Actual Gun Cost???

[local2fed]

For shits and giggles, let's take a Glock. Average store price is 500-550. What do you think that gun costs Glock to make? My guess is $75-$100, taking into account overhead. We were having this discussion at work the other day.

 

[gsneff]

I have never actually looked into if any of the manufacturers are publicly traded, but if they are you can get look up what they made and how many units they sold. This would give you their net after marketing, salaries, ect. No need to guess.

 

[sandman7925]

Material don't cost much. The money spent on R&D and on insurance however has to be huge.

 

[SpeedRacer]

I'd bet $100 is pretty accurate. You also have to take importation into account. A good example is the HS2000, which was sold at retail closer to $200 back where it came from. Then Springfield started importing them, renamed them "XD" and voila, $550 pistol.

Another thing I do know is retail level dealers don't make much at all on firearm sales (maybe 5-10%).

 

[kajuntriton]

I bet it is much less than $100 per unit. I have spoke with other manufactures such as Motorcycles and Boats. The big cost that we pay for is lawsuits, product failures, and warrenty repairs, and then employee overhead. The actual item cost/unit is actually very low to produce. I would be HIGHLY shocked if the actual cost for clock to produce say a G22 is around $15 to $25.
R&D, Advertisment, Company insurance, overhead where the cost is at.......And I would guess this would depend on the actual number of units they produce/sale in a quarter/fiscal year!

 

[Nomad.2nd]

The Subject came up at a SHOT show...

IIIR just over $80.

 

[JBP55]

Glock Austria to Glock USA to Distributor to Dealer to Buyer.

 

[jguilletjr]

For shits and giggles, let's take a Glock. Average store price is 500-550. What do you think that gun costs Glock to make? My guess is $75-$100, taking into account overhead. We were having this discussion at work the other day.

The cost of r&d, tooling up, running the factory, paying employees, etc all go into the "cost". The purpose of business is to make a profit. The real question is what is the profit margin on each unit sold?

 

[eman2k5]

For shits and giggles, let's take a Glock. Average store price is 500-550. What do you think that gun costs Glock to make? My guess is $75-$100, taking into account overhead. We were having this discussion at work the other day.

Nice, well that sounds to me like a good discussion at a bar and grill. My thought about $250 which includes R&D, Cost, Advertisement and distribution.

 

[eman2k5]

Maybe a little high but low guess is $200

 

[SGT_Kramer]

150 in each gun rest is all chum cash. Does glock have to advertise? Seems like they have 1000 + fanboys at any site that have put 2 mags thru the gun and would claim they could kill the devil himself with it.

 

[JR1572]

There was an article in Forbes back in 03 about Glock and iirc it stated that it cost around $75 to produce each pistol.

$75....

Amazing.

JR1572

 

[Taparia]

There was an article in Forbes back in 03 about Glock and iirc it stated that it cost around $75 to produce each pistol.

$75....

Amazing.

JR1572

Here is that article

http://www.forbes.com/forbes/2003/0331/064.html

 

[JR1572]

Here is that article

http://www.forbes.com/forbes/2003/0331/064.html

Didn't believe me?

I'm joking...

JR1572

 

[eman2k5]

wow........

 

[nickatnite]

And what is even more amazing, people on here selling used Glocks for more than they can buy them new...

 

[dwr461]

I was to going to refer everyone to that article. But you beat me to it.

Now you know the real reason every gun manufacturer is moving towards poly framed pistols. They have a much higher profit margin than metal frame ones. I refer back to the Chuck Hawks article about the gun industry giving us cheaper to manufacture weapons that are marketed to us as "improvements." I wonder how much a H&K cost the company to make? They sell for even higher prices than GLOCK. I bet they don't cost much more than $125 per unit at the factory to produce.

That behind said the GLOCK DID revolutionize the handgun marketplace. It does require an expensive trained gunsmith to make or repair. (for the majority of the time) The GLOCK is the AK47 of the handgun world. I've owned three over the years. I never shot one well.

Dave

 

[Blackhawk]

I once worked as an Industrial Engineer for a manufacturing business (7 plants in as many states). Part of the job was cost analysis. Across the board, the prices we set for our items was twice the cost of manufacturing (labor, materials, overhead). This price was at our distribution center. The price generally doubled again as it went thru other distributors to the final retailers.

 

[davidd]

http://www.businessweek.com/magazine/content/11_04/b4212052185280.htm

A more recent article on Glock in Businessweek. It will raise your blood pressure to read, but it also includes some history on the company.

 

[Mjolnir]

2008 shot: $52.

Listening to Gaston, I jotted the info down. The cost manufacturing the slide assembly, barrel and sights cost the same as the frame assembly. I recall him stating that the biggest cost save was... the magazine follower. Initially they were MILLED.

Somewhere I have the index card with the info on it: $26 or $27 for the upper and the same for the lower.

Amazing.