Horrible Trade In Prices at Local Shop

[zoid 24]

I went to a local gun shop today and someone brought in a G35 Gen 3 in really good condition.

The guy behind the counter comes back with a book and offers $190 for it! The guy said he'll

try to sell it on his own first and come back if he doesn't do better. Man, i gotta admit I was

almost offended when I heard that price! Talk about low balling. I actually felt relieved when

the guy rejected the offer and I'm glad he did. I always knew gun shops offered less and I

understand they also need to make a profit, but WOW, that's really low.

 

I'm really happy forums like NJGF exist giving people a way to get the best price for a gun whether

they're selling or buying. Wish more people knew.

[vladtepes 1,060]

they are buying to resell.. they need to make money or it is not worth it to them.. pretty much happens with everything.. ever trade in a car? yeah.. me neither.. lol

[The_Matrix 105]

When you trade in at a storefront, you will always get killed with the price.

 

They have to make profit to pay their operational expenses.

[zoid 24]

Was I wrong to want to jump in the middle and go: NNNNNNNNOOOOOOOOOOO!!!!

[Anselmo 87]

You should have ran out in the parking lot and offered him $220.

[RecessedFilter 222]

There is a big difference between a low offer and getting ripped off.

 

I completely understand that the shop has to make money on the gun, but come on! If they sell it for, let's say $450 (I dunno what used Glocks go for?), even giving the customer $300 would be a good $150 profit for them.

 

As I said, it's obvious they want to and need to make money on it but it's a bit much most of the time.

[Qel Hoth 33]

The problem is how long does it sit on the shelf? If they buy for 300 and sell for 450 and sell it in a week or two, thats not bad. If they buy for 300 and sell for 450 and sell in in 2-3 months, not so great any more.

[djg0770 481]

Glocks are common. It's not like you're dealing with a pristine Luger or Browning High Power. So, 50% of total used value would be what I would offer if I had a shop. I mean don't you watch Pawn Stars?

[vladtepes 1,060]

right.. supply and demand.. how many more Glocks do you really need.. walk into ANY gun shop in America and you could trip over piles of used Glocks.. lol

 

that offer was probably a polite way of saying.. listen.. we really don't want that.. lol

[Fishpaw 17]

I was at a gun shop and a guy walks in with a VEPR AK in 308 and wants to trade it in...Shops offers him $200...maybe $250...cant remember for it..and the guy takes it...then wants an AK in a smaller caliber...but all the AKs in the shop are priced at $500 and up......I so wished he didnt take the money for the VEPR...I would have certainly followed him to the parking lot to make a better offer....

[tj462nj 32]

According to Blue Book, a used G35 in 95% condition is worth about $375 retail. That doesn't mean they can resell it at that price. They were not out of line on their offer. A seller never has to accept an offer, plus they can always make a counter offer. He can surely sell it privately and do the permit paperwork himself. Just like cars, more money is made on 'used' ones than 'new' ones.

[Plinker 1]

Something that needs to be considered is the price that the store pays for new products. If a gun is sold by them for say $600, and their cost is $400 or $450, then they would probably only offer $200 +/- for a used gun. In the musical instrument world dealers usually pay half of the actual cost of a new item for the used one, assuming it's in very good/new condition Understand that they have no mfr. warranty on the item, so to cover any possible warranty costs, shelf time, etc.they do tend to low-ball. Typical resale (in the MI world) for used gear is twice what the used purchase price was. What gets me is when a store is selling something used close to the new item sell price...unless it's consignment in which case the the actual owner of the gun has set their price too high or the store is taking too much of a commission.

[raz-0 1,259]

There is a big difference between a low offer and getting ripped off.

 

I completely understand that the shop has to make money on the gun, but come on! If they sell it for, let's say $450 (I dunno what used Glocks go for?), even giving the customer $300 would be a good $150 profit for them.

 

As I said, it's obvious they want to and need to make money on it but it's a bit much most of the time.

 

You don't understand the value of a used glock, or what is going on.

 

First the value of a glock. 1)There are a LOT of glocks out there, granted the 35 is less common, but... 2) There are a lot of glock certificates out there form competitions, give aways, raffles, and probably most importantly warranty replacements. These certificates, unlike with a lot of manufacturers are good for any model. You may have to add some cash, but they effectively disocunt even a 35 a lot. 3) There are police trade ins really cheap, and a lot of them. 4) There are a lot of used guns sodl off by officers that still get the insane glock discount for police.

 

This means the value of a used glock is low because the above are what you are competing on on price. That means about $350.

 

Now a business takes it off your hands, they have to pay someone to log it in, log it out, and any other book keeping that requires labor. Then they have to store it, and when they do, that means something else with a potentially higher margin isn't in that space. Then it may sit there for months. Also, if it has issues, they may have to eat repair costs as well as making the customer happy. Figuring this out the ten decimal places are what places like wal-mart do with fancy multi-billion inventory management and purchasing systems. Your average mom and pop usually just marks it up 100% and adds in any fixed costs associated. In the case of a used glock, they take the market value, subtract fixed costs, and divide that in half. Then maybe knock $20-40 bucks off that expecting you to haggle, depending on the shop.

 

I can find g35s for sale from individuals for $400, and ones with upgraded sights, trigger jobs, 5-6 magazines and other competition goodies for $600.

 

So I'd expect a shop to give about $170 cash, maybe $200 in trade, and to probably refuse consignment on any price over $550 unless they are hurting for used inventory, and on consignment, I'd expect them to take 30%.

[Anselmo 87]

If you think you get screwed trading in guns, don't ever try to trade in a diamond. A jeweler once told me diamonds are forever because once you hear their trade in price you'll never sell them.

[Maksim 1,504]

Used guns is what keeps gun shops in business.

 

Anyone who thinks the cost of a $600 glock is $400 is mistaken. Most dealers here only make $20 to $30 on a new gun.

 

$190 offer for a glock is not that out of line for a gun shop. Most any will give you 50% of book value.

 

Dealers serve a purpose here...

 

1. To serve the public who is either too lazy or too unaware of other options (gunbroker, forum, etc.)

2. Some people would rather just unload the gun right there and then and be done with it. No other way to sell a gun as quickly then selling it to a gun shop.

[tt-33 8]

if you pay a $1000 you might get $500 and see it priced at $750 but times are hard now it could be lower its a buyers market right now if you have cash you can score a good deal

[RecessedFilter 222]

You don't understand the value of a used glock, or what is going on.

 

First the value of a glock. 1)There are a LOT of glocks out there, granted the 35 is less common, but... 2) There are a lot of glock certificates out there form competitions, give aways, raffles, and probably most importantly warranty replacements. These certificates, unlike with a lot of manufacturers are good for any model. You may have to add some cash, but they effectively disocunt even a 35 a lot. 3) There are police trade ins really cheap, and a lot of them. 4) There are a lot of used guns sodl off by officers that still get the insane glock discount for police.

 

This means the value of a used glock is low because the above are what you are competing on on price. That means about $350.

 

Now a business takes it off your hands, they have to pay someone to log it in, log it out, and any other book keeping that requires labor. Then they have to store it, and when they do, that means something else with a potentially higher margin isn't in that space. Then it may sit there for months. Also, if it has issues, they may have to eat repair costs as well as making the customer happy. Figuring this out the ten decimal places are what places like wal-mart do with fancy multi-billion inventory management and purchasing systems. Your average mom and pop usually just marks it up 100% and adds in any fixed costs associated. In the case of a used glock, they take the market value, subtract fixed costs, and divide that in half. Then maybe knock $20-40 bucks off that expecting you to haggle, depending on the shop.

 

I can find g35s for sale from individuals for $400, and ones with upgraded sights, trigger jobs, 5-6 magazines and other competition goodies for $600.

 

So I'd expect a shop to give about $170 cash, maybe $200 in trade, and to probably refuse consignment on any price over $550 unless they are hurting for used inventory, and on consignment, I'd expect them to take 30%.

 

Yeah, I can see where you are going with that.

 

For one, I don't own any Glocks, I don't know much about them, and I really dislike shooting them. So it being a Glock, that didn't start off well for me haha.

 

After reading this thread though, I now realize all of the overhead, time, etc the shop has to put in to sell a used gun. And they are definitely not making a huge profit on it nonetheless, well for the most part.

[hd2000fxdl 422]

I went to a local gun shop today and someone brought in a G35 Gen 3 in really good condition.

The guy behind the counter comes back with a book and offers $190 for it! The guy said he'll

try to sell it on his own first and come back if he doesn't do better. Man, i gotta admit I was

almost offended when I heard that price! Talk about low balling. I actually felt relieved when

the guy rejected the offer and I'm glad he did. I always knew gun shops offered less and I

understand they also need to make a profit, but WOW, that's really low.

 

I'm really happy forums like NJGF exist giving people a way to get the best price for a gun whether

they're selling or buying. Wish more people knew.

 

Yes, it's nice that the NJGF is here, but did you pull him aside and tell him about the NJGF and let him know he could sell it here very quickly and for more than the shop was offering him.

[Plinker 1]

 

...Anyone who thinks the cost of a $600 glock is $400 is mistaken. Most dealers here only make $20 to $30 on a new gun....

 

My numbers were not meant for any particular weapon....let alone the Glock. They were just example numbers. I don't know what the typical markup is in the firearm industry. However, what I have seen with different quotes from various dealers, there certainly is more then $20 to $30 profit being made off of some new gun sales. When I checked here for a quote on my MKiii the prices varied by up to $75...and over $100 from where I actually purchased. Now 20 or 30% would seem to be more likely the norm profit margin and in keeping with general business. If you try running a business on less then that you are going to have a hard time staying in business. One saving grace is that accessories typically net a considerable higher profit margin. You know those cables you buy at stores like Best Buy that go for $30? They typically cost $2 to $5....one reason they can afford the bigger discounts on the higher dollar items.

[Maksim 1,504]

My numbers were not meant for any particular weapon....let alone the Glock. They were just example numbers. I don't know what the typical markup is in the firearm industry. However, what I have seen with different quotes from various dealers, there certainly is more then $20 to $30 profit being made off of some new gun sales. When I checked here for a quote on my MKiii the prices varied by up to $75...and over $100 from where I actually purchased. Now 20 or 30% would seem to be more likely the norm profit margin and in keeping with general business. If you try running a business on less then that you are going to have a hard time staying in business. One saving grace is that accessories typically net a considerable higher profit margin. You know those cables you buy at stores like Best Buy that go for $30? They typically cost $2 to $5....one reason they can afford the bigger discounts on the higher dollar items.

 

That will actually depend on the distributors that the FFL's deal with. Not all are priced the same.

[CageFighter 236]

that would have made a nice competition gun for CHEAP to someone! you should have grabbed it or have him post it on here for me!

[zoid 24]

Yes, it's nice that the NJGF is here, but did you pull him aside and tell him about the NJGF and let him know he could sell it here very quickly and for more than the shop was offering him.

 

Yeah in hindsight I feel I should have said something but didn't know the best time. I didn't want

to get in the middle of their potential deal, that'd be kind of rude. Then I kinda lost the guy as I

was buying some ammo and looking at guns. If he knows even a few people in the gun community

I'm sure he'll sell it for a decent price.

[Ronald Silver 2]

Glocks are heavily discounted to law enforcement. So I gather there must be a huge supply of used Glocks out there when Police depts rotate their inventory every so often....I also heard it was really cheap to make "plastic" pistols.

[Plinker 1]

 

That will actually depend on the distributors that the FFL's deal with. Not all are priced the same.

 

Yea that's true. And I'm not sure what the volume discounts, if any, are. That too would depend on the distributer and the dealers agreement.

 

Does NJ take any percentage of gun sales outside of the regular sales tax? I wouldn't think so, but with Jersey and guns.......

[raz-0 1,259]

My numbers were not meant for any particular weapon....let alone the Glock. They were just example numbers. I don't know what the typical markup is in the firearm industry. However, what I have seen with different quotes from various dealers, there certainly is more then $20 to $30 profit being made off of some new gun sales. When I checked here for a quote on my MKiii the prices varied by up to $75...and over $100 from where I actually purchased. Now 20 or 30% would seem to be more likely the norm profit margin and in keeping with general business. If you try running a business on less then that you are going to have a hard time staying in business. One saving grace is that accessories typically net a considerable higher profit margin. You know those cables you buy at stores like Best Buy that go for $30? They typically cost $2 to $5....one reason they can afford the bigger discounts on the higher dollar items.

 

The margin on low overhead, high volume dealers is usually 10-15%. Places like Bud's are effectively undercutting even the 10% guys by playing distributor and gaming manufacturer incentives. To do that they needed to already be successful, have a bunch of capital, and take the risk of being shut out of supply by manufacturers for disrupting their distributer network.

 

Low volume dealers with meaningful overhead will often mark up 50% or more. It depends on how high their overhead is, how many customers they see vs. sales, how much money they make on other goods and services, etc.

 

For example, a while ago dealer cost on a glock was about $430. LE cost was about $380 (no excise tax). Manufacturing cost at the time was about $90. Shelf price ranged from $525-600 for a low volume brick and mortar shop.

[NicePants 58]

[NJCK 5]

Lots of discussion, BUT it is just a Glock!

 

[Anselmo 87]

The margin on low overhead, high volume dealers is usually 10-15%. Places like Bud's are effectively undercutting even the 10% guys by playing distributor and gaming manufacturer incentives. To do that they needed to already be successful, have a bunch of capital, and take the risk of being shut out of supply by manufacturers for disrupting their distributer network.

 

Low volume dealers with meaningful overhead will often mark up 50% or more. It depends on how high their overhead is, how many customers they see vs. sales, how much money they make on other goods and services, etc.

 

For example, a while ago dealer cost on a glock was about $430. LE cost was about $380 (no excise tax). Manufacturing cost at the time was about $90. Shelf price ranged from $525-600 for a low volume brick and mortar shop.

 

Seems Gaston is making all the money.

[raz-0 1,259]

Seems Gaston is making all the money.

 

Not really, it's spread around. Realistically, given that glock had promotional programs for competitive shooters that would get it below LE prices, and what large contracts were being fulfilled at, I'd say that their profit model probably required each gun to make about $280 for glock, and that the civilian marked subsidized departmental purchases and advertising. So probably $90 to overhead, $90 to profit, and $100 to "promotion" which includes putting them in as many police departments as possible, sponsorships, incentives, advertising, etc.

[Socom 19]

i brought in some rockford fosgate dvc 15's which cost me 600 each back in the day and a 1000 dollar rockford amp and i had a custom box built by obcon for the subs the box alone cost me 900 bucks the guy offered me 250 for everything i laughed so hard and left