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Ever wonder what high end guns cost to make?

Discussion in 'Shooting Related Threads' started by subaru, Jan 13, 2009.

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  1. subaru

    subaru TS Member

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    We may never know but the high prices some high end guns command makes me wonder what they cost to produce. Especially simple guns like a Ljutic. I know there is a lot of labor but some one does a Perazzi really cost anywhere close to $20K to make? Anyone have any thoughts on this?
     
  2. 391 shooter

    391 shooter Well-Known Member

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    "Price and Demand".

    Several other factors that plays into the equation as well.
    Marketing, value, demographics of perception, ego, reliability, etc.

    The free market sets the price. If a Gun sells for 20K it does not cost 20K. The sales price has nothing to do with cost. The sales price should be determined by what the maximum return of the product can be.


    Let us not forget "Profit" is not a dirty word.


    In my area if it ain't a Perazzi it ain't sh*t and I am glad to prove them wrong from time to time.
     
  3. g7777777

    g7777777 TS Supporters TS Supporters

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    Make?

    Design? Tooling, other overhead costs, transportation,distribution, insurance, marketing,material, etc

    regards from Iowa

    Gene
     
  4. Hydra

    Hydra TS Member

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    Here is a good example, I use to work at a car dealship. They sold a number of makers of cars but one was the Cadellac. This model car is no long made but it was a nice car as long as it was running. Anyway the car was priced at $63,000.00. They could not sell them. They finally dropped the price on the 3 they had to $32,000.00 after a number of times of dropping the price tag and sold them. Don't worry they still made money on those cars. It just shows the mark up they make on them. It I'm sure is the same with guns at the high end.
     
  5. scott calhoun

    scott calhoun Well-Known Member

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    Been to Kolar a few times, I have a combo and a couple of my friends have trap singles.

    My buddy and I were walking the floor while Jeff was working on inletting my stock and stopped in an area where they were machining receivers. Talked to the supervior/foreman and he was explaining all of the maching on a receiver. He said there were over 300 machine hours in a receiver.

    Jeff also told us that it cost him over $1000 per gun for employee health insurance. That was almost 3 years ago.

    Scott
     
  6. Hitapair

    Hitapair Active Member

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    300 machine hours??
     
  7. oletymer

    oletymer Member

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    The cadillac example is without doubt the biggest wopper I have seen yet. My parents had a dealership for 29 years. I helped pay the invoices on the weekends and never saw a markup any where near that example.
     
  8. RickN

    RickN Well-Known Member

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    Hydra, they didn't make money on THOSE Caddy's.
     
  9. KENENT1

    KENENT1 Active Member

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    300 hrs. = 7.5 weeks @ 40 hrs.

    There are approximatly 2000 hrs. in a year, this = 2000 / 300 = 6.66 recievers per year.

    I own a machine shop......300 hours is alot!!

    300 x $45 hr. = $13,500.



    tony
     
  10. Hydra

    Hydra TS Member

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    I taked to the sales person who sold one of the cars. I also saw the first sticker price tag. It did say 63,000 and she told me that they had a hard time selling the cars and just wanted to get rid of them. Even she said that they were not losing any money on them at 32,000.

    Oletymer, are they not making that much money on the cars or are you just saying that because you were once in the car sales business and don't want people to know what they are really making per sale? Remember I was one at a dealership and what they did to the customer at the garage should be a crime. And yes they did get sued from time to time. The dealer did not win either.
     
  11. shot410ga

    shot410ga Well-Known Member

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    I don't think it would take more than 20 min. to machine a receiver on a quality CNC set up. And that's most likely on the very high side. 50 piece run: programing 45 min. (computer), setup 1 hour, 20 min. per part. This would be finish machining from a cast part. Block steel or alumnum would require longer.
     
  12. Don Rackley

    Don Rackley Well-Known Member Supporting Vendor

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    I was at a factory years ago and was wondering the same thing, but approached it from a different angle.

    # guns * an average sales price (wholesale) = revenue

    Suppose all raw material average $1,000 for a O/U gun. # employees making good hourly wage (then triple it for overhead, depreciation, machines, etc) * 2000 gives you labor cost.

    Take 10% of revenue for advertising, 10% for insurance, other payroll (owners & Sr people) and you can figure it our pretty quick.

    There is a lot of money in high end trap combo guns.

    Anyone notive price reductions with the US dollar getting stronger against the euro?

    Don Rackley
     
  13. KENENT1

    KENENT1 Active Member

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    shot41ga......I think you are very close on your estimate.



    tony
     
  14. GunDr

    GunDr Well-Known Member

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    Don't compare college text books to trap guns, unless you're willing to accept the ATA telling you that you can only shoot your gun for one year, and then replace it the following year because it's obsolete or "just-not-up" to their curriculum.

    Colleges and text book suppliers are a bunch of crooks!!!!!
     
  15. 22hornet

    22hornet Well-Known Member

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    I'll second that, GunDr. You ought to see medical school book prices. Holy smokes!!!
     
  16. BT-100dc

    BT-100dc Active Member

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    Someone once told me the only good thing high end guns are good for are for trading up for more expensive high end guns. The way I see it is if you can afford it and you want it, buy it. An old guy once told me the reason he bought his high end gun was "that you're dead a long time." Made sense to me. Darrell
     
  17. Ken X

    Ken X TS Member

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    Hydra -- Somebody was BSing you big time! Dealer cost depending on the model is and has been for many years between 15 and 25% below sticker price. The higher priced ones, like Cadillac and Corvette around 25%. Very small cars closer to 15%. Mid-size cars cost for many years were 19% btelow sticker price. You can see those prices in any magazine store. I sold many of them 30=35 years ago for maybe $300 over dealer cost. Nowadays, dealers want maybe $400 to $800 over dealer cost.You want a Cadillac? You will pay $1000 to $2000 over cost!

    Actual factory cost has always been kept a secret. The factory always tries to squeeze the dealers on the markup.
     
  18. Barry C. Roach

    Barry C. Roach Well-Known Member

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    Iiability insurance is probably higher than 10%. These guys making just a few guns a year are hardest hit.
     
  19. BRGII

    BRGII TS Member

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    Me thinks Hydra was trolled by the dealership/saleswoman, or he prevaricates upon occasion. MHO BRGII
     
  20. oletymer

    oletymer Member

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    Hydra does not live in the real world.
     
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