Opening a gun shop: Heaven or Hell?

[heron]

I think you should go for it. You can put up your own secure building, a range if you want it, tailor your inventory to the local market. I think now is a good time to be starting new things.

You didn't say if any of your business experience is in retail, but I think you'd be happy overall. Some customers are going to be a royal pain, but your enthusiasm will make it a place they'll like, as long as you have the patience to deal with them. You might also enjoy introducing newbies to the shooting sports.

 

[pmeisel]

You mention that you have business experience. Take the time to do a pro-forma business plan -- just to have a pretty good idea of how much capital you will tie up, and how much business you will have to do to breakeven, and to make a reasonable target income. That will be the roadmap that tells you if you are heading the right direction.

Good luck.

 

[bonza]

Never owned my own store, but have worked in the firearms industry for about ten years combined. Started off working for a Jobber (Remington, Marlin, Burris, Bonanza, & others), then went to retail/wholesale. On the whole, looking back, I'd say I enjoyed the experience, but the novelty of being around guns all the time does wear a bit thin. Being a very keen competition shooter, I managed to maintain my level of 'extra-curricular' shooting time, but I'd say most of the people I worked with didn't spend a whole lot of time around guns in their spare time. Made good friends of some of the customers I had over the years, but you have to deal with all kinds & I came to the realization that the average 'Joe' out there ain't too bright.

 

[tradja]

In the past, I have worked both mom-and-pop and corporate retail. In both situations, I have seen that a little professionalism goes a LONG way.

I hear you on gun shops. I am pretty thoroughly dismayed by the level of service at my local half-dozen gun counters. Sure, owning a mom-n-pop would mean a lot of long, thankless hours, and considerable financial risk, but I say look into it and go for it.

Politics aside, it's still legal. Let's stop pretending like it's not. Be scrupulous with your books (BATFE and financial), do your homework, provide a fun shopping environment, research your local untapped market segments (Cowboy action, women, 1st time owners, ranchers, etc), be respectful of your clients, and I bet you'll do fine.

 

[seale]

As they say, if you love what you do you'll never work a day in your life. I love guns. I love being in the gun store and just staring at all the things I can't afford on the wall.

Well it SHOULD be heaven, but the thing calling itself the federal "government" has made it hell.

 

[rainbowbob]

If you have the capital, and if the locals will support it, and if there is nothing like it in the area - open a state-of-the-art range that includes reactive steel and a video simulation room.

Renting a variety of guns and selling guns, accesories and equipment will naturally go right along with it.

 

[Duke of Doubt]

Instead of actually opening your own new store, consider approaching an existing store/licensee with additional capital as an investment partner, to fund expansion to a second location or just to expand operations.

You get to participate in business decisions and reap the profits without holding the license or, worse, working as a dang retail clerk selling guns you hate to goobers who won't buy anything else. You can steer the business in directions you support and which will bring profit to the company, while participating in those aspects you enjoy -- trade shows, dealer meetings, demonstrations, and sales support for limited areas such as military or vintage guns, but not hunting or ammunition which may not interest you, or paperwork other than the legal stuff you can do better than the old codger with the name on the door and the funny reputation.

Do I sound like I know a little about this?

 

[mgkdrgn]

1) Build it like Fort Knox

2) Prepare to be broken into at least once a year.

 

[Duke of Doubt]

The break-in comment is no joke. Here's a tip: if you must have air conditioning, reinforce the air conditioner aperture better than the windows, as that's where the burglars will try to get in, by forcing in the air conditioner and wriggling through the aperture.

 

[RPCVYemen]

From a customer's perspective, I can tell what I look for, and what I don't find in most local shops:

1. I have one local shop that lets me order a gun for less than I can buy it from any of the Internet sites (when I add in shipping and FFL fees for the Internet sites). I don't know how they do that. Note this isn't for guns on the shelf - it's only for ordered guns, and they get the cash up front. Maybe the cash up front makes it work. The cost is basically their cost plus some dollar amount or percent - there is no inventory cost for those items. I guess that they can do it because their only cost (for those items) is paperwork.
2. Think a lot about service. I am willing to pay somewhat of a premium for service - but to be honest, a lot of the shops that complain about Internet competition don't offer and actual service that I can detect. I don't know how to solve this problem, but I am not willing to pay a premium for a lack of service from a local shop.
3. Think about hours. I know one local shop that has everything - except the right hours. I guess I was a bartender too long, but expected in that business, to be working while other people played. The local shop I am thinking of is open 9-5 and Saturday morning. Those hours are great - if your clientele is exclusively retired folks. While the economy is doing it's darnedest to give all of us a little more leisure time, those of us not yet laid off work most of those hours. Why not 12 til 10? I have definitely bought stuff off the Internet not because the price was better or service was better, but because the local gun shop isn't open any hours I can get there. Notice how many of the "big box" electronics retailers lock their doors at 5 pm? There's a reason for that.

Mike

 

[Seattleimport]

+1 on the in-store range, and on the extended hours.

I notice you're in Oregon. Portland, at least, is a wired community. If I were you I'd strongly consider spending just as much time on your website as you do on your physical storefront--if not more. Make it known to your customers that they're able to order off gunbroker and have their purchases shipped to you: FFL transfers are pure profit for you, with the added bonus that you don't bear any inventory risk. After all, your physical store, no matter how big, can never come close to matching the breadth of products available on the Internet. And guns are particularly niche products; even if you sell the particular model of 1911 wanted by Joe Customer, do you offer it in the right caliber, finish, grip, and trigger? Almost certainly not. Consider your physical on-hand gun inventory to be representative display pieces, and make it easy for customers to get what they actually want (via special order through you, or by using you as delivery for Internet purchases).

Lastly, I recommend you put a lot of focus on community and membership (particularly if you have a range). Sell services like cleaning, safety classes, marskmanship leagues, training classes, "rep" days. Again, there's no inventory burden and high margin, and by giving customers a reason to come into the store even when they're not looking to buy, you encourage them to buy ammo, accessories, and maybe even a gun.

In other words: my advice to you is to put the least of your focus on actual guns, and most of your focus on memberships, ammo, accessories, apparel, services, and FFL transfers. Foster a community, publish a professional-quality newsletter (email *and* snail mail), make your store a destination, and sell high margin, high inventory-turnover products.

 

[CoRoMo]

Go for it, for all our sakes.

It should end up a little of both. Heaven to be in and around what you love. Hell to put up with and abide by the ATF hassles.

 

[RPCVYemen]

+1 on the in-store range, and on the extended hours.

Do you think that stores make money on the range, or does the range drive sales?

I've always wondered, because the range seems very costly - increased liability, lots of maintenance, finicky equip - and staff who are competent RSO's.

That seems pretty expensive to me.

Mike

 

[Sam1911]

The range sounds like a good idea, but there are some considerations to weigh:

Around here (central PA) we have a wealth of shooting clubs that cater to all kinds of shooters, but all have basic facilities for the little bit of target shooting most gun owners do. I'm a member of a club located 30 min from my house and I know of three (and maybe a fourth) gun club CLOSER to my house than that! Plus we have numerous state game lands ranges open to the public -- TWO of those are closer to my house than my chosen club. And I can't count the number of informal "backyard" ranges I see when I'm out driving.

You'd have to be REALLY good to make a commercial range profitable around here. No-one's going to see much point in it!

I do know of one commercial shooting range within an hour's drive of here, but it seems to cater mostly to folks coming up the interstate from Baltimore and points south (in MD).

Their facilities are "state of the art." They have a staff and seem to do a good job of running a safe range. They are a little rigid in the types of style and practice you're allowed to do. But the big thing is that THEY ARE BLOODY EXPENSIVE! Just as a comparison, checking their posted rates and fees, my average level of shooting (not counting weekends when I travel for matches) would cost me well in excess of $2,500 per year!

My costs to shoot that much at my club? $55 a year...well I pay $70 for the family membership so I can bring the kids. We don't have A/C, a target return system, or an in house (VERY expensive) gun shop, but I also saved $2,445 last year on the deal, so I'll live with that.

Before you spend ANY time on the commercial range idea, make darned sure that your area could possibly support one. Are you close enough to a big pool of city folks who would be willing to travel out to your location -- and pay hefty cash -- because they don't have a local club and don't choose to find one to join?

The expenses of lead control/filtration/abatement, range safety officers who are professional, alert, and polite at the same time, insurance, climate control (which is difficult in a high-volume ventilation area like a firing range), and a number of other thorny issues, (including the very large cost to construct it to begin with!), are going to mean you have to take in a substantial amount of money every hour -- or your range will suck the cash right out of your business.

You do need a good business model as others have said, but do your homework well so you know your assumptions are accurate. Finding out that you get an average of 1.75 shooters through the range an hour, week after week, when you needed 17.5 per hour to break even, is going to dampen your enthusiasm a bit.

-Sam

 

[redneck2]

You can pretty much rule out the shooting range thing. Liability insurance will eat you up. Also, newer ranges have to comply with a ton of environmental issues. Last I read, 600K (yes 600K) is the going rate.

I worked in a gun shop for two years. If you think there's no such thing as a stupid question, you've never worked in a gun shop. Your customers will spend endless hours there to pass away their time. You have to do parts ordering, inventory, stock shelves, price merchandise, etc., etc. while they are babbling about their 1,000 yard shot on a mouse at midnight.

A cobbler's kid has no shoes.....a gun store owner never gets to hunt or shoot. You have to be at work when everyone else is off.

Since the internet, everyone can get everything somewhere else cheaper, then bitch because you won't do a fifty cent transfer. Guns end up being a commodity rather than a passion.

I have a friend that has owned a shop for three years. It's worth over half a million, but he hasn't gotten a dime out of it yet. Fortunately, he's got a main business that makes good money, and the gun shop is a hobby.

 

[regal]

Owning a gun store is an investment in security.

What will the landscape look like in 30 years?

Youwill be sitting on an inventory of weapons with all the business connections and network that comes with it. I have a feeling you will be in a better position than someone selling insurance or real estate.

 

[trailgator]

Confucious say: Never make your hobby your profession.
Maybe it wasn't confucious, but it will still suck the fun right out of it. I watched it happen first hand to a good friend.

 

[Duke of Doubt]

I got that advice from a stripper once.

 

[glockman19]

I've been thinking of partnering with a FFL hoilder and opening up a pawn shop that specializes only in jewelry and guns.

I've even found a vacant bank with drivethru.

Imagine it has a large safe and bullet proof glass.

In this economy it might be a winning combiation.

 

[Seattleimport]

Good points about knowing your area/customers. If you're out in real rural country, where anyone can just go to a field and bang away, then the range has less appeal.

If you can draw urban dwellers who don't want to drive 1+ hours into the sticks, then consider the range.

Nice thing about range is that you can mandate that all customers buy and use range-sold ammunition. That's high margin, and gets the customer to pull out their wallet, giving you an opportunity to upsell accessories, training, etc.

Also, a range with a rental component (and why wouldn't you have such a component?) gives customers a chance to try before they buy--an attractive part of the buying process that the Internet simply can't offer.

 

[rainbowbob]

Also, a range with a rental component (and why wouldn't you have such a component?) gives customers a chance to try before they buy...

Yes...but the policy of NOT renting to somebody who does not bring a firearm of their own with them may protect you against the use of your firearms as a method of suicide. The theory is that a person already in possession of a fiream will not need to rent one of yours to do the deed.

 

[ACORN]

I'd have to think long and hard if it were me. If you make 20% on a firearm you're doing pretty good. Most gun owners seem to be savvy and research the cost of a weapon before they buy. Factor in the overhead and you'll see you have to do a heck of a lot of volume to cover your expenses.

 

[Sam1911]

Holy duplicate posts, Batman!

-Sam

 

[Sam1911]

Yes...but the policy of NOT renting to somebody who does not bring a firearm of their own with them may protect you against the use of your firearms as a method of suicide. The theory is that a person already in possession of a fiream will not need to rent one of yours to do the deed.

Maybe. But in practice, it just kills of the primary reason to even HAVE a rental facility: curious non-gun-folks or newbies who want to try things out before they buy and don't have a whole lot of gunny friends who's collections they can sample.

I don't believe you can write ANY policy that will prevent the gun rental suicide possibility. Any more than you could write a policy that prevents them from renting a Cadillac for that last ride off a cliff. If you cannot face the possibility (or the threat of liability) -- and I can see why that would be a tough decision -- then don't open a rental range.

Seriously, if a person is going to end it all, what do they care if they have to max out a credit card, sign a form, and wait 10 minutes for a NICS check? Don't rent them a gun? Ok, so they BUY one and go out in the parking lot for the big exit.

Those are the risks of the trade. But I'd say they're pretty unlikely.

-Sam

 

[Sam1911]

Dupe