Buying from a "new" FFL

[95XL883]

I'd appreciate any help anticipating what I might be getting myself into.

A friend/supplier called me the other day saying a friend's son was trying to get his FFL and needed to have four orders to get the license. (The rest of the story sounds like the dad is trying to help his boy start a gunsmithing business.) Supposedly I can get a firearm at cost (not that I can't get close to cost by shopping around). While I'm interested, I'm getting a little apprehensive because I couldn't see a four gun requirement on the ATF website but did see the 60 day minimum permit time.

I suppose this is no different than any dealing with any other new business. I need to minimize any deposit, be prepared to wait 60+ days and deal with delivery issues.

Any ideas what I'm not thinking of? Thanks.

 

[drsfmd]

There's no four gun minimum... he's probably trying to guarantee enough orders to cover the $200 cost of the license.

I'd steer clear... the whole thing sounds a little off based on what you've said.

 

[p2000sk]

Wonder if he has all of his startup costs paid, before he accepts a customers deposit. You and us all-hope for success of this new licensee.

 

[Bubbles]

There is no such requirement to get or keep a license. He might be trying to put together a big enough order so that the distributor will cut him a break on price.

 

[Birch Knoll]

As mentioned, he may be trying to get together a minimum order for some distributor. Davidson's, for example, has a 5-gun minimum to attain "gold dealer" status.

 

[mgkdrgn]

A friend/supplier called me the other day saying a friend's son was trying to get his FFL and needed to have four orders to get the license.

<deleted>
You get an FFL =before= you can place any orders.

 

[95XL883]

Thanks guys. We were talking informally so my friend probably didn't state clearly what the minimum was for and I jumped to thinking it was for the FFL. That minimum is probably a distributor requirement. Regardless, the real question is still how much money am I willing to risk to help out somebody trying to start a business. If I can keep my risk to $50 (until he actually has it in hand) I'll help him out and commit to buying another gun. Thanks again.

 

[AirForceShooter]

What's the downside?
Kid will have his FFL.
You did your buddy a favor.
You got a gun at cost.

Seems like a no brainer.

AFS

 

[mgkdrgn]

And you will learn just how little you save by buying "at cost".

 

[95XL883]

What's the downside?

The downside is, I presume I will have to put up some money for my order. Anytime something is prepaid, there is a risk the supplier won't deliver and depending on where this guy is in his FFL process, there will be some delay before he can take delivery (possibly even order.)

A deposit is not a big deal to me. If he wants/needs prepayment for the whole purchase price, well that will be a larger amount to somebody who I really don't know anything about. I'm sure something can be worked out.

And you will learn just how little you save by buying "at cost".

Amen to that. This is about doing a favor to several somebodies more than it is about saving $$.

Thanks again.

 

[drsfmd]

Upon thought, my suggestion would be that you wait until he has FFL in hand, then help him out by placing an order so he can open an account with a distributor.

 

[mgkdrgn]

Upon thought, my suggestion would be that you wait until he has FFL in hand, then help him out by placing an order so he can open an account with a distributor.

The whole "4 gun order to get your FFL" is a bogus as a $3 bill. There simply is no such thing. He either IS and FFL and can order guns, or he ISN'T.

 

[CoRoMo]

That's true. No wholesaler/distributor will give him a minute's worth of their time if he doesn't already have a license.

 

[Bubba613]

Actually not true. I was set up with a major distributor before my FFL came through. Obviously this did not include buying guns.
The 4 gun minimum sounds like Banger's new policy on free shipping.

 

[CoRoMo]

Hmmm. I forgot that some distributors sell more than just guns, so therefore they certainly sell products to non-FFL businesses. I was referring to guns though.