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Thread: Dealer Mark Up

  1. #1
    Regular Poster Robb's Avatar
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    Dealer Mark Up

    Does anyone know what the Gun Dealer mark up is on brand new rifles ? Do all shops/dealers buy them in at the same price from the importer or does the price vary depending on who you are or where you are in the country ?

  2. #2
    I would imagine, like most trade prices, the more you buy the cheaper you get them.

  3. #3
    One thing's for sure they will charge exactly what they think you will pay?

  4. #4
    I don't know, but here's how I think it works:

    The supplier sells them to the dealer at a given price, which will vary a little according to the amount bought. The dealer then looks around at the competition in his immediate area and then sets the price accordingly, ensuring a mark up. As you can't buy mail order or off t'internet, like most things these days, that's a plus for the dealer of course. (well actually I think you can buy off the web from some places, but you still have to travel there and do the deal, so anything you save is likely taken up with travel costs). I don't know how much the mark up is, but I would hazard a guess that it must be in the region of 50% give or take for them to make a living. Incorporated in the mark up will be some "wiggle room". So that if a customer is a regular, or they are buying a pile of stuff, or there's no worn out useless wobbly-faced shotgun part exchange, the dealer has the option to give a discount, which of course will still be in the area that gives the dealer a good profit.

    Then of course the dealer will direct you to the cleaning stuff, ammunition, rifle slips, bipods, moderators, mounts, scopes, reloading equipment, sandwich makers, toasters, etc. Some of which will have profit margins in percentages well over three figures.

    The dealer then goes out and buys a new full fat Range Rover.

  5. #5
    50% !!! You must be joking pedro
    10% is average on firearms, the only product line that gets anywhere near 50% is clothing.

  6. #6
    Some off world thinking in the firearms markup.
    (The Unspeakable In Pursuit Of The Uneatable.) " If I can help, I will help!." Former S.A.C.S. member!

  7. #7
    Better profit to be made In second hand firearms - airguns I suspect.

  8. #8
    Quote Originally Posted by HCS View Post
    50% !!! You must be joking pedro
    10% is average on firearms, the only product line that gets anywhere near 50% is clothing.
    This.

  9. #9
    Quote Originally Posted by HCS View Post
    50% !!! You must be joking pedro
    10% is average on firearms, the only product line that gets anywhere near 50% is clothing.
    I was looking through a trade catalogue at my local RFDs and the trade price compared to the rrp was 50% less in almost everything I looked at. Granted the rrp was way higher than anywhere that actually sells the items by about 25% in most cases.

  10. #10
    My experience of customers in our industry is that they generally think you're making much higher margins than you actually are!

    PS, more than 100% margin isn't possible! Over 100% markup is.

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