Gun shops

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Snev22

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Has anybody noticed that most gun shops are struggling and in debt? The gun company’s have masted produced so many models they’ve made guns six months old less than half there value if you try to trade it in. I think it’s bad horse trading and losing a lot of money. Stick to the oldies but goodies that they can’t find on sale on the internet. Protect your investments
 
A major problem with any business is going in undercapitalized. Small retail is particularly harsh as are restaurants. Second is that a lot of folks jumped in during the long boom period culminating when Obama was Prez. To keep one going, you need some other thing bringing in customers, for example being a pawn broker, selling hardware/feed/etc, a firearms range with training attached, gunsmithing, reloading supplies, etc. where you are a destination rather than an afterthought.
 
Money can be made, my dad worked at a very successful gun shop in ny.They had about 300 long guns and about 100 pistols. The owner sold guns fast. He would say he would sell a gun to make $10 just to sell it the next day. I think that way would work today even with the internet.
 
Money can be made, my dad worked at a very successful gun shop in ny.They had about 300 long guns and about 100 pistols. The owner sold guns fast. He would say he would sell a gun to make $10 just to sell it the next day. I think that way would work today even with the internet.
Those days are far and inbetween. Everybodys looking for a 200% profit. By a new Ruger lcp2 for 239.00 next week they’ll offer you 60% of wholesale price
 
Father ran a small retail business for awhile. Key things are best that you have a helpmeet that has health insurance through a regular job, you have to work the place yourself--employees that you can afford will either take from the till or are barely competent. It is not something you can hire out as an absentee boss as labor costs direct and indirect eat into your profit. Find a place with cheap rent but relatively high street visibility. If you can, rent to own is ideal if the landlord is trustworthy as it avoids a mortgage and allows a walkaway if necessary.

Aim for fast turnover rather than trying to maximize revenue--keep your money moving. Troy and Skeeterfogger are absolutely right. Only do layaways rather than charge accounts as those tabs will kill you. Other than opening, keep your advertising budget low as word of mouth is better than cheap ads in forgotten places of the paper. Last but not least, make sure you have enough capitalization to start with so that you can run a year or so without much if any profit. Just try to make costs which generally requires a second source of income.
 
I always thought good parking in very important, there are so many shops I'll drive by and think I'll stop in and see what they have, and not find any parking. Have room for semi trucks if you can.
 
Those days are far and inbetween. Everybodys looking for a 200% profit. By a new Ruger lcp2 for 239.00 next week they’ll offer you 60% of wholesale price

The law of used guns indicates that they pretty much have to do that to stay afloat. No customer is going to pay retail or even Bluebook for an average used gun because of the risk of hassles, newness factor, changes in the market demand, etc. A small gunshop also risks that the used inventory does not sell and most shops do have to pay carrying costs such as insurance and property taxes on inventories. By the time you include your markup for overhead--rent, light time, carrying costs, a gunshop would not make much on tradeins at 60%--most small shops do their best when they sell a primary item that can be easily price shopped for a low markup but have accessories that are far more difficult to priceshop that are often sold at the point of purchase.

Pawnshops can often offer deals as they buy from those desperate for immediate cash or someone pawns a firearm and doesn't make the payments.
 
Internet killed gun shops.
Then they need to adapt and sell there items on GunBroker, ArmsList, Gun.Deals, their own online store, etc like several other big name online venders have done when they first started out. Other LGS offer free or discounted range memberships with firearm purchases, or offer classes to help make up the difference and to compete with online sales. Times have changed, so they either adapt or die off. Adapting, innovation, and thinking outside the box is what got all these bigger businesses where they are today. Most of them started out small and grew to something else. It's capitalism and survival of the fittest. I know some here do it, but not to many people are going to give welfare and charity to LGS's via paying $50-$100-more over internet prices. Either they're going to price themselves out because people can't afford to buy, or people are going to look elsewhere... That's life.
 
The law of used guns indicates that they pretty much have to do that to stay afloat. No customer is going to pay retail or even Bluebook for an average used gun because of the risk of hassles, newness factor, changes in the market demand, etc. A small gunshop also risks that the used inventory does not sell and most shops do have to pay carrying costs such as insurance and property taxes on inventories. By the time you include your markup for overhead--rent, light time, carrying costs, a gunshop would not make much on tradeins at 60%--most small shops do their best when they sell a primary item that can be easily price shopped for a low markup but have accessories that are far more difficult to priceshop that are often sold at the point of purchase.

Pawnshops can often offer deals as they buy from those desperate for immediate cash or someone pawns a firearm and doesn't make the payments.
I wish northern lawn shops were like southern ones. Up here if you find one with a ffl they will ask 2 or 3x retail just hoping someone buys it not knowing better.
 
I wish northern lawn shops were like southern ones. Up here if you find one with a ffl they will ask 2 or 3x retail just hoping someone buys it not knowing better.
Some are like that here, but the better ones are smarter as they make their money by lending and the profits from the sale of merchandise to recover their capital for relending is the fruit on the sunday.
 
I don't think the internet killed local gun shops. But it did allow buyers to see what the real selling price are. The good local shops that sold for a reasonable profit are still around AND selling online too. The shops that had prices double or more and berated you for asking for a better price are gone. GOOD BY. Plus places like Gunbroker let buyers find items they may never see locally.
 
Internet killed gun shops.
Where's the MEGA or SUPER *Like Button*?

It's also the jackwagons wasting shop owners' time (whether directly or through employees) by reading something on the internet, going into a shop to finger-foul the inventory and then looking for better prices on the internet..... THEN, if it's a firearm, they have the temerity to bitch & moan about transfer fees.

Todd.
 
Gun shops are just getting disrupted by the internet, like all other bad businesses did. I am pretty fine with that. New gun stores are tending to crop up and some are sticking. Which ones? The ones that are run professionally. Are open and clean, no one smokes in them, they have prices on everything, they take credit cards without even asking if you prefer cash, have friendly and helpful staff, stock accessories and targets and ammo and stuff, to make money off the higher margin bits and get returning business, avoid excessive politics to not turn off most customes, and on and on.

Some branch out slightly, to get minor gunsmithing, to hold training classes, have simulators, and so on. They do well, and many are attracting crowds of people who are not the usual suspects, increasing their market.
 
We still have plenty of LGS's around Richmond. There have been a couple that have floundered but there always is.

Now how they're doing come next spring will be interesting to see with what we have coming in VA.
 
Where's the MEGA or SUPER *Like Button*?

It's also the jackwagons wasting shop owners' time (whether directly or through employees) by reading something on the internet, going into a shop to finger-foul the inventory and then looking for better prices on the internet..... THEN, if it's a firearm, they have the temerity to bitch & moan about transfer fees.

Todd.
Geez. That attitude kills any business. If the customer is a Jackwagon.... see ya. Get with the fact you can find inventory what prices are and not in the musty gun shop with the nasty owner. Not all but some. I'm mainly looking for used, out of production models. But if I see one in the local rack I mention what they sell for online and usually get a price adjustment. As for "finger foul"?? LMAO if I can't touch it I'm not buying. What a joke.
 
Geez. That attitude kills any business. If the customer is a Jackwagon.... see ya. Get with the fact you can find inventory what prices are and not in the musty gun shop with the nasty owner. Not all but some. I'm mainly looking for used, out of production models. But if I see one in the local rack I mention what they sell for online and usually get a price adjustment. As for "finger foul"?? LMAO if I can't touch it I'm not buying. What a joke.
Whatever - take your cues as you see fit.

Todd.
 
For many years in the 70’s and 80’s I bought guns from co-workers or acquaintances who had FFL’s as a hobby. BATF queered that with their store front rule.

However ever internet sale has to go thru an FFL holder so those LGS’s are getting a piece of the action also. My small liberal state of Rhode Island has quite a number of gun-store, some like D&L in Warwick and Bullseye in Woonsocket, to mention two I trade with, have been around for decades and are thriving. But they also stock large inventories of gun, shooting and hunting supplies and ancillary items.
 
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Right now there are more gun shops within 50 miles of my house than ever. Most of them are pretty good too. They use the internet, do transfers, know whats available and what isn't and encourage "finger fouling". There are at least 4 that have indoor shooting ranges and have classes. The really good small shops have working gun smiths. It's like the golden age for guns.
Some of you older guys need to get out more.
 
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