marketing research

Discussion in 'NFA/Class 3 & FFL Discussion' started by Snowmassicist, Oct 10, 2011.

  1. Snowmassicist

    Snowmassicist New Member

    6
    0
    0
    I was wondering if I could acquire some information from you long term gun shop owners. Currently I am in the process of building a marketing spreadsheet for annual sales. This is just a hypothetical best case and a worst case scenario spreadsheet. Would any of you be willing to share monthly sales figures so I can come up with a rough guesstimate of what to expect. I'm aware of the fact that many factors come into play but the more info I can obtain the better. Thank you very much!
     
  2. danf_fl

    danf_fl Retired Supporter

    12,358
    26
    48
    I am leery of answering this.
    I would like more information on who the marketing spreadsheet is for, how it will be used, what information will be displayed.
     

  3. trip286

    trip286 New Member

    18,658
    1
    0
    I would not give that information, plain and simple. If I were selling gas, cigarettes, or shoes I would be more willing to share. But with the way gun politics are going right now, you would be totally SOL as far as I'm concerned.

    How much does a crack dealer make? I'm just curious, I know they have nicer cars than I do.
     
  4. Snowmassicist

    Snowmassicist New Member

    6
    0
    0
    Fair enough, completely understand. I am in the process of creating a business plan to open a firearms shop in Colorado . There in lies the reason for creating a spreadsheet of what my annual income may or may not be. Obviously I am unable to go to my competitors to find out this information so I was hopeful that someone in this gun forum might be able to lead me in the right direction. Perhaps a less loaded question would be to ask if any of you would be able to direct me in the right direction to develop these figures?
     
  5. danf_fl

    danf_fl Retired Supporter

    12,358
    26
    48
    Try a Freedom Of Information Act request to the state you live in.

    Also, Try to find out how many background checks have been done and on what type of firearm (handgun, longgun, other).
     
  6. c3shooter

    c3shooter Administrator Staff Member

    21,334
    188
    63
    That's like asking how much the sales are at a restaurant. Mickey D's or Flo's Diner? There is a large shop and range right off I-225 in Aurora, and a local shop in Parker. Their volume and sales mix will be totally different.

    Not to discourage you, but for many people, guns are a "disposable income" item- times are hard, money is tight, sales have been light the past 7-8 months in many areas (so my dealer friends tell me)
     
  7. Snowmassicist

    Snowmassicist New Member

    6
    0
    0
    Thanks dirty old man I realize there ate different shop sizes and different regions and different clientele and different needs. Hence me me stating that there are different variables and that I am making a guesstimate. There is obviously no hard numb
    ers since my store isn't even open yet. But won't I be better off with gathering as many figures is possible to make my best educated guess?
     
  8. Snowmassicist

    Snowmassicist New Member

    6
    0
    0
    Thanks danf, I will look in to your suggestion. I appreciate it!
     
  9. SgtDoug

    SgtDoug New Member

    3
    0
    0
    We run a nice size retail store and I'll just tell you are margins are very tight. With rent and personel are mark up is small on the guns and larger on the accessories.
     
  10. BenLuby

    BenLuby New Member

    2,178
    0
    0
    As an appraiser, I'll tell you this. The variables are so diverse, especially when you don't have an existing clientele, it isn't even remotely funny.
    And a gun shop makes it even harder.
    First off, does any of your competition have an on-sight smith? If so, that can hurt your business.
    Do they have a range, either indoor or out? That can be a deciding factor.
    Do you have sales experience? This can make a huge difference. Told one man as I did his preliminary for the bank that his best bet was to hire a manager to run his business. (Not a gunshop). He asked me why, and I told him he was an a55hole and customers wouldn't return.
    It took him sixty days to hire a manager, and he just about went under.
    The variables are insane. Can you run on your own for twelve months? Serious funds are needed.
    Repair costs, security, rent, payroll, utilities, inventory and so many other things it takes quite a while to calculate it.
     
  11. lkd

    lkd New Member

    91
    0
    0
    The NSSF provides this kind of marketing research data, broken down to include pertinent information for your locale/region. If you're an NSSF member, the price is $250 ($500 for non members). This information is gathered from a professional marketing research company experienced in the firearms industry.

    If you need market research data, it's an awesome bargain. Doing something like that on your own (presumably for your own purposes) inevitably leads to severe alcoholism, puppy kicking, and, in the sad end, registering with the Democratic Party. ;)
     
  12. Straight_Shooter

    Straight_Shooter New Member

    23
    0
    0
    I would suggest you have 3 years operating capital and enough to live of profit free for 3 years on top of the initial investment of inventory, merchandising supplies and displays before you open. Then you work it by yourself 16 hours a day six days a week and teaching classes on Sundays and then you will have a good number to show the bank if you are interested in going into your fourth year.

    Budsgunshop, gunshows and home ffl's will be your competition.

    Doing this with a mortgage would be really hard. Getting a loan to do it would be even harder.

    Sorry to be so negative.
     
  13. 70cuda383

    70cuda383 New Member

    574
    0
    0
    while not a gun shop, I worked with a guy who was running his own classic car restoration business.

    clientele can be similar in that they're spending disposable income.

    he worked 10 hours a day, 4 days a week at the shop, and then pulled 3 shifts as a medic at the fire station.

    his business made enough money for him to pull out $3,000 a month as his salary.

    and he always tried to ensure that his company had a full year of operating cost in the bank at all times, so that he wasn't living "customer payment to customer payment"

    I've seen shops that operate under that model...they don't last very long. when you can't pay your bills until the customer cuts you a check...you end up with cars sitting around not getting worked on because you can't buy parts, and when you can't buy parts to work on the customer's car, you're not going to bring in any more money.

    a gun shop would be similar. make sure that you have enough cash in the bank to keep the doors open for a full year with no customer sales. that way you don't end up cutting into your profit margin just to make some sales, to make the month's rent.
     
  14. Snowmassicist

    Snowmassicist New Member

    6
    0
    0
    Lkd the NSSF was an outstanding suggestion, thank you! Very valuable.
     
  15. lkd

    lkd New Member

    91
    0
    0
    I won't even charge you a finder's fee for that knowledge :D