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

Shooting Industry, Feb, 1989 by Chuck Karwan

Another thing I have noticed at such auctions is that new in-the-box guns also often sell for well under normal dealer's prices. Also, new ammunition and accessories invariably sell for a fraction of normal dealer's prices. Consequently, these items can all constitute excellent buys and profit makers. And, because these new guns, ammunition, and/or accessories have never been sold in a retail sale, they can and should be sold as new, unless, of course, they have any noticeable "handling" damages to them.

Some Rules To Follow

There are a number of rules you should follow if you plan to attend auctions.

* First, most auctions publish a catalog or a list. By all means buy one. It is an absolute necessity for identifying the guns you might want to get for your business, taking notes on condition and your highest planned bid, and for following the progress of the auction.

* Almost all auctions have an inspection period. It is imperative that you take advantage of it. When a firearm is being held up by the auctioneer you might not be able to tell that the stock is cracked, the bore is pitted, and the metal refinished. It is far better to look the gun over in advance than to make a mistake later.

One of the things you can do to help the inspection and evaluation process is to take a kit of items along that includes such items as a bore light, a cleaning rod, some patches, and some cleaning solvent. Also, it is important that you bring along price guides and reference materials that can help identify and price the guns in the auction.

* After the guns have been inspected, establish the price you would be willing to pay for each before the bidding begins. Basically, this would be the price you would be willing to pay for the gun if it came into your shop.

The easiest way to identify this is to establish the expected retail price and subtract out the desired profit margin. Once you establish this price, do not exceed it by more than part of a bidding increment. For example, if your maximum price is $175 and the bid is at $160, with bidding increments of $20, you may want to bid $180. However, once the bid is at or higher than your maximum--drop out of the bidding. It is all too easy to get caught up in the excitement of the bidding, going higher than you should have. Establish your maximum price and stick with it. It is also important to realize that you may be bidding against a collector who is willing to pay up to full retail price. He doesn't have to make a profit--you do!

* It is extremely important to find out in advance the buyer's terms and acceptable means of payment. At some auctions, whatever your final bid was is what you actually pay. At others, there is a buyer's premium. This is a fee, usually around 10 percent, that is added to the bid price as part of the auctioneer's fee. If the auction has a buyer's premium, it is important that you adjust your maximum price down to compensate for it, or it will come out of your profit margin when you go to resell the piece.