richc
NES Member
SecondAmdFirst,
I'm just thinking out loud here. The dealer made $150 on the gun. That is short profit margins for something that is so expensive (and makes me wonder how these guys stay in business!).
It is a $2600 gun. They are working on about a 6% profit margin. I don't think guys in that price range fly off the shelves. I imagine there is a fair bit of time involved in keeping that in inventory and tying up their capital while trying to sell it. It is not a used gun, albeit new in box. I think your estimate of a $2400 resale value is in the high side. Me... I'm guessing it is closer to $2200... but that is just me.
What if they had offered you 70%... would that have satisfied you? I have a feeling the answer is no, but I'll let you speak for yourself. How about 80%? That is just shy of $2100. I'm thinking you would have gone for that amount. But again I don't want to speak on your behalf.
But if they pay you $2100, and can only resell for $2200 (my numbers) as it is used. it just is not worth them tying up their capital on an item that may sit there for a long time. I suspect they'd rather use that same capital to purchase four M&P9's or something comparable that will turn over quickly. In fact they may be able to sell the M&P's many times over during the same period that they hold your shotgun. Retail these days is about turning inventory quickly, 'cause in this business they are trying to survive on razor thin margins.
What if they had said to you we just can't buy it back from you. The offer we would make is very low, but it is what we can afford to do in cases like this. Would you have felt better? If you pushed them and asked, and they made the offer upon your insistence, might that have made a difference? Or what if they had suggested you try to sell it on NES instead? Or put it on consignment, where it is your money tied up rather than the store's money?
FYI I know what buyer's remorse feels like. Been there and done that. It ain't fun. It different industries with higher margins and bigger dollars a store is better able to swallow these types of customer issue. But in today's world it is just not so easy for them, or any small business.
Best,
Rich
I'm just thinking out loud here. The dealer made $150 on the gun. That is short profit margins for something that is so expensive (and makes me wonder how these guys stay in business!).
It is a $2600 gun. They are working on about a 6% profit margin. I don't think guys in that price range fly off the shelves. I imagine there is a fair bit of time involved in keeping that in inventory and tying up their capital while trying to sell it. It is not a used gun, albeit new in box. I think your estimate of a $2400 resale value is in the high side. Me... I'm guessing it is closer to $2200... but that is just me.
What if they had offered you 70%... would that have satisfied you? I have a feeling the answer is no, but I'll let you speak for yourself. How about 80%? That is just shy of $2100. I'm thinking you would have gone for that amount. But again I don't want to speak on your behalf.
But if they pay you $2100, and can only resell for $2200 (my numbers) as it is used. it just is not worth them tying up their capital on an item that may sit there for a long time. I suspect they'd rather use that same capital to purchase four M&P9's or something comparable that will turn over quickly. In fact they may be able to sell the M&P's many times over during the same period that they hold your shotgun. Retail these days is about turning inventory quickly, 'cause in this business they are trying to survive on razor thin margins.
What if they had said to you we just can't buy it back from you. The offer we would make is very low, but it is what we can afford to do in cases like this. Would you have felt better? If you pushed them and asked, and they made the offer upon your insistence, might that have made a difference? Or what if they had suggested you try to sell it on NES instead? Or put it on consignment, where it is your money tied up rather than the store's money?
FYI I know what buyer's remorse feels like. Been there and done that. It ain't fun. It different industries with higher margins and bigger dollars a store is better able to swallow these types of customer issue. But in today's world it is just not so easy for them, or any small business.
Best,
Rich