Interesting Transfer Fee issue I just saw

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  • dnurk

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    Jun 20, 2012
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    Taxes usually break the online vs LGS for me. For example online is $200 cheaper on say a M1A factor in shipping $20 transfer $20 ok online is only $160 cheaper still a fair amount then you factor in taxes say $112. Id prefer not to pay an extra $272.

    Something like a 10/22 buy that local its cheaper.

    Moral of the story buy another 10/22 at the LGS with the money you save!

    You're paying your own state sales tax on that directl to the state now,right? :wink:


    At some point the Internet tax issue is going to close down at some point It's not enough to have the rule of Internet merchants only collecting taxes if they have a physical location in your state. The states are losing tons of revenue and it creates an unfair playing field for local merchants.

    And fwiw, I take advantage of this all the time. Bought a cmp m1 garand while at their north store and had them ship it to me instead of taking it home because shipping was less than the Ohio sales tax.
     

    BGDave

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    Sep 15, 2011
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    The local gun shop owner didn't lose just that sale. He lost ALL sales to this guy and anyone else the buyer can convince to support him. Very short-sided business view.
     

    pute62

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    As a guy who owns a few business's I often times wonder if the public understands all that goes into running a real business... rent, taxes, bills, employee salaries, etc...

    When you sell online... you have none of those to worry about.

    So if you buy something online it just appears out of thin air? Doesn't the place that you're buying from have all these bills to pay also? I always thought that Bud's was an actual place.:dunno:
     

    atvdave

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    Jan 23, 2012
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    As a guy who owns a few business's I often times wonder if the public understands all that goes into running a real business... rent, taxes, bills, employee salaries, etc...

    When you sell online... you have none of those to worry about.

    What you don't understand is that most of thees on-line business also have a local shop that they operate out of, heck some have multiple sights, so you are wrong as to say they have no rent, taxes, bills, employee salaries, etc...

    They have just learned that if you drop the profit margin down just a bit, you will sale more volume which = more $$$.
     

    Jake46184

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    Apr 2, 2011
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    Thats why as a consumer you can spend your money where you want. "F" that dealer. Find someone that wants to do business. Its my money, I earned it. The GS owner has the right to ask any price he wants. That GS also has the right to go out of business at any time.

    This is pretty much the correct answer. The world is changing quickly and the LGS needs to understand that. Penalizing/punishing a customer for buying online instead of in his store is a great way to make sure he's not around for the long-term. Only the largest, best-capitalized stores existing today will be around in 20 years. The day of the small, low-volume gun dealer is quickly ending. The Internet is a better mousetrap.
     

    Llamaguy

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    Jan 23, 2012
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    I ordered in a pistol, it was used so I "saved" about $300 off new, even if the store had one. By having them transfer ibt gave them $25 which is pretty good considering they took5 minutes. If they can keep people coming in by not being dicks, they can easily turn quite a lot of revenue from that alone. I don't see them making too much off the sale of a gun anyways. And if they are, they're not going to sell too many when someone else's selling for less.
     

    Dr.Midnight

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    Competition is always good for the consumer but when certain retailers have a clear advantage on pricing due to purchasing power (Walmart for example) then the little guys eventually go out of business. I think there is something to be said for customer service and local shops provide this. They also must pay the light bill and their employees salary. I'll buy online if it's a unique piece that a local place doesn't have but that's about it.

    I'll have to agree with several of the other posters when they say evolve and compete or move out of the way. If the smaller stores want to compete with the larger ones, and they can't do it on price, they had better get creative.
     

    alloyguitar

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    If I was the customer, I would never go back. I appreciate and support local gun shops when possible, but I also know what's on par as far as transfer fees are concerned.

    IF I was the manager and decided to take that avenue regarding transfer fees, I would have inquired as to what the gentlemen was looking to transfer, and explain that they could order it in for him to save him the hassle of having one transfered (or that they had it in stock), rather than immediately turn the guy off on the prospect of doing business there by hassling him about "supporting a local shop." A condescending attitude will turn off a customer every time.
     

    Gunaria

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    Oct 3, 2010
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    That's his shop than he can do what he wants. Sounds like he did the wrong thing cause that custom left mad and probably will never return to spend a single cent in his shop in his lifetime. The shop owner should have been happy to do the transfer cause that's pure profit. And not make up policies on the fly! You make a customer happy, that customer will return on a regular basis and do more business. Shop owners have to learn not to mess with the customer and quit trying to hit a glandslam with every sale. Repeat business is what keeps you in business! I have seen a lot of shops go by the wayside because they kept messing with their best customers. Now will that unhappy customer recommend that shop to his buddies, hell no he won't.
     

    youngda9

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    I go to my LGS all the time to look at the used revolvers for the most part. They are always quite overpriced. For example, I just purchased a like new 629-4 with beautiful wood combat grips for $600 shipped(It was a great deal IMO). The same gun...probably not a -4 without the MIM and the Hillary hole(I stopped looking at it once I saw the price tag), and with cheap Hogue rubber grips...was $900 OTD at the LGS here in Fort Wayne. That's 50% more in cost for a lesser item. I'm not sure if the one in the case was new or used....but I just got a chuckle out of it. I would LOVE to spend my money there, but the prices are outrageous on many things. Some are reasonable...but $900. I just did a 2 second check and a new 629 can be had off GB for <$800 shipped. Now why would I throw them a $100 extra for an item. They've gotta do better than that if they want my $$.
     

    actaeon277

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    True.
    And its your right to go someplace else, just as its his right to charge what he wants. Or either of you can be snotty.
    Makes no nevermind to me.
     

    cundiff5535

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    The owner explained a policy that he just made up out of the "blue." you might be right, the public might not know what it is like to have to deal with all of those things. You also might have forgotten what it is like barely paying your rent, utilities, and feeding your family cause the person you work for gives crappy raises.
    I am by no means saying that you do this. I am saying I have experienced it firsthand myself. I have never been smart enough to start my own business but I have been dumb enough to be screwed over by a craptastic owner.

    FYI, I am not an FFL nor do I own a gunshop... just wanted to make that clear.
     

    cundiff5535

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    So if you buy something online it just appears out of thin air? Doesn't the place that you're buying from have all these bills to pay also? I always thought that Bud's was an actual place.:dunno:

    I was not just referring to Buds... I was simply making a point that online FFL shops do exist and all they do is
    1. online sales
    2. gunbroker sales

    Both of which require nothing but, a computer, internet, and some inventory. A LGS typically employees 4-12 people.

    I personally like the idea that some of that extra money I am paying out is going toward providing a job to someone who could be without one in this economy.

    Additionally... I want to point out that I was just asking that question because I was standing in a shop that this situation happened in. I didn't see a lot wrong with it (since this is a known policy there) but, was looking for opinions from you guys.

    Interesting to hear all the takes so far!
     
    Last edited:

    cundiff5535

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    What you don't understand is that most of thees on-line business also have a local shop that they operate out of, heck some have multiple sights, so you are wrong as to say they have no rent, taxes, bills, employee salaries, etc...

    They have just learned that if you drop the profit margin down just a bit, you will sale more volume which = more $$$.

    I understand that 100%...

    Here is what I don't get...

    Lets take an M&P for example. A local store is selling it for near 525-550 (or more). The dealer cost on it is 430... Buds is selling it for 460, no taxes no shipping... thats 30.00... No way a LGS could afford to sell that gun with a margin of 30.00 IMO. They would make the same margin on transfer as on a sale? Why even stock guns... just say hey order from Buds and we will do all your transfers... cut the overhead and be done with it.
     

    jeremy

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    Feb 18, 2008
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    I was not just referring to Buds... I was simply making a point that online FFL shops do exist and all they do is
    1. online sales
    2. gunbroker sales

    Both of which require nothing but, a computer, internet, and some inventory. A LGS typically employees 4-12 people.

    I personally like the idea that some of that extra money I am paying out is going toward providing a job to someone who could be without on in this economy.

    Additionally... I want to point out that I was just asking that questions because I was standing in a shop that this situation happened in. I didn't see a lot wrong with it (since this is a known policy there) but, was looking for opinions from you guys.

    Interesting to hear all the takes so far!
    Buds is also an LGS in Lexington. Employing several persons as well. So since they had the forethought to look to the future and branch into online sales, They are evil?! Sounds like good solid business sense to me... :dunno:
     

    jeremy

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    I understand that 100%...

    Here is what I don't get...

    Lets take an M&P for example. A local store is selling it for near 525-550 (or more). The dealer cost on it is 430... Buds is selling it for 460, no taxes no shipping... thats 30.00... No way a LGS could afford to sell that gun with a margin of 30.00 IMO. They would make the same margin on transfer as on a sale? Why even stock guns... just say hey order from Buds and we will do all your transfers... cut the overhead and be done with it.
    Or you could decrease your price, and increase your sales volume. Yeah, it might be tough and rocky for a bit, but apparently it is working for Bud...
     
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