doublegunshop.com - home Forums General Discussion DoubleGun BBS @ doublegunshop.com Cabela's Price Multiplier

Kstt was right about the Fox gun he implied was underpriced. I read his post, sent Cabela a message about the gun, it was long gone.

Reasonably comparable guns sold at Holt's March auction for prices that translate into $5,000 - $7,000 delivered in USA. Keep in mind that Cabela's would have to pay the same price as you or I for these guns. Per discussion thread with Hugh Lomas, a dealer will need 30% mark-up to stay in business. So, a gun that hammers at £2,800 in London gets into the hands of a USA buyer for $7840 (about 20% buyer's premium, about $2/£1, and air freight = a 2.8 multiplier to hammer price). $7840 with a 30% markup = $10,192.

For anyone wanting a high condition Brit 20 gauge, that is the market. Of course, lower condition guns are cheaper - a lot cheaper. My point is not that Cabela's price is "correct," rather, they are certainly within the market. High demand for these scarce items is really pushing the market price up.

I believe Cabelas is still privately owned, and must be stuffed wiht retained profits. perhaps owners also know that guns hold value over time, and unlike last years clothing, has true appreciation potential.

along with all the other good observations above, could it be that the inevitable inflationary cycle, when it returns, will lift fine and average quality gun prices while the competition to make cheap clothing will deflate fabric values?

I know I justify paying too much for EVERY GUN I BUY, because I want it, and know it will hold value more than any other consumer item I were to buy instead. Like fine jewelry for a loved wife returns values beyond measure.

Profit margins on clothing allows a retailer to make money even when they dump last years merchandise at rock bottom sale prices ..... and some stuff is made as "sale" goods. Looking at their "fine gun" prices I think the mark up is about 20 / 30 % with a fairly high overhead (sq ft of space for units sold) . . Clothing on the other hand is likely to be 40 / 50 % with lower overhead. As someone has already mentioned, the "Fine Gun Room" is part of the decoration. If they ever need the space they will nail the "fine guns" to the wall over the hunting boots ..... kind of like they do in the "Old West" restaurants .....

Al

Cabelas is a great company to do business with and every once in a while you can pick up a bargain if you are knowledgeable. I purchased a near 100% mid 20's Fox A grade for $1200. The gun room believed the stock was refinished due to the flat top checkering hence the low price (A grades came from the factory with flat top checkering). The problem is (for collectors)they are getting much more knowledgeable, so the bargains will be fewer in the future. Even if they ask more for their guns you can always be sure you will get your money back if you are not satisfied. I believe they have been great for the market.

Nope, went public about four years ago and it's been all downhill since. Stock price topped out around $22 a couple of years ago and also straight downhill since.

sv

Ticker CAB,been hit pretty hard like most of the Retail sector;
http://finance.yahoo.com/q/bc?s=CAB&t=1y


much better money in USO,UNG and OIH !