What can you all teach me about Consignment?

4

4x4Ric

Inactive
Hey all,
Hope you all had a Great Christmas.
Well I've been thinking about selling my Ruger AR and getting a Tavor X95, a buddy told me to take it to a shop that will put it on Consignment.
Who has done thing before? what exactly do I need to do etc etc. What are the positives and the negititives of Consignment of a firearm?
The shop I would do this with will open tomorrow so Id like to get a heads up of the questions to ask them, what do I need to do etc. before I call or go over there.
Thanks in advance
 
Typically you would leave the gun with them and they agree to try to sell it for you.
You typically get to set the price and they will get to keep some percentage of the sale.

Some advantages:
  • You don't have to advertise the gun or deal with people coming to look at it.
  • The gun will be transferred via FFL so if there's ever any question about what happened with the gun it is "off your books" so to speak.
  • Your gun will probably get better exposure in a gun shop than it would if you tried to advertise it.

Some disadvantages:
  • You don't have access to your gun until it is sold.
  • If it doesn't sell, when you retrieve it, you will probably have to fill out a 4473 and undergo a NICS check.
  • If it doesn't sell, you may still have to pay the shop a fee for processing/paperwork.
  • You obviously will have to pay the shop some fee or some percentage of the sale price.

The specific details will depend on the shop so make sure you know exactly what their rules are.

Some questions to ask:

1. If it doesn't sell, what will it take for me to get it back?
2. What fees/percentage will you take if it sells?
3. Is there a limit to how long you will keep it and keep trying to sell it?
4. How is the price set? (Be sure you understand how/if the shop will negotiate with customers.)
5. Do you think that my price is a good one? (If you want to sell the gun, you may want to get their take on your pricing. They have sold a lot more guns than you have and may have some good insight.)
6. Is my gun covered by your insurance while you have possession of it?
 
I can only add that I have started using a local shop to sell handguns. Mainly to avoid the hassle of shipping. So far, this has worked out well. Really depends on the shop. Read their agreement closely. For a long gun, I still post on Gunbroker.
 
My LGS has sold several of mine; his fee is 10%; some go higher than that so ask what their cut is. Know how much you must have for it (i.e. how low will you go?). My guy sold a Glock for $100 more than I thought it would go for and I gt 90 of that extra.
 
My local FFL charges 15% for consignments. I set the price I want to get; if he gets a lower offer than the asking price, he notifies me and it's my decision whether to take the lower price, or hold out for the asking price.

I'm happy to pay the 15% consignment fee. What it buys me is anonymity -- the firearms don't ever appear on-line with anything that can tie them to my name.
 
Great replies all.
@JohnKSa detailed reply I really appreciate that. Will write the questions down and see what his fee's are.
Thanks again all.
 
I've done consignment. But the last few I wanted to sell the shop just paid me cash up front and bought them from me. It worked out to basically the same money for me and was less hassle for both me and the shop owner. But you need to have a shop owner with cash on hand to make the deal.
 
Consignment has worked MUCH better for me in 2020 and 2021 than Gunbroker or doing in person transfers at gunshops.

I get 85% for cash and 90% store credit. I take the store credit. In fact I have almost $1K sitting on my store credit card. Sold 6 that way and picked up 2.
 
jmr40 said:
I've done consignment. But the last few I wanted to sell the shop just paid me cash up front and bought them from me. It worked out to basically the same money for me and was less hassle for both me and the shop owner. But you need to have a shop owner with cash on hand to make the deal.
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This might work with a dealer who considers you a valued customer. Most dealers won't offer as much if they have to put their money into it as you would get if they got to sell the same gun WITHOUT putting their money into it on consignment.

Dealers love consignment because it generates income and gets customers in the store without tying up their money.

As far as advice to the OP goes, JohnKSa's advice in post #2 is excellent, and be sure to get a copy of the consignment agreement in writing.
 
MarkCO said:
Consignment has worked MUCH better for me in 2020 and 2021 than Gunbroker or doing in person transfers at gunshops.

I get 85% for cash and 90% store credit. I take the store credit. In fact I have almost $1K sitting on my store credit card.
Click to expand...
Sure hope the store doesn't declare bankruptcy...
 
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