Price gouging or just good business?

[jaykellogg]

I am really torn. If I were a retailer and had 5 AR-15s to sell would I sell at the "regular street price" or would I ask what the market would bear? Assuming I sell at the street price, then what stops my customer from listing his new rifle on Armslist for twice what he paid me? I guess I don't really like it, but I am going to come down on the side of what the market forces dictate. I recently ordered 10 pmags from Brownell's. Assuming I get them I should have plenty. They weren't the best price I have ever seen, but IMO a very fair price ($125/10 shipped). Much better than $50 each. I cannot understand the run up in ammo prices. IMO, it is unlikely to be banned.

I recall that when this president was first elected Spikes Tactical raised prices and they were dumped on by the AR community.

Full disclosure, I recently sold some AR parts and an AR rifle I didn't think I needed. I feel the prices I got for these were higher than I would otherwise have gotten had there not been talk of bans

 

[panther]

It's crazy out there. I can understand some people wanting to get the best price they can. If the guns are banned, or registered, they may become expensive to own. But alot of people are just cashing in on the craze.
I hate to see the gouging though. It's effectively banned the guns from anyone without the financial means to ever own one. I know they are way out of my reach now. We need to plan these panics better so people can save up for them.
Not much that any of us can do right now but wait and watch. If no ban happens, there may be alot of AR's for sale at this summer's gun shows. We can laugh at the guys that paid $3,000 for an AR and can't get even half his money back.

 

[Arik]

As a dealer or even a private seller it should not be your problem what the buyer of your goods ends up selling it for. You made your money, the product is no longer yours to worry about.

My LGS raises prices when their prices are raised and they started to limit AR mags to 5 per customer only cause some people were buying them all (obviously to resell). This way everyone gets some

Sent from my DROIDX using Tapatalk 2

 

[Comrad]

Just like the stock market, panic buying or selling is never a good move. I think a hold position is in order here until we see were we are going and how bad it's going to get. We have been living with tight restrictions in NJ and up until Newtown it hasn't driven prices up. What it did do was limit our selection to a very specific type of sport rifle, I can't even say AR because if the very bad letters AR are stamped on the receiver it's illegal to own, yuuup it's nuts here.

 

[CajunBass]

If you had an original, mint condition, 69 Z-28. Would you sell it for what it originally sold for, or for what the market would bring today?

The "regular street price" for an AR is yesterday's price. The market has changed for whatever reason. The bottom might fall out tomorrow and you won't be able to give them away, or you might look back and kick yourself for selling them "so cheap."

 

[pinduck]

i guess I do not understand all the handwringing and angst over market conditions. I always have believed when a willing buyer meets up with a willing seller and they agree on a transaction value, it is of their concern alone and all the wailing and knashing of teeth by uninvolved bystanders is of 0 consequence. It is no one elses business.

 

[jaykellogg]

I am looking at a 1920's Winchester 92. The seller and I were talking about prices. What we both see is panic buying. Let's face it, if you didn't need an AR 3 weeks ago why do you need one now? I suspect some of these will be sold at a loss. If I were looking at an AR now, I would go to DD or Larue or one of the top dollar suppliers. There is very little price premium there. There is a brand new DD on Gunbroker for $2500 bin. I would rather have that then pay $2500 for a Stag or DPMS that someone got for $600-750.

I want to laugh at what some folks are paying for homebuilt AR's.

 

[Maximumbob54]

I'm curious how the songs sung would change if this were a discussion about the price of S&W revolvers.

 

[Muddyboot]

I will be at OGCA this weekend trying to make an outrageous profit selling an unfired Bushmaster AR-15 in 6.8...Do I feel bad about it, nope, not one dang bit. I will not be placing a gun to the head of a buyer, if someone wishes to pay my asking price, more power to him. All profits will be used to buy Smith & Wesson and Colt revolvers.

 

[nipster]

Yea, I have a problem with dealers buying for $500 and selling for $2500.

Not because people will buy it for that, but because of the tactics they are using to coax more money out of people (fear, lies, etc)

A lot of the people buying the AR's now are just doing it out of stupidity because they think a ban is coming.

Places that do this wont get my business anymore.

If you had an original, mint condition, 69 Z-28. Would you sell it for what it originally sold for, or for what the market would bring today?

Apples and Oranges comparison. Same as people who bought their pre-model 27 for $50 selling it for $1500 or so. That gun has appreciated and has legitimate collectors value.

An AR which rolled off the factory lines 2 months ago which has no collectors value, sold to a wholesaler for $450, sold to an LGS for $500 and then marked up to $2500 is not appreciation, it's gouging.

 

[Mickey D]

People that are now buying over priced guns didn't plan ahead. These people will be the same ones looking for food and water when a disaster strikes.

 

[410bore]

Not because people will buy it for that, but because of the tactics they are using to coax more money out of people (fear, lies, etc)
A lot of the people buying the AR's now are just doing it out of stupidity because they think a ban is coming.

Places that do this wont get my business anymore.

Gunshops are responsible for the recent media spike against guns????......Gunshops are backing Feinstein's ideals????

----Short answer. No, they are not...


People watch the news and get worried. Guns fly off the shelves. Gun Shop owners see this and raise their prices.

I do not blame any gunshop owner for raising his/her prices due to market demand. If I owned a shop and was selling my AR
s for 1000 when other people are easily getting 1500-2000 for the same gun, I would raise my prices, but I would obviously honor any prior commitments/layaways, etc. at my original price.

Supply vs. Demand can be evil sometimes but you cannot blame store owners (who are in business to make a profit) for doing so......

 

[nipster]

Gunshops are responsible for the recent media spike against guns????......Gunshops are backing Feinstein's ideals????

----Short answer. No, they are not...


People watch the news and get worried. Guns fly off the shelves. Gun Shop owners see this and raise their prices.

I do not blame any gunshop owner for raising his/her prices due to market demand. If I owned a shop and was selling my AR
s for 1000 when other people are easily getting 1500-2000 for the same gun, I would raise my prices, but I would honor any prior commitments at my original price.

Supply vs. Demand can be evil sometimes but you cannot blame store owners (who are in business to make a profit) for doing so......

You are right, there is media lies out there too, but they are also reinforced and further spreadby gun store employees... if you have been in a gun store in the last couple weeks, you would have heard it too.

And a markup of 400%+ is not the market, it's gouging. Typical gun store profit margin on new guns is 15-20%.

 

[CajunBass]

Apples and Oranges comparison. Same as people who bought their pre-model 27 for $50 selling it for $1500 or so. That gun has appreciated and has legitimate collectors value.

An AR which rolled off the factory lines 2 months ago which has no collectors value, sold to a wholesaler for $450, sold to an LGS for $500 and then marked up to $2500 is not appreciation, it's gouging.

No, it's not apples and oranges. None of those items have any value at all, except what someone is willing to pay for them. Gold has no value at all, but what someone is willing to pay for it.

If someone is willing to pay $2500.00 for an AR that sold for $500.00 last week, that's what it worth to that person, right then and there. That is the only real value any material thing has.

You might not think it's worth that. I don't either. But if someone else does, it's ok with me. I wouldn't expect a seller to take less.

 

[moe l.]

Watch ammo prices. I believe that BHO is going to start making ammo difficult to obtain. They will make you jump thru hoops to buy it; restrict the amount you can purchase; and start hitting the manufacturers of primers. That's why ammo prices are moving up and availability will be "challenging". Keep what you got - it's going to be hard to get. They can't control the guns but if you've got nothing to shoot.....and then google UD Govt. ammo purchases in 2012 and ask yourself why they need ammo in the Social Security Adminstration; why HHS needs ammo; why all hollow point purchases?? What are they up to.......

 

[bionic218]

No, it's not apples and oranges. None of those items have any value at all, except what someone is willing to pay for them. Gold has no value at all, but what someone is willing to pay for it.

If someone is willing to pay $2500.00 for an AR that sold for $500.00 last week, that's what it worth to that person, right then and there. That is the only real value any material thing has.

You might not think it's worth that. I don't either. But if someone else does, it's ok with me. I wouldn't expect a seller to take less.

^^^ Excellent summary ^^^

This is the real reason why pick-up trucks are now $40K and gas is $3/gallon. Any "thing" is only worth what somebody is willing to "pay". In the moment it is bought, that is the true value of the item. Regardless of what the item may be. When this is housing, or stocks, we say "it's the market" - when it's guns and ammo we say "it's gouging".

I don't like it, but there it is.

 

[jaykellogg]

Well, when someone in NJ raises gasoline to $10 a gallon after a hurricane it is gouging. If the price of gas went up across the USA it would be different. Also, a lot of these folks selling ARs now have owned them for less than 3 weeks.

Question, if you were walking through the sporting goods section at Wal Mart and the fellow was setting out a Colt AR for $1050, would you buy it? If yes, would you sell it or keep it?

 

[arjay]

Yes and yes.

 

[NFrameFred]

People that are now buying over priced guns didn't plan ahead. These people will be the same ones looking for food and water when a disaster strikes.

THIS - what those who complain about profiteering now fail to mention is that prices for AR's have been bottomed out for at least a year or so and they chose, yes the ones paying more now chose not to buy until the specter of new legislation arose.

Like Mickey said, this same mentality will be exhibited when potatoes or toilet paper or gasoline is in short supply and the ones who didn't prepare want 'their fair share at a fair price'. Sorry, communism/socialism has proven to be a failure every where it's been tried, comrade . . .

 

[Mickey D]

Watch ammo prices. I believe that BHO is going to start making ammo difficult to obtain. They will make you jump thru hoops to buy it; restrict the amount you can purchase; and start hitting the manufacturers of primers. That's why ammo prices are moving up and availability will be "challenging". Keep what you got - it's going to be hard to get. They can't control the guns but if you've got nothing to shoot.....and then google UD Govt. ammo purchases in 2012 and ask yourself why they need ammo in the Social Security Adminstration; why HHS needs ammo; why all hollow point purchases?? What are they up to.......

DiFi is already talking about ammo limits. Just wait. Stock up now.