How much should a dealer make off a used gun?

[rhart]

I can tell you that when Galyans was in business we averaged about 30% margin on used stuff and about 1% on new. Of course we allowed for negotiation and trades. You gotta remember, some you will sell quickly and some you sit on a long time before you mark them down to a 10 % margin or even loose money on a few. Not to mention other factors like maybe someone buys a used one and brings it back because it wont fire or whatever.

 

[Libertarian01]

Melensdad,

I agree entirely. I was using easily divided numbers to illustrate the point and difficulty of what a real business needs to do to survive.

I didn't even get into the reduction of cash flow due to a high inventory.

In a perfect business model items that arrive in store would be sold almost immediately. As we all know that seldom happens, thus creating a greater need for profit by the business to cover delayed revenue from idle inventory.

I was hoping that someone would point out that my $1,000 example was extremely low, thus reinforcing the idea that not just gun stores but any business that both buys from the public and sells to the public cannot possibly offer near the true value of the item, unless it is willing to take a loss for "customer goodwill" and provide a service for an regular customer.

Regards,

Doug

Doug, excellent points all. But for those not involved in trying to operate a small business, let me suggest that a more realistic number for a VERY SMALL business, is probably no less than $1000+ per week for the costs you list. Heck I know of SMALL shops in Schererville/Dyer/Merrillville where rent exceeds $1000 per week, not including labor, phone, taxes, security, utilities, etc, etc, etc

 

[buzzard pickins]

Numbers..numbers..numbers. This is why it is wise to become a loyal patron at your local gun shop. Lets take Bob Cheek for example, you bring in a gun and are told not buying outright today, but will trade. Bob looks at your firearm and within seconds says "your gun and $225". Thats fast, and before you know it your out the door with a fiesty grin knowing full well you did good. OOPS... telling mama about your super deal, better go to Macy's! To much drama is played when trying to figure out how much the shop is making, buy ammo,go shoot, and repeat.

 

[Hoosier8]

You could always try Dons. With their prices maybe you would get more. LOL

 

[buzzard pickins]

HOWEVER, if a shops bottom line is causing you angst and you want to sell, try a good auction company. 10-20% commissions, at least you control the sale. And belive from what I've seen lately, proffets must be up.
Truthfully, I don't give a big WOOP what a dealer does, if he has the goods, and I have the money honey, LETS MAKE A DEAL.

 

[762minigun]

IIRC Scott Albro The original owner of the now defunct Albro's Guns. Used to sell used for $9 over what he gave for them.

 

[Jack Ryan]

Just like you or any one else or any other product, what it cost to make or buy doesn't have the slightest impact on what it's worth or what it sells for. What some one is willing to pay for it determines what it is worth. What you are willing to sell it for determines what it is worth.

 

[E5RANGER375]

if im selling something, i try my best to find it somewhere else for the lowest price, then i go a little lower than that so i know im the best deal for the customer. it gets you a lot of return business and new business by word of mouth. and if word of mouth is your only form of advertisement then thats not a bad trade off in my opinion. i try to do it on used stuff and new stuff too. some stuff has a MAP price so in order to not get in trouble by the manufacturer (because some dealers get butt hurt because you sold something and they did'nt) i have to not advertise lower than that map price, but im probly one of the few people who will sell everything at MAP, and not a penny more. but sometimes i might, depending on if its a hard item to get in stock from the manufacturer. if its something i cant replace every week, then yeah, im gonna mark it up, but i will still be below anyone else who has it if possible. its worked for me. for me its all about quick turn around. if its laying around its not making me money.
i dont ever fault a business for trying to make money UNLESS they are selling stuff above full retail then i think thats dirty, even though im sure theres suckers who will still pay it. everyone is competing for the cheese, and if giving the lowest price secures me more cheese then i will do it all day long. I see dealers who have had the same old crap on their tables for the same inflated price for years, and i wonder why they even bother.
obviously OP you were smart enough to walk away, but there are always more right behind you who would gladly take the offer and not think twice about it. as long as consumers are un-educated about what they have for sale, then people will always be there to take advantage of their stupidity. you cant fault someone for making a profit. its the american way. you wont make friends among other dealers for having the lowest price though, i can tell you that, lol. its cut throat. i cant wait to get my FFL

 

[musclecarr]

10% is fair mark-up

 

[E5RANGER375]

10% is fair mark-up

i think .25% is actualy about right. at .25% mark up, on a lot of stuff you would still be the lowest price. any less than .25%, its becomes not worth the trouble. not sure about the guns though?? i dont realy know the markup in them for a dealer, i have'nt been that nosey.

 

[thekuhnburger]

i think .25% is actualy about right. at .25% mark up, on a lot of stuff you would still be the lowest price. any less than .25%, its becomes not worth the trouble. not sure about the guns though?? i dont realy know the markup in them for a dealer, i have'nt been that nosey.

I agree, I think 25% is more reasonable, especially if it is going to sit on the shelf for a while. If it's a gun that the store can flip in a short time then it might be closer to 10%.

 

[Bshaw]

Gun Values

I have been buying and selling/trading guns for years and have walked away from several deals that I didnt care for with no hard feelings , but I have also ran into a few dealers that try to lowball you so bad it should be against the law ,LOL
there are a few dealers that I will not even look at there tables at gun shows .
I dont hold it against anyone for trying to make a profit but some guys take it to the extreme
Talked to one guy who was bragging about a riflle he paid 90.00 for outright and had it on his rack for 375.00 ,to me that is extreme and those types will not get my business

 

[shooter521]

i think .25% is actualy about right. at .25% mark up, on a lot of stuff you would still be the lowest price. any less than .25%, its becomes not worth the trouble.

You mean 25% and not .25% (i.e. 1/4 of one percent), right? Otherwise you'll have awesome prices but won't be in business very long.

 

[dross]

How much should they pay for a used gun? As little as possible.
How much should they charge for a used gun? As much as they can get.

How much do you want to get paid if you're selling a used gun to a store? As much as you can.
How much do you want to pay when you're buying a used gun? As little as possible.

The beauty of it is that no one is forced to make the deal.

 

[42769vette]

I have been buying and selling/trading guns for years and have walked away from several deals that I didnt care for with no hard feelings , but I have also ran into a few dealers that try to lowball you so bad it should be against the law ,LOL
there are a few dealers that I will not even look at there tables at gun shows .
I dont hold it against anyone for trying to make a profit but some guys take it to the extreme
Talked to one guy who was bragging about a riflle he paid 90.00 for outright and had it on his rack for 375.00 ,to me that is extreme and those types will not get my business

i dont blame them for makeing every dime they can but there is one guy at the 1500 when he asks me what i have i say its not forsale. we got in a argument a few years back. i had something and he ask what i waned for it. i told him the lowest i would take since i knew he would want to make some. he told me he had 3 in the shop he would sell for 1/2 that price. i told him id take them since his shop was on my way home and he didn't know what to say

 

[melensdad]

10% is fair mark-up

i think .25% is actualy about right.

You mean 25% and not .25% (i.e. 1/4 of one percent), right? Otherwise you'll have awesome prices but won't be in business very long.

I don't know of too many retail businesses that could survive even at a mere 25% mark-up.

Gas stations may be the exception to that, they only make 5 to 10 cents per gallon at retail. But buy something inside the store and its likely to have a much higher markup. Tobacco will be in the 24 to 35% range. Fountain drinks, coffee, etc will be at least 100% and often 250% mark up. Candy bars used to average 40% and I don't see those getting any cheaper so I'd guess that is now low.

Go to a jewelry store and the mark up is often 300 to 500%. Better yet, try selling that single gold earring that cost $75 and they will offer you something like $4 for it as 'scrap' gold.

Furniture, nothing under 100% mark up from what I have seen and I'd suspect that 200% is common.

So we are griping when a guy in a gun shop makes a couple bucks. No wonder that all the local shops are closing up and people will be stuck with a Wal-Mart type selection and Gander Mountain pricing. We beat up our local guys who provide us service but we shop at the big box stores. Those little shops will be gone soon and it will be our own fault.

 

[Clay]

How much should a dealer make on a used gun (or any gun for that matter): As much as he can.

How much should I pay for a used guy (or any gun for that matter): As little as I can.

Its a two way street.

 

[shooter521]

How much should a dealer make on a used gun (or any gun for that matter): As much as he can.

How much should I pay for a used guy (or any gun for that matter): As little as I can.

Its a two way street.

I heard that summarized once as "everyone wants to be a capitalist when they're selling, but a socialist when they're buying."

 

[E5RANGER375]

You mean 25% and not .25% (i.e. 1/4 of one percent), right? Otherwise you'll have awesome prices but won't be in business very long.

yeah, oops. it was late, thats my only excuse.