Why do superstores like Gander Mountain have higher prices?

[treanor21]

I have been wondering about this. In every other industry, the big box stores can, and do charge lower prices to undercut the little guys. However this doesn't seem to be the case in the firearms industry? Is there a reason for this? It makes no sense to me.

 

[rockhopper46038]

In many cases, they are the only game in town. In those cases, they can sell at whatever price people are willing to pay. I imagine their corporate structure doesn't allow for much flexibility for individual stores to compete more competitively in the market for places where people have lots of choices; and even more likely, the large majority of consumers aren't knowledgeable about other options, and so they frequent those stores because they don't know any better. So long as enough people continue to pay those prices, the big stores have no incentive to decrease them.

 

[gunman41mag]

cause people are willing to pay them

 

[d30carls]

i think its ridicolous at gander mountain 2weeks ago had a xdm9 for 600 went yesterday to buy it jacked it up to 750 i didnt buy

 

[LANShark42]

I have been wondering about this. In every other industry, the big box stores can, and do charge lower prices to undercut the little guys. However this doesn't seem to be the case in the firearms industry? Is there a reason for this? It makes no sense to me.

Simply because they can.

 

[the1kidd03]

There are NUMEROUS factors which contribute to pricing. It's not nearly as simple, from a business standpoint, as "people are willing to pay it." Some places charge obviously higher prices. What sort of buying power they have with manufacturers will affect what they pay for it. Which in turn, will affect how much they must charge. The amount of their overhead will also affect it and many other factors. Some executives feel that no matter what they pay for an item, they should receive a certain level of profit on everything. Others will alter their pricing moer depending on supply, demand, etc. Some have less overhead than others.

The point is, buy wherever you want. Just be a smart shopper and don't buy the first thing you see.

 

[grogie]

In my younger days I managed retail, and bigger stores usually had higher overhead costs. They may be in more prime locations, which means higher rent and taxes, and require more employees to cover the larger floor space the a "hole in the wall" small store. But with that, bigger stores can offer more variety in products that they sell. (Like Cabela's vs. Don's.)

 

[77broncoman]

I tend to do a lot of "window shopping" at Gander to see/feel items in person then usually order online or thru my LGS. I will only buy if something is on sale and competitive with other places.

 

[treanor21]

I tend to do a lot of "window shopping" at Gander to see/feel items in person then usually order online or thru my LGS. I will only buy if something is on sale and competitive with other places.

Same here. I use Gander to get hands on with items my LGS doesn't always have in stock. I do the same at Best buy and then order from Amazon.

 

[Hookeye]

Some manufacturers set a minimum sale price.
Sell below that and lose your dealership.
Some also don't allow another dealer within so many miles of an existing one.
New guys wanting to start archery shops have found that out a little late- they start, hoping an existing dealer drops a brand or two, and when that doesn't happen, they go under.

 

[Classic]

This question always amuses me. The seller sets a price and the buyer makes the decision as to the "fairness" of the price by either buying or not buying. Therefore, GM can charge the prices they do because people endorse the price by buying. In fact they take a number and stand in line for the privilege of paying the higher price at GM Indy north store.

BTW. A similar answer when the question is about gasoline, milk or any other product in the free market. The buyer decides if the price is fair under the current set of circumstances and communicates that judgement by either buying or not buying.

 

[Smokepole]

There are NUMEROUS factors which contribute to pricing. It's not nearly as simple, from a business standpoint, as "people are willing to pay it." Some places charge obviously higher prices. What sort of buying power they have with manufacturers will affect what they pay for it. Which in turn, will affect how much they must charge. The amount of their overhead will also affect it and many other factors. Some executives feel that no matter what they pay for an item, they should receive a certain level of profit on everything. Others will alter their pricing moer depending on supply, demand, etc. Some have less overhead than others.

The point is, buy wherever you want. Just be a smart shopper and don't buy the first thing you see.

Very true, but it doesn't answer this:

i think its ridicolous at gander mountain 2weeks ago had a xdm9 for 600 went yesterday to buy it jacked it up to 750 i didnt buy

That's their prerogative, but it's gouging no matter how you slice it.

The takeaway message here - as stated above - is take your time and be an informed shopper.

And tell the mopes at G.M. that they won't be getting anymore of your business. They probably won't care until they get enough people tell them that though.

 

[Classic]

They really don't care as they just pick the next in line. There is no "gouging" in a free market. It is simple Economics on display for you to see. It is the buyers that are causing the spike in prices, not the sellers.

 

[Sling10mm]

Gander Mountain has generally had higher prices on guns and ammo in my experience. I have purchased both there, but only when I found a good deal. Hate to hear they are inflated prices, but the way to combat that is to decrease demand... easier said than done, I know.

 

[donballz]

Seems these stores cater more to new shooters and others less into guns than we are. They may not know where else to shop and these store are very prominent and well advertised so they can charge more to the uninformed. I may be over simplifying though.

 

[thatguy]

I went to GM to put my hands on the Kahr CW9. Unfortunately, my favorite LGS is almost exactly on the opposite side of town as I am. I thought about buying it there until I realized they were selling it higher than even Kahr lists its MSRP. I've bought ammo there a time or two though. It's usually higher but they were the closest store to me.

 

[Quad]

Seems these stores cater more to new shooters and others less into guns than we are. They may not know where else to shop and these store are very prominent and well advertised so they can charge more to the uninformed. I may be over simplifying though.

This is my line of thinking as well. Customers that know their stuff seem to me to have a good relationship with their LGS. They won't pay Gander's inflated prices because they know their LGS can get it for cheaper. The only down side is you may have to wait for it to come in. Perhaps Gander's inflated prices are a "convenience charge" since they usually have most their stock on hand.

 

[nascarfantoo]

Here is my story ... when I decided to purchase my first firearm I had never stepped foot into a LGS. Much easier to got to a place like GM and check things out. I did not have experience with place like INGO to give me an idea about good pricing. I had read magazine articles, etc. about a product, but of course they typically gave the MSRP. So GM's pricing did not look to be too bad (at least then) compared to MSRP. So I purchased it there.

Much different now. Know where to look for good pricing info. Have more friends to help make good choices.

Would I ever buy from GM again? Only if pricing is right. Otherwise only shop there for a few supplies that I cannot get elsewhere. It does and will boil down to price.

 

[mschlatter]

I tend to do a lot of "window shopping" at Gander to see/feel items in person then usually order online or thru my LGS. I will only buy if something is on sale and competitive with other places.

This!

 

[osbornk]

Whether it is guns or anything else, stores price their stuff at the price they thing people will pay for it. If people are unwilling to pay that price, they will either put the stuff on sale or lower the price until they are able to sell their product. They frequently get their inflated price because of an ignorant or uninformed customer. Wise and informed shopping is the only way to hold prices in check.