Mark-ups simply shocking

M

Montana Pete

Guest
I've been shocked by the kind of mark-ups I'm seeing at a local big-box sporting goods store. The one I visit is Gander Mountain, but there are others much the same. For one example, 7" varmint targets are priced at $7.99 per 12 at the local big-box store, whereas the same product from Midway USA -- an internet store -- is $3.99. Even at that, you know Midway is making a nice profit or they would not be selling it.

Take bore-cleaning solvents. A bottle of Hoppes #9, 4 oz., is priced in catalogs of the national distributors at $3.99. At the local big-box retail store, afore mentioned here, it is about $6.99.

Again and again, often with shooting accessories, the mark-ups are just shocking. Maybe 100 pct. In other words, the store buys the product at $5.00 and is going to sell it at double that price or simply not carry it.

Thanks for some of these outlets like Midway USA, MidSouth, or Cabela's, for cutting under these loony-tune, really crazy mark-ups. Of course, even the big retailers I've just named are STILL getting a good mark-up-- just not in the "robber baron" category.

How stupid do these people think we are? For the convenience of getting a product at once, off the store shelf, rather than waiting a week for an order to arrive, we will pay a premium. But double? I don't think so.

I have a retail gun counter nearby my home, in a large hardware store, that will order you a firearm. The price they quote is probably about 75 percent of what the big box places like Gander Mountain will charge for the same weapon. And you can be sure, that gun counter I mentioned is still getting a nice mark-up or they would not do it. But at least they will not go up to the "gouge the guy" bracket. This gun counter even does some free gunsmithing if you request it. Mounts the scope, tunes the trigger, etc.

When you get a few ounces of some gun cleaning product for $7.99, how much do you want to bet the the manufacture is making a BARREL of the stuff, using wholesale chemical products, for just a few dollars?

How stupid do they think we are? To answer my own question -- pretty darn stupid!
 
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As a dealer I can assure you Midway runs on a minimal margin except on those items that are subject to the manufacturers minimum advertized pricing. A lot of the stuff you see on Midway is at or near dealer cost. They are wholesalers for a lot of items and on those things they make a decent percentage but I doubt it ever exceeds 30-33%. Midway can remain profitable this way as they have a much lower overhead than a retail store. Stores are not wholesalers so they buy at about what Midway is selling for. I assure once that store pays it's rent/mortgage, utilities insurance and labor there is not a lot left in the profit colum if any. As a dealer I don't see how they do it.
 
business costs

When you look at property taxes on commerical business sites, employee benifit costs, utilities, liability insurance and other costs of doing business, 100% markup is not out of the question. With the hidden tax increases we are seeing it probably has to go up from there.
Look at a farmer. What he pays for a corn seed and what I pay for an ear of corn has nothing to do with each other.
 
I cant hate on what the Big Box stores are doing. They have a LOT more costs to cover than any internet only business plus they are in a business to make a profit, plain and simple. If their business model didnt work then they would be operating at a loss and you would almost never see any expansion. I don't think that is the case right now.

When I have to have something now then I go retail when I want a lower price then I shop online. You as the consumer have the power to decide where your dollar goes. But those same companies that charge higher prices still provide jobs that in turn puts food on family's tables.
 
Midway is one of the highest price stores around take 70gr sierra blitz king at midway, and check the price of them. And then go check the price of 70GR Blitz king at graf and sons or midsouth.
 
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big box stores

i dont like midway because they will not send bullets of the same lot to u even if u request i sent email to head man he refused so i do most my shoping at sinclair
 
I'll have to need something really, really bad to get it from Midway and they will have to be the only ones that have got it. Their components are higher than say, Powder Valley, and you will pay twice the shipping and handling costs. I've tried to contact them twice through email about various things and am still waiting on a reply. It's been at least three years now. I'll do my business with Brownells and Sinclair and Brunos.
 
I ran completely out of all my regular solvents so I visited one of the last remaining sporting goods stores in our county.I paid $9:99 for that same bottle of Hoppes and they were asking $34 a pound for the powders I normaly use.
I won't be visiting again anytime soon.
Waterboy

P.S. My local Chevrolet dealer wanted $168 for the studs,nuts and springs on my exhaust manifold.I purchased them at a local hardware store for less than $20 and the chevy dealer is now out of business.
 
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I am near a Gander Mtn store and buying reloading components there is just crazy. They charge at least $5 more per pound of powder than anyone else locally, and they had a 250ct. box of 50gr BT's for $49 when they could be had elsewhere for $34.

Overhead or not, if you can't compete pricewise, you won't be around long. we aren't talking about buying a similiar product from overseas and paying less for it. It's about buying the very same thing from someone else. Car dealers can't survive trying to sell everything for 5K more than another dealer.
 
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I'm the guy who began this thread, and I will just come back to make one more point. About three or four years ago, Gander Mountain had such a bad balance sheet, they were at risk of closing down. They were bought out lock stock and barrel by "Holiday," which runs a chain of gasoline/convenience store locations in the Midwest. As far as I know, Holiday still owns Gander Mountain.

So to be fair, even these amazing mark-ups at Gander Mountain are no guarantee that they are going to do that well. So we have to agree with Hired Gun and Dave B that Gander Mountain is maybe not being that unfair. By that I mean, maybe they are NET not that well off.

However, when you see a packet of paper targets at $7.99, when outlets like Midway are at $3.65 for the same thing, you know they are really in the stratosphere on price.

As for the big national internet marketers, I buy mostly from MidSouth and Midway. I buy about equal from both. Midsouth is usually somewhat cheaper -- it varies. The problem with MidSouth is that they are often out of things, and their estimated backorder time is rather high -- when they even promise to get the stuff at all. Midway is better on service and has more stuff in stock, but like folks say, they are not the best bargain among the big internet marts.

I am glad I started this thread because I am learning a lot.

And in agreement with guys like Dave B and Hired Gun, I really do NOT want Gander Mountain to go out of business. Even if their prices tick me off at times, I do like the place, and some of their staff are really helpful to me.

I might mention that Cabela's is in price somewhere between the local retailers and the high volume internet stores like MidSouth. The only GOOD thing about Cabela's is that they have gorgeous stores that are fun to shop. And on price, the best you can say is . . . they do beat most brick-and-mortars by quite a bit.
 
Print your own targets

I got tired of the huge mark-ups, too. So I started printing my own -- have been for over a year.

Check out this site for blank target paper.

http://pistoleer.com/targets/custom/

Even with the paper, shipping, and toner costs the price-per-each is a bunch less than buying ready-to-shoot ones fom anywhere else I've found. The paper cuts as clean as most pre-printed targets and better than some I've shot.

Glen
 
darn stupid

who pays 4 bucks for targets when you have used paper or cardboard and a magic marker!!!
 
Local GM here:
CC450's $49.99 per 1k

R15, Varget: $29.99 per lb

Winchester brass: Sky high!

All Bullets: Downright gouging! Nothing worthwhile in stock though, lol
 
Montana Pete said:
I've been shocked by the kind of mark-ups I'm seeing at a local big-box sporting goods store. The one I visit is Gander Mountain, but there are others much the same. For one example, 7" varmint targets are priced at $7.99 per 12 at the local big-box store, whereas the same product from Midway USA -- an internet store -- is $3.99. Even at that, you know Midway is making a nice profit or they would not be selling it.
How stupid do these people think we are? For the convenience of getting a product at once, off the store shelf, rather than waiting a week for an order to arrive, we will pay a premium. But double? I don't think so.
Click to expand...

No one forces you to shop there. So don't. You have a choice.

Try applying that to your taxes. You'll end up in jail.

Be happy you have choices. Because your government REALLY thinks you're stupid.
 
Gander Mountain is expensive.......

Every time I go into a Gander Mountain store there are 2 things that amaze me. #1 They don't have any inventory of reloading supplies and #2 what they do have is sky high in price. Thank god that here in the great state of Ohio we have Fin, Feather, & Fur in Ashland and The Sportsman's Den in Shelby that makes it somewhat more affordable to reload and shoot.
 
Better find a new place.....

Yote said:
I'll have to need something really, really bad to get it from Midway and they will have to be the only ones that have got it. Their components are higher than say, Powder Valley, and you will pay twice the shipping and handling costs. I've tried to contact them twice through email about various things and am still waiting on a reply. It's been at least three years now. I'll do my business with Brownells and Sinclair and Brunos.
Click to expand...

to do your shopping cause on your list the ONLY one that is NOT OWNED BY MidWay is:

Brunos.

And I stopped shopping there when they charged me a double Shipping, Package Handling and Boxing Material PLUS a double HAZMAT FEE to get 20,000 primers and 24 pounds of power in two small boxes inside boxes that could of fit in one like the time before when I ordered. If I wanted to pay double shipping I would of split the order myself between them and PV.

Not knocking Lester, it's just that some thing is out of control there.
 
I always get a kick out of these moaning and groaning threads regardless of if they are in Canada or the US.

Aren't you glad you have so many choices?
Do you ever stop and think if it were not for all the places you have to shop, the price you pay may be considerable higher?
How can you expect all stores to sell at the same price? If they did that you really would have something to groan about. :)
 
It's called free enterprise and capitalism. If you don't like a business policy or prices you go somewhere else.

Or, would you prefer that the government control it?

Quit your bitchin.:rolleyes:

Ray
 
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