$100 dollar transfer fee??? Ugh...

[MarkG]

I don't think that a dealer has to match an internet price (as long as they are within a reasonable* number).

For instance, gun shop sells a Glock 19 for $525. The consumer finds them online for $475. Most customers will pay an extra $50 to walk away with it right then and there.**

If the LGS is professional (meaning not run by rude AHOLES), the consumer might even pay $75-$100 over what they can find online.

Of course, you will get customers that won't, but my experience is that people will pay more for better SVC (within reason).


C4

*Just use the adjective reasonable... It's an undefinable term in the context of our discussion. How much less than MSRP is reasonable?

**You are on to something here. The guy willing to pay at or near retail falls within the slice of the retail sales pyramid that you should be targeting. He recognizes the knowledge, time and value added services that you provide are worth something.

[chadbag]

Sorry, but Grant is right. The future for gun sales is internet sales and local transfers.

The LGS cannot be expected to have everything in stock -- that is too much capital tied up in inventory that may not move quickly.

The LGS will stock the hottest and most likely to sell firearms, and everything else will be done through the internet and transfers.

And the LGS will be a place to pick up accessories and stuff that you need right now. So make your customers happy through reasonable transfer policies and stocking all the extras that people may not be willing to wait for.

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[chadbag]

*Just use the adjective reasonable... It's an undefinable term in the context of our discussion. How much less than MSRP is reasonable?

It is perfectly definable.

"That which the customer is willing to bear"

Through experience, the LGS dealer will figure out about where "reasonable" lies in his AO.


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[montanadave]

Little Tijuana... How cheap can I get? I know you are asking $495 for that Glock, would you take $445? Will you price match an internet retailer that has a lower price than you even though it's not in stock? These guys ain't potential customers. They are carbon dioxide generators out for a deal.

Yeah, I am a potential customer. I'm just not interested in throwing my money away. I've purchased a fair number of firearms over the past few years. I'd estimate a 1/3 of those were purchased locally from 2-3 locally owned businesses, another 1/3 off of GunBroker from primarily private parties, and the remaining 1/3 from businesses I came across on various internet forums (e.g. Grant's shop).

In almost all cases, I have done some price researching and have determined what I believe to be a fair price. If I can get it locally, great. But if sales people simply refuse to consider a reasonable offer, I have no qualms about walking away and purchasing it from someone else. Cabela's, for example, have a policy of refusing to negotiate on any price and, coincidentally, I have yet to buy a firearm from them.

I fail to see anything wrong with a consumer shopping for the best price. And I also don't see price as the "be all and end all." I will give preference to a local business if the price is within reason and I also give preference to dealers that go the extra mile with knowledgeable staff who stand behind their product after the sale.

[C4IGrant]

*Just use the adjective reasonable... It's an undefinable term in the context of our discussion. How much less than MSRP is reasonable?

**You are on to something here. The guy willing to pay at or near retail falls within the slice of the retail sales pyramid that you should be targeting. He recognizes the knowledge, time and value added services that you provide are worth something.

First, retail price is often a "pie in the sky" number that gun shops are not aware of OR don't even consider (as they are off the chart). A smart gun dealer is going to pay attention to what his local competition is charging and then try to match them (if possible).

Yes, people will pay for knowledge on SOME things, but not everything. For instance, a bone stock Glock really doesn't need any "technical" knowledge from the dealer. The customer just wants it "as is" from the manufacturer. Now if we flip this around to building a custom AR, then yes, the customer will generally pay for the knowledge (IF they have a clue).


C4

[C4IGrant]

In almost all cases, I have done some price researching and have determined what I believe to be a fair price. If I can get it locally, great. But if sales people simply refuse to consider a reasonable offer, I have no qualms about walking away and purchasing it from someone else.

This is an important thing for the CONSUMER to pay special attention to. What I am about to say, doesn't apply to you, but I am just going to use your comments to help educate buyers.

First, consumers need to realize that there is typically only 10%-20% profit in a firearm. This is BEFORE shipping and CC fees. So asking your dealer to come down 18% from the asking price isn't going to happen.

Second, consumers need to realize that FFL's with a store front have a lot of expensive liability insurance and such. They of course also have rent, employees, utilities, etc, etc.

Third, consumers need to realize that firearms can be purchased many different ways. The three main ways are, from a distributor (lower profits for the dealer here), direct from the manufacturer (higher profit, but is nearly impossible to do any more and generally has to be in the form of an LE/Mil account) through a buying group (higher profits, but these groups have many rules and you generally have to be a Million dollar business before they will even let you in the group).

Most consumers that hang out on the net are used to seeing low prices from dealers (such as ourselves) that go direct to big companies like S&W, Colt, etc and think that their local FFL can match these prices and they simply cannot. The prices we offer to the consumer are commonly what most dealers pay!! So keep this in mind when asking your local dealer to price match or lower their prices.


C4

[MarkG]

It is perfectly definable.

"That which the customer is willing to bear"

Through experience, the LGS dealer will figure out about where "reasonable" lies in his AO.


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[chadbag]

Since you did not offer anything to the discussion, you must really agree with me. Sarcastic smileys not withstanding.

My reply was 100% spot on in how dealers will have to react and run their business in the future.

The internet is not going away and those who refuse to adapt will go the way of the dodo.


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[Watrdawg]

Luckily my LGS doesn't charge me a transfer fee. With that being said I buy about 90% of my weapons and ammo etc from him and have done so for a while.

Grant is right about the profit margins. I was partners in a LGS for a while and margins were tight. Even now 15% is about the norm.

[CarlosDJackal]

When the one local Gun Shop started charging $50 for transfers, a lot of their customers rebelled and went elsewhere. A couple obtained their own FFL and started charging $25. One charges $50 for Class 3 transfers (which is low since he has to keep the item in his shop until the approved ATF Forms come back - usually at least 6-months).