Starting a new firearms business and want some opinions

butchtango

butchtango

New member
I have been thinking of starting a firearms business for a while now. I already have my FFL and LLC associated with my FFL. Cook's firearms and outfitter will be located in southeast Missouri. I have been trying to put together a list of guns, clothing, boots, reloading gear, ammo,...etc. I have a basic idea of what I will be initially stocking the store with but wanted to ask you guys what would you like to see in more places that most people miss and simply don't usually have in stock.

Initially the store will be strictly an outdoor store but I would like to eventually have the equipment to be able to do more intensive gunsmithing.
 
Talk to Joe Bob on here, he might be able to help you with what works and what doesnt work. Joe seems to have what it takes to succeed.
 
This is a terrific question. Every gun shop has a different personality and I am curious how you will build yours. As a start-up, the inventory costs must be amazing! In my experience, 70% of guys out there only shoot during deer season and will describe their Mini-14 as a tack driver. It's a tough crowd to sell a $1500 AR to. On the other hand, there is a niche that won't hang out in a shop without Nightforce scopes and 30 various AR's on hand. These guys are fewer in number but spend a heck of a lot more money. Finding a balance has to be a tricky job.

I wish you the best of luck. I travel a whole lot. When you get up and running, I would love to stop in. If you have truck parking!
 
I think that you could make money with zero overhead by selling guns on the internet at $50 over your cost...you would not get rich, then again you would not go broke either.

Gun and sporting gun business is shore nuff tough.

There's practically no money in reloading unless you go big time...inventory sits a lot...internet kills a lot of potential sporting good sales. % inventory turns is where how you make your money.

Be very careful before you take a leap to invest in a store, phones, insurance, inventory....people are very short on cash right now, amazing how many homes are single income where one spouse is out of work.

Best wishes!
 
I think that you could make money with zero overhead by selling guns on the internet at $50 over your cost...you would not get rich, then again you would not go broke either.

I hate to tell you but you will end up with a lot of unsold inventory. Look at Gunbroker, lots of guns with that sales model. Really any good shop requires inventory and trading. If you have the same stuff on the shelf for years and prices thru the roof, stuff will languish. Used guns are where the profit margin is, buy low sell higher. New guns compete with the internet sales even though those prices do not always turn out lower after transfer fees and such.

I shop at Cabela's for the clothing, quality goods in tall sizes. The gun prices are crazy especially used. There return policy is very nice.

I like stores that have variety and the reality of sales is most people do not order stuff, just ready to buy. That being said, if you can have an fast and efficient order system, that may help you...
 
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I wish you luck in your endeavor. Seems that most gun shops in my area are pretty lacking in quality knowledge IMO. Listening to guys sell things to customers is laughable at most gun counters because they make up "facts" about certain guns that are never and will never be true. So my point: talk straight to your customers.

Dont be afraid to keep a low inventory. I have a friend that owns a store not far from my house, and he orders most firearms in once his customers request them. This keeps his costs down, and ensures that he can get just what the customer wants. He does keep some "standard" firearms on hand to keep his store from looking barren, but most are for illustrative purposes only. He'll even take customers out shooting if they are interested in a firearm he has on hand, just to make sure the customer understands what they are buying.

Having good references for a gunsmith is appreciated, and if you have the space you might want to consider having a gunsmith open up shop in your store. One stop shopping mentality.

Carry something odd and unusual as well. Lots of guys want to see a firearm that isnt in every gunshop. You need something that sets you apart from the others (IE become an exclusive dealer for a certain brand in your area)

Finally, this is just my preference but it sold me: make it a cool place to hang out and let fellas just shoot the breeze with each other. Throw a pot of coffee on for customers and let them sell to each other. We all want a place to get away from the wife for a little while, and if it means hanging out with some guys that you can learn from, I think thats great!
 
I agree with Dogtired,

online sales are good IF you know what you are buying. This is something that you may want to look into if you buy used guns and know just what you are buying. Lots of guys can buy a used gun that people might be interested in, but not many guys can buy guns that people have to have. There is a big difference between dime a dozen firearms and firearms that people actually are searching out
 
Have a good friend that had a small shop for years, He told me many times reloading supplies are hard to move as inventoried goods. What he started doing was letting people get in on a order for powder,bullets and such. He also told me his best profit center was in knifes and quality sunglasses. He also would not stock Guns that where avalible at the box stores.He was at one the largest stocking dealer of ruger #1
 
All of this has been good info. It doesn't have to be big inventory wise, but carry some stuff I can't get at Walmart or Dick's. I walk into my local shop and just ask what 'cool' gun they have today. Some of them have ended up going home with me.

I don't know the business aspect of it, but if you carry a good selection of powder I will keep coming back. Again, you don't need 20# of everything, but a few of some hard to find items will make you stand out.
 
For a small sporting goods shop, I think it is crucial that internet sales be a part of the business model. With the small shop competing nationally against large competitors, free shipping, and random individuals liquidating new product it's extremely tough to make a dollar. So ever little bit helps.

I got out of the local sales for a number of reasons. There are so many product options out there anymore that it is difficult to have exactly what the customer wants. And the customer knows that if you don't have it, it's online and probably cheaper. A lot of big companies have crazy easy return policies that smaller companies struggle to compete with. The one thing that just about put me over the edge was my cost for products from the large distributors. I was paying more at "cost" than I could find it in an online store or auction site. On many products I literally would have had negative margins if I wanted to be competative on price. The margins simply weren't there unless you purchase so much product that you can negociate the price down.

In these tough times, your business will have to add some serious value to ask retail prices. Competant sales staff would be a place where you could add serious value. Guys that have enough experience to put people in the right products will built you a great reputation.

A couple weeks ago, I was so irritated by the counter guy. He had a new predator hunter asking about good rifles. He said "if you want to shoot patterns (holding his hands to show about a 12" circle) at about 50 yards, the AR15 or the Mini 14 would be good. If the coyotes are close and you just need to shoot a lot of rounds fast, they are great. But if you want an accurate gun that will shoot 3" at a hundred yard, then you should consider a bolt gun. Now for scopes, very few people are good enough to shoot past 200 yards so a 3-9 would be best. ..." I never had a chance to jump into the conversation but I sure hope the customer's BS meter was off the chart.

Good luck.
 
I know some people will more than likely disagree with me on this but carry some left handed rifle. I like in ND and it is insanely hard to find differnt types of left handed rifles here. I know us southpaws got the short end of the stick being left handed, but when i see a left handed rifle in a store i'm automatically drawn to it. I'm in business classes at school and one key thing to a sucessful business is being able to reach as large of a market as possible and be able to get your company out there for people to view your products. Any questions or concerns just PM me.
 
I agree with the left handed firearms. I have a buddy that is a lefty and he is never sure if a rifle will really be to his liking, and has to order it in hoping for the best.
 
In the 80's I had a small sporting goods store on the main street of a town with a population of 30,000. I ran the store for 5 years as a part time business and eventually sold it for enough to put a down payment on a house.

Consider this: to stock only 50 assorted firearms could cost you as much as $50,000. No wholesaler is just going to give you these guns, you'll have to come up with the cash. This means a bank loan, if you can get one, but you'll still have to pay utilities, rent, insurance, etc.

After you have some merchandise in your store you advertise(expensive) and then wait for the customers to show up. Those customers that show up, even your friends, expect to get a better deal from you than the other stores in the area. If you price your guns low enough to be competitive you might make $25-$50/gun. How many guns do you think you can realistically sell in your area per week? You'll need to sell a bunch of guns every week to cover your overhead.

My suggestion: tell 5 friends you'll give them a "super deal" on a gun of their choice if they'll give you a deposit and let you use their gun for inventory. Run an ad in the newspaper and on the web for a price slightly higher than what you're charging your friends and see if/when their guns sell. If their guns sell quickly repeat the process, if they don't you collect the rest of your friend's money and you're only out the cost of advertising and your time.

Want to go hunting this weekend??: OOPS, I forgot, you can't because you have to work at your store.

Good luck with your business, I hope you succeed.
 
Getting people to the store is the first concern, sell 22lr shells at or below cost as an opener, only in bricks, even below cost is money well spent to get them there, Your inventory will depend on what hunting is in your area, predator, varmit, deer, rifle or shotguns? Target shooters?, clothing is a huge waste of money, dont even. Trade with people, i wont go to a shop that wont, cleaning supplies, lots of them, bipods, shooting sticks, things that everybody needs, Walmart caries Hoppes, nothing else, at least here, i drive 30 min one way to get Butchs.

Good Luck and keep us updated. ed
 
Firearm consignment is a profitable venture also. Some people are looking for a gun and can't go the new dollar price but can buy used. Suggest camo paint if stock or barrel is too bad.
 
Originally Posted By: Luke BaxterI agree with the left handed firearms. I have a buddy that is a lefty and he is never sure if a rifle will really be to his liking, and has to order it in hoping for the best.

I am left handed myself actually and had already planned to not only put in a few left handed bolt guns but also a few left handed AR's as well.
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I have finally gotten in touch with several vendors and started the contract process with them. I am now narrowing down the options on which store front will be the best choice. From there I simply have to get the contracts finished up and the initial orders in to stock the store and we should be good to go. I hope to have this open in the next 2 months or so. There is alot more work ahead of me at this point but things are going smoothly so far so I just hope they will continue that way from here on out. Hopefully I will soon be successful enough to become a sponsor here on predator masters!! I would like to give back to the site that has given me a alot of knowledge over the relatively short time I have been on here.
 
dont forget people fish, fishing gear can be bought on Ebay cheap and marked up and you dont need a big wallspace for it, also think about stocking worms, i mean you can go pick them your selfs in a night and sell em off or contract a local kid or 2 and pay them for their services
also if you have anyone who ties fly's have them make you some and sell them too. Hunting and fishing go hand in hand, Dont forget calls (predator, duck, goose, deer, turkey, crow) this is all things people need and also lots of targets!!
 
Good attitude means a lot and you sound good to go there.Imperative that attitude doesn't change.
In the past you needed to have it to sell it and now,with the internet,that model is changing.On the other hand,people quickly lose interest in stopping if there's not a lot to look at-or something unique to look at.(so much easier to sit in your undies,drink coffee,and peruse the internet without burning gas,dealing with traffic and parking etc)Consider innovation-maybe have DVDs running here and there showing guns and other things you CAN ORDER and promptly deliver.Make sure your suppliers provide this kind of support to you including product brochures and DVDs etc.
Consider 'packages'.Have one of each 'package' on hand,set up and ready to go.Maybe an AR with assorted attachments etc.People will check it out and pay xtra to have a package ready to go.You have 6-10 rifle 'packages' on exhibit with options and fair prices and you'll not only have interest,you'll have the equivalent of hundreds of guns and other items available yet only be stocking a few.
Do tried and true 'simple but proven' things as well-such as moving things around in the store so people check the entire store out and see whats behind the free coffee.Only the creative that also provide good service can survive in low margin business's in the internet world.
Left handed,banking backup,etc is all good as well and for sure never forget 'location,location,location'.
Wish you the best!!!
 
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