I have this new girlfriend and she works in a particular industry. I don’t really want to explain what it is (its not top secret, but her CEO could be Iraqgunz for all I know. ) but it involves shit that is sold at wholesale prices to places like Target, TJ Maxx, Bealls, etc. They produce and sell all of their products. Everything is made in the USA by illegal immigrants (Seriously). They also sell speciality products (higher end, more expensive stuff) to boutique stores.
Anyway. She has an account with their wholesale website and I was BLOWN AWAY at the markup on some of their stuff that the retailers charge.
A few things at boutique shops they paid $480 for and are selling for $2150!!!
Target and TJMaxx buy in such bulk that their prices are low (both wholesale purchase price and retail selling price) but the markup on almost everything is at least double what they paid for it.
I thought gun shops made like $100 on a $800 rifle. What makes the gun business different?
It would appear that the most items sold in big stores (like what you listed), have HUGE profit margins. Those stores also have huge overhead.
In the gun world, the products with the most profit are in the accessories. So your optics, lights, stocks, rails, etc are going to have the most money. Guns (typically) only have about 10-15% profit (unless they are rare) and then the sky is the limit.
Why this is, I have no idea, but it would be nice if guns had more profit in them.
Production costs for firearms is relatively high. That is to say, the materials are relatively expensive and so is the assembly when compared to other products of similar composition. Especially when you factor in taxes for weapons and parts coming out of Europe. Granted, modern polymer technology has helped, but only so much.
Demand is relatively low with lots of competition. Are you in the market for a $1500 stock Glock or $8,000 Noveske (assuming 500% mark-up)? Most people will buy 1 or 2 hand guns in their life compared to a new TV for every bedroom every 6 years.
Thus, gun stores depend on volume and low overhead. That is why most gun stores are in low cost neighborhoods. They also mark-up low cost items such as cleaning supplies, targets, etc. significantly more than firearms.
I’ve always wondered about ammo markup myself. A few years ago, XM193 could be found for $5.39 a box if 20. Yet there were retailers charging over $10 for a box at the same, a 100% increase from the lowest competition price and clearly more so above wholesale price.
Demand for ammo went way up along with certain key components. Look at the cost for brass and zinc over the same period. Again, this was multifactorial with the wars playing a significant role.
I think, as far as clothes go, the worst thing you can do is shop at big box stores like Macy’s for clothes. You end up buying junk clothes that aren’t any better than Target/Walmart stuff.
I’ve found going speciality is better. I buy Cinch jeans, and they last. Jackets and stuff I like Filson a lot. Dress clothes I buy from Nordstroms like Hugo Boss.
The Macy’s brand stuff (I did work for a box store for a while out of HS) is junk. Even if it’s Perry Ellis or such. They sell different lines to different stores. Not to mention, if you aren’t a fat ass, paying for fitted stuff makes you look like you aren’t wearing your dads clothes. The store brand stuff, with generic sizing, is fitted in a triangle shape so if you are in shape fitting stuff around your shoulders means you get the potato bag effect around the bottom…or pants look like you dropped a turd in them.
I understand that the price of commodities has gone up, resulting in increases in price.
But I’m not referring to that. I am referring to the period of late 2009 to early 2011 when ammo like M193 could be found online, consistently, for less than $6 a box of 20. I think PSA had the lowest price of all at $5.29. This lated for nearly two years. It was after the 2008 election craze, and before the 2012 election craze.
However, at that very same time, you could find some online retailers and gun shops that were still trying to get anywhere from $8-$12 for a box, almost a 100% markup from the cheapest competitor prices. Were these people paying a higher wholesale price for their ammo versus a place like PSA or AmmoMan, or did they just have a huge markup?
What was a place like PSA paying for that box of 20 if they were selling it for $5.39? What kind of markup is that? Was the retailer asking $8 for that same box paying the same wholesale as PSA, or was it higher?
Manufacturers willingly throw dealers under the bus with narrow margins between “dealer price” and MSRP.
Dealers are LUCKY if they actually get $100 on a rifle that wholesales for $800, most people expect to buy it for $800 and give the dealer $25 for the phone call.
Dealers can’t import guns from the third world at global market rates or have guns manufactured by illegals the same way you can do with most other products.
If ATF regulation didn’t exist I suspect I could probably buy Polytechs for $250 a rifle.
) but it involves shit that is sold at wholesale prices to places like Target, TJ Maxx, Bealls, etc. They produce and sell all of their products. Everything is made in the USA by illegal immigrants (Seriously). They also sell speciality products (higher end, more expensive stuff) to boutique stores.