Interesting Transfer Fee issue I just saw

[cundiff5535]

I was in a location that will remain nameless for now... A customer wanted the shop to do a transfer from an online dealer... Buds or Grab a Gun.

The shop manager started asking the gentleman why he was buying a firearm offline and not supporting his local shops... Obviously the answer was pricing. The manager went on to explain that if they got a firearm through his shop the customer knows he can always come back with any issues. He explained to him about being able to help breaking down the weapon, trouble shoot if there were ever a problem, actual customer service, and so forth.

BTW, Buds was roughly 135.00 cheaper than the location had it for.

The shop manager also informed the gentleman, that he was happy to work on a middle ground price as he didn't want to loose a sale but, some of the online prices and large gun shops that chop their margins is to much to deal with at times. The customer said no and he was not willing to compromise to make a local deal happen

The shop manager then said that it was fine and that they are always willing do a transfer and are already on the approved list for 90% of the big online guys. Then he threw out a very interesting twist...

He said if the gun was in stock and on the actual showroom floor the transfer would be $100.00. If however, the gun was not in stock, to transfer it in would only be $25.00 and that was just the "new" policy that his shop had.

I thought that was a very interesting sales tactic that I had never seen used before... I actually thought it was fair and could see where he was coming from esp because even if he charged the guy 35.00 on the transfer the price that the buyer would have gotten the pistol and the price the manager was willing to meet him at were only 30 or 40 buck off.

He also offered 2 free range passes if he got the pistol from his store which made it almost a wash.

The potential buyer was not happy and left pissed off? I cant say I really understood why he was upset as that policy seemed very fair. Plus, its not like the buyer couldn't just find another FFL to do that transfer (there a numerous shops around this one).

What are your thoughts on this? Fair or not?

 

[JettaKnight]

The problem is that buyers don't like conditional prices. We're in the day and age where if the price is fixed and plainly listed, then it better be a discount.

The other day I was shopping saw a sign, "This item is always 30% of the marked price."

 

[bloodandgutsmurphy]

If I was that guy I would have eaten up that deal in a heartbeat. I feel better when I help my local gun shops out. They are more expensive than buying online but they can help you right away if you have any problems and when I buy from them I feel good because I know I am helping them stay in business.

 

[jayhawk]

I've seen gun shops that simply won't do transfers for items that they have on the shelf. Makes sense I suppose. I generally call ahead if I'm wanting to do a transfer and don't know the policy.

 

[malern28us]

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.

 

[jeremy]

I think what the store owner done was very tacky. I would have told the Shop Owner, if he wants my Business then pull $140 off the price of the one he has there. Compete or fade away. After all, by pushing the guy out the door he still did not sell the one in the cabinet...

 

[cundiff5535]

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.

I dont know man, it wasnt like the shop manager was rude... he explained the policy and I thought it was a fair one. I just thought the guy should have been thankful that the manager was so nice and willing to work on a price. I am not saying that the guy had to buy it there either. Its his choice as to what he wanted to do but, when you are talking about 20-50 bucks to support your local shops... I think you have to do it.

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.

Anyway, thanks for the reply... something for me to think about I guess... even though I have never heard a shop going out of business for competitively pricing firearms and showing a willingness to work with a customer?

Honestly... 90% of locations that I have ever shopped at will not budge on set prices.

 

[Ridgeway]

That doesn't seem so reasonable to me. It seems greedy for the dealer to charge a $100 transfer fee.
I know I've run into similar fees. One shop (to be unnamed) in Louisville tried to charge me 10% of my price on the gun to transfer it. As the gun was a SP89, which was no longer in production, and at the time selling for close to $4k, I thought that was more than absurd (I didn't end up buying the gun anyways, but it stayed with me as a sour note for that shop).
The store should simply state that they have no interest in doing transfers. That's their prerogative.

Second, example, a different shop refused to do any transfers, as many stores do. Again, it's their prerogative. But their prices are so high, I've only bought one gun from them.

Conversely, my local FFL, essentially a mom & pop shop charges $15. Cheaper than I've seen anywhere. Plus they are some of the friendliest people/shop owner's I've encountered. I've done every transfer for years from them. & as they haven't scalped me on transfer fees I am more inclined to give them other business, e.g. I recently opted to consign a gun there.

The point of my examples is that, while i realize it is expensive to run a store, the shop can either choose no sale or a reasonable transfer fee. Which is better, $0 or $25? Most customer's aren't going to say ok great, I'll buy from you for an extra $100. They will just go to the next shop down the road, as I did. There is no shortage of FFL's...

 

[cundiff5535]

That doesn't seem so reasonable to me. It seems greedy for the dealer to charge a $100 transfer fee.
I know I've run into similar fees. One shop (to be unnamed) in Louisville tried to charge me 10% of my price on the gun to transfer it. As the gun was a SP89, which was no longer in production, and at the time selling for close to $4k, I thought that was more than absurd (I didn't end up buying the gun anyways, but it stayed with me as a sour note for that shop).
The store should simply state that they have no interest in doing transfers. That's their prerogative.

Second, example, a different shop refused to do any transfers, as many stores do. Again, it's their prerogative. But their prices are so high, I've only bought one gun from them.

Conversely, my local FFL, essentially a mom & pop shop charges $15. Cheaper than I've seen anywhere. Plus they are some of the friendliest people/shop owner's I've encountered. I've done every transfer for years from them. & as they haven't scalped me on transfer fees I am more inclined to give them other business, e.g. I recently opted to consign a gun there.

The point of my examples is that, while i realize it is expensive to run a store, the shop can either choose no sale or a reasonable transfer fee. Which is better, $0 or $25? Most customer's aren't going to say ok great, I'll buy from you for an extra $100. They will just go to the next shop down the road, as I did. There is no shortage of FFL's...

^ Thats a valid point....

 

[IndyIN]

If the policy is clearly stated, I guess I shouldn't have an issue with it. I would be willing to buy locally for the online price plus transfer fee, and premium for paying with credit card (at Buds or where ever it was).

As a potential customer, I wouldn't have liked the tactic used. I'm sure they would rather sell at their markup, but on the other hand $25 for a 5 minute phone call is not bad work. I know there are record keeping requirements, but it's still decent money for very little effort.

 

[actaeon277]

Seems to me, if you don't like the transfer fee, go someplace else.
The business can set the price they want.
Sure, they can go out of business.
Enough hgo out, and you'll be finding someone trying to do a FFL xfer.
Then you'll be trying to deal with companies through someone else that can raise their rates.
Don't really see the problem here. Course the owner wants to charge you for handling a gun he didn't sell.
How would YOU feel?

 

[sporter]

Plenty of FFL's out there will do a transfer for $20 or $30 all day long.

Most of the smart FFL's know this and will price accordingly even though they probably would rather have you buy a firearm at their shop.

But at the end of the day the transfer will bring a customer to the shop and the customer will often buy a box of ammo, an accessory or let other potential customers know what the shop has in stock via word of mouth.

Simply put an FFL is crazy to turn down transfers as it hurts their business and reputation, as well income.

An FFL turning down a transfer is like cutting of your nose to spite your face. It's turning down money which does go toward paying the light bill, rent, insurance, employees etc.

 

[Robjps]

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!

 

[atvdave]

He said if the gun was in stock and on the actual showroom floor the transfer would be $100.00. If however, the gun was not in stock, to transfer it in would only be $25.00 and that was just the "new" policy that his shop had.

This is the part I would have the problem with... either your store does FFL transfers or not. It's not costing the shop anymore by doing a transfer a gun he has in stock or one that's not.

But if it's his new policy than he did the right thing by informing the customer before the deal went down. (although it sounds like to me he just made it up on the spot).

Now the customer has the right to go with the deal or not.. I would have done the same and just walked out..

Now I'm all far supporting the LGS as well, but I'm also for a fair price and supporting the places that support what I like to do, like reading all this stuff here in INGO.. Thats why I also support the advertisers here on INGO.. Just placed a order with PSA for a new Sig 226. And even though one of my LGS has 2 in stock he never gave me the 3rd degree as to why I should have bought his gun.. charged me $25.00 for the transfer and I'm out the door..

And it's because of that is why the next time I need something I will go there first and see what he has, and give him first shot at my new purchase.. As far as the guy your talking about... I won't go through those doors anymore..

 

[malern28us]

I dont know man, it wasnt like the shop manager was rude... he explained the policy and I thought it was a fair one. I just thought the guy should have been thankful that the manager was so nice and willing to work on a price. I am not saying that the guy had to buy it there either. Its his choice as to what he wanted to do but, when you are talking about 20-50 bucks to support your local shops... I think you have to do it.

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.

Anyway, thanks for the reply... something for me to think about I guess... even though I have never heard a shop going out of business for competitively pricing firearms and showing a willingness to work with a customer?

Honestly... 90% of locations that I have ever shopped at will not budge on set prices.

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.

 

[amboran]

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.



I beg to differ-selling online still usually requires many basic business expenses. Maybe advertisement costs more than a LGS spends also. I say be competitive and flexible or you won't stay in business long.
Like buying a car-they can make a profit off me-but don't screw me or try to insult my intelligence .

 

[LEaSH]

I wonder if the potential customer had transfers done there prior to that.

And I also wonder if the "new" policy had been implemented at that very moment, or was more or less officially mandated by the owner in recent days.

Kind of curious what I'd do in the customer's position. I think I'm reasonable enough to know that the store needs to make money, too. It's none of my business how much they want to make off of me - It's up to me to make the buy happen. If the gun that I want is hard to find but ~$500 online, I'm not going to buy it for a $100 premium because the shop normally doesn't carry them.

In the shoes of the store owner: I'd be very upfront about why I need more money to make the transfer. It's not like it costs $100 receive the firearm, make the paperwork and call in the check. But to a customer that feels slighted, it's hard to get through their head sometimes.

 

[serf]

That doesn't seem so reasonable to me. It seems greedy for the dealer to charge a $100 transfer fee.
I know I've run into similar fees. One shop (to be unnamed) in Louisville tried to charge me 10% of my price on the gun to transfer it. As the gun was a SP89, which was no longer in production, and at the time selling for close to $4k, I thought that was more than absurd (I didn't end up buying the gun anyways, but it stayed with me as a sour note for that shop).
The store should simply state that they have no interest in doing transfers. That's their prerogative.

Second, example, a different shop refused to do any transfers, as many stores do. Again, it's their prerogative. But their prices are so high, I've only bought one gun from them.

Conversely, my local FFL, essentially a mom & pop shop charges $15. Cheaper than I've seen anywhere. Plus they are some of the friendliest people/shop owner's I've encountered. I've done every transfer for years from them. & as they haven't scalped me on transfer fees I am more inclined to give them other business, e.g. I recently opted to consign a gun there.

The point of my examples is that, while i realize it is expensive to run a store, the shop can either choose no sale or a reasonable transfer fee. Which is better, $0 or $25? Most customer's aren't going to say ok great, I'll buy from you for an extra $100. They will just go to the next shop down the road, as I did. There is no shortage of FFL's...

see it the same way. i'm more than willing to work a deal with a local shop, but i also shop around.

 

[churchmouse]

He had probably already paid for the gun on line. Personally I have never bought online as I have always found what I want for a fair price at a LGS. It might cost $50.00 more or even $75.00 but the convenience of being able to see, feel the gun and negotiate with a real flesh and blood human is worth the cost to me. I have established a good relation ship with a few shops and often get smoking deals because of this loyalty. I am privy to trades and negotiations that benefit all involved because of this loyalty to these good people. I do buy components and accessory's on line as they are usually not in stock items at most Ma & Pa shops.
If you do not like a dealer then do not use them. The market will adjust itself.

 

[rnmcguire]

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.