doublegunshop.com - home Forums General Discussion DoubleGun BBS @ doublegunshop.com Margins on new Doubles?

Just curious to know what kind of margins are in the new gun business.

I see a lot of retailers immediately taking down the prices by about 20% on high quality brands like the berettas, brownings of the world. How much is left after that?

And what's it like on the higher name stuff like Perazzi, Kreighoff, etc.

Any thoughts would be insightful.

IMO darn little is leftover.
For some reason the retail firearms biz (generally speaking) works at a lower markup than other retail. The clothes and accessories prolly make a higher percent return. My opinion's based on seeing Davidson's dealer price list 15-20 years ago (Dad was an FFL back when) and knowing local retail markup. I don't know about the higher end guns, hopefully they return more. YMMV

I have read figures like 25-30% on medium to higher priced guns, and less on lower(?) priced, high volume stuff like 1100s, 870s, Mossbergs and such. This is not a big margin on an item that may sit for a year or more, on the shelf, in a full service store. Biggest problem for individual stores is that outfits like Wal*Mart tells Remington We want 50,000 1100s we can sell for $599(for example) and Remington sells them to Wal*Mart at a price so that Wal*Mart makes a profit at $599. While Mikey's Neighborhood Gun Shop can't BUY one or two of them for $599.

Jim Legg is on the mark.

As it was explained to me... A Wally Mart will deal directly with the maker. The small gun store has to go through a jobber. If they want to become a X-Brand Dealer, then most makers insist they purchase x amount of stock and make x amount of sales. This basically takes them out of the game.

You can go on eBay and buy old jobber price lists for various guns.

For the little guy, they squeak by on a very slim margin for new guns. I have a small dealer that I use for FFL transfers. I always try and give him other business through out the year.

Pete

When I was in the business of selling guns (my gosh! 20years ago!) the markup was 20% on high end guns a bit lower on others and money was made on used guns and mounting scopes and other items sold. My suspision now, is that it is the same except on auction sites selling new guns? It appears to me that new guns on the sites have a bit higher markup much closer to manufacturers suggested retail. I don't understand this, for if a seller has a larger customer base he should sell more faster, but it apparently is working for them? It keeps me solidly shopping in local shops though!

On Walmart I don't know much as it is inconvenient for me to shop there, but ask the person behind the counter to measure L.O.P. for you and see what they say!?

Kurt

The gun bussiness has for years been based on rapid turn over of inventory. I use to have a small interst in a shop and we use to figure that 10% profit on long guns was reasonable or do-able if it was a regular customer. But this meant that we had to flip the inventory very quickly. Some items would flip in days and other might be weeks. Never kept a low or middle grade gun in the shop for a long time. Could not afford to do it. Hand guns had a higher margin for us than long guns.

Used guns was where we made the bulk of our profit. What we paid for a used gun coud vary greatly and margins could get very decent for some items. But really the only way the shop made it was to turn over inventory as quickly as possible.

Some of the deals still make me laugh. Traded for a double gun, a boat with motor and trailer, decoys and a pregnant Lab, for two long guns and a old 1911 Colt 45. By the time I got done the puppies were all profit and cute as heck to boot.

I try to do all mu buying at small shops. When they go where will I get to find real bargins? Walmart. I think not. Heck in the next few years Walmart may get PC and stop selling guns and ammo. Then we will be out even their poor selections.

Wal-mart has already stopped selling guns at most locations. They have pulled all the guns in the Denver metro-area stores. They still have a small ammo selection and some cleaning supplies.

I really hope this helps the small shops out, but what we have now is Bass-pro shops, gander mountain,sportsmans warehouse and a Cabela's being built which will take the gun business away from them.

The big box Bass Pro, Dicks, Cabela's are still killing off the small shops. The one I use to have an interest in is going out of bussiness bacause it just can not compete and the current owner is getting older and has had enough. It is not in the friendliest state to sell a gun and the realestate if his retirment funs now. Hard to think that 20 acres of land is worth more than 40 years of work but there you have it. Sell out and retire or keep working and strugle.