shop I would have to register the gun with the city PD even though I'm taking it back home.

I figure that if he makes a few bucks on the shipping I still come out ahead.

The same principles apply to handguns that need to come to me through a FFL.

I suppose I could haunt gun shows looking for the right piece at the right price but that takes time, gas, frustration etc.

I'll pay for the convenience of being able to shop the net and make one short stop at a regional (there are no local) FFL.

It all depends on how you choose to look at things.

DaveJ
 
Ya know I have been a dealer for a year now, and i guess i have an advantage, I work full time at a good job, and run my Firearms business part time. This means I am able to keep my prices low since i dont have to support my family with my business. I also am intelligent to realize that this busniess wont make me rich unless i find a niche somehow.
I have know other dealers that started off as home dealers then went out and bought a store and went full retail, those dealers ended up losing their customer service skill somewhere in the trade along with raising their prices, the prices I can under stand, you have to feed your family, I cant understand though the customer service, I would think if anything that it would get better. I hope i dont ever get that way.

BTW a firearms dealer probably will never be able to beat walmarts prices on new items, they sell for what most of us have for our cost to buy. We can beat them on selection, service and specialized items walmart doesnt carry.
 
HiTech78 said:
Hmmm, so your saying to ship a gun is hard work, and an FFL holder should get paid a premium salary for his hard work? It takes a total of, maybe, 20 min. to package and ship a gun. These people charging $35 are making $27.30 per 20 min. THAT'S $81.90 PER HOUR!!!! The profit margin on shipping/receiving guns should not be more than the profit margin on the gun itself. Even if it does cost $15 in material (stop packing with 24k gold tissue paper) you still make equal to $36.90 per hour for your services. One more thing........what is up with people charging outrageous prices for receiving that, literally, takes 3 minutes!!!! My local FFL charges me $7.70 for shipping and $10.00 for receiving. He is in the business for the love of the sport, the desire to protect the 2nd amendment, and to protect our nation, NOT for the love of money, nor is he absorbed by one's own greed.
I don't understand your math. If it costs say $20 for shipping and insurance, another $5 for the packaging, $5 just for the fuel to get to the post office or FedEx office, that's $30 right there. So the FFL spends 20 minutes packaging the gun, maybe an hour getting to the post office, doing the transaction and returning, and another 10 minutes doing the log paperwork.

That's a minimum of one hour (and it's probably more than that) for $5. I can earn better wages than that sweeping the floor at McDonalds.
 
BUT all of you have to realize when an FFL charges more for shipping he is using a loophole to avoid paing taxes as well !!!! See, they don't pay taxes on shipping because it is a "service".

I'm not sure what state you are in. I'm an FFL, and I don't pay taxes on any of the guns I sell. The customer does. It is a sales tax. And if I ship out of state, I don't collect any taxes at all.

So by using your logic, if I charged a cheap price for a gun (say $1) and an outrageous shipping fee (say, $499), that would actually save the customer money, because they would only pay sales tax on the item, not the service, right? This loophole would help the customer, not the FFL.

You say you are in the process of getting an FFL. Perhaps in your state merchants pay a tax for every item they sell and they save money using the "loophole" you speak of, but I would advise you to read up a little on your tax code before you open your business.
 
"Prices are set by the free market."

I often think of what Arnold Jewell said in an interview. When asked about his thoughts on the frequently asked question of why his triggers cost so much he had a short answer: "They cost what they cost."

John
 
I'am more than happy to pay the local
ffl holder 30-35 dollars to ship a pistol.

1) I take it in with a copy of the recieving
FFL and hand it over.

2) I don't have to pack it, i just hand it to
them and they do the rest.

3) I don't have to waste time at FedEx or
Ups explaining their own rules to them
about shipping handguns.
 
I have purchased 3 handguns on line and the shipping charges have been $17 and $20 twice. Very reasonable since I don't pay sales tax on the guns since they was from out of state. Of course I had to pay a transfer fee on my end and my FFL holder only charges $10 (the general going rate is $25). I have been in a business that needed to charge a delivery fee and I tried to make it reasonable even though it was a pain in the butt to go to the post office or UPS office. FFL's are not making money on shipping unless they are charging like double or triple what their costs are. Shipping is a real cost of doing business and seller's should even make a little money on it because it takes time away from other money making operations.

I am continually amazed at how little FFL holders charge, either for shipping, or transfering or markup on gun purchases. I have considered getting my own FFL, but with the competition in SW Ohio, I would only do so to feed my habit and hobby, not to try to make money. poppy
 
Another angle when it comes to the FFL shipping a gun for you that I didn't think of before:

If he ships a gun he didn't sell, than you've just made its safe delivery HIS problem ... if it turns out that the buyer's FFL is fake its HIS hiney when the feds come calling. If the weapon is stolen during shipping and used in a crime its the FFL who shipped it who will have to put up with an audit from the ATF.


Shipping a gun for you means he takes on lots of potential problems if something goes wrong.
 
I just can't believe so many people are so petty about $25-35 to ship or receive a gun for them. If its' so easy just do it yourself and quit bothering those capitalist pigs out to take your last dollar.

If these dealers don't make a good enough living to stay in business what are you going to do?
 
I had to mail my M28 back to S&W. I couldn't legally do so through the USPS. And I had to use "next day air" at FedEx because "them's the rules." Cost me $44 and irritated the crap out of me.

If I see a handgun on gunbroker, etc, I check to see if I'm dealing with an FFL or an individual. If an FFL is trying to charge $35, I might think he was trying to pad his price. If it is an individual, then he isn't making a dime extra!

Gregg
 
HiTech78 said:
I have been in many arguments with people about shipping guns. In the Buy,Sell, and trade section some individuals want to charge up to $35 for shipping a handgun. It costs $7.70 to ship a handgun via USPS. Does your local FFL holder charge to ship something? And if so, why so much?
I have shipped handgns and rifles to people who have purchased them from me. First of all, I refer to your nest to last sentence, I do not ship through an FFL at my end. I am only required to ship to an FFL holder. I shipped the guns myself. That means, if I ship a gun to someone I have to:

Get proper shipping boxes including an outer and inner box.

Use enough padding to protect the fireram from damage in shipping.

Buy tape to seal the boxes.

Pay for the shipping at UPS - where I believe that handguns are only shipped by second day air or next day service - I think they no oonger ship handguns by ground service.

Hmm, I just went to UPS, I put in my zip code in Mineola, NY and a ship to city of Colorado Springs, CO. I put in the package weight as 5 pounds - a pretty light weight, let's say for a medium frame semi-auto pistol like a .380 along with the weight of the boxes and the packaging material. I gave it a value of $500. Guess how much it would cost me to ship that, go ahead guess. Now scroll down:




keep scrolling







keep going





further down






you will get there soon






it is the bottom line






on shipping via second day air by UPS





scroll a bit further









$30.63

Yes that is what it would cost and that is not including the price of packaging materials such as boxes, tape, and padding or bubble wrap or whatever. It does include pickup at my place by UPS. Did you think I was going to waste 20 minutes to drive to the UPS facility, 15 minutes waiting on line, up to 5 minutes arguing that yes I am allowed to ship handguns, another 2 minutes to have the package accepted and paid for, and another 20 minute drive home. As it was I was already tired from all the time I spent getting your gun ready for shipment. I already spent an hour or two cleaning the gun. Another hour or two taking quality photos of it for the website sale. Then I spent 20 mintues listing my item online. Then I answered 15 email inquiries from jerks and three from serious potential buyers; this all taking at least 2 hours of my time. Then I had to find a scale to weigh the item including packaging so I could tell you ahead of time how much it would cost to ship it - another 1/2 hour to 1 hour used up. Then I had to wait for your money order to arrive, maybe a wekk to 10 days. I had to bring it to my bank and cash it (20 minutes), then wait for it to clear. I also had to make darned sure your FFL holder is listed with ATF (5 minutes). Then I called UPS to arrange a pickup, 5 to 10 minutes. Then I had to be there to wait for UPS to make the pickup but at least I had a beer while waiting. Then it was off to you for the tiny sum of $30.63.

And you are wondering why some people charge $35 and you later said that the seller would be making oodles of money per hour by inflating shipping charges. The truth is, if I had to do all that and then ask only $35 for shipping, I would be losing money on the deal. A good box alone is at least a few bucks and I use 2. You have some set of brass ones that are stuck tightly together (on your abacus) or are just not that good at math:rolleyes: :neener: :rolleyes:.

Now if I were to ship from my FFL holder to your FFL holder, it would be whatever he charged for shipping plus whatever he charged me for the benefit of his having an FFL. Around my area they often charge $35.00 just to handle the transaction (no shipping included in that price).

Best regards,
GB
 
Zundfolge said:
This is why we will eventualy be thrown in deathcamps by Socialists.

People just don't understand economics.

Not just that some are just plain cheap and constant complainers. The ones that complain the most are the people you usually can't make happy anyway, they will always find fault with the transaction. Theose people I used to find funny when I was in the gun business. I used to charge $30 for a transfer tax included. I would still have people tell me they sould get it cheaper at the gunshop 40 miles down the road. I would wish them a safe trip and ask them to say Hi for me!
If you don't like the prices a business charges don't go there, that is your choice. I did a lot of transfers for people and had a lot of repeat business. I closed down because it became too much for me to handle and work my full time job not because my customers thought the prices were too high.
 
HiTech78 said:
Hmmm, so your saying to ship a gun is hard work, and an FFL holder should get paid a premium salary for his hard work? It takes a total of, maybe, 20 min. to package and ship a gun. These people charging $35 are making $27.30 per 20 min. THAT'S $81.90 PER HOUR!!!! The profit margin on shipping/receiving guns should not be more than the profit margin on the gun itself. Even if it does cost $15 in material (stop packing with 24k gold tissue paper) you still make equal to $36.90 per hour for your services. One more thing........what is up with people charging outrageous prices for receiving that, literally, takes 3 minutes!!!! My local FFL charges me $7.70 for shipping and $10.00 for receiving. He is in the business for the love of the sport, the desire to protect the 2nd amendment, and to protect our nation, NOT for the love of money, nor is he absorbed by one's own greed.

Your FFL's lack of business acumen probably doesn't reflect the norm for FFL's. :rolleyes:
 
Im not sure about the regs in america, but in australia, i charge about $35 australian to ship guns (about $28 american). Thats because there is so much paperwork and messing around to get guns into, or our of the country, its rediculous. I spend about $10 in phone calls, not to mention filling out paperwork, running around, faxing paperwork, plus i gotta make some money out of it (hey, i gotta eat), assuming everything goes smoothly.

Things may be different over there. Id say $35 american is a little much, if not on the dot, depending on the actual postage amount itself. But then again, im assuming its the same amount of work as what i have to go through.
 
"you still make equal to $36.90 per hour for your services."

How many guns could they have sold in that hour and would they have made more than $36.90 doing it? I say a lot and much more.

You can't keep a shop open on $36.90 per hour.

JT
 
The cost of doing business for something I want is up to me, the buyer. I decide what I can afford vs. what I want. That includes my free time and time driving. As I get older, I get less inclined to drive all over the state to save $20-50. If an FFL is WILLING to provide a service for my convenience, I usually will jump at it. I don't really care about the economics beyond that. For those living within a few miles of several FFLs that are willing to do transactions, you can consider yourself lucky I guess, that you can dicker on the cost. I don't think $10-20 difference is worth the breath, unless you're buying 100 gun lot. The few FFLs in my area will not even ship or receive unless they sell the firearm.
 
This morning I, a non FFL, shipped a PT-111 via FED-EX from Fla to Ohio. Cost = $12.36. Overnight was not required, the package will go ground and I was told it would be delivered in two days. The process was quick, convenient and simple. Filled out a simple form, showed the copy of the FFL, paid my money and off it went. I plan to ship another gun tomorrow the same way. I asked and received $25 for shipping, I intend to return the difference to the buyer.
 
tegemu said:
This morning I, a non FFL, shipped a PT-111 via FED-EX from Fla to Ohio. Cost = $12.36. Overnight was not required, the package will go ground and I was told it would be delivered in two days. The process was quick, convenient and simple. Filled out a simple form, showed the copy of the FFL, paid my money and off it went. I plan to ship another gun tomorrow the same way. I asked and received $25 for shipping, I intend to return the difference to the buyer.

Did you ship it from a Fed-Ex terminal or from a Kinko's or someplace like that? Fed-Ex rules require that handguns be shipped overnight. You are required to tell them that it is a handgun. You just happened to catch a clerk that didn't know the rules.
 
KINKO/FED-EX. I shipped another one today. In both cases I informed them that they were guns and showed them copies of the destination's FFL. Three different clerks were invovlved in the two transactions.
 
I am also an FFL, I collect $15.00 for S&H.

Most of the time that $15 will cover shipping/with ins and delivery confirmation, the rest of the time I make up the difference. It all evens out in the end, and I have YET to ship a handgun that fits in the Flat rate box!!!!!!!!

I am NOT a full-time stocking dealer so I can operate on a smaller profit margin than a real store ( little to no overhead).

Now on the other end of the spectrum, I ordered a shotgun for a customer and I PAID $27.00 for shipping.

Now in your infinite wisdom, should I EAT the twelve dollar difference ( Keep in mind I am only marking it up $15.00 ) or pass it along??????????????

People for whatever reason seem to believe that dealers are making a huge profit on each gun, TAINT so, even the big guys are NOT making enough to live on GUN sales alone.

The people who complain the most have NO idea just how tight the profit margin is on guns, if a dealer can get 10% he is in high heaven, its probably closer to 5% or LESS.

I rarely make more than $15 or $20 on a "in shop"/gunshow sale and online fergettaboutit, I dont make squat by the time I pay the sellers fees, and shipping.

And for the record I got my FFL KNOWING that its never going to be much more than a hobby, I run it as a for profit business, as per ATF requirements, but, I prefer to have fun and enjoy it as well as make a couple bucks.
 
tegemu said:
I asked and received $25 for shipping, I intend to return the difference to the buyer.


WHY?????????????????:confused: :confused: :confused: :confused:

The buyer willingly paid it, the next time are you going to ASK for more when the shipping is HIGHER than $25?????????????????????

Dont be foolish, if it only costs you $12.36 to ship, then bully to you, NEXT time ask for LESS.

It'll bite you soon enough if you ship very many, then you will be here whining about how much it costs to ship a firearm.
 
DaveJ said:
Here's my experience with all this.

First off, I'm a buyer not a dealer. My most recent purchase was a Ruger OA cap and ball. The purchase price was $265. FedEx next day was $35. Total price $295. The seller is in another state about 125 miles away. To save the $35 shipping I could have driven down to his shop, 240 miles round trip in a car that gets 30 mpg at $2/gallon. That's $16 for gas. My employer figures my time is worth a little over $20/hour including benefits. 4-5 hours of time comes to $80. True, I would not be using work time to make the run but I would be doing something else that either needed to be done or that I would prefer to do. In his shop I would have to pay his sales tax, having it shipped to me I owe my state a "use tax" that is half of what his city/state sales tax is. Another $8 saved.

By paying the $35 shipping I saved the cost of gas, some of the sales tax, 5 hours of my time not to mention the fact that if I bought in his shop I would have to register the gun with the city PD even though I'm taking it back home.


DaveJ


umm NO you couldnt, handguns MUST be shipped across state lines, no cash and carry allowed

EVEN for FFL's ( which is retarded, but thats for another day ;) )
 
It all evens out in the end, and I have YET to ship a handgun that fits in the Flat rate box!!!!!!!!

Just in case you didn't know, there are two different sized flat rate boxes. I ship almost all handguns in the flat rate box (the larger, flatter one) and I'm having trouble imagining what kind of handgun wouldn't fit in the flat rate box (not that much trouble, because some revolvers have really long barrels, but you get the idea).
 
umm NO you couldnt, handguns MUST be shipped across state lines, no cash and carry allowed


I know that is true for cartridge pistols but didn't think it applied to black powder as well. The Scheels store in Sioux City sells the Traditions kits with pistol and accessories and I believe for those it is just out the door.

I could be wrong though, which is okay, that's the only way I learn.


DaveJ
 
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