I was curious to see what you think is a fair percentage a gunshop should mark-up a firearm.

Markup is about 5% to 10%. It should be 30%.

Markup is about 5% to 10%. It should be 30%.

 

 

 

^^^^^^ this. ^^^^^\

 

 

Margins are razor.....and I mean razor thin....

Markup is about 5% to 10%. It should be 30%.

 

When my local shop opened they said they were doing $120 flat markup on all handguns, great for pricey items but if your buying a cheaper .22 kinda stinks.

I know at my job the margin is at 30-35% If we sold product at 5-10% we'd go out of business. Thats rough. As long as the retail prices are in line with whats commonly available elsewhere I don't even think about their margin. Everyone gots to get paid.

A lot of shops price guns low to get people in the door and make it up with ammunition or range time. The main reason is internet gun sales, places like Buds really drove down prices.

At my shop the markup is close to the lowest in the state. Our customers are great because for the most part they realize how razor thin the profit margin is. Their isn't a lot of money to be made on guns without completely pricing yourself out of the market.

 

A huge problem is BUDS. People come in plainly telling you that they are going to buy the gun online but they want to handle it first. If people dont support their local shop, they wont have that privilege. BUDS is a horrible retailer. Besides the fact that they sell many, many guns below dealer cost, their customer service is horrific.

Because of the online retailers. Has the number of transfers you do gone up ?

Not that that is good for local shop !

 

 

A lot of shops price guns low to get people in the door and make it up with ammunition or range time. The main reason is internet gun sales, places like Buds really drove down prices.

I remember dealers complaining about new gun sales being tight margin 20 years ago before the internet sales began, I think 5-10% markup has been going on for a long time.

Next to shooting, the largest portion of my disposable income goes to cigars.

Same problem for that industry: the local shops can't compete with online retailers on price.

They make up for it though by having hard to get items/exclusives and by being knowledgeable, FRIENDLY, and offering what online dealers can't- a sense of community.

Many LGSs seem to have taken the opposite approach. You're not gonna win anyone over like that.

Henrym,

What gun store do you own and/or work at?

Also keep in mind that a FFL run out of someone's home will usually have lower prices than someone who has a full blown store with employees, etc.

Still one of the best ways to check pricing is to use the price checker here on the NJGF and support one of our local shops.