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  1. #1
    Marksman
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    Markup on guns and ammo

    Hey guys just curious anyone know how much profit is in selling guns say my local gun store has a glock for 550 and box of 45 for 32.99 what is his profit on average stuff like gun and annoying sales?

  2. #2
    Plinker
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    Not much dealer cost on a gen 4 is 480-490 and a gen 3 around 450. Then if they pay shipping then their overhead. Not much money to be made..

  3. #3
    Leo
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    Master
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    It is real hard to determine markup due to there being no "set" wholesale price. Every firearm that comes in the door is affected by different prices of not only what distributor they used, but what the price was that day. If I would order 14 firearms and three are really slow movers from the distributor, there may be a lot better price from the distributor for the order. Plus, the shipping is cheaper on a per unit basis as the order gets bigger. (5 pistols in one box is cheaper that 5 pistols in 5 boxes)

    If the LGS wants to order a firearm that is so popular that they are back ordered, the wholesale price starts to get close enough to lick retail price. If the shop marks it up $30 the price gets to where people complain that the are "getting ripped off".

    With the current ammo shortages, the distributors are not making pricing deals, no matter how much you try to order. Simple reality is that if a place has ANY in stock, you pay that mans price, or the next customer will. Don't thing the middleman is not jacking up prices.

  4. #4
    Grandmaster Indy_Guy_77's Avatar
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    Their markup all depends on their cost.

    Their cost depends upon their distributor's costs.

    There isn't a standard answer - other than to say, on new firearms, there isn't much markup at all due to the relatively high initial cost.

    (for instance, a mgr. at an Indy shop said on here the other day that $499 for a brand new M&P, as being offered to another INGO'er direct from S&W, was below wholesale)

    Imagine, then, paying $550 for a brand new M&P may seem like a lot, but the shop itself isn't making a whole lot of dough on the deal.

    -J-

  5. #5
    mwg
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    I had a guy at a popular lgs say he adds 10% and he is one of the cheapest in town.

  6. #6
    Grandmaster Kirk Freeman's Avatar
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    When I was at Galyan's it was 10%. I would not think it has changed much now.

    Margin on shoes was 60%. Clothing averaged 35%.
    Clear your muzzle, then clear your sights!

  7. #7
    mwg
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    I believe Dons is about 300%

  8. #8
    Expert No2rdame's Avatar
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    Quote Originally Posted by mwg View Post
    I believe Dons is about 300%
    Well, that's a lot better than what Cheaper Than Dirt marks their junk up to.

    But, on a serious note, from what others have said I don't think the LGS makes a huge profit on each gun sold by the time you factor in overhead. I would think a 10% markup is actually reasonable.
    Chuck Woolery 2016

  9. #9
    Master aaron580's Avatar
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    It seems ammo markup is more being determined by the dealer than the distributors, as cabelas, AIM, sportsmans guide, walmart, meijer, etc. are still having ammo at alomst normal to normal prices. I have a hard time believing that they are not marking up the ammo quite a bit since most shops marked up the ammo 100% or more when the panic started.
    Honey badger don't care, Honey Badger don't give a sh!i!

  10. #10
    Marksman
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    Ok that makes a lot of sense. It seems like it would be expensive to have so much money tied up in inventory to only make 50 or so. Does the distributor make a nice size profit? What does it take to become the distributor?

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