I had the following explained to me many years ago. In all fairness in comparing this seller with most other dealers seen on Auction Arms or Gunbroker, this particular seller is mostly a consignment dealer where he makes 15% (which he told me a couple years ago) on every gun sold. He did not have to purchase the vast majority of the guns he sells. Previous owners send the guns to him to sell. Whether he sells a gun for $100 or $10,000 he makes 15%. Most other dealers have to buy the guns that they are selling and then list them for resale in hopes of making a profit. Many times these dealers sell at a loss when they purchase a "hard sell". That makes a big difference in listing a gun starting at a $.01
True, the mentioned seller has built a reputation over many years and does an excellent job of presenting other people's guns for sale. By not having to search for guns like other dealers hoping to find guns that will sell at profit, he can concentrate his efforts in good photos and accurate descriptions. If every seller on Gunbroker switched to consignment only, they would go out of business in short notice. To further explain, if a seller on Gunbroker "buys" a gun at $1000, starts it at a penny and sells for $900 and he loses $100, that hurts. If the seller mentioned above sells the same gun for $900 he makes $135. Not paying for something to sell is usually a "win win" situation.
