I'm considering getting into firearms sales...
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Old 09-21-2010, 02:25 PM   #1
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Default I'm considering getting into firearms sales...

I'm considering getting into firearms sales and in fact, I'll be speaking with one of the owners of a local firearms business today after work. He's a nice guy who has agreed to speak with me about the business of firearms sales.



I need to come up with a list of insightful, intelligent questions to ask him. These questions should be ones that cover the pros and cons of running a firearms business.



Thank for your help!

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Old 09-21-2010, 04:41 PM   #2
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You may want to discuss local permits/ licenses/ zoning OTHER than having an 01 Dealers FFL- you will have to meet THOSE requirements before ATF grants license.

Talk with him about markup- firearms, ammo, and accesories. That can be a very capital intensive business. a LOT of money tied up in inventory.

Ask how his is keeping his inventory and his bound volume- he may have computer program he can suggest.

Ask who his best suppliers are. And what are some things he did that he decided NOT to do again.

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Old 09-21-2010, 04:50 PM   #3
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OH- and just a thought-


wile_e_coyote.jpg

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Old 09-21-2010, 04:54 PM   #4
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Make sure you ask what kind of margins you can make on gun sales - when you find out how low it is you'll probably change your mind. Local stores have to compete with the volume giants like Bud's - and that ain't easy...

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Old 09-21-2010, 05:11 PM   #5
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You would probably make more money separating fly sh$t from black pepper.

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Old 09-21-2010, 06:43 PM   #6
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Thanks for all your input guys. I'm thinking of having an online only shop to start with. This would be more of an income suppliment to start with and then I'd see how it goes.

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Old 09-22-2010, 12:02 AM   #7
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I use to have an FFL until they changed it so you had to have a store front. Too much hassle.

Go to AR15.AR15.COM

He has a small store front and minimum inventory and is trying to give it a go as an internet dealer.

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Old 09-22-2010, 06:56 AM   #8
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Quote:
Make sure you ask what kind of margins you can make on gun sales - when you find out how low it is you'll probably change your mind. Local stores have to compete with the volume giants like Bud's - and that ain't easy...
x2. I'm willing to bet that most guys aren't making more than 20% profit margin (25% markup) on firearms. So every time you sell a glock or an XD, you make $90...
On accessories, I'm not aware of any big firearms-accessory warehouse outfits, you might end up either buying from one of the discount online guys or direct from the manufacturers, then trying to make a profit off of a cost not much lower than MSRP.
One thing a lot of people don't consider-shipping costs. Say you find sources for products at 35% below MSRP, unless your source has their own transportation dept. you're going to lose up to 20 of that 35% on shipping costs
Thats something I'm still trying to teach the buyers at my store
Also, startup costs could be hefty. Think about your local shop. Small place? Maybe 25-35 guns at a time? That's around $20,000 in inventory.
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Old 09-22-2010, 07:11 PM   #9
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Thanks for all your input guys. After speaking with the owner, it seems as though I'd need a good chunk of change to get started. That, I do not have.

So, I shall forgo the dealership business.....for now.



p.s.

He said that a good markup on a firearm is about $50. So, volume is the key there.

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