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The Water Cooler
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Effect of the gun buying frenzy on gunshops?
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<blockquote data-quote="neginfluence04" data-source="post: 2045911" data-attributes="member: 2312"><p>I understand the economics behind it and even the increase for supply and demand. But lets say LGS a) sells 100 units per year which nets them roughly $60,000.00 per year in sales. Now if they increase the price by 10-20% and sell the exact same amount of units then they stand to make roughly 66,000-72,000. Remember that is 100 units for the YEAR at a profit of 60K per year (FICTIONAL NUMBERS).</p><p></p><p>LGS b) sold the same 100 units last year and made the same 60K as LGS a). Now lets add in the panic buying and lets double the prices on the same units sold. LGS b) has now cleared $120,000.00. Which is double their last years profits, so theoretically they could survive for two years with out selling 1 more thing. Many LGS on here have reported if you have a good relationship with their supplier they will continue to get product no matter what. Say the supplier goes up 10-20% on product. This would mean your 60K in profit is dropped down to 48K to 54K per year. LGS b) then increases their prices again to 3 or even 4X the cost. Now they are netting 144K - 270K which would mean they could survive for roughly 5 years without selling another product.</p><p></p><p> Just because the market is in a panic and people are spending their savings to buy firearms doesn't make the price increases ethical or right. IMHO it's greedy and selfish to take advantage of a person in a time of need such as this. We should be arming our fellow man and women for the battle to come. I for one refuse to continue to business with those gouging prices. I will make sure to continue to support the LGS that only went up 10-20. Even if his prices at 10% higher the the JACKASS that was 4 times higher 6 months ago. You can't tell me your local supplier is now selling you a $80.00 stripped lower for $350.00 and the only way you can make ends meet is to charge $500.00. </p><p></p><p>CLIFFS:</p><p></p><p>LGS a) gets a stripped lower at a cost of $80.00 they turn around and retail lower for $130.00</p><p>Supplier increase price by 10-20%</p><p>LGS a) gets a stripped lower at a cost of $88.00-$96.00 they turn around and retail lower for $143.00-$156.00</p><p></p><p>LGS b) gets a stripped lower at a cost of $80.00 they turn around and retail lower for $130.00</p><p>Supplier increase price by 10-20%</p><p>LGS a) gets a stripped lower at a cost of $88.00-$96.00 they turn around and retail lower for $264.00-$384.00</p><p></p><p>LGS a) = gets my business </p><p></p><p>LGS b) = greedy capitalist bastard</p></blockquote><p></p>
[QUOTE="neginfluence04, post: 2045911, member: 2312"] I understand the economics behind it and even the increase for supply and demand. But lets say LGS a) sells 100 units per year which nets them roughly $60,000.00 per year in sales. Now if they increase the price by 10-20% and sell the exact same amount of units then they stand to make roughly 66,000-72,000. Remember that is 100 units for the YEAR at a profit of 60K per year (FICTIONAL NUMBERS). LGS b) sold the same 100 units last year and made the same 60K as LGS a). Now lets add in the panic buying and lets double the prices on the same units sold. LGS b) has now cleared $120,000.00. Which is double their last years profits, so theoretically they could survive for two years with out selling 1 more thing. Many LGS on here have reported if you have a good relationship with their supplier they will continue to get product no matter what. Say the supplier goes up 10-20% on product. This would mean your 60K in profit is dropped down to 48K to 54K per year. LGS b) then increases their prices again to 3 or even 4X the cost. Now they are netting 144K - 270K which would mean they could survive for roughly 5 years without selling another product. Just because the market is in a panic and people are spending their savings to buy firearms doesn't make the price increases ethical or right. IMHO it's greedy and selfish to take advantage of a person in a time of need such as this. We should be arming our fellow man and women for the battle to come. I for one refuse to continue to business with those gouging prices. I will make sure to continue to support the LGS that only went up 10-20. Even if his prices at 10% higher the the JACKASS that was 4 times higher 6 months ago. You can't tell me your local supplier is now selling you a $80.00 stripped lower for $350.00 and the only way you can make ends meet is to charge $500.00. CLIFFS: LGS a) gets a stripped lower at a cost of $80.00 they turn around and retail lower for $130.00 Supplier increase price by 10-20% LGS a) gets a stripped lower at a cost of $88.00-$96.00 they turn around and retail lower for $143.00-$156.00 LGS b) gets a stripped lower at a cost of $80.00 they turn around and retail lower for $130.00 Supplier increase price by 10-20% LGS a) gets a stripped lower at a cost of $88.00-$96.00 they turn around and retail lower for $264.00-$384.00 LGS a) = gets my business LGS b) = greedy capitalist bastard [/QUOTE]
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