Considering FFL

[ZWCoffindaffer]

Is there anyone out there who holds an FFL? I've recently considered starting up a business on the side dealing firearms. I've always loved guns and ammo. We dont have very many good local shops and the demand for firearms in the area is at an all time high. I dont know if I want to start with an at home approach, or open up a small shop locally, but I'm very interested in the idea.

If you have done it at home, does it work for you?

If you own a shop? How was it getting started?

 

[yugorpk]

I have done it in the not too distant past and it really wasnt as bad as some people make it out to be. Of course you actually have to be in business and have local business licenses, pay taxes and the like. If you are wondering about the ATF in the whole deal my take on them was that there were there to help out. If you don't follow the rules they will strike down upon thee with great vengeance and furious anger but thats only if you don't follow simple accounting and regulatory procedures. I'm considering reestablishing my license since the state I am in and the state I will soon be moving back to have instituted mandatory background checks and one could make a tidy little profit ( read that as more gun stuff ) by doing just transfers.

Keep in mind you will have to follow zoning laws, state tax and licencing rules and the like that make the federal stuff seem easy. Also if you get into doing gunsmithing it is becoming more and more prevalent for the ATF to demand all work done on firearms be done by a 07 Licensee with the corresponding FET.

 

[Liberty1776]

Just remember one thing. The tail never ends. I was recently called on a gun that I had transferred back in '85...

 

[oneounceload]

And? Did you go to jail? Did the ATF come crawl up your insides with a microscope? Or was it more like you got a call, answered a question and that was it?
I had a FFL for about a decade a while ago; never any issues with anything from any agency.

OP- as long as where you live allows home-based businesses, then you can start there. If not, you will be denied for that aspect.

 

[Captcurt]

I have worked out of my home for 6 years with no problems. ATF will interview you, explain what you need to do and answer any questions. The agent who interviewed me was very nice.

We have two good local shops that have good prices and great service, plus, they have been in the business long enough to have a good repore with sales reps. It is hard for me to compete with them. I have found that online consignment sales and used guns are my bread and butter. I even list high dollar and oddball guns for the other shops.

Just remember that working out of home can cause security problems. Keep a pistol loaded and handy. Install a camera and alarm system and don't open the door to strangers who come unannounced.

 

[BSA1]

I am wary of a home based business.

Gun shops are a high priority target for thieves and robbers. Nighttime presents a special problem. Here it is common for thieves to steal a vehicle, then drive it into the building through a wall or front entrance, grab all the guns they can and flee. They can be in and out in less than 5 minutes. There have even been ATM's stolen this way.

If I was going with a home business I would run it out of a out building such as a garage or workshop with pilings or a ditch to prevent smash and grab.

 

[chaim]

I haven't done it, but I've given it some thought. Seems like a fairly high overhead business (your stock is much more expensive than if you sold, say, clothes), with a lot of legal liabilities, meanwhile the profit per item is pretty low. The ones around here that do best couple it with a related side business- a range, training, gunsmithing, or all of the above. That said, I still consider it, most FFLs around here charge an arm and a leg whether for guns or for transfers. It seems to me a reasonable rate for transfers (say $30-40/transfer) would net a nice little profit for little work (and no overhead) and be low enough compared to the others around here to pull a lot of transfer business. If I did it I think I'd also be sure to spend some money to set up a nice professional website and concentrate on online sales, minimize profit per item in order to maximize sales and go for volume.

 

[Joshua M.]

We just finished up or 1st year in business... Wasn't hard to get the FFL, don't fall for the scam of the ffl123, its relatively simple. We currently deal with 5 different distributors, the ones I'd like to get hooked up with like accusport, and jerrys, doesn't want to take on new dealers, as they can't supply the ones they have now. The money to be made is in used guns, and an ok margin on ammo, and accessories... Biggest competitor, the Internet, and them not having to charge tax. You'll find everyone is an expert, and it can always be bought cheaper elsewhere... Good luck if you do pursue it.

 

[jerkface11]

There's always a shortage of places that deal in reloading supplies.

 

[Captcurt]

There's always a shortage of places that deal in reloading supplies.

The major problem with reloading supplies are the hazmat fees. You need to purchase in bulk to make it worthwhile. Ammo, when you can get it, has a good markup as do accessories. I am lucky to make 5% on a new gun.

 

[jerkface11]

Brass, bullets, and dies would put a shop head and shoulders above 90% of the competition around here.

 

[Reloadron]

Been some years since we sold the business but one niche we had was reloading components and supplies and we stocked VihtaVuori Powders. I had a good connection for my VihtaVuori powder and would just pick it up. For the rest I did considerable with ABN Sports which was the old Ashland Buckeye network which no longer exist. I would take the close to an hour drive down and pick up our stuff. This saved considerably on S&H as well as HAZMAT fees. Keep in mind that stocking reloading components while a good niche can also grow. I started with for example Sierra Bullets then added Hornady and Speer. Starting out you can't stock everything. Additionally this was pre Internet days.

Never made money on new guns to speak of. The good money was in used guns and we would buy estates. The more people got to know us the better things went as to finding good estates to buy.

Good Luck if you give it a shot.

Ron

 

[Sunray]

"...open up a small shop..." That'll be extremely costly. And you will need lots of cash to pay for anything you sell as nobody will give a new business credit terms.

 

[JSH1]

There's always a shortage of places that deal in reloading supplies.

My take on this: The major issue for a reloader is getting powder. Everything else can likely be purchased online for less than a small shop can sell it. However, if the big boys can't get enough powder to keep it on the shelf a new small shop isn't going to get any.

The value to a local shop with reloading supplies is knowledge. I believe a person could make money putting on reloading seminars. Get them when they first start the hobby, provided knowledgeable advice, and you might be able to compete with the online vendors.

 

[Reloadron]

My take on this: The major issue for a reloader is getting powder. Everything else can likely be purchased online for less than a small shop can sell it. However, if the big boys can't get enough powder to keep it on the shelf a new small shop isn't going to get any.

The value to a local shop with reloading supplies is knowledge. I believe a person could make money putting on reloading seminars. Get them when they first start the hobby, provided knowledgeable advice, and you might be able to compete with the online vendors.

Forgot to mention that. I held evening classes teaching reloading. That really helped. Additionally once we were in our brick and mortar shop we continued to do gun shows to promote the shop. Been a long time (early to mid 90s) but if I recall correctly I got stuff from the NRA as to making up reloading lesson plans.

Ron

 

[JSH1]

Forgot to mention that. I held evening classes teaching reloading. That really helped. Additionally once we were in our brick and mortar shop we continued to do gun shows to promote the shop. Been a long time (early to mid 90s) but if I recall correctly I got stuff from the NRA as to making up reloading lesson plans.

Ron

I've seen this business model work well for homebrew stores. Teach beginners how to do the hobby, sell them their first equipment, and provide the technical support when things go badly. That kind of connection keeps people coming back even if they can get the same stuff online for a bit less.

 

[oneounceload]

The major problem with reloading supplies are the hazmat fees

That only applies to powder and primers, not other components or bullets or ammo. If you have a shop, then you'll be buying in large enough quantities that it should be coming by motor freight and not UPS

 

[orpington]

Why would you need classes in reloading? I am self-taught and did just fine. It's not brain surgery.

 

[Reloadron]

Why would you need classes in reloading? I am self-taught and did just fine. It's not brain surgery.

When you sell reloading components having classes promotes reloading, thus promoting your business and the hobby in general. Additionally, pre Internet the only roads to reloading were good books and self taught. Thus teaching the subject opens doors to your sales, promotes reloading and gets you known in the reloading community.

Ron

 

[mgkdrgn]

If you want to open up a "gun store", you are going to have to sell a boat load of other stuff besides guns if you want to stay in business. The margins on new guns is RAZOR thin ... I can often buy new guns on GunBroker or from Buds for less than I can buy them wholesale as an FFL.

Why?

Because the big Gunbroker dealers are buying 100 or more at a pop ... I'm buying 5.

 

[newfalguy101]

Brass, bullets, and dies would put a shop head and shoulders above 90% of the competition around here.

Except that it requires a HUGE investment in inventory and takes up a tremendous amount of floor space, and even then you will never have what buyers really want. And frankly, reloaded are by their nature cheapskates that will walk away over pennies.