Are we paying too much for S&W revolvers in Canada?

O

Onty

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Please compare prices for standard 629 in 44 magnum listed in Canadian stores with those listed here; http://www.gunsamerica.com/search.c...&age=0&uid=&words=629&category=2440&state=All , http://www.budsgunshop.com/catalog/index.php/cPath/21_39_72

Seems to me that our prices are at about 50% or more higher for the same revolvers. When I compared prices for Ruger revolvers, the difference is much smaller, in some instances even at the same level. What is the reason for that? Is Ruger controlling better what are retail prices to make sure that their products sell consistently?
 
I suspect its due to the distributors jacking the price:mad: . By the time the dealers get it and present it for retail even at a reasonable markup, the costs have added up considerably. I would venture to guess that the majority of retailers have a very small margin built on to the end price.
Cheers
dB:)
 
That's correct. Working in a gun shop, I know that we make very little profit on the majority of our firearms. I was looking through the cataloge of one of our distributors and they had Stevens 200's for $350! I think I know who we can blame for the high prices......
 
Looks like old story, not just in firearms; been counters’ greed is strangling dealers and killing retail sales. I am working in aerospace industry and I can tell you that some of the suppliers (to be fair, they are minority) just don’t know where to stop. When I redirect purchasing to other suppliers with more reasonable prices and lead time (some time is outright blackmail when we are in the tight spot), they are banging our doors asking why they lost the business, blaming everybody but themselves.

As a consequence, the only new S&W I had seen selling is that 500. Of couple dozen shooters I know of, who purchased new revolvers, all of them purchased Rugers. I wander is S&W aware of this?
 
In a lot of cases, Canadian distributor price is not the same as American Distributor price. IE the factory charges the distributor more.

A US distributor moves 100,000 handguns a year, he get a big price break from the manufacturer.
A Canadian distributor moves 5000 handguns a year, he gets regular pricing from the manufacturer.

It continues up the line for dealer at retail where volume plays a significant factor.

A Dealer in Florida who moves 10,000 handguns in a year has realized that if he marks them up 10% he can support his business.

A Dealer in Ontario who moves 200 handguns a year knows that if he marks up any less than 15 or 18%, he's going out of business in the next year.

If distributors and dealers in Canada tried to match USA pricing, it would be a nice thing for a while for the consumers; but it would be short term, as they would be out of business in the next year.

As a few manufacturers have told me over and over again, Canada's handgun market is simply too small to compare to the USAs.
In some cases, we're considered insignificant; some place to send stuff when you're overstocked.
 
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Freedom Ventures said:
In a lot of cases, Canadian distributor price is not the same as American Distributor price. IE the factory charges the distributor more.

A US distributor moves 100,000 handguns a year, he get a big price break from the manufacturer.
A Canadian distributor moves 5000 handguns a year, he gets regular pricing from the manufacturer.

It continues up the line for dealer at retail where volume plays a significant factor.

A Dealer in Florida who moves 10,000 handguns in a year has realized that if he marks them up 10% he can support his business.

A Dealer in Ontario who moves 200 handguns a year knows that if he marks up any less than 15 or 18%, he's going out of business in the next year.

If distributors and dealers in Canada tried to match USA pricing, it would be a nice thing for a while for the consumers; but it would be short term, as they would be out of business in the next year.

As a few manufacturers have told me over and over again, Canada's handgun market is simply too small to compare to the USAs.
In some cases, we're considered insignificant; some place to send stuff when you're overstocked.
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That says more about CND/USA pricing differences that any post I've seen in years. Very succinct.
 
I can understand the price problems on new S&W revolvers, but it doesn't explain why so many overpriced used revolvers show up in the EE. Just because a S&W (or Colt) wheelgun costs a bundle now doesn't mean someone wants to buy Bubba's old one for double what he paid ;) . Some of the prices are seriously out of whack, compared to most semi-auto pistols.
 
Freedom Ventures said:
In a lot of cases, Canadian distributor price is not the same as American Distributor price. IE the factory charges the distributor more...
Click to expand...

I understand you position and fully support our dealers, without dealers shooting sport is history. However, seems to me that some manufacturers are still ruled by short sighted been counters. If they are jacking the prices for smaller distributors in Canada, for the same product they are selling in USA, I don’t see any bigger manufacturing cost, and very little increase in shipping cost per unit. Without going any further, the result is, as far as I had seen, Ruger is clearly outselling S&W, without counting single action revolvers. Just 15-20 years ago, S&W was ruling the show, not too many Rugers as today, including SA. Please, understand that this is what I had seen; some folks might have different views…
 
Maple Leaf Pilgrim said:
So what if we legally purchased firearms from the US and had them brought up for us while complying with import law?
Click to expand...

Canadian import laws are reasonable enough, US export laws make that a bit of a hassle. It needs to be a pretty good deal to be worth it.
 
Freedom Ventures said:
In a lot of cases, Canadian distributor price is not the same as American Distributor price. IE the factory charges the distributor more.
Click to expand...

Not that I disagree with what you're saying, but a small caveat is that any Canadian distributor that is the official importer and buys directly from the US importer/manufacturer doesn't have to pay the 11% Federal Excise Tax that is applied to handguns in the US (10% on long guns and long gun ammo).

I've noticed this in Canada, with high volume things (e.g. certain types of .22 rimfire and popular shotshells) it's actually cheaper than in the US because the export cost is spread across a fairly big batch and there is no FET, so it works out cheaper (before sales tax, which is usually higher in Canada). However, there are very few things that fall into this category. With 90%+ of firearms and ammunition that are imported into Canada they are sold in tiny quantities compared to the US, so the markup has to be higher for the dealer to stay in business.

And then you have businesses like Bass Pro Shops, who for reasons that are entirely beyond me buy from US distributors/manufacturers and then import it themselves into Canada - so they end up paying the FET because it's a grey import. I thought that was really stupid when a guy working there told me that's what they did. Obviously the bean counters at HQ aren't aware there is a US excise tax on guns and ammo.
 
The prices charged by P & D seem pretty fair. Wish I'd bought the 629 when they were at a local gun show. I wonder what the price would be if one wanted a specific model, one they don't have in stock.
 
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