Not too long ago a guys in here telling a story about being over at someone else’s shop.  The story goes that as another customer is buying a gun, the counter staff remarks that that’s the umpteenth thousand gun sold.  Quite an accomplishment and obviously a lucrative business one would think.  To confirm his thoughts he’s now asking me questions and expressing an interest in opening his own Firearms Gold Mine.  Of course I’m starting to chuckle as I hear this.

I know the shop in the story.  I also know how the backend of how business works and really know how the firearms business works.  Given those factors I found the whole story a bit humorous.

Later that day that hidden part of my brain, the part that chews on stuff and comes up with its own conclusions, spit out a result that almost made me mad – actually it did more than that – it flat pissed me off.

Like any old researcher (in a past life I did R&D for folks like Intel), I set about ensuring that what I thought I knew was correct and that what I wanted to do wasn’t a knee jerk reaction.

It’s been a couple weeks now, numerous phone calls, conversations, and couple come to Jesus meetings, and the “pissed off” has migrated to a slow burn.  I’ve gathered in enough data points to realize that for the most part I was right, dealt with the parts I was wrong about, and the end result is that TDS is making some changes.

Some you’ll see right away and some will take a while to appear.

Firearms – This is perhaps the most significant category of change at TDS. 

Our firearms sales policy will reflect what I feel is the most common sense approach.  Also one that probably will take the most explanation.

* Effective immediately TDS will NOT stock firearms.  Let me repeat and re-phrase that – TDS will no longer adhere to the traditional “Gun Shop” model of having firearms in abundance, tags hanging, gathering dust, waiting for someone to spur of the moment decide to take it home.  Certain models will be available as they always have been but the total number of firearms in stock will drop significantly.  Conversely, the number of models available to customers will increase.

I can have every item known to man in a case but inevitably the one you want will be out of stock and need to be ordered.

As anyone in this business can attest to all pistols ordered will arrive in under three business days, rifles about four.  Rarely is this time frame unreasonable.

A pistol ordered on Monday will be in your hands (locally) by Wednesday or likewise on the truck to you’re FFL if your out of state.

I personally can recall only a few times in the history of TDS that a customer either came in or contacted me wanting a firearm, but had no idea what they wanted and needed to do a touch and feel in order to make up their mind.  These folks were taken to the range with several items to try out and only after several hours of instruction and familiarization was a purchase discussed.

I can tell you that numerous times daily I get a request for a price quote on XYZ pistol or LMN rifle.  Folks that I deal with pretty much know what they want and all know that TDS is the place to get solid pricing and information.

TDS is not the kind of shop that gets the panic stricken individual that absolutely has to have a firearm TODAY!  Nor do I ever want to be that kind of shop.

TDS’s clientele fall into the “mature” category.  Mature is defined as those that don’t see a $400 plus item as something to be purchased on an impulse.

This is the way I like it.

* Effectively immediately all firearm pricing will be on a TIERED Flat Fee structure.

Tier 1 – Up to $500.00 (total invoice) - $25.00

Tier 2 - $501.00 to $1000.00 (total invoice) - $35.00

Tier 3 – Over $1000.00 (total invoice) – $75.00

Simply put, if you order a firearm with a total invoice of $450.00 (dealer invoice plus shipping) your out the door cost will be $475.00.  TDS will make only $25.00 on that item.

Likewise if you order a $1700.00 sniper rifle with all the bells and whistles, your total will be $1800.00 with $75.00 in the TDS coffers.

That’s a whopping 4.76% markup on firearms.

No more wheeling and dealing like used car dealers.  No more wondering how badly you got hosed.  No more stupid sales on stuff that was marked too high in the first place.  And yeah, we’ll show you the invoice.

So those are the immediate changes at TDS.  But your wondering perhaps about how the story of the other shop brought about these changes.

Well let me explain, fairly simple really.  It’s all got to do with common sense or the lack thereof.

Like many shops the local guy has a room packed up with everything from hunting rifles to the latest in pistols.  All sport a tag showing MSRP, retail pricing and the price he’ll take for it.  If stroked just the right way, he might even cut you a “special” deal.  If you don’t think about it all this seems all well and good, especially if you’re the one he cuts a special with.

Stop and think for a second or two.  MSRP makes sense, after all its what the manufacture says its worth – but who cares.  Quick show of hands, who has walked onto a car lot and paid what the sticker (MSRP) shows?

Retail is the price he’s asking for it so that on the surface makes sense.  Cost plus profit equals retail.

Then we get to the what he’ll take for it price and it all goes stupid, or rather we the customer go stupid.  Better put – common sense goes out the window.

In order for a business to sell something and succeed there has to be some form of profit.  That’s a given.  What’s not a given is the amount of profit, or stated another way, the amount you willing to give anyone just because they say so.  So lets start with for example a Glock.

Glock 17 normally costs the retailer $440.00 before shipping.

MSRP is $599.00

This leaves the retailer $159.00 to play with.

A common play is this – mark it up $100.00 to $540.00 retail and then if using a what Ill take price, sell it for about $20.00 less than that.  Check around online and you’ll see this.

Makes you feel good until you realize that there is $80 of yours headed into his pocket.

Before you start to think I’m anti profit or begrudge anyone from making $80, lets look at something higher end.

A FN SCAR is a good place to look.

Wholesale is $2185.00

MSRP is $2995.00

This leaves the retailer $810.00 to play with.

Ask yourself this – how much do you like this guy?  How excited are you to get that new SCAR and what sized tip are you willing to leave? 

But it’s hard to get and that’s worth something, right?  As of today I can lay hands on over 30 of these 4 days out and a mark up of 4.76%.

You’d tear the house up looking for a couple Franklins you thought you lost, but without a second thought you’ll give your “good buddy” at the corner gun shop just that.

Common sense.

Umpteen thousand guns sold!?  Give me a break!  Aside from the thought of who starts their invoices with 0001, if he’s really sold that many guns using the pricing I just laid out, just how dumb is his clientele?

Folks we live in the age of the internet, where with just a few seconds work you can find a price on everything from soap to a trip into outer space.  Isn’t it common sense to do a few seconds research? 

Oh and as long as I’m on a rant – ever had your local shop offer to “Special Order” you something?  The second you hear those words, walk out!

I hear from my distributors at least once a week.  I order from them regularly and not a day goes by that UPS or FedEx isn’t here dropping off.  What’s so “special” about your order?

OK I’m done now.  I’ve got quotes to get out, web pages to update and products to ship.

Shoot straight………..