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How long can our LGS last without product to sell????

4K views 41 replies 38 participants last post by  sid1 
#1 ·
Went to LGS yesterday...it's been here for a long time..they have little of nothing to sell in handguns and ammo and just a few rifles...said everything is on backorder...don't know when they will receive products.
 
#2 ·
Considering the profit made from selling their inventory, long enough to restock. They can always close for a vacation for a few weeks or skeleton crew.
 
#29 ·
How much profit did they make? What are their margins? Everyone thinks they made a HUGE profit, but did they. They are a small business, not a big corporation that has the capital for these unique times we are in.

GeorgiaCarry
 
#6 ·
2 very hard months for a small business could put the company's financials so far behind that it may be very difficult for them to fully recover. With some banks refusing to loan these businesses money or reneging on prior loans/lines of credit deals, many of the smaller businesses could be in some serious financial troubles which may force them to close their doors.
 
#11 ·
This morning I went to Local Gun store to get a project gun i wanted to send it to Gemini Custom which now does Magnaporting. I was stunned there were 40 to 50 people in line waiting for the store to open. They had no revolvers except for the monsters an no ammo in 9mm, 38 or 45 an this is a big store. Went to two more finally found a S&W model 60, Last one in the city I guess this is obamas way of boosting the economy
 
#16 ·
They've made a killing selling their stockpile that would have lasted them 2-4 years at most likely inflated prices over the last few months...
Didn't anyone else personally ride this hysteria wave just a little? I took a trunk full of complete junk with me to a recent gunshow (rusty extra parts, old hacked-up-no-value guns I had somehow accumulated, just worthless stuff) and everything (EVERYTHING!) even remotely gun-related sold for whatever price I named. No haggle, no back & forth, no swaps, just green, folding, paper pictures of dead presidents. It became a joke to those of us who've been playing with guns for any time. Everyone was dumping their junk at plus-premium prices to panic-stricken, cash-happy, first time buyers who thought that any money spent was smart money. Then I took my "winnings" and cashed-out with a nice FN FAL. :biggrin2:
 
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#13 ·
I wonder the same about my LGS. They make their money primarily off their range. Last Saturday they were completely out of virtually all normal range ammo in any caliber. It's got to be hurting.
 
#14 ·
Interesting question and one that I've pondered myself. You'd think the sudden surge of sales would give them enough of a bankroll to keep paying their staff, but I don't think it's that simple unless the shop has a guarantee of when they will get more stock in. If a shop owner has no indication of when he/she will have more inventory to sell, they have no way of knowing how much they need to allocate to keep paying their staff regular hours, as well as other costs of operating such as rent, insurance, and utilities. You can tell your salesmen to take a half-day, but your other operating costs never take a day off.
 
#15 ·
It works this way- On the shelf stock is sold out, but stuff still is trickling in. When that stuff does come in, there is an instant buyer or somebody already has their name on it.
 
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#17 ·
Most of the gun stores in my area are stocked back up on AR's for the most part. Plenty of 2000-3000 dollar AR's lining the walls, mostly cobbled together in shop from no name parts. Those guns would be worth 750-800 max a few months ago and (smart) people know that. There is not a ban yet and the panic has died down at brick and mortar places for the most part it seems. They are not moving many rifles with prices that high.

There are a few around here still selling guns at a reasonable price...they are in fact actually selling their rifles, not just using them as overpriced wall hangers.

Handguns are still pretty scarce in the high cap/polymer flavor. 1911's, wheel guns, and pocket .380s are plentiful.

There are a few stores I've decided not to do business with in the future.
 
#18 ·
I could only wish for the days when I sell all my product to the point I can't even keep it in stock. Not a bad problem to have.
 
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#26 ·
No kidding. Sell off all your old inventory, clear out all your old ammo, have new stuff sold before you shelve it...all at full retail? Yeah, I'm not feeling sorry for our local guy today. He's a good guy and doesn't mark up above retail in the hysteria. He did take his lumps in the economic downturn.

Gander Mountain on the other hand... They're still significantly above retail and stocking $1,000 AR's for north of $1,500.
 
#22 ·
Did the wally walk today no 9mm...have no idea if or when any is coming.....LGS has about 6 glocks in stock...all big frame....Went to Gander Mountain today...again they have only about 8 glocks in the case all big frame and no personal defense ammo in 9mm.....again they have no idea when.........In a rush to re-supply I hope quality and inspections of final products before they leave the manufacturers does not suffer.
 
#23 ·
A friend on mine is related to the owner of a large LGS. Supposedly (mind you I can't verify this, and it is just my friend's word I have to go by) the store made about $1 million in the 3 weeks during the peak of the panic. I think if that figure is anywhere near accurate, they will be fine until they can get more stock in.
 
#28 ·
My favorite LGS sold a LOT of everything over the past few months. Between birthday presents and personal "needs" I've averaged about 1 firearm purchase a month for the past couple of years. While the selection has been reduced, there are still plenty of things in stock that are worthy of my cash, which I'm more than happy to buy if it helps the shop survive these hard times.. And y'know what? They still go out of their way to give me a great deal!
 
#31 ·
My LGS also had a pawn shop attached to it, best one in town. He is extremely fair, knows most customers by name so I don't think he will be going out of business anytime soon, he might have to cut back on employees (already had to lay off 2 because he refused to inflate his ammo and firearm prices)
 
#32 ·
The LGS I my daughter works at and that I help out with from time to time did not alter his prices when the craziness began. His mark up remained the same, guns, ammo, accessories, etc.
He has products trickling in now. Same mark up. IF he paid more to get the products than he did 6wks ago, then the consumer will pay may as well. That's bidness.
One reason I associate with him is that he maintained his sanity through this and refused to gouge, even when he could have and folks would have still paid. I'm hoping this type of honesty has earned him the kind of reputation that will keep him afloat till the madness subsides. Right now, he is making money on the mad amount of transfers he's processing every day. And that cost has stayed the same since he opened.

dan
 
#33 ·
It's a legitimate question. Without product to sell, how can any business survive? Before the
"price gouging" accusations fly...keep in mind they have to make a living and plan for the future just like the rest of us.

One thing is for sure! This new threat has people's attention. Gun sales are off the charts. Ammunition sales the same. Concealed weapon permit applications are at unprecedented levels. After the last election (4 yrs ago) I began to accumulate ammunition. It took a while but I have managed to stockpile acceptable levels...including reloading components. People who are just now realizing the need are behind the curve. Hopefully this panic will die down, and supplies will come back to normal. I'm just not sure they will
 
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