Is he being Honest?

Discussion in 'The Powder Keg' started by Mdavis0209, Aug 27, 2010.

  1. Mdavis0209

    Mdavis0209 G&G Newbie

    Had a gun put up for consighnment at local gun shop.He charged me 20% of what I was asking for it which was 1200 dollars.He could not sale it in his shop for 5 months. So he started the gunbroker auctioning which was the shop owners first time to do this.Also my first time for gunbroker and first gun on consighnment.The gun sold for 2200 dollars. The shop owner is just giving me 1200 dollars and he is keeping the 1000 dollars profit for himself to pay his expenses. Which is shipping, gunbroker fee ,and paying the guy who working his gunbroker account. So my question is this fair(honest) business.I was under the assumption that he made 20% of what the gun sold for.

    Thanks in advance
     
  2. MosinMan

    MosinMan G&G Evangelist

    He still should only get 20% of what the gun sold for because that was the agreement... I hope you didn't kiss this man because he sure screwed ya! Tell him you demand that he only gets 20% of what the gun sold for, or you'll take him to court. It was his idea of putting it up on GB.
     

  3. Ninja Piper

    Ninja Piper G&G Evangelist

    I agree, he should only get 20% of the total. That should not include any of the shipping, fees, etc... unless that was previously discussed before the listing was put up. I would write a letter explaining that he was only entitled to the 20% as of your agreement and you would like the rest back. If he doesn't comply, then you will be taking him to court. Hopefully he will make this right for you. If he doesn't, I'd do everything I could to spread the word about his dishonest dealings about town. It's not slander if you are simply relaying your experience with him.
     
  4. Mdavis0209

    Mdavis0209 G&G Newbie

    Well it hasnt been sent off yet. But when he talked about putting it on gunbroker I agreed because I knew it would sell for more.Also we never talked anymore about money because I was assuming it was 20% of what it sold for. There was never any talk about him keeping all profits of what it makes. Is this how a consighnment works? Any personal experiences?
     
  5. Cyrano

    Cyrano Resident Curmudgeon Forum Contributor

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    From what you've written, I'm not sure of his consignment structure. I think what you are saying is that you and the shop owner agreed that he would take 20% of the selling price as his commission for selling your gun.

    He priced it at $1200. That means he expected to make $240 when it sold, that being 20% of $1200. He couldn't move it in the shop at $1200 for five months. No change in terms was discussed - at least, you don't mention any.

    You also don't mention a consignment agreement on paper signed by both of you. If you did this on a handshake deal, in my opinion you were foolish. For something like this, ALWAYS get it in writing! But onward.

    The gun shop owner then listed the gun on GunBroker.com. Eventually, it sold for $2200. Under the terms of the original agreement, he is entitled to $440 -- that's 20% of the selling price. If you want to be sporting, he is also entitled to the listing costs involved in selling the gun; that's the way such things are usually done. However, as I said nowhere do you say you have an agreement on paper. And in any case, when he couldn't flog it in the shop and he decided to put it up on GunBroker.com, he should have come to you and the two of you hammered out an new agreement, something on the order of he puts up the listing fees and gets his money back only when the gun sells. If it does not sell, he's out that money.

    Under the original deal you made with him, he is entitled to 20%, plus the listing fee.

    I went to the GunBroker.com listing fee page and followed their rules to calculate the listing fee. The listing fee, which applies ONLY when the item sells, is $38.13. Let's keep it simple and make it $40. The bottom line is that under the terms you made with him, he's entitled to $480 and you are entitled to $1720.

    As far as I'm concerned, that sonofabitch owes you $520. But unless you have a sales agreement with him on paper outlining the terms, you'll have to go to Small Claims Court to get it and may not get satisfaction there.

    "A verbal contract isn't worth the paper it's written on." In our culture, a man's word is no longer his bond. It's disgusting, but it is reality.
     
  6. Mooseman684

    Mooseman684 G&G Newbie

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    You should have gotten a written signed agreement when you put the gun up for consignment , and it should state 20% of the selling price , regardless of how much he sells it for. It is YOUR gun , not his. Anything else is Pure Greed and Unscrupulous.Your agreement was a Minimum of 1200 IF he sold it in his shop, If it brings more at auction , you should get more.
     
  7. MosinMan

    MosinMan G&G Evangelist

    This is how a consignment works.

    You go to a gunshop, you ask the owner to sell your firearm for you.

    The owner has a set percentage of the price he will keep of the firearm he sells for you, that can be any percentage he chooses, and he can also tack little fee's on.

    You set a price that you want the gun sold for. Keep in mind though, if you put it on gunbroker it could go for higher than what you want it sold for. No matter what he still only gets 20% of the price the firearm sold for, and whatever other little fee's he wants to charge you. If he didn't discuss these things with you he is stealing your money.
     
  8. Mdavis0209

    Mdavis0209 G&G Newbie

    Thanks alot for all of your advice.I have learned a hell of a lesson and that is not to trust to easy.I just hate that there are people that dishonest about things.But there should have been more communication. I still own the gun cause I have not been paid for it.Could I still pull the thing out of consighnment legally?
     
  9. grizcty

    grizcty God, Guns, Glory Forum Contributor

    I have to disagree 100%.

    IF you were just asking $1200.00 for this item.
    And you AGREED, in writing or verbally, to this deal.
    And when it sold, you got the $1200.00.
    Without paying the additional fee's.
    You should be, tickled pink!
    As you should of, only got $960.00

    He 100% fulfilled, his obligation with you.
    He is working as a broker. (middleman)

    It is NO different, then consigning a house, car or boat.
    For a set price, and the broker sells it for more.
    That is HOW these folks make there $.

    EXAMPLE:

    My brother asks me to sell a gun for him.
    He wants, $500.00 for it.
    And agrees to pay my time & expenses, for doing so.
    Say 10%.

    I take the time, to advertise it.
    Take all the calls, and deal with potential buyers.

    And find someone who wants it bad.
    And gives me $1000.00 for it.

    I in turn give my brother the whole $500.00.
    He is completely happy.
    As he should of gotten, only $450.00.
     
  10. Mandy

    Mandy FREE CITIZEN Forum Contributor

    Need more info.

    Did the consignment had a time limit term?

    After 5 months, did you renegotiate the deal before auctioning?

    Did the original deal stated that the commission was 20% of the $1200.00 or 20% of the sale price?

    If the deal stated 20% of the $1200, you got more than you deserved according to the deal so you should be happy, in contrast if the deal stated 20% of the sale price, then you got rights to the extra cash after expenses were covered, plain and simple.
     
  11. danf6975

    danf6975 G&G Newbie

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    do you have a written contract that says 20% on it?
    if not your SOL
     
  12. Mandy

    Mandy FREE CITIZEN Forum Contributor

    If there is no written contract, legally you can bail out at any time, take into account that in some jurisdictions, a verbal agreement is enforceable, but need a witness to prevail in the courts, otherwise it's very difficult to proove. In some places, if the wording in the contract is dubious, often it's interpreted against who wrote the contract.

    Moral is unless you don't care if you get screwed, in example a loan to your daughter that you know won't get paid back, then get all your deals always in writing.
     
  13. Two views

    I do not believe he is being honest.

    However, you need to have a written agreement (contract) when you put an item in someone else's hands to sell.
     
  14. dhermesc

    dhermesc G&G Evangelist


    If you are going that route shouldn't the shop have been tickled pink to get anything over $240? That's exactly what he agreed to when he listed it for$1200.


    The consignment agreement was 20%; if it goes higher then everyone makes more - not just the shop. Maybe he would get the GunBroker listing fee off the top if agreed upon, otherwise it comes out his 20% just like any advertising expenses come out consignment fee for an auctioneer. His "shipping and handling fees" were paid by the buyer - those are charged in addition to the sales price. I don't see anyone selling guns on GunBroker with "FREE FREIGHT" advertised.

    The gun shop owner in this case is a bold faced thief and a liar.
     
  15. dhermesc

    dhermesc G&G Evangelist


    Agreed - especially when dealing with people you can't trust.
     
  16. danf6975

    danf6975 G&G Newbie

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    what exactly does it say on your paperwork?