The Bad Market Implications of Universal Background Checks

This video aims to explore the negative impact Universal Background Checks would have on the private market. Also, I think it would greatly negatively impact internet firearms commerce.


32 thoughts on “The Bad Market Implications of Universal Background Checks”

  1. Ahhmm more demand for expensive background checks will spur market entry by new businesses that are good at doing checks for a lower price than the local gun dealer. And prices will drop. There's a reason why every McDonalds and Texas liquor store wants to have a drive through. They work. You're jus not set up for it (yet).

  2. Chris where do you get your data that 30% of gun transactions are private and outside of background checks? That seems awfully high. I guess it varies by location but for example, at guns shows here with 100 dealers, 1 or 2 might not be FFLs. And those few dealers are selling less than desirable long guns. No handguns, no MSR. I have always thought the private transfer percentage was below 10%.

    As far as dealers turning down transfers or charging high fees, yes, some will. As others have pointed out, we have transfer only dealers that either have little or no inventory and rely on traffic from Gun Broker,, Bud’s, etc to make money. If they are doing 10 a day at $40, that’s $2400 a week for a 6 day week. Not huge money but a lot of shops run their business this way.

    Thanks for the weekly videos. Hope the new business model works out well.

  3. I think everyone will just break the law. Unless the gun was purchased retail after the law how would they know when i bought it?

  4. So punishing law obiding citizens because of the acts of criminals who don't follow gun laws in the first place…..typical politician logic. How about focusing on the crimnals and penalizing offenders more, not innocent people? This is obvious, and so isn't the agenda here.

  5. Just wanted to say that I love the content of these videos and your professional insights into the issues being faced within the firearms marketplace. I hope you continue to make these videos and develop a following on YouTube as these conversations are important!

  6. At first it didn't sound like a big deal ! Thank you for informing us and removing the ignorance factor !
    Keep it up Chis.

  7. Great video and well said. The 30% to 40% number you cite for private party transactions seems high. The source for that seems to be Bloomberg which raises a huge red flag immediately. That number is based upon a 1997 study. That was done before the NICS existed. So, I would expect a very high number of private party transactions prior to the NICS. Here's a link I found which tries to explain the number. And, I disagree with the writer's logic.

    Here's my question to you, and you don't have to share the information with the community. What percentages of your business is used versus new? In the past year, logic dictates new firearms sales are in the basement. So, it makes sense for you to garner more used firearms.

    Here's my question to the community. How often do you sell a firearm to anyone? That includes private party, gift, gun store, pawn shop or other.

    Last point, I'm convinced universal background checks will encourage owners to keep their firearms. They will only sell when the safe runs out of space, if then. You can always buy another safe or an even bigger safe. Short term it could create a very restricted market for used firearms. It's not good for the industry. BTW, can anyone think of selling other personal property that requires a background check for the buyer? I cannot.

  8. Great points, Chris. The one thing I will disagree with you on is the amount that transfer fees would increase. A higher demand for FFL transfers and increase in transfer fees would bring more FFLs into the market. Assuming that transfers are profitable as is (even with a small margin), I don't see how transfer fees would more than double unless there were other changes that significantly increased the dealer's per-transfer cost.

  9. For some weird reason I always get delayed when buying a rifle , and never when buying a handgun. Now supposedly there's no identifiers transmitted on the 4473, but this has happened every time and I have a decent collection , so a decent sample size. I cant figure it out. So this law will make me automatically go in a 10 day waiting/reset loop indefinitely because the FBI never issues me a proceed in the 3 days. How are they going to even enforce this without a registry?

  10. I urge all gun owners to join Gun Owners of America, Firearms Policy Coalition or Second Amendment Foundation.

    They will fight in court to save our 2nd Amendment Rights. If you're already a member ask a friend to join.

  11. I disagree I think the reverse will happen private deals will go up people will want UNpapered firearms

  12. I think you will have many new FFL's that just do transfers, like a notary public. That would keep the costs down.

  13. even if this bill were to pass i would ignore it and still sell my gun to whomever i FEEL has the right to buy it from me, F the government bro!


  15. What you don’t take into account is the possibility of a mandated transfer fee, or just making a publicly available website for private parties to just submit their own NICS checks.

    We have this is California, and it’s called a PPT. The processing of PPTs is required by FFLs in the state, and the fee is set by the state at $10, so the fees don’t prohibit commerce. I’m not saying it’s right, but that’s how it is.

  16. I was going to say background checks are an infringement and foot in the door for anti gun politicians. It does nothing to prevent gun crime or crime in general and is simply fundamentally wrong. Any limitation on our rights is an aggression that must not be tolerated.

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