For FFL Dealers Only

[Pre 29]

My question concerns transfers of firearms. We do quite a few transfers here in the store and charge $25.00. My rule on receiving a NEW gun is if we have it in stock or can order it and get it within a few days then we won't accept a transfer. I have always refused to accept guns from the "drop shippers" like Bud's who often don't even own the guns they sell but have them shipped from distributors like Sports South and others. I was also told by a distributor who sells to Bud's that if I sent a copy of our FFL to Bud's we would receive a bunch of transfers from them. I understand getting as many customers in the store as possible hoping they buy other stuff while they are picking up their transfer. I guess it's a pet peave with me. Our guns are usually priced 15% over cost so the prices are not exorbitant but of course if we didn't have any stock and just took people's money and then ordered the gun we could charge less I suppose. So do you guys accept all transfers and how does that work for you? Thank you in advance for your replies. We dealer's need a place where we can bounce ideas off one another. That is the thing I like most about going to distributor's shows, being able to talk to dealers from all over the country.

 

[pawngal]

I've held an FFL for 24 years, own a small pawn shop so not really a stocking dealer. Only stock a dozen or so new handguns and no new long guns as I get enough used ones. So I'm not the kind of FFL dealer you are asking for. I do accept transfers for any legal firearm. Will watch with interest for others' replies.

 

[Rule3]

Not an FFL but why would you turn customers away?

They will just get it transfer to another store? Up your transfer fee then. They will still go to the cheapest.

My LGS is small and gets lots of BUDS transfers, $25 is $25 for writing it down in the bound book and $5 for the background.

Maybe they will buy ammo?. Gun case, cleaning stuff,

I just called my LGS who I have been friends with for over 20 years, I get great prices. Buds has a gun for $700 which is less than his cost, his price was $850. He said go and get it at Buds,

I will buy from every time I can, but not for $150 difference.

Buds can not sell 1st responded SW prices (used to be LE discount) in Florida as a dealer complained so SW told BUDS they can not sell reduced prices under that program. Guess due to the number of retired 1st responders in Fl.

 

[Kanewpadle]

Not an FFL either but I've worked at a few.

I too don't understand turning away customers. Remember, you not only sell product, but you also sell service.

Transfers simply take a little of your time. Nothing to restock or reorder unless you're a good salesman and up sell them on your products.

American businesses spend billions on advertising. So here you have someone that walks in and wants a transfer and you say no? How did he find you? How many others will he tell? Nothing beats free advertising. And all it cost you was to swallow your pride and a little paperwork.

And when times are slow, that little paperwork can add to the bottom line.

 

[moralem]

It's his business to run as he pleases......if someone does not want my business fine with me......I will move on and find someone who does.

 

[2152hq]

Not a stocking dealer, but an FFL for over 40yrs and have worked in a couple different LGShops during that time too.

Take all the transfers that want to walk in and hand over cash $$ to you.

Hike the price a little if it makes you feel better, but don't turn away business of any kind as long as it's legal.

$25 is very cheap for a transfer these days. Check around your area and see if you aren't under pricing yourself.
If you don't want the x-fer business, hike the fee out of sight.
If you do, and you are under priced in that area, up the rate to be more in line.
It's not a hobby, you're in business.

Remember, Shops dry up and and disappear from one thing,,lack of business/customers.
Transfer customers are just that,,customers with money in their hands.
Some days it may be the only cash you take in.
Other times, a transfer customer may take a liking to something you have on the shelf and you make out twice.
That's business.

JMHO

 

[Rastoff]

If I were you, I'd take all of them. While they're filling out the paperwork, I'd let them know that they could have got the same gun for the same or lower price had they bought it there.

People rarely save any money by buying from and internet retailer. Sure, it happens, but most of the time they don't save that much.

I have a policy, unless I save $100 or more, that's including all the fees, I'll buy locally. It just doesn't make sense to do otherwise. So far, I've only bought two new guns off the internet. Both were guns my local guy couldn't get anyway so, no biggie.

 

[Arik]

I know my one lgs accepts transfer of whatever. You pay them, they don't care. Sometimes people find good deals on new firearms or good deals on used but current firearms. Can't fault them for jumping on it. For example, how much do you charge for a Colt 6920? Not long ago online retailers were selling them for $700. My LGS was selling them for the usual price, where do you think I would buy mine? And would you spend the extra $300 - $400 just to buy local?

 

[quneur]

A LGS in my area use to have a policy of they will accept transfers on used guns but not on new guns. The exception would be where the supplier can't get the gun the customer is asking for. The owners logic was he was trying to turn over inventory and he could not or would not compete with internet stores.

 

[arjay]

Maybe charge $35 for used and $45 for new.

 

[Rule3]

I worked at my LGS for a while. Folks would come in for a transfer from Buds only to find a better price on the same gun right in the shop!

It was kinda funny to see a Mosin or a High Point, Kel Tec come in and then the guy pays the transfer fee and the total was more than if he just bought in the shop!.

 

[Pre 29]

I want to thank all of you for your replies. I have just talked with my staff and we are going to accept all transfers from now on. I have always accepted transfers from everyone except for the drop ship dealers like Bud's and others who often don't own the guns they sell but rather order them from distributors and have them shipped directly to the FFL handling the transfer. This always seemed an unfair advantage but hey, life isn't always fair so if you can't beat them join them. That's two cliches in one sentence. Again, thank you guys, Ricci.

 

[Marine Corps Air]

I'm not a FFL, but as a CPA I've been working with small business owners for almost 40 years to assist them in building their businesses and becoming more profitable. My tax clients have had a lot of successes during that time.

I also agree with the statements made by Rule3!

This is an interesting post that allows me to see the world from the FFL's perspective. You may not agree with me, but here's some food for thought:

1. Think about reducing your FFL transfer fees. Having a gun buyer come in to your shop, even if they did not buy the firearm from you is an opportunity to acquire a new customer at no cost to you. New customer acquisition costs can be very expensive (marketing, advertising, printed material, business cards, etc.).

2. The transfer fees in my area were $25.00, then the FFLs increased their fees to $30.00. I found a great FFL that only charges me $10.00. Guess where I'm always headed for my ammunition, accessories, outbound transfers, etc. ????????

3. And, the new FFL has a great business attitude, is very honest, and is very professional. He also knows a lot about firearms. Who do you think that I am going to recommend to all of my friends and Second Amendment supporters as the place to go for their firearms, ammunition and accessories? Hint: It's not the high fee FFLs! I have not been back to their stores in over two years. Believe me, that $20.00 FFL transfer fee differential has cost them a lot of money in terms of lost sales. Ask my wife!

4. This logic may not always be valid throughout the entire U.S., but IF a local FFL can sell me the same firearm for about the same price, then one of the only cost savings to the buyer is avoiding local sales taxes, offset by the shipping and insurance costs. IF I can buy the same firearm for about the same price locally, I will always buy locally. I want that local FFL to be successful and stay in business!

5. During the FFL transfer process, if this statement is true, always mention to the customer that "You know, I could have sold you that same 1911 for less than you paid for it" - Discount your usual sales price (cost + 15%) to acquire a new customer and perhaps a lot of future business. This may be an opportunity to create a network with other LGS owners that stock different firearms. If you don't carry or stock a particular brand or model, find another LGS in your area that does and come to an agreement on transfer prices.

6. If you are seeing important buying trends (people are buying a lot of new Smith & Wesson revolvers, but you can't meet the demand), this may be an opportunity to add new product lines or pressure your distributor for a higher brand or model allocation.

7. You may find that you have an opportunity to add new products or services, for example, a retired LEO who is also a long-time customer and an excellent gunsmith (or has XX years with firearms) just stopped by last week and told you that he has retired. He wants to work PT as a gunsmith.

8. My initial opinion is that Ricci's policy of a 15% markup over cost is competitive, although it may be driven by other factors in his geographical area.

 

[cussedemgun]

My $.02

I'm not an FFL (have considered such, but refrained because I do not do paperwork well), BUT - -

Having spent a lifetime as a retail customer, have some observations about the successful stores, LGS included.

Service (for the customer) is what keeps people swinging the door. That is why they call it "customer service" rather than "proprietor service". Each store has a staple line at or near cost to keep the customers coming back. In the grocery trade it's generally milk & bread, for auto parts it's oil & filters, for the LGS it's GUNS. Nothing can break that quicker than rudeness or dishonesty.

The key to success seems to be "find something everyone of your customer uses & use it as a leader at cost. Let's face it folks, Gore's 'net seems to be a little more than "passing fad".

An old adage in the retail business "a happy customer will tell 50 people, an unhappy one will tell everyone who will listen."