Are local gun stores suicidal?

[cj]

I really like to support local as much as I can, but I'm concerned about some business practices I've seen locally, and wondering if anyone can explain a different perspective?

As a case study, I recently picked up a P365XL, and want an optic for it. A local shop reported getting in some Sig Romeo Zero sights in...far from top of the line, but I figured might be good enough to try one out for a while before upgrading. I saw these on sale online for $160 last week, can be picked up easily elsewhere for $190, and have an MSRP of $220. As I'm happy to pay a little more to support local, I figured I'd be paying MSRP.

I get there, and find them marked $270. I can understand higher markup for low supply items (after all, mark things too low and people just buy to resell), but these are plentiful out there.

What is the thought process here? Is it an attempt to hope people don't know any better in the buying frenzy just to get what's in stock? In my view, local shops have a limited number of people coming through (unlike Cheaper Than Dirt and the constant supply of people online), and even if someone DOES pay that price, eventually there's a good chance they're going to find out and are going to remember, and what's going to happen to stores when demand drops down and people start avoiding the places that they feel jacked up the prices on them? Not talking ammo and such here that's gone up everywhere and is in high demand, just other accessories that are still plentiful

Am I missing another perspective here?

[hollohas]

Some small shops buy inventory at retail prices and markup from there. Sometimes they don't have many distributors, don't have good distributors, distributors don't have stock, etc. So they buy retail, pay shipping and mark it up.

Or they just think they can get higher margins in this environment.

I wouldn't pay that much either.

[MrPrena]

These stories reminds me of gunshows.
Grossly overpriced items even during non-panic times.

[FoxtArt]

I think this is grossly oversimplified. In every industry you have certain businesses that do that. There are car dealers that markup their inventory by 10-25% over any competition and still have the occasional idiot buy something.

There are plenty of gunstores that don't. Back when I was operating, I remember a customer that called asking about a price on a revolver of some sort. I gave him a price, he came in with the money a while later because it was the lowest possible, period (he went through online, called every store, etc.) and in store, he accused us of "false advertising" because I added sales tax to the invoice. I ultimately shrugged my shoulders at this pissed of gent as he was shouting on his way out the door, it somewhat amusing to me, because I knew he would be back... and who the heck doesn't understand sales tax in todays day and age?

...And he came back two days later all humble and nice-like after figuring out that every-other-store also added sales tax on his invoice and we were the most reasonable price possible, period.

But, working like that comes at a cost, and that cost is in volume, and working in like 80 hour weeks averaging less than minimum wage.

Implying that all gunstores overprice because one does is a weak rant. Also needs more swearing and description of an ogre behind the counter with airsoft gear. 1.5/10

[cj]

Implying that all gunstores overprice because one does is a weak rant. Also needs more swearing and description of an ogre behind the counter with airsoft gear. 1.5/10

Sorry, poor title choice. Didn't mean to imply they were all this way... In fact plan on visiting a few more today. I was really just wondering if there was another perspective I was completely missing... I like local shops and want them to stay around, but I'm concerned for this example of surviving long-term...which would be a shame because they're the most convenient for me.

[FoxtArt]

Mostly teasing

It is a double edge sword for LGS. In panic cycles they hardly can't get jack squat because the buying power of the bigger stores usually takes priority, and getting the inventory people want is few and far between. Then the rest of the time (e.g. like trump slump) the customer numbers go way, way down and the margins get razor thin. Either way, it's hard to make it.

[ray1970]

I will buy things that have to go through an FFL from local sources when I can.

As far as parts, pieces, etc. that I can just have shipped straight to my house.... nope. I can pretty much always get it cheaper online.

[MrPrena]

I will support LGS as much as I can, but $50 markup for item that is 210 is just too much for me. Those are not even that hot nor rare either. I currently need 1 or 2 for myself right now.

$50 is NOTHING FOR SOME PEOPLE here, but I made -$23/week (yes negative) last year after all the writeoffs.
I would sadly have to save $50 by going online.

[Ridge]

I'd give them the benefit of the doubt and ask if they'll honor MSRP price. If not, then like MrPrena said, you can buy online and have it shipped to your door for the same or less.

[Great-Kazoo]

If my lgs had the buying power as well as able to put their name on an optic, sure. Joe's little, local gun store , as mentioned before . Unless they're a well known volume dealer don't get the discounts on line vendors do.

I know browning wanted $25K (vendor pricing) in firearms before they would even talk to you. And those firearms, well some of them were what browning wanted you to sell. Not what you demographic would buy.