Man am I upset!!!

[Kanewpadle]

I don't know what the laws are in Alabama, but I worked part time at a pawn shop here in Washington for about a year.

I mostly wrote loans and sold stuff. Their standard rule was to give one third of what they thought they could sell it for if you were going to PAWN it. If you were selling it outright they MAY give you a little more.

According to Washington State law, EVERY item they take in for pawn or sale MUST sit for thirty days to make sure it's not stolen. Since a loan on a pawned item is good for 90 days, this law is satisfied. But if it's bought outright it still has to sit for 30 days. And the pawn shop does not collect any fees when buying outright like they do when an item is pawned.

IMO $300 was a fair price for that gun. I wouldn't have thought that before I worked at the pawn shop. This pawn shop has been in business for over 40 years and is privately owned. The owner and manager know what it takes to stay in business.

And I don't care what ANY blue book says. It's just a guide and not very good one at that. Blue books do not take into consideration LOCAL or GEOGRAPHICAL demand, current state of the economy, and the local buying market.

SOME people that shop at pawn shops aren't the brightest people out there. Many of them are pawn customers who will pawn something and then turn right around and buy something from the pawn shop with that very money! Dumb, dumb, dumb! But they still do it. And these folks do no research. They get excited and will pay whatever price they see on an item. Including guns. So if you owned a pawn shop, wouldn't you mark up your guns for these buyers? I would and so would you. Why do you think SMART pawn shoppers will watch an item for a while to see if the price is lowered or they think they can make an offer for less?

Because of local demand, buying power, and other factors a pawn shop will offer what they think is fair. That will NEVER seem fair to the seller. If the pawn shop already has four or five of the gun you are trying to pawn for sale, he doesn't really want another one. So he of course is going to offer you less because he's already sitting on money from the others. A good pawn shop will either decline to buy the item or offer to pawn it for you instead.

It's not personal. It's business. Pawn shops operate differently than most businesess and are subject to different laws.

Whether you understand this or accept it doesn't matter cause EVERYBODY knows not to try and sell a gun to a pawn shop or gun shop. You wouldn't trade in your car and take a loss. You would sell it privately if you were smart.

Just my inflated 2 cents.

 

[Rogue686]

Gun shops and pawn shops are going to buy used items less than what they can pay for a new one so they can resell it and make some money on the whole deal.

I work in a LGS. We have to buy used (as in pre-owned, doesn't matter if it's been shot much or not) guns lower in order to sell them instead of someone buying a brand new one. In my area, there are few collectors who recognize the real worth of something such as a very classic Smith and Wesson. Hence why people will compare a used price, regardless of collector value, to a new price.

Gun shops have to buy items less than what you as an individual could sell them outright for in order to attempt to make a profit. Hence why I will only sell at gun shows or in private sales, in order to get the most money out of it.

Just my .02 FRNs....please don't hate on LGS's, cause we all like the deals we get on our stuff from them.

 

[turbo38gn]

$350 for a model 57 is a joke, I don't care what kind of excuses others make for the pawn shop. You either go wholesale to wholesale or retail to retail or you are getting taken. I buy a lot of guns, and my trading at wholesale and paying at retail is something I NEVER do, nor am asked to do, but once by a store.

The average business profit in America is less than 10%, If you can't make a living on 20% total profit on a gun deal, you should go out of business. The dealers I deal with are fair, one of which is one of the largest independent shops in America. I should be grateful I guess, the overpayers finance my deals for me.

Feel free to research the average corporate profit margins for the last 30 years. The net returns are 10% or less. There are some higher, some lower, but average is as stated. Google it, you will find it interesting.

I'm not looking to argue or stir the pot, I have an opinion, based on my experience, you have yours... You responded, I and others here responded off of the above. No one has to win, we just want to share our feelings. Have a sparkling day.

Ok, so you are an educated business owner. You mention CORPORATE PERCENTAGE NUMBERS, WE ARE TALKING THE LITTLE GUY ON THE CORNER THAT IS PROBABLY A ONE MAN OR 2-3 EMPLOYEE STORE. THE SAME EQUATION DOES NOT WORK FOR BOTH BUSINESSES.
My business requires me to make a minimum of 35% markup , OVERALL, on parts, not all parts, but an average of all parts. My local gun store, one man operation, makes $70.00 per gun, his average retail is around $450.00. Lots of used guns and hopefully they sell quick. He has ordered me in new guns, with a similar markup, $700 gun, $70.00 markup. But it was sold before it arrived, that's a big difference from buying a used gun that most likely will sit in the showcase for who knows how long. I can assure you, somewhere along the line he has to make a better profit than 20% on something...

The outcry here is based on your first response, not subsequent responses.

Opps, I forgot, one more point, I can read very well, I wish I only needed 10% of my profit margin to cover my overhead...

 

[Revolver-time]

Mods might want to lock this one. It has got out of control on a nice quiet Sunday. What don't ya all sit down and watch the Olympics.

 

[StatesRightist]

I'm not looking to argue or stir the pot, I have an opinion, based on my experience, you have yours... You responded, I and others here responded off of the above. No one has to win, we just want to share our feelings. Have a sparkling day.

Ok, so you are an educated business owner. You mention CORPORATE PERCENTAGE NUMBERS, WE ARE TALKING THE LITTLE GUY ON THE CORNER THAT IS PROBABLY A ONE MAN OR 2-3 EMPLOYEE STORE. THE SAME EQUATION DOES NOT WORK FOR BOTH BUSINESSES.
My business requires me to make a minimum of 35% markup , OVERALL, on parts, not all parts, but an average of all parts. My local gun store, one man operation, makes $70.00 per gun, his average retail is around $450.00. Lots of used guns and hopefully they sell quick. He has ordered me in new guns, with a similar markup, $700 gun, $70.00 markup. But it was sold before it arrived, that's a big difference from buying a used gun that most likely will sit in the showcase for who knows how long. I can assure you, somewhere along the line he has to make a better profit than 20% on something...

The outcry here is based on your first response, not subsequent responses.

Fair enough. If you are out there trying to make it and providing jobs, you have my respect. If I misstated something or said it differently than I meant it, it would not be the first time.

I try to buy from the little guy all I can, the guy I buy from, I'll go into his shop, say bud's has it for this....if he's within $50-$75 I buy it from him.

I appreciate your redirect, it was a stand-up approach, thank you. I'm sorry I got this row going, my apologies.

 

[turbo38gn]

Ok, Olympics and Nascar at Indy!!! Plus I really need to get into my home \garage workshop and clean up. Need to organize so I can clean some guns and do a little smithing.. benches, floor and shelves are a mess, my old hotrod harley needs to have the front piston and jug reinstalled....

 

[Kanewpadle]

Gentlemen, this is getting outa hand. Profit margins, mark ups etc are not what WE think they should be but simply up to the business owner. Stupid to argue about it.

One major factor is overhead. And then there are local taxes to consider. The local tax rate here is 9.5%!!! In other areas of the state and country they are much lower.

So to argure about it makes no sense. The bottom line is that ALL pawn shops and gun shops will ALWAYS give you a price that's lower than you expect.

 

[Sebago Son]

"... I'll admit I've never owned a gun shop..."

".... However, what I said is valid, I'll guarantee you any gun shop that makes a 10-15% net profit at the end of the year...."

Try to follow this. Unless you were privy to the shop's fixed operating costs, you had no data upon which to establish a 15% NET Profit. (BTW, do you mean NOPAT?)

We were discussing the projected GROSS profit which was established by the difference between the buying price of $350 and the supposed selling price of $600 which some, including you conclude is unreasonable.

 

[StatesRightist]

Try to follow this. Unless you were privy to the shop's fixed operating costs, you had no data upon which to establish a 15% NET Profit. (BTW, do you mean NOPAT?)

We were discussing the projected GROSS profit which was established by the difference between the buying price of $350 and the supposed selling price of $600 which some, including you conclude is unreasonable.

Yes, I mean NOPAT, assuming you've retired debt, an established business, not a start-up, not Adjebit and I was not discussing gross profit, perhaps that's where our conversation went astray? In sense, yes we were, but the intent of my response was you or I neither one are giving over a $600 asset for $350 and that at the end of the day, all expenses subtracted, what's a fair profit.

I would also say I understand the amount paid would need to be less on a .41 than a higher demand gun.

Bottom-line, there is zero profit in our arguing. I'll say it again, at this point I have no animosity towards you, I'd like to keep it that way, based on the majority of your posts, you seem like a decent guy. If I offended you, it was not intentional, my apologies.

I'm going to go shoot some, something I know we both agree is a good thing.

 

[tgmr05]

It is quite simple, actually, and nothing to be angry about.

When you sell/trade a gun, you can either put some time and effort in and sell/trade directly to an individual that wants it, or get your money quickly by selling to a middle man i.e. gunstore.

You have it better than us older folks. The internet has made it MUCH easier to eliminate the middle man. Makes one wonder why anyone trades in or sells to gunstores anymore, unless they are in a bind and need the cash pronto. In the past, you could put ad in paper, wait for gunshow, or sell to gunshop - there was no way to access the entire country like now.....

 

[Engineer1911]

A good, old fashioned mud fight on a quiet Sunday without football. My there are some tender egos out there, lively discussion none the less.

What's this nonsense about "selling a gun"?

 

[alaskavett]

OK, so why not post photos of the Mod 57 and let us come up with a dollar amount that one of us might be willing to pay for it, or what you might want in trade? Enjoy your Sunday gentleman. Kyle

 

[Rogue686]

Let's just all go clean our Smiths...like I'm doing, and ignore the INFERnet. Then we get along fine. lol.

 

[Hillbilly77]

I can't believe this thread hasn't been locked!
Where is the civility that is the "NORM" on this forum? Many of the posts are full of scraps & insults. Regardless your opinion, this thread is an embarrassment. If this were the first thread I saw before I joined this forum, I would have closed my browser & never looked back.

My experience, like has been said - You win some, you lose some.
I bought a used .30-30 in 2006 for $225. I recently traded it at an LGS for $150. Only lost $75 in 6 years, and traded toward a gun I wanted. I can live with that.

I looked at a 686 4" at another LGS for $689, I bought one after that private sale for $340.

I bought a Taurus .22 mag for $300, and was offered $150 for it later on.

I had an M&P that an LGS offered $289 trade that I swapped for a GP100 and $150 in my pocket.

Moral of the story, some deals are deals, some deals are not, and some are just fair. Whether you're mad, insulted, etc. at the offer, that's up to you. Happiness is a CHOICE.

Regardless your stance on the subject, why don't we stop the insults & bickering, and let civil discourse prevail.

Respectfully submitted,
Hillbilly

 

[youngda9]

Can't understand why people would be upset by someone offering them a lower than expected price. Go sell it elsewhere if they aren't willing to give you what you want. Simple as that. No reason to get bent.

 

[Sebago Son]

Bottom-line, there is zero profit in our arguing. I'll say it again, at this point I have no animosity towards you, I'd like to keep it that way, based on the majority of your posts, you seem like a decent guy. If I offended you, it was not intentional, my apologies.

Agreed. Thank You. None here either Amigo. Be well. Drew

 

[StatesRightist]

Agreed. Thank You. None here either Amigo. Be well. Drew

Thank you, have a great night!

 

[Hapworth]

I blame this entire thread on the Blue Book.

 

[Treeman]

My apologies for articulating my annoyed opinion. Have a good day everyone.

 

[StatesRightist]

My apologies for articulating my annoyed opinion. Have a good day everyone.

Don't sweat it, I'm not proud of a couple of my posts either. We both had a bad day.