Profit margin on Cartridges

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From a business perspective I cant see how less than 20% can work, if someone offered me a deal where I outlayed say 20k on carts and with 10% margin I make 2k back I wouldn't do it (not unless I had a good credit terms)

I know some say its a loss leader but I think there must be some decent margin, I can think of 5 better things to invest that soft of cash and make at least 40%.

 
Does anyone know just how low the margin is on cartridges. I cant see it being lower than 20%, just interested.
I think it depends whether we're talking clay or game as the latter are routinely much more expensive for the same components so personally think they could be getting on around 35% for certain premium loads.

Regular bread and butter budget loads almost certainly earn the dealer less than £20 a thou but a thousand top line shells would maybe double that ?!

The manufacturers on the other hand make absolutely nothing and have been busy saving us from the effects of global rises in lead, plastic and transportation prices.

 
Before the price of lead went stupid and a decent cartridge was about £100 per thousand (probably about 15 years ago now) the shop I worked in at the time sold cartridges literally at cost in an effort to get people through the door. It worked, and most people bought something else when they were in, so it made it worthwhile.

I don't know the current trade rates so cannot comment on todays price, but I suspect there is a mark up of the amount you suggest, mainly because the price is very similar now countrywide and I don't believe shops would sell anything at a loss, particularly those only selling cartridges and nothing else.

The lead price was blamed for the price hike, but this has since fallen back to normal levels, but the cartridge price did not reduce, so it is my belief that there is some profit in them now.

But then, that's business. You can't deny anyone a profit provided it is not ripping everyone off.  :biggrin:

Just wish I bought more at the time! 

 
Hi as a gunshop co owner I can assure you that profit on cartridges is far less than 20%

We are lucky to make ten pound a thousand and that doesn't take into account moving them

Of trucks and any admin cost it doesn't matter whether there premium loads or budget the only time there's more profit is over the counter single box sales

 
Does anyone know just how low the margin is on cartridges. I cant see it being lower than 20%, just interested.
About the same as this is worth:

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Hi as a gunshop co owner I can assure you that profit on cartridges is far less than 20%

We are lucky to make ten pound a thousand and that doesn't take into account moving them

Of trucks and any admin cost it doesn't matter whether there premium loads or budget the only time there's more profit is over the counter single box sales
. I told you so!! There are the few smaller shops that will certainly make a bit more, but £10 / £20 per thousand is about it!! So I've been told. Hamster is most probably correct that game shells would most probably get the shop owner more coz most are sold in 100s not 1000s
 
Have to wonder why steel cartridges are more expensive! The price of steel of course.......

 
And what is the margin on game cartridges...?
. That would be down to the individual retailer, I wouldn't of thought it would be a lot more, but know a man that does so will report back after today's shooting! Will be at gunsite and Westfield!! Good shooting today guys
 
Not going to argue about profit because I have no idea ...but if I buy 10k at once I save €4 per box of 250 which equates to a 10% saving and these are a budget price (€160/ thousand)  cartridge made by Cheddite and sold in Decathlon under another brand name. So for big sellers there must be some sort of profit margin?

 
The way this thread is going along, I may stop shooting all together and send a weekly cheque to Just Cartridges.

I am sure I saw David and Sue Bontoft at Keele services the other day in a Trabant.

I think Paul James was just in front of me at the Salvation Army's soup kitchen at Christmas.

Wanted

Any cartridges surplus to requirements . Will pay up to £60 a thousand .

Help the Aged.

 
The way this thread is going along, I may stop shooting all together and send a weekly cheque to Just Cartridges.

I am sure I saw David and Sue Bontoft at Keele services the other day in a Trabant.

I think Paul James was just in front of me at the Salvation Army's soup kitchen at Christmas.

Wanted

Any cartridges surplus to requirements . Will pay up to £60 a thousand .

Help the Aged.
Good points here Salopian. It's always a tale of woe at my local supliers.

So where's the profit? With the Manufacturer or the Retailer?

I know of several gunshops and grounds closing down (not just the fault of cartridge sales I know) but I cannot remember a cartridge manufacturing company going off the map in recent times (several take-overs and buy-outs but the business is still there).  :biggrin:

 
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