After searching through THR for posts about this subject I'm soliciting the board on some business questions regarding the business operations of indoor shooting ranges.
As I understand it indoor shooting ranges are, generally speaking, a less risky business than operating a gun store exclusively because after the build out of the range is depreciated it's a much higher margin business both with renting hourly time and rental of guns/ammo, and there's less inventory to tie up cash.
There also variable and overhead costs with indoor shooting range in that target stands are routinely replaced, trolley mechanisms are fixed, and ventilation systems are maintained. There's also the overhead costs relating to insurance and liability, but that's harder to quantify.
My experience with indoor ranges has been limited to only a half dozen across 3 states, but I've noticed generally the price of a lane for 1 hour ranges from as low as $16 an hour to as high as $20. Some ranges can charge a lot more because they are the only range within 20 miles. What I'd like to know is if this range of prices is pretty standard, and if so what expected margin do the indoor ranges expect to get when they rent out a lane for an hour?
What is the cost of shooting at your range? If you work at a range, how much profit does your store get out of just lane rentals?
I would guess the margins are very high considering most ranges will offer memberships for a few hundred dollars in exchange for near unlimited range time. Now much of the profit in that membership is dependent on how often a member attends the range, but clearly there are cash flow incentives behind selling that annual membership.
As I understand it indoor shooting ranges are, generally speaking, a less risky business than operating a gun store exclusively because after the build out of the range is depreciated it's a much higher margin business both with renting hourly time and rental of guns/ammo, and there's less inventory to tie up cash.
There also variable and overhead costs with indoor shooting range in that target stands are routinely replaced, trolley mechanisms are fixed, and ventilation systems are maintained. There's also the overhead costs relating to insurance and liability, but that's harder to quantify.
My experience with indoor ranges has been limited to only a half dozen across 3 states, but I've noticed generally the price of a lane for 1 hour ranges from as low as $16 an hour to as high as $20. Some ranges can charge a lot more because they are the only range within 20 miles. What I'd like to know is if this range of prices is pretty standard, and if so what expected margin do the indoor ranges expect to get when they rent out a lane for an hour?
What is the cost of shooting at your range? If you work at a range, how much profit does your store get out of just lane rentals?
I would guess the margins are very high considering most ranges will offer memberships for a few hundred dollars in exchange for near unlimited range time. Now much of the profit in that membership is dependent on how often a member attends the range, but clearly there are cash flow incentives behind selling that annual membership.