As I understand there is a 25-30% markup in guns on average. Most gun dealers will only offer to buy a gun from you for about 60% of retail if the gun is in 80% or better shape. Do you agree with these assumptions?

Nope!!! No where close. When I tell people what my actual cost is on a rifle/handgun (from wholesale pricing), they are shocked how little profit there is.

Interesting. When I met with Kimber rep these are the numbers he conveyed. Maybe these numbers fit large outfits.

Dealers offering prices at 40-50% off retail to individuals selling guns, I have first hand knowledge at that.....

big box retailers may have a 10-15% markup, 20% or higher or in-demand rifles

normally just pocket change over wholesale

they make more money selling you ammo

Might be 25-30% from MSRP to cost, but few sell @ MSRP

They can't go high on buying used guns as they have to pay cash up front and then sit on them until they sell. Selling to a dealer is more a convenience to the seller than a way to get true value.

Places like Collector's Firearms in Houston have big inventories and their prices are close to or at new. They give you 15% off from the get go making you think you're getting a deal, but that's just because the marked price is close to new List. Where they really stick it to you are the optics on the rifles. This can be a deal killer as many are overvalued in their listed price. Good place to buy, but you better do your homework or you will overpay. Again keep in mind they own their inventory and that's a lot of money tied up with overhead on top of it. Advantage is, they often have the hard to find stuff. And the customer will pay for it.

It's all "buyer beware" and know what the values are going into a negotiation whomever you deal with.

Bought most of my new guns from a small time family friend that ran a gun shop. I could have bought nearly all of them cheaper at academy/cabelas, insert big box name here______.

Im sure cost varies from dealer to dealer depending on volume and they all have different markups to meet their needs.

+1 Chad is right on the mark. Let's put it this way...the tax man makes more on the sale than the dealer does.

+1 on Chad's post and double + 1 on TxGnr308's tax man comment.

My SG Dealers used to ask me how the H#@$ can I make any money selling long guns...my standard answer is there are only 2 ways...carry an inventory of no more than 1/3rd NIB long guns & special order WITH a NON Refundable Deposit of 20+% ( except for provable emergencies) and 2/3rds used guns you have traded into. Or... Put together packages that include enough non gun items that the Total Package ROI to Retail Sale Price is enough to justify you carrying the even the token demo sample item.

Used Gun & Accesories sales are the life's blood of a gun dept's budget. And dump anything you carry for more than 6-9 months.

The goal is to turn your total store inventory investment a minimum of 3, and 4 times a year would be better. OTOH 5-6+ turns a year will make a dealer go broke from missed sales. I sold a train car load of Salmon eggs to a dealer in NW Colorado with a 1000' store, who had to rent storage space for them for his 6-8 week season at the annual dealer show in Denver my sister Distr put on one year...Timleyness is essential.

I also sold 600 fixed choke Win 101 12 & 20 gauge Skeet guns to a Texas dealer that We made about $75-100 net each on them when Olin Corp closed out the fixed choke guns & with that sale I sold over 1000 guns just to the 14 Texas dealers I had brought to Denver all expenses paid and sold out the Winchester Plant total US Inventory before any other Distr got wind of the Offer from Olin. The big Buyer's retail Sale was retailed at $600 each at a cost of $400 when the MSRP was almost a $1000...and he sold about 2/3rds of them in 30-45 days But We had to commit to buying 2500 guns and eventually laid off our excess to some other distr's around the Country AFTER we had shipped our own Show Sales first. That was a big $ bank line we had to sign for.

A competitive dealer HAS to find the DEALs. I expect that CZ will do a that kind of a Take All Deal on CZ 550's etc that a CDNN type outlet is now is looking for.

The most successful startup gun store I ever saw, was in North Dallas and owned by a guy who knew the business side of retail but had never sold a gun at retail before in his life. He would take an item and know that he had to get 3 different prices out of the item's inventory.

His "Everday Price" was close to or at MSRP - a small ... less than the Sales Tax discount on long guns was his EDay price. He expected to sell 20% of his quarterly item inventory in that item at that price. Then he would bang a heavily Advertised Sale Price pretty hard for no more than a total of 20 mebbe 30 days of the Quarter in 10 day/over 2 weekend segments & expect to sell 75-80% of that item's inventory a the SPrice...and then run a "Cloesout" at near his bottom line cost... hopefully on less than 20% of the initial item inventory. He based all of his pricing on making an acceptable profit margin at the Sales Price and averaged the EDay & Closeout pricing together to reach the same profit margin as the Sales Price.

BTDT and I learned from a very bright guy....who placed too much faith in his Employee's honesty.

FWIW Every Department Store Chain I ever sold to does the same kind of thing in some way either with Dillard's Flat Non Sale Pricing @ the mid point Margin levels based on volume discounts and WalMart's how much they can screw the vendor for in late payment, or with Macy's/nee Foley's with their constant Red Apples Sales for ex being the most obvious....and closer to the SG Retailer in NDallas paradign
Ron

I have bought most of my guns from a small dealer in Carrollton. He is always a little higher but he offers great service and his gunsmith is excellent. We can sit around in his shop and tell stories for hours over coffee. He is a world class marksman and I have learned more about guns over the last ten years. I may have saved a little here and a little there but I want to support small businesses.

Walmart, Home Depot, Bass Pro etc have put so many small companies out of business and reversing that trend starts with us. Next time you buy anything remember that and try to see it from the small guys eyes.

Alcahol is same. Taxes drives the price up. if ya trying ta get top $ for your gun. its like buying new car, buy one, drive around block, go back in ta sell see how much price has dropped

I can remember a friend who owned a shop telling me he only made 35$ on long guns. Said that big box stores like walmart sell guns for what he had to pay wholesale. He carried firearms to keep people coming into the store, and made most of his money selling fishing supplies.

Tell Larry I say hello!

Had a dealer show me his invoice. .... Dey don't make shite!

Ammo and accessories..... and sometimes not even those..

That rep is blowing smoke up your a##, IF he can guaranty me 30-40% on my sells, I will go close out my IRA, and buy from him!

Chad, I did not know you were a dealer. Your pm box is full. Please pm me.

Back when I had my FFL, from 1989-1997 I can tell you what I paid for guns. I got my FFL so myself and my buddies could buy our rifles and shotguns inexpensively. I paid $536 for browning citori's when the local gun shops had them for $800. I was buying savage model 110's for $239 when they were going for $289. The more a gun cost the more room there was for profit. I will tell you since I gave up my license I have only purchased 4 guns from a gun store. It kills me to pay retail when I know what they go for

What dealers of guns are not allowed to make a profit?? Profit makes the world go.

not saying that at all, I understand that. I guess what I'm trying to say is we bought so many guns for our self back then that today when I do want to buy a gun I buy a used gun instead of new. I get all my stuff from the local gun shop instead of Dick's I hate big market stores, I support mom and pop