Gunsmithing Let's talk Credit Cards

[Bradu]

That's fine. It's still cheaper than local. And I just picked midway as an example. You just feel free to over pay for stuff. I'm not going to do it.

This is a poor comparison, you forgot to add the 7% sales tax or whatever it is depending on where you live for the LGS. You pay the fees pretty much everywhere, you just aren't seeing it displayed.

 

[sakobob]

as i said before mulely just don't get it.or he is right and we are all wrong
no point in arguing with him about it any more he doesn't pay the 3%
cause they don't show it as a line item.

 

[Jeepcreep]

The convenience of CC's and all the bullshit that accompanies them are required if you want your business to stay competitive, no matter what industry. If memory serves, my wife (optometrist) found a different swipe-machine company and saved a little per month for her business. I think most consumers know about and understand the extra fee. You cannot expect a business, especially a small one, to eat that extra few percent just to appease the few cheapskates that want everything now and for next to nothing. And if any of your customers are like my wife, they LIKE to use the CC's for the air miles they get.

On a side note, if you're a business owner and but lots of inventory, you do it with an air miles card and pay it off every month. We rarely pay for flights anymore and fly 1st class half the time.

 

[Mark Housel]

I'll take this bait.

Autoparts. A $214.00 Optima Battery at a parts store is suddenly $360.00 at a garage. That's just at a true 40% markup.

Gunparts. A $350 barrel that costs an extra $20 to ship is now $698.00 with a true 40% markup.

Tell ya what, if you want to pay almost $700 for a barrel or an extra 150 some odd bucks for a battery and convince every other gun enthusiast out there to do the same I'll be the first in line to drop my fee.

You PAY that fee everytime you use your card buddy. Overhead costs are absorbed by the consumer in every form of business. Your just not seeing a line item charge for it.

So, you can see it two ways. [A] Your way which labels us who charge this as finks. (B) Or view it as a business who tells you up front before you spend a dime that a service fee is added to each invoice.

Either way, you use a CC your paying that fee. All the way down to a stick of gum at a 7-11.

Hope this helps.

Chad

THIS ^^^^^^

I choose Option B
Thank you Chad

 

[dakor]

I requested my merchant account be closed and it is supposed to be done at the end of the month. I have a different business model than most on the rifle building side I have my customers supply the parts and pay me the labor portion once the build is complete. Most customers are OK with this only a few I have had to order something for their build and I require a deposit for the parts up front the labor is due once the build is finished. Looking back I have had one person in a year that paid by credit card for a rifle build. On the retail side I figure if a person wants a firearm bad enough they will bring cash in or if out of state send a money order. I always have the Paypal option available if someone really wants to use Electronic Payment or a credit card for something so I am not completely without a credit card option.

 

[CMH]

I always have the Paypal option available if someone really wants to use Electronic Payment or a credit card for something so I am not completely without a credit card option.

Maybe I missed something here, but...wasn't a major contributor to your decision that your CC processor was anti-gun? And you are using Paypal as your backup?!?

 

[Rthur]

Chad hit the nail on the head. We have become complacent with what we accept as reasonable charges for card use. I'm not a banking/cc expert but the 3% is extortion. In todays world electronic money is handled in microseconds. Just the "Banks" wanting their piece of everything.

R

 

[dakor]

It was one of the reasons. Paypal is that a backup they have relaxed on some related to firearms I would rather not use it at all and have the option not to. I have also decided with no credit card processor and I do not really want to use Paypal I am letting my online store expire in June when the domain name is due.

 

[rdinak]

Couple gun shows back there are a couple of guys with table full of powder and primers..including Varget and a few other hard to find goodies. Start talking to the guy and he says hey we are not set up for credit cards. I laugh thinking..if I cant pay cash I cant afford it anyhow. Walked out with a bag full of goodies

 

[LRI]

I might consider a 40% markup on auto parts at a garage... If it was 40%.

I had my truck in an alignment shop a week back as was told that I need a new balljoint at a cost of $122. Funny thing is, the Moog part that they'e quoting me is $52 at the local parts shop. i understand how business works - you have to sell your gozinta for more than what you bought it for - but 250% markup seems a bit on the outrageous side.

Good gun businesses are hard to find - and if I can make a small purchase with a 3% markup, I'm happy to do it. If I'm making a four figure purchase, I've already thought it through and I'll pay with a check to ensure that paper trail exists, and to 'do my part' to ensure my gun shop is going to be around the next time I'm needing a new gozinta.

As once explained to me, a 40% markup is the base price DIVIDED by .6

So. 52/.6 is 82.00 bucks.

Looks like your shop is marking up a bit more. 60%.

52/.4: $130.00


Have to agree that is steep, but in today's world the bucks don't travel near as far as they used to.


Also explained to me once (different subject, kinda related)

In the 1800's an ounce of gold bought you a nice suit of clothes.

2014: Same ounce of gold buys the same nice suit...

Gold's value hasn't changed. Our dollar's just gone to chit...

 

[Edds]

Markup is calculated as a % of your cost. Margin or GP (gross profit) is calculated as a % of your selling price.

If you pay $1 for something and sell it for $2, your markup is 100% and your GP is 50%.

 

[jashmore1234]

This is how quite a few places go. They charge you the 3/4/5% anyways, but give a 'cash discount'. Smoke and mirrors.

Not smoke and mirrors, most merchant will tell you can't charge a fee for the cc use. The cash discount is the best way around the merchants' rules.