Margins on rifles

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TheUnprofesional

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Any one have any idea on what kinda margins and mark up there is on most rifles. I would imagine it would differ from one brand to the next. But what kinda discount to people negotiate? 5%? 10%? more?

Can most local stores beat a price of big chain like cabelas?

Love to hear your examples and savings?

Id always rather save some money and get two toys instead of one.
 
TheUnprofesional said:
Any one have any idea on what kinda margins and mark up there is on most rifles. I would imagine it would differ from one brand to the next. But what kinda discount to people negotiate? 5%? 10%? more?

Can most local stores beat a price of big chain like cabelas?

Love to hear your examples and savings?

Id always rather save some money and get two toys instead of one.
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greed... everyone has to eat.
 
trekstor said:
greed... everyone has to eat.
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Better to make 50 bucks off someone if your a local buisness then nothing at all if they buy from someone else online etc. Most companies ive dealt with for just about any purchase have no problem negotiating price. I often just say ill take it for ten percent off and that's extent of my negotiating and they tend to say yes right away. Bigger purchases ill negotiate more.
 
Pretty scary when you look at US online stores and find some top end AR15s going for $1500-$2000 and are sold in Canada for over $3000-$4000. What ya gonna do if you really want one.
 
I bought a rifle from grouse river on boxing day reg price was $1250. I bought it for $599 and they still made $$ on it according to an employee that worked there

Guns are not an especially high volume business. I would say a margin of 50% and higher would.be needed to be profitable
 
Typically retail margins on firearms are between 10 and 20%. There may be exceptions to this of course. I would speculate that Questar and businesses of that ilk are probably working with larger margins, since they are often times buying direct from the manufacturer and selling to retail customers. This isn't the traditional business model for a firearms retailer.

As an aside, I haven't noticed our local dealers having any trouble competing with Cabela's. As an example I bought a SIG 1911-22 from P and D and paid $450. I was annoyed when I went to Phoenix and saw the GSG version for $380, though that wasn't their normal price on that. A couple of weeks later I was wandering around Cabela's and saw the SIG version on there for $560 or so. Their prices on other stuff like R-15s and ammo aren't super hot either.
 
10% is a rough average across the board for the average dealer in Canada. Sure with some guns more can be made, but the average is damn close to that. The distributors eat up a lot of the margins in Canada.

For the bigger stores, the ones importing directly from the US, the margins grow a little.

Don't take my word for it though, TDC can fill you in...
 
Well so far it seems 10 percent isn't unreasonable request. I imagine markup on the accessories is a lot higher. I know electronics stores are like that 3 dollar cases selling for 30 bucks etc.
 
Napa will sell you 2006 F-150 premium brake pads (front) for $162. If you ask for a better price they will sing you a song about how they barely make a profit on them and then let them go for $145, making you think you got one hell of a deal. While working at a shop I could get those same pads for just under $59 and you can bet they still made a decent profit on them. Business is business and it doesn't matter what the product is! There's very a good reason an importer or distributor will tell you to contact your local dealer for prices!
 
I dont think anyone of sane mind thinks a company shouldnt have a right to make a profit, but yeah when it comes down to ridiculous margins its just not right way to treat customers or at least be upfront about it. Ive had stores go on computer and be like here is our cost so will make 100 bucks off this so we could take 50 off etc. Then yeah other places will try to tell you how they have no room to move. And if thats true then there selling wrong products or have to much overhead or are lying to you. Nice to see some sellers above giving some honest answers.
 
VLT79 said:
Napa will sell you 2006 F-150 premium brake pads (front) for $162. If you ask for a better price they will sing you a song about how they barely make a profit on them and then let them go for $145, making you think you got one hell of a deal. While working at a shop I could get those same pads for just under $59 and you can bet they still made a decent profit on them. Business is business and it doesn't matter what the product is! There's very a good reason an importer or distributor will tell you to contact your local dealer for prices!
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I go to autopartsway or rockauto and print off a list of what i need and bring to the local parts store. i offer to pay 10% over the list price shown. Very rarely have I been refused
 
Business is setup to make money, if you feel its to much to pay for certain products then dont buy, its not like they are holding a gun to you head and forcing you to pay.

If your being asked to pay to much and you can do much better then setup shop with all the costs and sell cheaper.
 
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