How profitable are gun shops?

[PrinceofWands]

Originally posted by: Buck_Naked
I enjoy shooting, and take it fairly seriously, but I can't say I have ever found a gun shop I feel comfortable in. A high number of them are lacking in common sense business skills, and they tend to be 'closed off' to customers who aren't regular customers, or tend to be rude, uninformed and somewhat ignorant of trends in the business.

I think if you were to start a business and try to cater to people who are new to guns, or have no real experience with them, you could tap into a largely neglected customer base. Offer shooting lesson, especially to women from a truly knowledgable and qualified instructor, ongoing instruction, that type of thing, you might do fairly well.

I don't think its a business I would want to go into though...

I agree completely about the noob aspect. Especially with the proliferation of shall-issue legislation right now. First time CPL holders are big and growing bigger rapidly. Get some lethal force institute classes, some nra classes, or anything equivalent. Classes for noobs are big money. Look into FATS and related technology as well. Not only is it popular and good training, it's very economical from a business standpoint (70k for a good system). You can also stack the deck in your favor by catering to law enforcement first (reduced cost FATS access), getting them on your side, then getting their help railroading local legislation pushing for training requirements for private certification which, shock and surprise, you are already set up to deliver. Not entirely ethical maybe, but very profitable. Also, don't overlook security training and certification, and partnering with a local martial arts school of repute.

 

[PrinceofWands]

Originally posted by: venk
you never know what the government will due to the 2nd ammendment (hell they already trashed the first, maybe it's time to move on) so long term it is risky.

If they severely cripple the 2nd it's going to be civil war anyway, so I doubt if business investments will be of primary concern at that point.

 

[venk]

Originally posted by: ultimatebob

Originally posted by: venk
Remember, just about any kind of retail setup up these days follows the credo of "give away the razor, sell the blades".

That doesn't really work for gun shops. The guns themselves cost around $500 each, but most ammo is under $20 for a mid-size box. The pros can reload their own ammo, too.

the credo means that you sell the "razor" at or even slightly below cost and put the mark up on the ammo, scopes, etc turning an overall profit on the sale.

 

[KK]

Originally posted by: venk

Originally posted by: ultimatebob

Originally posted by: venk
Remember, just about any kind of retail setup up these days follows the credo of "give away the razor, sell the blades".

That doesn't really work for gun shops. The guns themselves cost around $500 each, but most ammo is under $20 for a mid-size box. The pros can reload their own ammo, too.

the credo means that you sell the "razor" at or even slightly below cost and put the mark up on the ammo, scopes, etc turning an overall profit on the sale.

It's much easier to buy accessories online, and for ammo, walmart cannot be beat. So if you are selling the gun for alittle loss, you may as well sell the business too, because it's not going to be worth much down the road.

 

[Prong]

The guy I used to buy/trade with enlightened me about the gun biz. Generally, you can expect to make about $40-$50 profit per gun (except in the case of low priced 22's and the like) while still being competitive with other shops. Also, insurance for gun shops are very $$$$ in an urban locale. He had his place out in BFE, so it was a bit cheaper for him. You won't get rich doing it, but it can be enjoyable. I'll echo what another poster above said: you need to sell the service aspect to get the repeat customers.

 

[SampSon]

It all depends on the state in which you plan on opening the gun shop.
State laws on gun ownership directly affect the shop's success.
Also the general population's view on gun ownership has a direct affect on the shop's success.
I would also venture to guess that if you have some sort of contracted clientele like a police force or private security company, it would affect your companies success.

 

[SarcasticDwarf]

Originally posted by: Lalakai
would have to say it's difficult

overhead it bad due to the fact of needing large enough supply to cover the very diverse "desires" of customers. Plus you can rarely have a stand alone gun store, without some support element: ammo, clothing, accessories.

I worked in a large gun store for 5 years, and was one of the store's used gun buyers. They routinely had more then 3000 guns on hand; with the bulk of their profits coming from selling used firearms, and their soft goods sales; new gun sales didn't add much to their bottom line.

think carefully about it, get alot of advice, get your ducks in a row, and be prepared to put in alot of your own hours. Good luck

3000 guns? Whoah. The largest one I have been in might have 500.

 

[PowerMacG5]

Originally posted by: acemcmac
If you ever open up, PM me. I'll buy from you if you don't try to rip me off.

Yeah, definitely. If we do this, it probably wouldnt be for at least another 1.5-2 years.

 

[MrBond]

My Dad and I are pretty good friends with the gun shop owner back home. He's got a small shop and the government makes it very hard on him. He has to be careful he crosses every T and dot's every "i" on the forms, otherwise the BATF will be there checking things out and generally making life difficult.

He doesn't have much in stock just because the inventory tax is insane on something like guns because they're worth so much. Anymore, he stocks only a couple longguns and will special order anything we want. Because he's a family friend, this means we get amazing deals. Most of his business comes from reloading supplies, paintball guns and equipment, and ammunition.

You also have to take into account the local government's stance on gun shops. Here in Toledo, we had a nice gun shop that the city basicly ran out of town because they're so anti-gun.

 

[mercanucaribe]

Originally posted by: MrBond
My Dad and I are pretty good friends with the gun shop owner back home. He's got a small shop and the government makes it very hard on him. He has to be careful he crosses every T and dot's every "i" on the forms, otherwise the BATF will be there checking things out and generally making life difficult.

He doesn't have much in stock just because the inventory tax is insane on something like guns because they're worth so much. Anymore, he stocks only a couple longguns and will special order anything we want. Because he's a family friend, this means we get amazing deals. Most of his business comes from reloading supplies, paintball guns and equipment, and ammunition.

You also have to take into account the local government's stance on gun shops. Here in Toledo, we had a nice gun shop that the city basicly ran out of town because they're so anti-gun.

Why are gun people always complaining about the government being anti gun? Isn't the whole point of bearing arms to be able to fight the government? Man up start a coup!