The difference between price gouging and survival for the LGS

[chevyman95]

Ok I'm sure this has been discussed somewhere but here's my mini-rant.

I don't own a gun store but I've had a couple small business side gigs. For a gun shop there is a definite difference between gouging and surviving in the market. (FICTIONAL NUMBERS HERE) Lets say I only sell .22lr and my overhead is $1000 a month and I can purchase and sell 1000 bricks of .22lr for $2 profit each and everybody is happy. Suddenly I can only get 250 boxes per month from my supplier. I need to make $4 per box now just to pay the bills. Lets also say that my supplier is raising his price and is very unclear as to whether or not I can even get 250 boxes next month. Suddenly I have to think about raising it $6-10 or even more just to make sure my doors don't close. If the market will bear my price I'm going to raise it as high as I can and still sell just to stay open. If I were to keep prices at my old price I would be out of business and out of stock in no time. That means my business closes my family has no income and I'm out on the street or delivering pizzas now. It's all about survival.

I don't believe it's price gouging especially for the smaller LGS owners. We can argue all day but guns and ammo are not food and water when it comes down to every day survival in normal life. I vowed to stock up enough to go a year after the whole 08/09 run when I had to go to every walmart in town just to find a box of 9mm. Even if that meant shooting less and saving more. Anyways just my thoughts on the matter

 

[AuburnFan]

Wise beyond your years chevyman95

 

[Sandman771]

Has anyone noticed a downtick in AR pricing yet as supply is hopefully starting to catch up?

 

[mgonza]

You hit it!

 

[jeshoffstall]

Not to mention LGS' cost can go up as well. Was at a local one that I respect, had two identical guns with a $25 difference. When I asked why he looked on the computer and said it was based on what he paid when he bought them . Of course I bought the cheaper one!

 

[Gunfighter]

That's capitalism. The free market weeds out those who can't or won't be competitive. The LGS will never completely go away, as it does offer things online can't like transfers. But I'm not gonna pay 20-30% more just because you have overhead that online stores don't.

 

[Fossil]

I agree about survival, but how much profit is enough? Please! Don't start with supply and demand or Econ 101.
this not directed at any one person or shop owner. This all started with sandy hook & Obama's reaction to it. We all saw an opportunity to inflate weapons & ammo for 3 or 4 times it's original value for a massive profit. Once the weapons & ammo manufactures see( if not by now see) how much people are spending on AR's,AK's, Ammo, the prices will never be the same.
it will all be because of those that are gouging,profiteering. Just remember, if you screw over your customers due to gouging,profiteering you could lose them as customers. Read all the forums and see who people wont buy from because of it.

Cheaper than dirt .com is a prime example. Over $100.00 for a thirty rd mag is bull***t. Gun shows are another place that will screw you over. Treat people openly , honestly, fairly & you will never lose them as customers.

Now! Here we go, let the mud slinging begin.

 

[Shrek926]

Fossil I was the same way until I had it explained quite simply as this, 22lr is back ordered with some distributors until fall... Now what, exist off your capital until broke and bankrupt with no capital?

The margins exist to operate off of. If you need additional margins to cover expenses in your P&L sheet, you mark up the product. If it isn't acceptable to the public you'll always have it on the shelf. This isn't medicine, water, or food. It's not a staple necessity. If people buy it at higher margins, great! If not the market weeds them out.

 

[Wallace's]

Please! Don't start with supply and demand or Econ 101..

You may not like it, but thats why many inflated prices in these occasional panic markets exist. The reason its Econ 101 is exactly that, its the basics. If you cant grasp the basics, you wont make it very far at all. A retail business cant survive without product to sell. Chevyman95 is absolutely right about covering overhead. Its a MUST. You can survive a while off of debt capitol(floor plan) if times get tough or if thats how you run your business already, but like all debt, it must be paid back at some point. I also notice that all of these "non-business" owners are just rushing to sell off there little nest of firearms and ammo for MSRP

I hate it as much or more than anyone, but I also enjoy browsing around and supporting our local businesses. If that means paying more for a while to keep their doors open, then so be it. This will pass, and prices will return. Its just going to take a while. Also, PEOPLE!!! they are not coming to take your guns, quit freaking out!

 

[Wallace's]

If people buy it at higher margins, great! If not the market weeds them out.

Exactly! Reasonable margins are ok, absurd ($100 Pmags on CTD) will be ignored by most consumers.