Used guns and taking in trades - used gun business

Over twenty years ago, I did a lot of used-gun business with a gun dealer near the Army post where I was stationed. One day I asked him what was the single most important factor for a gun dealer to be successful. Without hesitation he said a dealer must be willing to take in trades and develop good skills in dealing in used guns.

The key, of course, is to "develop good skills" in the used-gun market.

Tom Foster of the Shooter's Mercantile in Salem, Ore., is a successful dealer of used guns. A full-time gunsmith before opening his full-service gun shop, Foster knows a great deal about evaluating a gun's condition. However, even he uses a checklist when considering a used gun for purchase or trade.

The checklist includes examining the gun's overall appearance. He checks the outside of the barrel for dents, extra screw holes and evidence of barrel shortening. Foster uses a bore cleaner to properly evaluate the bore's condition. He gives the stock careful examination, paying particular attention to cracks, deep gouges, signs of shortening, and condition of the finish. Once he's done, he turns the gun over to his resident gunsmith who checks feeding and functioning with dummy rounds, the headspace, and test-fires the gun.

Obviously, not every dealer has a full-time gunsmith in the shop. However, every dealer can have a good selection of dummy ammunition for function testing. For liability reasons, every used gun should be test-fired. If no range is available, a compact bullet trap is a must.

Foster offers a 30 day warranty on the used guns he sells. He will, at no charge, fix, replace, or refund the cost of the gun if it breaks or will not function properly in the 30-day period.

"Our warranty alone has helped our used-gun sales tremendously," said Foster.

In examining used guns, dealers should also look for mixed serial numbers on the parts. Even though the gun may be a perfectly good shooter, if it doesn't have original parts, it's worth less.

In addition, look for collectable features that may enhance a gun's value. Military models often have the date they were made. Note the manufacturer, special markings, unique features, and other details. Such features can increase the value of a gun significantly, sometimes hundreds or even thousands of dollars.

In evaluating the value of used guns, experienced dealers rely on a good library of reference books. The cost of even an expensive reference book can be easily made up in the sale of just one gun. Two books to consider are the 1999 Gun Digest from Krause Publications, and the 19th Edition Blue Book of Gun Values from Blue Book Publications Inc.

Several of the better price guides can be of tremendous help to identify guns with collectible features that add to their value. A word of caution, though, often the prices given are inaccurate or unrealistic.

Setting the right price to sell the used gun and make a profit requires different marketing techniques. Dealers should not treat used guns the same as they do their new guns. For example, military surplus guns that are available in volume from importers or distributors are generally marked up for a normal profit margin. This is not the best approach.

Each military surplus firearm differs significantly. By pricing them all the same, dealers can lose a lot of profit. Customers will cherry pick the lot and leave the dealer with the worst examples. The bottom line is military surplus guns should be graded and priced individually, just like other used guns. This also applies to police department trade-ins.

The single best gun trader I know is an amiable fellow named Terry Good who owns and operates a gun shop in Chelmsford, Mass., called Collector's Firearms and Militaria. Despite his shop's name, Good also sells a lot of new guns. When anyone shows an interest in buying a gun, Good asks it they have anything to trade.

"A high percentage of people have guns or related items that they are willing to trade off but they never consider the possibility until I bring it up," Good said. "In an amazing number of cases, it's the trade that clinches the sale."

Once a gun has been offered for trade, Good asks the customer if they have any ammunition, reloading dies, holsters, scope mounts, or other accessories specific to the gun thai they'd also like to trade. In most cases, the customers are happy to get something for those items even if it's not very much. He then turns those items around for a substantial profit.

While many gun dealers despise the gun shows, Good says they are a big part of his business. He also has found the shows are a good source for fresh merchandise for his shop.

Many gun dealers avoid the used-gun business. Some are just lazy and don't want the hassle. Others fear making a mistake and paying or allowing too much for a used gun. Others will take in used guns only if they practically steal them, and a huge profit is virtually guaranteed.

However, truly successful gun dealers learn to offer enough in cash or trade for used guns to make it worthwhile to the seller, while still allowing a good profit margin. They get a great deal of repeat business as a result.

COPYRIGHT 1998 Publishers' Development Corporation
COPYRIGHT 2000 Gale Group