where do small dealers buy their new guns?

[Miata Mike]

Maybe Ruger is focusing on getting SR-1911's out the door and put P95's on the back burner for a bit. Not sure if they are made in the same place. When you didn't want a P95 I bet they were all over the place.

Last year I fell into a deal on a new one that I couldn't refuse while out on my snowmobile ($295 stainless). Ever try to fill out the paperwork without your glasses?

 

[oneounceload]

They generally don't continuously produce ALL guns in the their catalog ALL the time

Of course they don't - HOWEVER, if I am in the SE US, and Sports South or Ellett Brothers has a lock on the area, and they have sent out their allotment until the next production run then there will be a shortage in that area. The internet has greatly reduced that issue, but it can still be a factor if the retailer has a good discount deal with one of them, allowing them to buy at good discounts but in smaller quantities - not every mom and pop can afford to be a master dealer at $25,000 initial inventory buy in

 

[jay21]

Others are maybe not "out of stock" but "allocated". This is basically the salespersons (at the distributor) call who they will hand it out too (dealer). Easier to tell a customer out of stock most of the time. Small dealers can order form most of the distributors larger shops do.

 

[newfalguy101]

They get them the same places the "big dealers" do ... they just don't get the "big dealers" prices.

Brett Parks, Columbia Arms (small dealer)

Actually, many "big dealers" buy factory direct in large quantities ( think case lots )to get the price break and sometimes even free shipping.

I buy from distributors, and pretty quickly realized as a onsie twosie, I simply canNOT make any money on new guns.

C2C Guns, in business since May 2004

 

[Davek1977]

I'll agree with what rule303 said. If you purchase a firearm, hold onto it and shoot it for a few months, and then try to sell it off, don't be surprised that you only pull even or barely get away with a +10% profit.

In what world do items get more valuable with use than they are right out of the box new? Why would one EXPECT to make 10% profit over the price of a new firearm?

 

[Panzercat]

An FFL I recently frequented has been trying to float his own business. When I asked him how it was going, he mentioned not very well. Profit margins are narrow and it probably doesn't help he lives in a state where you trip over firearms like dirt.

 

[jmr40]

It just depends. Many buy from distributors. Often they get a discount for large orders. I know that at times the distributors will sometimes offer a deal where if you buy a dozen Rugers, they will throw in a free Taurus. I've known of that to happen.

Some companies do require a mimimum order. Benelli and Kimber come to mind. Some smaller stores simply don't carry them because they have to agree to a huge order or they can't get even 1 gun.

The guy who owns the LGS where I hang out told me that a year or so that S&W changed their policies and will no longer give multi gun discounts and simply lowered the prices on all their guns for everyone. He said it made it a lot easier for him to compete with the bigger stores.

That can cause problems though. Seveal years ago Ruger really ticked off a lot of dealers when they drastically lowered their prices suddenly. Dealers who already had a large inventory of Rugers were stuck with guns that they had already paid for. Other dealers were selling new guns for less than other dealers had paid for the same guns. After lots of complaints and stores refusing to carry Rugers for a while they changed to a policy of offering rebates, instead of cutting prices. This was fair to all dealers.

 

[mgkdrgn]

Actually, many "big dealers" buy factory direct in large quantities ( think case lots )to get the price break and sometimes even free shipping.

I buy from distributors, and pretty quickly realized as a onsie twosie, I simply canNOT make any money on new guns.

C2C Guns, in business since May 2004

Oh you betcha ... that is why I don't stock any. I'll order anything you want at 10% over my cost if you are willing to wait a day or two. My two big sales items are Mosin Nagant rifles and consignment sales.

 

[Onward Allusion]

Like most everyone already said, little money to be made if you are a small dealer. Margins are slim on new guns. If I were to go into the business, I'd focus on used guns and police trade-ins. Much more room to work.

Just as an example, I think most of us here know where to get the S&W 5906 police trades. I still see 'em in stores for over $500. Nice mark-up and a lot of room to work with the buyer.

But then again, it wouldn't be a business to be in for the money.