Would any of you gents, be interested in opening a small Gun Shop, FL

[george burns]

I am in Vero, and there is only one gun store of any consequence here. I have been in a half dozen Businesses, and understand the pitfalls, but still feel that a well run Gun store with a good internet presence can do well here.Most folks make decent money here and they have no options other than getting ripped off by our local store. I can't do it myself, but have some good years left, and thought it could be an interesting business. Not looking to set the world on fire, just to give folks a reasonable alternative, to Gun shows and high overpriced stores. I would stick to the basics, Glock, M&P, SIG, 1911's, AR's Ak's and Shotguns. and used guns, ammo. At least in the beginning, until I saw what sold best. Interested, let's grab Coffee.

 

[Hokie_PhD]

I’m not local to you so all I can do is wish you luck and ask that you keep us posted.
It’d be nice if you can document the process as you go.

That said, as someone who has run businesses have you written your business plan, done market studies and created your financial models? If not, that’s a great place to start to make sure your general assumptions are good. Also since margins are small on guns you really need good solid models.

Anyway I’m sure you know this and I hope reminders help as I hope you do well.

 

[George P]

and they have no options other than getting ripped off by our local store.

Sure they do; order online

There are 8 gun shops listed within 11 miles of Vero Beach

http://www.armsdealer.net/businesses/category/gun-shops/florida/vero-beach

Maybe you should contact them about competition.

 

[dogtown tom]

Horribly bad idea to open a retail gun store in any town right now.
There's a reason gun manufacturers have been laying off people since BEFORE Trump was elected.

If the Democrats take the House, you may see an uptick but the gun biz has been flat for the last six years.

 

[RPZ]

Horribly bad idea to open a retail gun store in any town right now.
There's a reason gun manufacturers have been laying off people since BEFORE Trump was elected.

If the Democrats take the House, you may see an uptick but the gun biz has been flat for the last six years.

I wouldn't say it has been flat for six years at all. I have noticed that since the post Trump election the demand for ARs and pistols has flattened, and ammo is much more available.

There is much more to shooting sports sales than just new ARs and pistols though. If competitively priced anything can sell.

 

[Hokie_PhD]

Horribly bad idea to open a retail gun store in any town right now.
There's a reason gun manufacturers have been laying off people since BEFORE Trump was elected.

If the Democrats take the House, you may see an uptick but the gun biz has been flat for the last six years.

I disagree. Sure it’s not a sure himde run. But if OP does a good market analysis and builds really good models (financial and business) he could do well.

The trick isn’t to compete head on, but to find high margin niches that make a business profitable.
If OP thinks he can compete on price it won’t work. For instance, I’ve talked to several shop owners and they’ve said PSAs sale prices are lower than the wholesale prices PSA charges their dealers.

Likewise OP can’t compete with “experiences” like Bass Pro Shops. But they can offer other experiences that will bring customers in. OP can offer services that online and big box stores can’t and won’t. And he can fill the void that the other small shops don’t serve. For instance a local shop here in Central Va specializes in suppressors and FFL transfers. He keeps his overhead low and he has a relationship with professionals so tax stamps and trusts can taken care of quickly and reasonably priced.

Another here is run by a retired firefighter who donates his profits to a children’s hospital so his loyal customers don’t mind paying a little more than online.

Personally, I’d love to see a shop that focused on reloading. But fire regulations, insurance etc can be difficult for a small business.

Anyway I wish him well and hope he finds a way to make it works.

 

[dogtown tom]

I wouldn't say it has been flat for six years at all.

Then you haven't been paying attention. It's well known in the gun industry that its a buyers market. Many manufacturers (like Glock) have dropped their MAP policies hoping it would enliven sales. Heck......bought a silencer lately? Silencerco just had a summer special where you buy $800 of product and you get a free $600 silencer...…..they wouldn't have these kind of promotions if sales weren't flat.

I have noticed that since the post Trump election the demand for ARs and pistols has flattened, and ammo is much more available.

Demand for AR's has flattened? NOT EVEN CLOSE. In fact, the volume of sales has increased, but that's because companies like Palmetto State Armory are selling lowers for just over cost. It's a race to the bottom, meaning a retail gun store has little chance of selling an AR lower for $79, when you can buy one from Brownells for $43? Or how many gun shops can compete on price on a complete AR from Palmetto for $330 shipped free?

There is much more to shooting sports sales than just new ARs and pistols though. If competitively priced anything can sell.

Well no kidding.
What you fail to understand is pricing that will earn enough profit to pay rent, utilities and other expenses may not be competitive with internet retailers or other local gun stores who buy in larger quantities. A single gun store mom & pop will struggle to survive on guns and ammo alone.

 

[ontarget]

Internet presence will be the key. My favorite LGS has a great internet presence and a fairly small storefront. They only sell guns and ammo. No cleaning gear, no camo. They do transfers too. I've never been in their back room but I think he has 4-6 people just doing shipping and receiving.

 

[CaptHank]

George Burns.... I don't see, "Right to Bear Arms", on the list. I have dealt with Chris (the owner) over the years. When I want to buy something, he tells me to shop for the best price and have it shipped to his shop for the transfer. He only works by appointment only now.

 

[Wisco]

If there’s no FFL dealer within 15 miles or so, or not great/friendly shops, you might have a shot at doing transfers and some used guns. No one around me is making money on retail sales of guns at small shops. Used guns are rough, too, because you can sell your gun to a person for 90-100% of its value or sell to a shop for 60-70%.

New guns wouldn’t be worth my time as a small time FFL working from a small retail space or home.

Opportunities for making money:

Transfers

A good eye for used and milsurp weapons that are both desirable and can be bought on the low end. Selling them online if possible and shipping - opens up the country for buyers instead of just your city, county, state.

Lowers. They’re dirt cheap now and will go up later if you can tie up money and space to make money later.

Seriously, the best advice most people give is be a great place to get a transfer for a fair price and be comfortable while they wait.

What I wouldn’t do is have a retail operation where people sit around and jawjack and drink my coffee and don’t buy anything.

 

[MedWheeler]

George, I'm just south of you in St. Lucie County. I can't swear to Vero, but I wouldn't dare try it anywhere here. A few that I know have already closed (some of which needed to.)

The Bass Pro here isn't real competition. People browse their guns, then go home and order online. Probably ditto for the one north of you in Palm Bay.

Lotus Gunworks, in Martin County, is kind of a good "feeler gauge." They used to be a bit overpriced, but have become more reasonable over the last few years. When the market is hot, they're busy and things are bustling (I visit there frequently, and have done quite a bit of business with them.) But, when the market favors the buyer, their store is flat. Now is one of those times they're pretty much standing around in there when I've stopped by lately.

A new brick-and-mortar would have to be based more on marketing and mission than price and selection, something like what the retired firefighter in Virginia Hokie_PhD mentions above is doing.

Still, if I had the capital (and trusted my memory more!), I'd take you up on that coffee.

 

[luger fan]

A friend of mine started a small shop in his garage. He started using the internet and he now has a 1100 square foot shop and 5 employees. It can be done.

 

[FL-NC]

I am in Vero, and there is only one gun store of any consequence here. I have been in a half dozen Businesses, and understand the pitfalls, but still feel that a well run Gun store with a good internet presence can do well here.Most folks make decent money here and they have no options other than getting ripped off by our local store. I can't do it myself, but have some good years left, and thought it could be an interesting business. Not looking to set the world on fire, just to give folks a reasonable alternative, to Gun shows and high overpriced stores. I would stick to the basics, Glock, M&P, SIG, 1911's, AR's Ak's and Shotguns. and used guns, ammo. At least in the beginning, until I saw what sold best. Interested, let's grab Coffee.

Here's what I learned working at a gun shop in NC:
-There's as much profit to be made from accessories and parts as guns
- There is often more profit to be made from used/ trade-in guns than new ones
- Options like gunbroker are killing brick & mortar stores, be prepared to do lots of transfers from these sources, but set your transfer fees at a price that is competitive with everyone else in your area
- beware of wal-mart., they can sell the guns and ammo that THEY stock at or below what you can in most cases
- gun shows are the natural enemy of gun shops, and they are a true "buyer's market"- dozens of dealers under the same roof. selling the same stuff, all competing for the same customers who all paid $7 and have hours to comparison-shop in a finite space
- get set up with at least 2 if not 3 distributors (we had the best luck with Ellet's) to insure you can get inventory
- Be prepared to do special orders for items you don't normally stock- this is especially true for hunters who can be very stubborn about what they want
- Try to get "in" with local law enforcement for contracts on whatever equipment they may be considering- I found that they often like to procure their equipment from as few sources as possible.
- Network with the other "key players" in your area- competent local gunsmiths, ranges, people offering training, etc
- Participate as a sponsor for activities like charity raffles, ducks unlimited type organizations, and the like. By selling the organization a gun at cost and waiving the transfer fee, it gets your name out there and generates new/repeat business.
- Have someone who can do basic repairs, troubleshooting, and tasks like mounting scopes
- Have a knowledgeable staff who can deal with the diversity of "gun people" and their passions (hunters, the "tactical crowd", 1st time buyers, competitors. etc.)
- Customer service is king

 

[Zaydok Allen]

Good luck if you try it. Always nice to have another shop.

Carry reloading gear.

 

[redneck2]

Problem with reloading is the same as a lot of other retail. No matter what you carry, the customer wants something different There are now dozens or hundreds of powders alone. Or somebody has it cheaper

When you go into most any retail store of any size you are at minimum looking at hundreds of thousands if not millions of dollars in inventory. And, your competition is anybody with a website worldwide

I had a retail store that did a tremendous business. Even in 1978 it cost almost $1,800 a day before you turned the key to open

 

[Jack B.]

Too many people don't want to go and do their shopping at a LGS. They prefer to sit at home and shop the internet. I don't think to many of them consider the cost of transfer fees and or Hazmat shipping coast into their purchase price. That's a shame as I usually buy from LGS or a local range and at the end of the day I don't really pay anymore for anything , because I'm not paying fees. However I believe I'm in the minority and there are a good number of guns stores around my area so competition for business is greater creating competitive prices.

 

[Zaydok Allen]

Problem with reloading is the same as a lot of other retail. No matter what you carry, the customer wants something different There are now dozens or hundreds of powders alone. Or somebody has it cheaper

When you go into most any retail store of any size you are at minimum looking at hundreds of thousands if not millions of dollars in inventory. And, your competition is anybody with a website worldwide

I agree. I didn't want to be too negative but my honest opinion is opening a retail gun shop nowadays is super risky and market demand is just too variable. Big box stores and internet stores are killing the notion that you look for deals and items locally. You just order what you want now.

I hope to work in an LGS for a few years after I retire from my career, but honestly I don't expect many brick and mortar LGSs to survive the next 20 years.

I hope to some day guide new shooters into a gun right for them, and new reliaders in to a safe hobby, but the mode of delivery may be very different by them.

I wonder about drone deliveries and such. What will the future bring?

 

[rbernie]

I have had the opportunity several times over the last decade to buy into ownership of my favorite LGS. As much as I enjoy the industry, I have not done so yet and it's not likely that I will do so in the future. The money isn't very good for a pre-retirement income, the hours are poor if you want time with family, and the retail gun industry is changing in ways that make it hard for a brick-and-mortar to survive without some compelling value-add (onsite competent gunsmithing, range on the premises, specialized kit, etc.). We've had several brick-and-mortar shops locally shut down within the last year, even in gun-friendly north Texas.

• Gun buyers that want cheap 'commodity' new guns wind up shopping at Walmart, and the small shops can't compete with Walmart inventory on price.
• Gun buyers that want cheap used guns tend to shop at pawn shops and gun shows, and small shops either suffer for breadth of inventory (relative to gun shows) unless they aggressively use consignment to get inventory, or can't compete well on price (especially if the consignment guns are priced too high by the seller).
• Gun buyers that want sporting / outdoor lifestyle kit tend to shop at BPS and Cabelas, and the small gun shops can't compete against the breadth of inventory (but can sometimes compete on price, but only by accepting a low profit margin that makes cashflow problematic).
• Gun buyers that want the 'tactical / defense' kit tend to be very brand/niche specific and it's hard for a small shop to compete on price and inventory. Mail-order is almost always cheaper for the consumer, and it's almost impossible for a brick-and-mortar to stock all of the various 'go-fast' widgets currently in vogue.

All of this means that a successful gun shop needs to find a way to NOT compete directly with Cabelas and Walmart and the online world. That leaves transfers, gunsmithing, shooting ranges, and special orders / non-commodity items as the principal 'value add' elements that will keep a brick-and-mortar in business unless there simply are no Walmarts and Cabelas in the area.

This is just the way that it is.

If there are no local gun shops and no big-box competition - it's probably as viable as business as any. But just as with any other niche, as soon as online and the big box stores are prevalent in the local market, it gets harder and harder for the smaller brick-and-mortar to justify the shopping experience.

 

[chicharrones]

The small gun shops near me that have kept the doors open take care of the online purchasing situation by aligning themselves with Gear Fire or with Davidson's Gallery of Guns. Even then, they have to keep prices low to compete.

 

[ChanceMcCall]

Too many people don't want to go and do their shopping at a LGS. They prefer to sit at home and shop the internet. I don't think to many of them consider the cost of transfer fees and or Hazmat shipping coast into their purchase price. That's a shame as I usually buy from LGS or a local range and at the end of the day I don't really pay anymore for anything , because I'm not paying fees. However I believe I'm in the minority and there are a good number of guns stores around my area so competition for business is greater creating competitive prices.

I'm pretty loyal to one of our local gun stores partly because the owner is a long-time friend. That said, I use Gunbroker (and others) quite a bit. I really don't do it because of price most of the time but more because I can often find what I want there, but not locally. If I want a NAA Ranger II - which I did - my friend could not find one from his distributors. I found it in less than 5 minutes on the internet and given the lack of sales tax charges, came out ahead. Again, the money wasn't the reason although that was a plus. I also found a Ruger Mark IV Hunter a number of months back that was within $5.00 of dealer cost which I did buy because of price.

All that said, price does make a difference to everyone, but, unless the prices are radically different as in the case of the Mark IV, if I can get what I want locally, I will simply because I like having a store to go to with knowledgeable gun folks behind the counter. By buying from them I help to assure their continued existence.

 

[Charliefrank]

I am in Vero, and there is only one gun store of any consequence here. I have been in a half dozen Businesses, and understand the pitfalls, but still feel that a well run Gun store with a good internet presence can do well here.Most folks make decent money here and they have no options other than getting ripped off by our local store. I can't do it myself, but have some good years left, and thought it could be an interesting business. Not looking to set the world on fire, just to give folks a reasonable alternative, to Gun shows and high overpriced stores. I would stick to the basics, Glock, M&P, SIG, 1911's, AR's Ak's and Shotguns. and used guns, ammo. At least in the beginning, until I saw what sold best. Interested, let's grab Coffee.

Wish I wasn't all the way up in Silver Springs. I would be very interested. I also have owned several businesses including a gunsmithing shop.

 

[shoobe01]

I travel a lot. Well, not this year as much, but for a decade. I stop in LGSs all over. See trends. Often talk to people about how they are a success (e.g. growing 20x in floor space and inventory...). Mostly non-scientific (I have some professional background here, but not in gun stores), and a lot mentioned above especially in FL-NC's post.

But my key points would be:

• Be professional.
  • Friendly. Everyone is welcome. Gently. No loud greetings, etc. Just smile and be ready to help everyone. Tone down how you even green your regulars to not put off new/strangers.
  • Don't spread falsehoods. Have at least one smart guy, and have the rest of the staff say "I don't know" and go get him. Make sure he knows his limits and is up to date, so he can say "I don't know." Do not be a joke on this forum, or others, by being That Guy at the LGS we all laugh at.
  • Clean, well lit. Cannot stress this enough. Maintain it! Not nice when you open, nice always. Inside and out.
  • Good parking. I wish someone would open one within walking distance of me, in the old downtown. For small stores, try to get them in places like this. Seen some good ones, and it invites foot traffic, locals who work in the area, stop by when getting lunch, etc.
  • Plan for customer traffic! Do not send everyone to lunch at lunchtime if customers come in then! Do not be open bankers hours as that's when everyone works! Open weekends, and till at least 9 pm most days like every other store. Hire staff: entrust them to run the place so you don't have to be closed three days a week for family, inventory, etc.
  • Inviting. I know you need to secure the place, but make the bars less visible, use roll down shutters and stuff so when open, it's OPEN.
  • Can you be otherwise inviting, like have a bathroom? With a changing table in both sides! That will make it easier for dad to stop off with the kids, for example.
  • Prices on display. Negotiate if you must, but people need to know roughly what the price is to window shop.
  • Everything on display if you can. If you have a gunsmith, put his workshop behind glass for safety, but not behind drywall or concrete blocks. Try to keep your entire inventory somewhere visible so when you go away to look you don't disappear, or when you say "13,000 guns in stock!" people can see them
  • Within safety and loss-prevention, let people touch stuff. Guns especially. The counter in the way is like drug stores and grocery stores in the 30s. We don't do that anymore pretty much anywhere else for good reasons. Even if cabled, that's better than asking. LOTS of people are gonna be shy about asking, so will not buy as they just stand there, look, and leave.
  • Make it easy to manipulate things. Pads and other surfaces clearly to put guns on, places to point safely.
  • A few blue guns. For real tyros or to try on scopes, lights, whatever, start them on dummies.
  • Conceal carry. Do not scare off any antsy customers by open carrying if you can possibly avoid it.
  • Take credit cards and don't be a dick about extra charges for it. Seriously. Have a backup method so you don't have to complain to customers about them screwing you. Remember, professional. Customers don't need to know.
  • No politics. At least, avoid conspiracy theory pamphlets, and have no stated opinion by your staff. About anything, like banks screwing you over, etc even if it does happen.
• Find what you can put a high margin on, carry it. Ammo? Cleaning supplies? Holsters? What I know from professional customer-centered design in retail is people will look for reasons to burn extra money, so if they are coming to a gun store as a fun or hobby thing, do you have a $1, $5, $10 item? If everything is $100 or $1000, why do they come back every week?
• Rentals. Big money maker, and a way to try out everything before buying. Also, range time as mentioned above for things like LE agencies. Lots of them have trouble finding ranges, so a friendly professional one is good. I know a range is a hell of a lot more difficult than a store, but it is a big, big, big deal to make the most successful stores a success.
• Actually, let's make that a separate bullet: Find something to be a regular source of revenue. Maybe range time, maybe gunsmithing (hell, hire a gunsmith and set up a workshop for him in the store). Do not rely so much on the ebb and flow of sales to make rent and payroll.
• Coordinate with others. Like, gunsmiths. Gun stores are where people go to get their answers when it's not a primary business or hobby.
• Be numerically friendly to people who will bring you money. Discount for local LE will drive them in, for example.
• Do whatever you can to have event days. Whether just you grilling out, or if you can get the local radio station to do events in your parking lot, get distributors to do demo/sale events, etc, do something to bring in people interested in the new, or cheapskates looking for free food.
• Transfers. It brings people in, and you can try to sell them high margin commodity goods. If you are professional so everything is computerized and so on, you can do this cheap, and not complain about it at all. This may mean you have office staff, but recognize that is what it takes to run a business. Not everyone can Always Be Closing on the floor.
• Be online! Again, part of the office staff. Be on every social network, have a GOOD website. Answer emails within an hour, if not within 10 minutes, every time. Answer FB messages. Stay within bounds (e.g. FB sales bans), but try to put inventory online, sales, deals, services, etc. Not everyone wants to call, so don't make them, but work the way your customers want to.

 

[Jeb Stuart]

I can only imagine how much it cost to build a range. Not counting the Liability insurance. The internet buying is grabbing so much business away from gun shops and they can be more competitive. Personally I believe most LGS deal with Newbies, first time gun buyers. And I wonder how much they are going to continue to grow. So many have hit the buying, and now rarely shoot them.
And I HATE DEALING WITH THE PUBLIC.Had enough of that crap to last a lifetime.

 

[theotherwaldo]

I don't know about south Florida, but here's how it works in south Texas: don't do just one thing, otherwise the seasonal cycles will do you in.
Our gun stores that have lasted sell guns and associated supplies - and: army surplus, hardware, farm supplies, camping and fishing gear, or are wrapped around a pawn business.
None of the "pure" gun shops have lasted more than five years except for one that is primarily a smithing and machine shop that specializes in SBRs, silencers, and such - and they've downsized twice.

 

[George P]

I would add, if possible, to include local hunting gear, and even archery. Archery is a big sideline at some of the sporting clay clubs in Florida as the whole family can get into it and participate for less than they could shooting. Here in the South, EVERY place sells deer corn, feeders, etc.