Black rifle prices
- Thread starter MauroUlisse
- Start date
Well it ain't 30%
I wish it was.
Clothing is 100% - 300%+ margin
Footwear is usually 100% margin
Airsoft gear is usually 100% margin
So no, again your mistaken.
We pay the same as US dealers. There is no 10% discount for mass volume. Our $100,000 orders are a drop in the bucket to US $24 mil. orders
Your numbers are way off.
Say we take a shipment of 25 rifles.
We have way higher shipping costs than the US store (who can order 1 or 2 as easy as ordering boots)
We have brokerage fees that the US store doesn't have (yes, we can broker it ourselves, but then all my time would be spent doing that)
We have $250 export paperwork fee that the US store doesn't have
We have 3% currency exchange fee that the US store doesn't have
We have to register all the rifles with the RCMP and enter all of them into the book that the US store doesn't do
We pay tax up front on the shipment that the US store doesn't have to do
We get charged 3%-6% in credit card fees (processing) compared to 1.5%-3% in the US
You want accurate numbers? Start using 20% - 25% margins for your calculations.
I wish it was.
Clothing is 100% - 300%+ margin
Footwear is usually 100% margin
Airsoft gear is usually 100% margin
So no, again your mistaken.
We pay the same as US dealers. There is no 10% discount for mass volume. Our $100,000 orders are a drop in the bucket to US $24 mil. orders
Your numbers are way off.
Say we take a shipment of 25 rifles.
We have way higher shipping costs than the US store (who can order 1 or 2 as easy as ordering boots)
We have brokerage fees that the US store doesn't have (yes, we can broker it ourselves, but then all my time would be spent doing that)
We have $250 export paperwork fee that the US store doesn't have
We have 3% currency exchange fee that the US store doesn't have
We have to register all the rifles with the RCMP and enter all of them into the book that the US store doesn't do
We pay tax up front on the shipment that the US store doesn't have to do
We get charged 3%-6% in credit card fees (processing) compared to 1.5%-3% in the US
You want accurate numbers? Start using 20% - 25% margins for your calculations.
The Canadian dollar was really week to the US, I remember 62c to the US dollar, plus the market really was controlled by a few distributors, a total monopoly it was like Rivtec mentioned earlier...
I find you're right when it comes to the cheap stupid stuff like the Chinese products, but when you want quality like a KAC, the prices are so damn high compared to their US twin its approaching ridiculous.
mildcustom2
CGN Ultra frequent flyer
- Location
- Surrey, B.C.
I can tell everyone first hand knowing a retailer very well that the average markup on a firearm is about 20%. If they want to stay competitive with current prices in popular stores within Canada. If not the price is jacked up higher than the average price going for that item in Canada. The amount of money most popular retailers in Canada make on firearms is low in my opinion.
ive been awake for all of 5 min, so im not going to re do all those numbers, but i will with your info added.
but you are the one who said USA shops get better pricing from the mfrg due to mass volume, so i gave you the benefit of the doubt to show them making a higher profit margin with that discount added, but if you now claim they dont get that discount the they make less profit than im showing and yours reduces by about the same amount solely on the other additional fees you explained.
then nick 5-10% off to base the margin on 20-25 rather than 30% i drew this up at for bot USA and Canadian dealers.. still leaves a big gap and all that extra added to the sticker price here...and the gap actually hovers at about the same number i showed.
To be fair to everyone the Canadian firearms retail sector is a tough business. It involves a lot of time, commitment, hard work, red tape, delays beyond your control and laws that change on the whim of whatever party is in power. If it was as easy as some people think everyone would be doing it. I doubt many Canadian firearms store owners are driving around in ferraris.
Steve
IRUNGUNS
Steve
IRUNGUNS
I cannot comment on other distributors.
BUT, I can for KAC/KMC
1) We charge a $500 Export Fee -- $250 for the license to DOS and a $250 admin fee for the paperwork on our end.
2) Dealer off MSRP is 25%
3) Due to US Laws on Short Barrel guns - they usually end shipping differently (and much more expensively than Non NFA items).
Due to issues in the past with fake items - we have a 1 Distributor Policy for Foreign Countries - in this case Canada.
It allows us to ensure that the item is in fact authentic if it can be traced back to and OST order from US, or we will not warrantee it.
Now OST in their 1st year did more business than our previous distributor did in 5, but Canada is a VERY small market.
I think most people mistake the reasons for the disparity in pricing in the US and Canada, and unfairly take it out on the dealers.
If you look at an order for say 25 guns, shipping and brokering is an additional significant costing, plus an additional $20 per gun COST due to our export policy.
For a while down here guns where running $3500+ for an SR-15
Going back to EZ8's math
Dealer is $1766 + 20 for export fees = 1788.
Shipping ~ $200 Titusville to Border -> now at 1988
Brokerage from $50-200 depending on time it takes to get cleared, now that gun is anywhere from $2038 to 2188
Shipping to OST from Border $50, and now in Darren's secure area it is $2088 to $2238
Now if it gets sold to another Dealer - that dealer eats the shipping there, say another $50.
So if you think that $2750 is unreasonable - keep in mind that now he is in for from $512 - $662 in "profit"
But we make him pay in advance too - so depending how long that took to get his order out there are those fees too.
Then marketing, salaries for employees etc.
Ain't no one getting rich in the gun business.
BUT, I can for KAC/KMC
1) We charge a $500 Export Fee -- $250 for the license to DOS and a $250 admin fee for the paperwork on our end.
2) Dealer off MSRP is 25%
3) Due to US Laws on Short Barrel guns - they usually end shipping differently (and much more expensively than Non NFA items).
Due to issues in the past with fake items - we have a 1 Distributor Policy for Foreign Countries - in this case Canada.
It allows us to ensure that the item is in fact authentic if it can be traced back to and OST order from US, or we will not warrantee it.
Now OST in their 1st year did more business than our previous distributor did in 5, but Canada is a VERY small market.
I think most people mistake the reasons for the disparity in pricing in the US and Canada, and unfairly take it out on the dealers.
If you look at an order for say 25 guns, shipping and brokering is an additional significant costing, plus an additional $20 per gun COST due to our export policy.
For a while down here guns where running $3500+ for an SR-15
Going back to EZ8's math
Dealer is $1766 + 20 for export fees = 1788.
Shipping ~ $200 Titusville to Border -> now at 1988
Brokerage from $50-200 depending on time it takes to get cleared, now that gun is anywhere from $2038 to 2188
Shipping to OST from Border $50, and now in Darren's secure area it is $2088 to $2238
Now if it gets sold to another Dealer - that dealer eats the shipping there, say another $50.
So if you think that $2750 is unreasonable - keep in mind that now he is in for from $512 - $662 in "profit"
But we make him pay in advance too - so depending how long that took to get his order out there are those fees too.
Then marketing, salaries for employees etc.
Ain't no one getting rich in the gun business.
- Location
- East ontario
most of the dealers are to busy fighting and trying to f(*k each other over for a bigger bit of the pie.
Gee wiz.....you guys charge way more than HK does....you guys raised the suck more than 20% for sure....lol...
