Used gun resale

[bigmac1]

What sort of profit margin do gun dealer's have. I sold my Zoli Extra Sport back to the dealer I first bought it from for £4000, it was only four months old. Last night l looked on the dealer web site and It was up for sale at £4990. Simple math's tell me the profit is £990. Is this fair? I know they have to make a living but this seam's a bit to much to me. I look forward to any view's.

 

[ips]

As a matter of interest what did you pay for it ?

 

[no.1topdog]

Playing "Devil's advocate" for a bit, that gun might not sell at £4990 for maybe 6 months. Eventually it might go for £4700 after a haggle, or maybe £4200 in the trade if it won't sell in his shop. In the 6 months it's been sitting on a rack, costing money in rent, rates, heating, lighting etc. it's been slowly costing the dealer money. If he had kept his £4000 that he gave you invested he might have made more than he will eventually get from selling your gun. He is trying to run a business, make a profit and keep his staff employed too and that's not cheap.

Of course we all know gun dealers are money grabbing b******ds, runniing round in their brand new Range Rovers, rubbing our noses in it all the time!!  :sarcastic:

But if it was that easy, we would all be doing it?  :biggrin:   There's only ever going to be one winner and that's not the likes of us.

Smile at the thought that you have enjoyed this gun for 4 months (that is a bit short I must admit) and had some good times with it. :biggrin:

 

[RobertBeard]

Well I'm afraid that simple maths is just not good enough!

If the dealer sells the gun at £4,990 then that will be inclusive of VAT as the £990 is inclusive of 20% VAT i.e. £165 so his GROSS profit would only be £825.  I expect you still think that's too much but he'll probably have to give a discount off the sale price.

However unless this RFD is a one man band operating from home then its likely that he's got business premises to pay for, business rates, staff to employ, advertising and all the other costs associated with running a business like interest, bank charges, RFD licence etc etc.

£825 is his margin or gross profit which is 20% of £4k or 17% of £4,825 - not unreasonable figures at all!

Think about what you think a reasonable figure would be and then imagine how many guns you'd have to sell to make a living like that.

Business people, or entrepreneurs as they are known, have to sell goods for as much as they can get for them and pay as little as they can for them to make a NET profit!

Sorry but the accountant in me has come out here!

Watch the Apprentice - Lord Sugar says this with every opportunity!

 

[Hamster]

What sort of profit margin do gun dealer's have. I sold my Zoli Extra Sport back to the dealer I first bought it from for £4000, it was only four months old. Last night l looked on the dealer web site and It was up for sale at £4990. Simple math's tell me the profit is £990. Is this fair? I know they have to make a living but this seam's a bit to much to me. I look forward to any view's.

It's absolutely fair in my view. First off, what he puts it up for and what he ends up letting it go for are two different things, even if he sells it for the asking price and has no other expenses in prepping it for sale (this could include simple things like advertising) you have to deduct real time expenses such as rent/rates/staff/ plus of course he has to pay VAT on margin plus a percentage to the tax man from his gross leaving a much less juicy few hundred.

It may also sit on his shelf for months, I for one wouldn't want to sit on a Zoli owing me £4k. 

 

[Stan]

Seems fair enough. Compared to others on the market it's not wildly out of place in terms of price. As has been said above, it's quite possible that it won't sell at that price and will have to be reduced... How much did you pay for it four months ago?

 

[Allport]

I was talking to my local RFD (cheshire gun room) and they told me they make about £70 on a new gun and £120 on a second hand gun.

 

[wylye]

There was nothing to stop you putting it on Guntrader for £4750.

 

[shootinguru]

:fie:  If I sold a Zoli to a dealer I would think that I had "shafted" him right left and centre! :crazy:

 

[bigmac1]

As a matter of interest what did you pay for it ?

£6000

 

[bigmac1]

Thanks all. That's put it in to perspective for me. Shootinguru, You've made me feel better  :biggrin:

 

[westley]

Having in the past been involved with the running of a shooting ground, I still receive a Trade magazine. I can not say about shotguns, but the 'mark up' on some of the airguns is incredible if you are prepared to buy 12 or more. I had an account several years ago with one of the major shooting clothing suppliers, I can not remember the name, it Mustof slipped my mind, but there was a 100% markup on their clothing and accessories. I used to see their items, which I knew to be old stock, for sale at some of the Game Fairs with a 'Special Show Offer'  price and smile knowing full well how much the dealer was making. Plus, if your name is John and you have a large store 'oop north' and buy in exceptional bulk, it explains how you can turn stuff out at less than half price, but that is business.

 

[Darkside]

What sort of profit margin do gun dealer's have. I sold my Zoli Extra Sport back to the dealer I first bought it from for £4000, it was only four months old. Last night l looked on the dealer web site and It was up for sale at £4990. Simple math's tell me the profit is £990. Is this fair? I know they have to make a living but this seam's a bit to much to me. I look forward to any view's.

Does you math include VAT?

 

[no.1topdog]

Working in the gun trade, as I did for a short while, has ruined things a bit for me. I now find it extremely difficult to buy anything as I know just how much I'm being stitched up.

All my gear is now well past it's best, in fact it's downright scruffy and worn out, but I really can't bring myself to splash out on anything other than cartridges and wish I had bought more when I was employed and could get things for 5% over trade price. I did get some bargains though, but it was a while back now.   :biggrin:

 

[RobertBeard]

there was a 100% markup on their clothing and accessories. 

You wouldn't want to know the markup on women's clothing, make-up and perfume!

 

[ips]

£6000

You took quite a hit in four months then.

 

[Hamster]

As a rough rule of thumb the price we pay is seven times what it costs to manufacture many items, retailers are obviously not on that kind of margin for guns or accessories and it varies greatly from item to item.

Rick Stein was apparently asked by one of his old school friends how he could justify his outrageous menu prices, what do you do he asked ? I'm a solicitor was the reply. I honestly think we have it good on guns.

 

[Fortis Mark]

The numbers look reasonable to me. Take VAT, corporation tax and overheads off that and no one will be retiring early...

Selling to a dealer was always going to be the worst outcome in terms of £'s. What it does offer the seller is the convenience of turning gun into cash on the spot.

The 'real deal' as David Dickinson would say is selling private, however, the difficult bit would be finding someone who wants to buy a Zoli...

 

[** Pending Removal **]

It is simple....you buy a gun for what you are happy to pay......you sell a gun for what you are happy to receive (or you don't sell it).....and what the other person then does is up to them.

Free market.

Don't look back.

P.s. What is a Zoli????