PICKET POST ARMORY
From the Mitchells

What We Actually Make on a Firearm

There's a myth that gun shops get rich on the gun. We're a family shop, and we'd rather hand you the real math than have you wonder. On a typical $600 rifle, we keep about $73.

$
A representative firearm at this price.
GLFA AR-15 · a common rifle
What we pay the distributor Our wholesale cost — guns run tight, roughly 18–20% off the shelf price on average.
$482 80.4%
Payment processing Our processor (Payroc) takes 3.25% + $0.20 on every swipe — across all card networks.
$20 3.3%
Cost of doing business Hosting, insurance, licensing, the background-check paperwork, packaging — allocated per sale.
$25 4.2%
What's left for PPA What we keep on the gun itself — a modest margin; accessories run higher.
$73 12.2%
Distributor Payment fees Cost of business PPA keeps

The markup is smaller than you'd guess.

Most folks figure a shop pays three or four hundred for a $600 rifle — the kind of markup you see on coffee or clothes. Firearms don't carry that kind of room. We pay our distributors roughly 80 cents on every advertised dollar, so a gun lands on our shelf with only about 18–20% in it — and the big-box stores buying by the pallet get sharper pricing than a family shop like us. That's the whole starting margin, before another cost touches it.

Then the quiet costs take their cut. The moment your card is swiped, our processor takes 3.25% plus 20 cents — around $20 on that rifle. After that come the fixed costs of running a licensed shop, which land near $25 a sale — about the same whether the gun's $300 or $3,000:

What's inside that $25
  • Website hosting, domain & plugins
  • Business license + FFL license fees
  • General liability + firearms-specific insurance
  • BATFE compliance + the background-check time (Form 4473)
  • Packaging, shipping supplies, transfer labels
  • The card processor's monthly minimum
  • Inventory + accounting software

Add it up and we keep about $73 on that $600 rifle — roughly 12%, and anywhere from about 8% to 13% depending on the gun. And honestly, that $25 runs high right now: we're a young shop, so it's spread over fewer sales — it'll only get smaller as we grow. Honest money, and a long way from the $300 most people picture.

So where do we actually make money?

Honestly? The accessories. Optics, holsters, cleaning kits, ammo by the case — that's where we keep more like 20% — well above what's left on the gun. The firearm is what brings you in; the gear around it is the business, and it's why we can price the gun this tight and still be here next year.

William Mitchell June 2026

Common questions

Why are online gun prices all the same?

Manufacturers set a Minimum Advertised Price (MAP) — a floor below which no dealer can advertise. Reputable shops never go below it, so the price looks identical everywhere. What you're actually shopping is the dealer: how fast they ship, whether they answer the phone, and whether they'll be straight with you about what's in stock.

Can I negotiate the price of a gun?

Generally no — MAP prevents any reputable dealer from advertising below it, and that's a good thing for the industry. What you can do is shop the dealer. Transfer speed, honest communication, and not getting ghosted after you hand over your money matter a lot more than saving three dollars on a rifle.

What fees does Picket Post charge, and what else should I expect?

Our card-processing fee is 3.25% + $0.20 — that's it from us. On top of that, expect shipping and a background check fee charged by your local FFL (a federally licensed dealer) — typically $25–$50, set by them, not us. No hidden charges on our end.

Why does my gun ship to a dealer instead of my house?

Federal law (the Gun Control Act) requires firearms purchased across state lines to transfer through a licensed dealer. Your gun ships to a local FFL of your choice, who runs your background check through NICS (the federal background check system). Once you're cleared — usually 1–5 business days after it arrives — you pick it up in person.

From the Mitchells

Straight answers, honest math.

Got a question about a specific firearm, or how our pricing compares? Just ask — we're a family shop in Gilbert, and you'll be talking to one of us, seven days a week.

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