Firearm Pricing - Wholesale/Retail Spread?

[alby]

Does anybody know the general price spread between the amount a dealer pays for a gun
from a wholesaler and the retail price they mark it up to?

For example, what is the Wholesale price on a Glock 19? I see it typically retails for around
$500 and varies by $50.00 on the +/- of that $500 price point. So I'm wondering, is the
wholesale price between $400 and $450? Or is it much lower? Like $300 or so?


Thanks,

[jdonovan]

General mark up on firearms is < 10%. On some models it can be as low as 3%.

There are some large retailers that have for sale at retail pricing items I can't get through distributors for that low of a price... volume makes a big difference in what kind of deal you can make with the distribution vendor.

As you move into higher end items, from smaller makers, or other 'niche' markets the wholesale/retail spread opens up to more than 10%, but those are the rare exceptions.

[alby]

General mark up on firearms is < 10%. On some models it can be as low as 3%.

There are some large retailers that have for sale at retail pricing items I can't get through distributors for that low of a price... volume makes a big difference in what kind of deal you can make with the distribution vendor.

As you move into higher end items, from smaller makers, or other 'niche' markets the wholesale/retail spread opens up to more than 10%, but those are the rare exceptions.

Thanks. So it sounds like the retailer might average around 5% on each gun sale. Ouch.
That must mean the competition in the gun market is fierce... Otherwise a lack of competitors
would cause margins to expand.

The higher margins on the large ticket weapons does make sense, since the supply of those weapons
are fewer in number, so the competition between vendors selling a $10,000 item vs a $500 is low.

God Bless Capitalism...

[KaosDad]

A guy from another industry (electric guitars) put it this way; "I sell new guitars because someday they become used guitars." And he knows his stuff. Someone buys a new guitar at a 3% mark up at, say $3,000. A couple years later they sell it back (or trade it in) for $800 if they are lucky. The dealer then turns around and sells the guitar for $1,800. Do that a few times ad . . . PROFIT!!!!

[alby]

A guy from another industry (electric guitars) put it this way; "I sell new guitars because someday they become used guitars." And he knows his stuff. Someone buys a new guitar at a 3% mark up at, say $3,000. A couple years later they sell it back (or trade it in) for $800 if they are lucky. The dealer then turns around and sells the guitar for $1,800. Do that a few times ad . . . PROFIT!!!!

You are right. The secondary market might be a better place to be.
The key is getting first dibs on those individuals looking to unload
their weapons well below market price.

I guess this is why most New Car Dealers have a Used Car dealership
right next door.

[SHMIV]

I guess this is why most New Car Dealers have a Used Car dealership
right next door.

Exactly.

[SDChop]

I tried to order a gun the other day, online price was 341. I thought about it over night (actually its a going to be a gift). The next day i went to order it and it was 350. I called to confirm and they said 350, it was 341 yesterday. They claim to update their pricing daily... Now its like oil. If the price of the barrel goes up, the price of gas already in the pumps go up. So if material cost went up and manufacturers price went up im paying x% more on the gun already had in their showcase.

[dorminWS]

I tried to order a gun the other day, online price was 341. I thought about it over night (actually its a going to be a gift). The next day i went to order it and it was 350. I called to confirm and they said 350, it was 341 yesterday. They claim to update their pricing daily... Now its like oil. If the price of the barrel goes up, the price of gas already in the pumps go up. So if material cost went up and manufacturers price went up im paying x% more on the gun already had in their showcase.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

True. And that frustrates me, too. But the other side of that is that when the dealer replaces the gun into his inventory, he will have to do it at the new cost. So if he sold it for a 5% gross margin and then the same gun went up 6%, he'd have to pull the other 1% out of his pocket just to stay in business with no contribution to his overhead. That's called losing money; not to mention going out of business if you do very much of it.

[Kreutz]

Off the top of my head SOG sells an AK draco pistol for 349 wholesale with an MSRP of 529...so do the math, because I can't lol.

[dorminWS]

I can't either. Don't know the cost.

[OakRidgeStars]

Off the top of my head SOG sells an AK draco pistol for 349 wholesale with an MSRP of 529...so do the math, because I can't lol.

For what it's worth, Classic Arms has the full-size Draco pistols in stock now for $430, and they provide the correct cleaning rod as well (other's don't).

http://classicarms.us/shotguns%20and%20handguns.htm

[Kreutz]

I can't either. Don't know the cost.

read son, read:

"349 wholesale with an MSRP of 529"

[Riposite]

I can't either. Don't know the cost.

read son, read:

"349 wholesale with an MSRP of 529"

looks to be just over 35%...need a calculator to be exact but thats ball park

[user]

Kodak came up with the idea about a hundred years ago that you could sell the camera for $1, which they did, and make the profit off of consumables: film, processing, and printing. The profit in a gun dealership is in the holsters, ammunition, gunsmithing, and 'scopes, not in the firearms. They sell guns in order to create a market for the consumables and accessories.

[chuckjordan2]

consumables are where they make the profit.

Ever buy a gun and not cartridges? You always buy cartridges, repeatedly. You buy a box (25 or 50) and shoot them, then buy another box and shoot them, and another...... Just like Pringles potato chips.

[dorminWS]

I can't either. Don't know the cost.

read son, read:

"349 wholesale with an MSRP of 529"

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

FIRST: Wholesale, as a rule, IS NOT the same as cost.
SECOND: NOBODY pays MSRP.

So, how many percent is a question mark divided by a question mark, anyway??

[dorminWS]

Kodak came up with the idea about a hundred years ago that you could sell the camera for $1, which they did, and make the profit off of consumables: film, processing, and printing. The profit in a gun dealership is in the holsters, ammunition, gunsmithing, and 'scopes, not in the firearms. They sell guns in order to create a market for the consumables and accessories.

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NAH........... They do it just to manufacture homicidal maniacs. Just ask Mrs. Brady.