How much do FFL's make on a gun?

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How much money does an gun shop make on a gun?

If they sell, example Glock 17 for $550, and most prices are $510, thats like $40 mark up.

But how much did they really pay for it?

I want to support my local gun shop, they have some good prices but its hard to get some items in stock. I really want these guns now but I want to support them.

How much are they really making? Do gunstores get a $500 gun for like $400 and sell 500-550$?

Will they make more money on me from ammo?
 
I think it will depend upon a lot of variables such as the demand, incentives and other factors.

I have purchased a few new guns, but I can only provide you with one example. I recently purchased a pistol with an MSRP of $685.00, and I paid $550.00 before taxes. The gun dealer told me I got it for $11.00 over his cost. It was an auction, and I suspect he hoped to do better.

We should remember gun stores are like any other business and have a lot of other expenses to cover in their overhead plus they have to make some profit.
 
5-10% is the norm - depending on the shop and their volume of sales - so a $550 Glock, they might be paying about $500

But do not forget they also have a mortgage or rent, utilities, salaries, taxes, taxes, taxes, inventory carrying costs, etc..............

The result? their "profit" might be about $10
 
5-10% is the norm - depending on the shop and their volume of sales
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That's about right. Some shops do their best to make it back on accessories, services (training and gunsmithing), and range fees, if they have one.

Just selling guns and ammo? They're not going to be in business long. Unfortunately, guns have been grossly devalued by gun show vendors and online dealers selling at pennies over wholesale, and brick-and-mortar shops don't make enough of a margin on guns to make ends meet.

Might be why some shop owners get hinky when folks ask them to beat online prices.
 
"guns have been grossly devalued"
Nope, mine are worth the same to me :)

$50. A little less on really cheap guns, but right now even they seem to have decent mark-ups. Get an 03 FFL and you will be able to sign up with distributors and see their pricing. One local shop shows you where they are ordering the gun and what their mark up will be, but they have almost no inventory. They did just move to a new store that is probably bigger, so I should check it out.
 
I've heard the discount from MSRP on Rugers is 35%. The big box sporting goods stores here in the Denver area are asking full retail for their stuff.
Right now people are scared and paying it.
 
What is REALLY dumbfounding to me is that some shops are perfectly willing to make a $50 profit on a gun that they may have to keep in inventory for months but are unwilling to make $30 on a transfer fee where they have no investment risk. That's just poor business planning.
 
one local gun shop likes to try and make $50-$100 on most of his guns. $600+ glocks and all.
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That's the key: It all depends on the shop in question.

If you look around the area I live in, the gun stores with indoor ranges have the best prices on firearms and accessories (ammo is its own subject). They don't need as much markup on the firearms, because range fees and ammunition sales (for the range) take care of overhead costs.
In this area, that means they're asking about 10-15% over their cost.

Stores that don't have a range have higher prices on firearms and accessories, but might have some other kind of "Ace in the Hole" to bring customers in, such as a massive selection of CC weapons, a (locally) well-respected gunsmith, a good selection of reloading supplies, or even just a salesman that's really good at teaching people how to use all the fancy new reticles in rifle scopes.
Around here, that means you're paying 15-25% over cost.

There are always exceptions, of course.
One of the most well known mall ninja shops in this area actually has a fantastic indoor range. It's .50 BMG rated, clean, well maintained, has great ventilation, has reasonable range fees, has decent ROs, and you don't have to wait 3 hours to get a lane. But... their firearms selection sucks, prices are sky high, their primary clientele are idiots and high school kids, and they're asking twice what other shops want for ammunition. Be prepared to pay 30-60% over their cost (sometimes 10-15% over MSRP), if you want to buy firearms or ammunition from them.

On the flip side, we have a local shop that has a terrible selection, a crappy gunsmith, no range, a disgusting shop (seemingly never-cleaned, former service station), wants MSRP for everything he sells (including used guns), and charges $75 for a transfer. He only stays in business, because he's been there for 20 years and built a loyal (albeit small) customer base.
 
Gander is more like 20% on new and 35% on used
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Gander buys used at the typical 67% and sells at the typical 100% of blue book for used gnus - so does every other dealer, pawn shop, etc..

So what? -They have to make a profit to stay in business - if you think 10% is enough, open your own gun shop and undersell them, and you will be out of business in less than a year
 
Depends entirely on the firearm.
Stupidly popular firearms will fetch full MSRP and then we still won't have enough in stock.
Less popular, lower profit percentage.
We play it one model at a time.
 
Gun Shop Profit

I recently consigned a S&W 617 .22. Dealer price new was $716, same dealer suggested $616 for mine ($100 discount) and he would get 15% fee. Sold in a month. Actually was a good deal all around, he made 15% with no outlay and I got $523. I paid $665 for it two years ago at Cabella's...
If dealers are only making $10 - $25 on a $500 sale I can't see them being in business very long.
 
Unfortunately, guns have been grossly devalued by gun show vendors and online dealers
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A lot of the smaller gunshops in my region have shifted their inventory to primarily used firearms, largely for this reason. The margins are better and apparently excellent when sold on GB and the other auction sites. There are a lot of nice older guns in my area that they can pick-up at fair prices.

A buddy of mine owns a gun shop in a small rural town and explained that w/ the current margins, and purchase commitments often expected of dealers, that used guns have become his life blood. Another benefit he's mentioned is that he gets a better clientele. But any longer the bulk of his sales are online.
 
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