Author Topic: Low Retail Markup on guns  (Read 3141 times)

tokugawa

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Re: Low Retail Markup on guns
« Reply #25 on: January 19, 2016, 04:55:05 PM »
And that's how it's suppose to be...and why we shouldn't fear "deflation"

 That is spot on- when given free rein, IE, free from government market distortions, goods get better, and less expensive ,at the same time.  Examples are the majority. Exceptions are what we talk about.

 I would make a WAG and say a G19 likely costs less than $50 to produce, less all the regulatory and insurance costs.
 

birdman

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Re: Low Retail Markup on guns
« Reply #26 on: January 19, 2016, 08:23:55 PM »
That is spot on- when given free rein, IE, free from government market distortions, goods get better, and less expensive ,at the same time.  Examples are the majority. Exceptions are what we talk about.

 I would make a WAG and say a G19 likely costs less than $50 to produce, less all the regulatory and insurance costs.
 

...and R&D costs, and capital equip costs, etc etc.

MechAg94

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Re: Low Retail Markup on guns
« Reply #27 on: January 19, 2016, 09:07:54 PM »
https://grabagun.com/glock-26-9mm-subcompact-fixed-sights-10rd.html  Some as low as $413.
I wasn't necessarily talking about online so much as at brick and mortar gun stores.  I don't recall ever seeing the basic Glock models that cheap.  I will admit I never paid much attention to the subcompacts.  I never liked them.  

I have see a lot of used G22 models the last few years.
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tokugawa

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Re: Low Retail Markup on guns
« Reply #28 on: January 19, 2016, 10:12:44 PM »
...and R&D costs, and capital equip costs, etc etc.

 No, I would price those in.  Understand, I don't know a damn thing about big volume producers, but a comparison to other much more complex yet far less expensive mechanical  contrivances indicates something is out of whack. Like the cordless drill, which also seems to be redesigned ever other year. (tooling costs must be big on that) Ever take one apart?  It makes a glock look like a stone axe - I mean, what is there? A molded frame with a stamping , a cnc milled slide and a barrel, and forty or so small parts?
 An interesting comparison would be a Colt 1911 cost in 1920 or so, compared to today, and maybe a few intermediate years- 1960 would be good, between wars before we went off the gold standard. And 1930. Anybody know what they cost then?

makattak

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Re: Low Retail Markup on guns
« Reply #29 on: January 20, 2016, 08:52:37 AM »
No, I would price those in.  Understand, I don't know a damn thing about big volume producers, but a comparison to other much more complex yet far less expensive mechanical  contrivances indicates something is out of whack. Like the cordless drill, which also seems to be redesigned ever other year. (tooling costs must be big on that) Ever take one apart?  It makes a glock look like a stone axe - I mean, what is there? A molded frame with a stamping , a cnc milled slide and a barrel, and forty or so small parts?
 An interesting comparison would be a Colt 1911 cost in 1920 or so, compared to today, and maybe a few intermediate years- 1960 would be good, between wars before we went off the gold standard. And 1930. Anybody know what they cost then?

Tolerances and strength versus complexity.

As you ought to well know, complexity is really not a great factor in cost of manufacturing.

That is, unless you think the complexity of the cordless drill exceeds the complexity of, for example, a toy quadcopter?
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brimic

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Re: Low Retail Markup on guns
« Reply #30 on: January 20, 2016, 09:12:43 AM »
I wasn't necessarily talking about online so much as at brick and mortar gun stores.  I don't recall ever seeing the basic Glock models that cheap.  I will admit I never paid much attention to the subcompacts.  I never liked them.  

I have see a lot of used G22 models the last few years.

Me too. I think a lot of police agencies are switching from .40 to 9mm.
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MechAg94

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Re: Low Retail Markup on guns
« Reply #31 on: January 20, 2016, 09:50:05 AM »
No, I would price those in.  Understand, I don't know a damn thing about big volume producers, but a comparison to other much more complex yet far less expensive mechanical  contrivances indicates something is out of whack. Like the cordless drill, which also seems to be redesigned ever other year. (tooling costs must be big on that) Ever take one apart?  It makes a glock look like a stone axe - I mean, what is there? A molded frame with a stamping , a cnc milled slide and a barrel, and forty or so small parts?
 An interesting comparison would be a Colt 1911 cost in 1920 or so, compared to today, and maybe a few intermediate years- 1960 would be good, between wars before we went off the gold standard. And 1930. Anybody know what they cost then?
I don't know about that.  Most expect their pistol to last tens of thousands of rounds which is a lifetime and more for most shooters.  How does that compare to most electric tools?

Also, manufacturers sell to distributors.  No consignment.  I am sure there is a healthy markup, but $50 might be a bit cheap.  A fast food meal is $6 to $8 now.  I am also not sure what the taxes are and/or what import tarrifs are paid on parts/guns made overseas. 
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tokugawa

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Re: Low Retail Markup on guns
« Reply #32 on: January 20, 2016, 04:54:31 PM »
I don't know about that.  Most expect their pistol to last tens of thousands of rounds which is a lifetime and more for most shooters.  How does that compare to most electric tools?

Also, manufacturers sell to distributors.  No consignment.  I am sure there is a healthy markup, but $50 might be a bit cheap.  A fast food meal is $6 to $8 now.  I am also not sure what the taxes are and/or what import tarrifs are paid on parts/guns made overseas. 

 Not talking a cheapo tool here, but a pro grade cordless drill- they are tough as nails.  Like I said, I am no expert on this sort of thing, just have enough knowledge to be dangerous after looking at things for a while, running tools, etc. 
 
 Now import tariffs, taxes, that is the sort of paper government interference I was thinking about raising costs. Another one, and it may be huge, is that people EXPECT guns to cost a lot, because traditionally they have cost a lot to manufacture. I have a Machinist magazine from 1942 that has a complete breakdown of a Colt 1911, the machining processes, special tooling, type of steel for every part in the gun, and there is no question at all a modern cnc machining center would build them much much  quicker.  Back then they re-positioned the part for nearly every operation, the labor was cheap but extensive.

ramis

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Re: Low Retail Markup on guns
« Reply #33 on: January 20, 2016, 09:23:57 PM »
Question:  Have any of you seen Glocks for sale at $499 in your area stores?  I haven't.  That might be a sale price, but generally they are at least $550.  I might see $499 with one of the big dealers at a gun show. 

I bought a gray frame Glock 19 for $505 at a local store in Grand Rapids a month ago.
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