Black rifle prices

Hey from what I have seen the mark ups are pretty high on this stuff at times for minimal work....Most of these companies are internet business...How much over head do they really have....I would venture to say a good 50% to 55% mark up is the going rate, but hey how does that compare to any other industry, you have to keep a minimum of a 20% profit margins at least to keep the doors open. Selling in volume would be the ticket...

I know Hk416 rifles were going out the door after all manufacture cost calculated and profit at around $605 US per unit, and that includes exportation to the US with all fees or tax's and ready to be purchased or sold to other 3rd party dealers...I would say to many hands before it gets to the end user....

If I remember before the crazy stuff went down in the US MR556 were going for $2500 down South, the prices are getting back down to that slowly though..
 
Smaller market equals higher prices. Its a rather simple concept. Prices are higher because Canadian gun shops sell fewer firearms. If Canadian gun shops sold firearms with the same profit margins as our American counter parts they would be out of business in a month.
 
Same as with cars, shoes, clothes, 25 to 50 percent more, thats just life in Canada, ppp is 20 percent but prices are way above that, so thats no justification.
 
Leibermuster said:
Hey from what I have seen the mark ups are pretty high on this stuff at times for minimal work....Most of these companies are internet business...How much over head do they really have....I would venture to say a good 50% to 55% mark up is the going rate, but hey how does that compare to any other industry, you have to keep a minimum of a 20% profit margins at least to keep the doors open. Selling in volume would be the ticket...

I know Hk416 rifles were going out the door after all manufacture cost calculated and profit at around $605 US per unit, and that includes exportation to the US with all fees or tax's and ready to be purchased or sold to other 3rd party dealers...I would say to many hands before it gets to the end user....

If I remember before the crazy stuff went down in the US MR556 were going for $2500 down South, the prices are getting back down to that slowly though..
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Markup is not even close to 50 percent on most items. Retailers are getting about 20 percent on most things. Some a little more, some a little less. I can't speak to what the importer pays, but as an example, Tavors wholesale cost is well over $2k. Interestingly enough, the low dollar items like SKS's is where a high percentage is made.
 
Real Estate is just as comparable, if you want to go through the headache and time of importing it good on you but local vendors pay damn near US retail in some cases and then import and duty for them. Not to say it isn't outrageous but this is Canada so you better bring Cash.
 
MauroUlisse said:
I don't get it. Rifles that are for sale here in Canada in my opinion are way out of wack. Pretty much most of the mid to high end rifles are priced about $1000 more than the US. I have a good friend of mine who lives in AZ and he tells me that rifle sales has dropped big time and now they can't give them away. I understand that dealers here need to survive but can they not adjust their prices alittle so people won't buy across the border.
My two cents
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I try not to buy USA made stuff anymore because it all tends to depreciate quickly and I am sure what you are noticing is part of the reason. Now european made firearms and accessories seem to have manufacturer price increases almost every year like clockwork here in Canada, There have been some I have bought that have increased $1000 dollars or more in retail price over a few short years, making it very easy to sell my rifle for what I paid or slightly more if I decided to.

Just something to think about when getting in to the sport.
 
Shooter1of38 said:
Businesses are in business to make money. The end
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Correct, and if people want to change the price of guns in Canada they should step up and manufacture and be eaten alive by there own kind, open a store and charge less to the detriment of their own families for somebody else's hobby.

Or they could just stop buying until somebody says the price user curve is off kilter.
 
"...This subject has been beaten to death..." Yep. The high school need to teach economics better. Or at all.
"...here in Canada...than the US...." Don't try comparing prices Stateside to prices here.(you ever look at car prices Stateside? Especially the models made here and sold in both countries?) The Canadian market is 1/10th that of the U.S. and our gracious government keeps firearm prices artifically high regardless of the Party in power. It costs less to do business Stateside and pay scales are also lower.
 
I don't understand the whole premise of this argument. If a retailer can get a million dollars for an item than they should. Who cares what it sells for in portugal, the usa or the moon. The alternative to supply and demand is each according to their need...commies.

Having said that, irunguns is my retailer of choice for firearms. Supply and demand works two ways. Retailers shouldn't feel guilty for charging what they can and customers shouldn't feel bad for being equally selfish with their resources. I don't mean selfish in a negative way, just an honest one.
 
Irunguns is a welcome addition to CGN and Canadian Firearm enthusiast and hobbyist a like...Other dealers might not like them but we know the reason why...
 
Leibermuster said:
Irunguns is a welcome addition to CGN and Canadian Firearm enthusiast and hobbyist a like...Other dealers might not like them but we know the reason why...
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I agree that they're a welcome addition. You would; however, be in err to think they provide the same service that a brick and mortar gun shop does.
 
Ar180shooter said:
I always see you post this but you never say you're going to open your own store and end the gouging.
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I have no desire to open a business in a market as fickle as the firearms industry in Canada. Not to mention the endless line of low end users who refuse to purchase quality gear. There's enough NcStar/Leapers/UTG vendors to choke a horse, and most who offer high end gear are either perpetually out of stock or asking insane prices that a blind man wouldn't pay.

TDC
 
TDC said:
I have no desire to open a business in a market as fickle as the firearms industry in Canada. Not to mention the endless line of low end users who refuse to purchase quality gear. There's enough NcStar/Leapers/UTG vendors to choke a horse, and most who offer high end gear are either perpetually out of stock or asking insane prices that a blind man wouldn't pay.

TDC
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What High end gear and firearms specifically would you say is overpriced in Canada???
 
TDC said:
I have no desire to open a business in a market as fickle as the firearms industry in Canada. Not to mention the endless line of low end users who refuse to purchase quality gear. There's enough NcStar/Leapers/UTG vendors to choke a horse, and most who offer high end gear are either perpetually out of stock or asking insane prices that a blind man wouldn't pay.

TDC
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So in other words the profits aren't worth the expenses. This, along with the point you mentioned about stock being difficult to obtain, goes a long way to explaining why prices are as they are. If you are investing hundreds of thousands of dollars, you want to make a decent return. If the market is fickle, you need to make enough profit to gain a higher return with the associated higher risk.
 
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