Let me start by saying that I have only attended a half dozen gun shows over the past five years, so my recent experience might be an exception. I attended the Dresser, WI gun show yesterday and was dismayed by the poor quality of handgun manufacturers (mostly lesser quality brands) and their poor condition. What surprised me was the outrageously high prices these vendors were seeking. Used Taurus .357 for $799? Ammo was also overpriced, and not just .22lr.
I understand the story about prices being set by the market, but these were high in comparison with what you would pay at many retail outlets. My guess is that vendors count on a clientele that is new to gun buying and do not know enough to make an intelligent buy. I hear the argument that gun shows offer a significant service, allowing private parties to exchange goods. But in this one instance, buyers end up wasting their time, (me), or overpaying. That's not much of a service. I have a hard time defending gun shows if the only people benefitting are vendors.