Model 19-4 Likely Never Fired

[DocB]

Last Fall right around Thanksgiving a woman came into the gun store owned by one of my old students right before he closed for the day. Her LE husband had died and she was going to take a vacation. Wanting some extra money for the trip she had taken this gun around town (I won't name the city) trying to sell it. A local Pawn Shop offered her $150 for it. The other local gun store offered her $200. My student/shop owner gave her $300 for it. A State Patrolman friend of mine was in the shop when she sold it and passed. I roamed over there the next morning when the store opened not meaning to find/buy anything and grabbed it. I paid $360 plus tax. A man walked in while I was paying for it and said "Oh s*it!" He wouldn't even talk to me. Then they drug out an old vintage like-new Hunter holster and said it was with the gun. So, I figure I paid about $325 for the gun and $35 for the holster plus tax. It was a sock-drawer gun that was kept in the house and apparently never fired. Several people regret not buying the gun before I did. As much as I hate buying a gun that was owned by a person who died, that is where most of them come from. A couple of lessons here. Every store in every city in Middle Georgia knows that I carry cash and that's how I pay. It makes it a lot more flexible for the shop owner. Those credit and debit cards are not what the LGS wants to see. There are shops here that put all the nice Smiths in the back room and wait for me to get there to inspect them. Lesson number two. . .move to Middle Georgia! Nope, don't do that. . .just kidding. There's not a lot of money in Middle Georgia so the competition here is very thin.

 

[05CarbonDRZ]

What kind of Gun Store operates on a $60 profit margin?

 

[Ronin2]

Nothing like taking advantage of an LEO's widow... ALL OF YOU....

 

[MN2944]

What kind of Gun Store operates on a $60 profit margin?

I'm guessing the type that would seriously care about the 3% ($10 in this case) credit card fee.

 

[damienph]

That is one of the nicest model 19s that I have seen. Good deal! I typically prefer 4" barrels but that 6" with the Patridge sight looks perfect! I had to look twice to see that it wasn't really a model 14.

 

[damienph]

Nothing like taking advantage of an LEO's widow... ALL OF YOU....

Once she's sold it to the gun shop that the OP bought it from... What difference does it make?! (In the words of a presidential hopeful).

 

[DocB]

This is funny. I've not really paid much attention to this M19 since I bought it. I took this picture today and kept looking at it. It's just not right! The grips are too large. So, I took them off. The man who bought this gun must have been very large with big hands to go with it. The grips are N Frame grips! They swallow up the frame of the gun when you take them off and look at the fit. I went into my box of grips and got some K Frame targets. They fit perfectly and make the gun look less out of proportion. As fortune would have it, I bought a really nice Model 28 last July for $370.00. It has original magna grips. I've been really wanting the original targets since I got it; but, would not even begin to pay what they were going for (half of what I paid for the gun). The M28 is also a 1978 gun. To make a long story short, The M19 now has correct target grips and the M28 does too. Also, this LGS does operate on a $50 margin on all of his guns. That's how he manages to sell right at 5000 per year. His parking lot has more cars in it than Wal Mart some days.

 

[05CarbonDRZ]

If it works for Him I guess it's fine,He left $300 in profit on the Table.

 

[Ronin2]

This is funny. I've not really paid much attention to this M19 since I bought it. I took this picture today and kept looking at it. It's just not right! The grips are too large. So, I took them off. The man who bought this gun must have been very large with big hands to go with it. The grips are N Frame grips! They swallow up the frame of the gun when you take them off and look at the fit. I went into my box of grips and got some K Frame targets. They fit perfectly and make the gun look less out of proportion. As fortune would have it, I bought a really nice Model 28 last July for $370.00. It has original magna grips. I've been really wanting the original targets since I got it; but, would not even begin to pay what they were going for (half of what I paid for the gun). The M28 is also a 1978 gun. To make a long story short, The M19 now has correct target grips and the M28 does too. Also, this LGS does operate on a $50 margin on all of his guns. That's how he manages to sell right at 5000 per year. His parking lot has more cars in it than Wal Mart some days.

Well... Don't you think new photos are in order???

 

[sturtyboy]

I think you got a great deal.

I just bought a 19-5, new in the box at my LGS a few months ago...just like yours for $100.00 more. In the same collection, I also got a new, in box M36 snubbie for 380.00. Many saw the collection before I did. I was happy to get them both.

Sometimes there are good deals and sometimes better deals.

I like your deal too. It's nice to get a deal now and then, huh?

 

[John Fugate]

What kind of Gun Store operates on a $60 profit margin?

I was under the impression they all did.

J.F.

 

[05CarbonDRZ]

I was under the impression they all did.

J.F.

On NEW Guns,You are probably correct.I just can't see taking in used Guns and not getting top Dollar for them.You don't have to bleed every last cent but more than $60.By the Time You factor in doing both Transfers,Checking the Gun out,Pricing it and cleaning it up $60 is a mighty thin profit margin.Now New Guns are a different story.They come in and are clean and ready to go and for the most part the Price is set already.You add $60 to your Wholesale price and toss it in the Case.I know You sell a lot of S&W's yourself,If You took in a NIB 19-4 for $300 would You sell it for $360? Judging by your website it would be $900.

 

[Marine Corps Air]

Also, this LGS does operate on a $50 margin on all of his guns. That's how he manages to sell right at 5000 per year. His parking lot has more cars in it than Wal Mart some days.

Dr. B. - looks like the "Big City Boys" don't understand how we do business, especially being exclusively on a "cash basis", in Georgia! I'm originally from Ben Hill County and I know exactly what you mean in this post.

Thanks for sharing!

 

[5Wire]

What kind of Gun Store operates on a $60 profit margin?

The kind that realizes a $60 return in one day on a $300 investment is a yield from an APR (annual percentage rate) compounded daily of about 7300%. The sooner ya flip,the higher the rate.

 

[MN2944]

Dr. B. - looks like the "Big City Boys" don't understand how we do business, especially being exclusively on a "cash basis", in Georgia! I'm originally from Ben Hill County and I know exactly what you mean in this post.

Thanks for sharing!

OK Fill us in. I'm not a big city boy, but I've never really understood getting excited over a 2-3% CC fee. Are you saying he's fudging the numbers and not reporting income?

 

[Marine Corps Air]

5Wire just explained a big part of the situation. He's also talking about high inventory turnover and a very short "cash conversion cycle" which is highly desirable in all business operations. When I worked at Dell we had a "negative cash conversion cycle".

Think only and exclusively "cash basis" (in many places credit cards are not even accepted) transactions. In my profession the cash itself may actually be a small part of the actual transaction value, which is also known as "boot". Then there's "horse trading".

 

[sturtyboy]

Just a thought along the quick turnover scenario...

I've spent almost 40 years in the auto industry. I'm very familiar to the service and sales side of the business. I was associated with several profitable dealers and some not so profitable. One high line dealer kept their profit margin very high on new car sales and sold few cars. Another mid-line dealer sold their new cars at a very tight margin and sold a ton. The same with the service departments in both cases. One shop was rarely busy do to pricing not their service ability, and one was always overbooked, due to their great prices and service.
I've seen different kinds of businesses with the similar profit margin and they end up with the same results.
I like the idea of a smaller margin and more business. It profits more individuals on both sides.
Just seems simple to my way of thinking. Maybe there is something the avid economist will counter to this thinking...but that how i run my current business that is jammed all the time.

 

[Todd K.]

This thread is probably a good example of why some folks are hesitant to mention how much they pay for something.

DocB that is one of the nicest 19's I've seen in a long while. And a great deal. I wish I had such luck. I seem to always be on the other end of the stick.

 

[DocB]

Yes, 3% is a big deal and something to get excited about if you're the banking system. The government (Federal, state, and local) taxes through legislation or by law. We only take home around 65% of our earned income because of legislated taxation. The 3% surcharge on credit and debit cards is, in fact, a tax imposed (not by law) by the banking system. The objective of this surcharge/tax is to collect 3% of all commerce in this Country and in the World. . .this is absolutely gigantic! You think this doesn't affect you because you don't pay the surcharge. . .the merchant does. In fact, "all" such expenses of doing business are passed on to you, the consumer, through higher prices. When you pay for something using cash or a personal check you avoid the banking surcharge/tax legally since there is no legislation behind this tax. This is why the banking system wants a cash-less society and economy. It's actually brilliant. If you are a small businessman, your profit margin is likely around 12%-15%. Being hit with a 3% surcharge is devastating. Leaving your stupid cards at home when you visit your LGS will be greatly appreciated by the owner. Most all of them will take your personal check (if you don't have enough cash) once they get to know you. They will also appreciate your consideration, and you will be the one they save all the nice old guns for. It is your behavior that will dictate those great guns and nice prices you get. It's really quite simple. 3% is a big deal in more ways than one. Take advantage of it. Don't run with the crowd.

 

[John Fugate]

On NEW Guns,You are probably correct.I just can't see taking in used Guns and not getting top Dollar for them.You don't have to bleed every last cent but more than $60.By the Time You factor in doing both Transfers,Checking the Gun out,Pricing it and cleaning it up $60 is a mighty thin profit margin.Now New Guns are a different story.They come in and are clean and ready to go and for the most part the Price is set already.You add $60 to your Wholesale price and toss it in the Case.I know You sell a lot of S&W's yourself,If You took in a NIB 19-4 for $300 would You sell it for $360? Judging by your website it would be $900.

900.00 bucks ??? Are your kidding. It would be more like $ 1250.00

All kidding aside, its not what someone pays for a gun including me, its what its worth on the open market when ones goes to sell it. Cost is irrelevant, whether you under paid or overpaid the market dictates its true value. I see these NIB 19's crowding the 1200-1400 dollar mark. When NIB Blue Pythons are bringing 3500-4000.00 a 1200.00 dollar a NIB pinned and recessed model 19 looks like a stone cold steal. I am proud for DocB finding the gun for $ 360.00, you know its nice to get a real deal every once in a while these days. That helps make up for the last hundred gun stores you have walked out saying,,, not a single good ole Smith one, just rows and rows of Glocks and AR's.