Why not try auctions as a good source for acquiring used guns?

Shooting Industry, Feb, 1989 by Chuck Karwan

Why Not Try Auctions As A Good Source For Acquiring Used Guns?

Once a firearms dealer has made used guns a significant part of this business, there is an on going requirement to find such guns to add to the business' stock. One of the best sources for acquiring used guns for resale are auctions. In some cases auctions are also a good source for bargain priced new guns, ammunition, and accessories as well.

Firearms auctions can come in a wide variety from simple farm or estate auctions, where firearms make up a small part of the auction, to large, nationally advertised firearms auctions run by big name auction houses. Both can be excellent sources.

Some antique auction houses that deal primarily in furniture also have firearms as a small part of their business. State and local police in many areas conduct periodic auctions to dispose of firearms that they have confiscated, seized, or otherwise acquired. Similarly, state fish and wildlife departments sometimes have auctions consisting of guns that they have confiscated from poachers and game law violators. There are also "going out of business" auctions for gun shops, sporting goods stores, and hardwares stores that can have guns as all or part of the items to be auctioned off.

There are various auction houses that specialize in firearms and related items as well as auction houses that conduct infrequent firearms auctions as a part of their total business. Even the U.S. Post Office conducts periodic firearm auctions at the regional level to dispose of guns they have accumulated from confiscations, inability to deliver, or from being lost or damaged in transit and then having been paid off with insurance payments. All of these and more offer auctions that can be an excellent source of used guns for the dealer.

About Bidding

Most auctions will be the type where you participate actively in the bidding. The auctioneer will quickly identify the individuals that are interested in the item and will go back and forth between them, raising the bid in increments until only one person is left with the winning bid. Sometimes, as is usually the case with the postal auction, bidding will be done by mail, using a "sealed bid". In a sealed bid auction you have to figure the selling price you could expect from the items in the lot you are bidding on and work backwards, to figure out the price you are willing to pay. This bid is submitted in writing. At a specified time all bids are opened and examined with the highest bid for each lot winning.

About The Auctions

Each type of auction has its own peculiarities that a smart dealer can take advantage of. For example, estate, farm, or antique auctions that have some guns as a small part of the total auction will not usually draw in dealers from any distance. It is often possible to make prior arrangement with the auctioneer to establish a time in the auctions when the guns will go up for bid. This can save you wasting a whole day to bid on just five or ten guns. Without the competition form other dealers, it is often possible to get the guns quite reasonably.

At large auctions of expensive collectible firearms what can often happen is that the cheaper, more common guns will be largely overlooked while the rarer ones draw all the attention. This can also happen if the auction has a primary theme such as Winchester lever actions or Colt Single Action revolvers. Then the guns that do not coincide with that theme will often go overlooked by the collectors, who are there for that particular specialty. In both cases the dealer can often snap up the overlooked guns at a good price.

Postal Auctions

Because the postal auctions will have a high percentage of guns that are damaged, these firearms can be particularly good money makers for gunsmiths, dealers that have a gunsmith on their staff, or dealers who have a close working relationship with a gunsmith.

On one such regional Post Office auction a gunsmith friend and I combined forces. We both inspected the lot of guns, ammunition, and accessories and made up separate evaluations. We then combined our analysis and compared notes to arrive at our bid. It turned out that we had the winning bid.

We then combined forces again. My gunsmith friend repaired and refinished the broken guns while I sold the guns and other accessories. We made sure to share our expenses and time as equally as possible. When the dust had settled, we made a nice 66 percent profit on our purchases. Neither my gunsmith friend nor myself could have been as successful without the other's knowledge and skills.

"Going Out Of Business"

Auctions

The "going out of business" auctions for sporting goods, gun shops, etcetera, each have their own peculiarities. It is my observation that expensive guns often go for a fraction of their market value at such auctions. Consequently, they often constitute the best buys and the best potential profits. Less expensive guns, on the other hand, often go for a price too close to full retail to be good buys. At one auction I attended, I remember watching a Ruger Standard Model .22 pistol be bid up over full, new retail in the excitement of the bidding.