What is the profit margin on a new gun ? - The HuntingPA.com Outdoor Community
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post #1 of 14 (permalink) Old 04-30-2018, 03:26 AM Thread Starter
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What is the profit margin on a new gun ?

Any ideas on this ?

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post #2 of 14 (permalink) Old 04-30-2018, 04:08 AM
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Years ago, I learned that it was 1/3rd for the retailer. Dunno if that has changed.

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post #3 of 14 (permalink) Old 04-30-2018, 08:04 AM
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Tends to vary, depending on the firearm and what the distributor is getting for a particular gun. It can often be as little as $30 "profit" per item, for smaller gun shops.

I have seen bigger retailers selling guns for less or the same price, as the small guy is paying for the same rifle or shotgun, from say Jerry's or Shirk's. Personally, I'd usually rather buy from the local guy, than Walmart or Dick's, even it costs me a few bucks more.

Earlier this year we needed 60 more cases of 12ga shells for a club event. A LGS owner went to Shirk's, picked them up and delivered them. Good price, but the per box price at the local Walmart was about the same. Walmart was not going to deliver them and it would've been a royal pain to lug 60 cases of shells out of Walmart.

Another example: Years back when the Mansfield Walmart opened, they were selling Mossberg 500 shotguns for maybe $20 less than Ackley's was. Asked the owner if that was affecting his sales. He said a few people grumbled about it, so he pointed out that they'd spend more than that $20 on gas to drive to and from Walmart and if they had an issue with the shotgun he sold, he would take care of it. Wally's would likely have you send it back yourself?
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post #4 of 14 (permalink) Old 04-30-2018, 11:10 AM
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When you look at sale ads from the various "outdoor" stores, it would appear that the margin isn't that high.

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post #5 of 14 (permalink) Old 04-30-2018, 11:11 AM
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Years ago i was thinking about selling guns, and at that time i got some distributor catalogs. If you bought 1 gun it was $xx, if you bought 20 it was $xx-10%. Like alot of businesses, buying in quantity will get you a discount, which you may or may not pass on to your customer. I'm sure these big chain stores buy guns far cheaper than the local gun shop, but from what iv'e seen their prices really aren't any better. Guess they choose to not pass any discounts on to their customers.

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post #6 of 14 (permalink) Old 04-30-2018, 03:41 PM
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Our avg profit margin was 15-17% above all costs(shipping, gun,paperwork)
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post #7 of 14 (permalink) Old 04-30-2018, 04:04 PM
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Recently purchased a gift for a Grandaughter from Sportsman Guide and had it shipped to my local dealer to complete the transaction... Dealer asked what I paid SG and told me he could not get it for what I paid from his distributors...He said it was a very good deal.


I originally was going to purchase it from Cabelas for the same price but for me to get to Cabelas add $75 in gas... not to mention 6 hr round trip...


Don't know how much SG made but I'm sure it wasn't a heap.

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post #8 of 14 (permalink) Old 04-30-2018, 06:39 PM
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Quote:
Originally Posted by timberdoodle View Post
Recently purchased a gift for a Grandaughter from Sportsman Guide and had it shipped to my local dealer to complete the transaction...
Don't know how much SG made but I'm sure it wasn't a heap.
Yep, local dealer buys six guns, Sportsman guide buys a truck load, and Cabela's buys a warehouse full. And Walmart, they just tell the manufacturer what they are going to pay per unit. In each case the price they pay per unit goes down, and as has been mentioned the prices have to remain close to the same to remain competitive. That is until the little guy can buy the gun cheaper at the big store than he can from his wholesaler. Then he has no choice but to close his doors. Who needs customer service anyhow?
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post #9 of 14 (permalink) Old 05-05-2018, 08:48 PM
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A local shop says they make very little on new guns.They make there profits on used.
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post #10 of 14 (permalink) Old 05-05-2018, 09:27 PM
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Ive worked in a couple of places that sold brand new guns and the profit isnt that great. You also learn quick what sells and what doesnt, some gun shop owners are leery of ordering the latest caliber/combo that comes down the road.
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