Opening a gun shop -- UPDATE: Two Years In!

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At least up until a year or two ago Mosin-Nagant rifles were VERY commonly available for $69 or so, and they can still be had for pretty close to that now. His point is perfectly valid. $6.90 is not a reasonable compensation for the effort of handling the transfer and its associated small hassles. $20-30 seems fine to me. If the local market says $50...ok.

But likewise, $200 isn't a reasonable transfer fee just because the gun is worth $2,000, either.

Decide what it costs and stick with that.
 
When it comes to transfers I figure charge a fixed rate. When we had the business there was no internet or Bud's guns or anyone else for that matter. Things were much simpler. If a regular wanted a transfer it was maybe a few bucks to cover sending an FFL and waiting on an FFL. Most transfers were through things like Shotgun News or similar. At that point in time we had solid regular customers and a well established little business. Today it is a much, much different world. Today I would handle it much different.

If I had a gun out for $499 and someone wandered in wanting a transfer from Bud's or any other online place when I could sell them the same gun for $519 I likely would not even bother.

I once had a guy come in and price a Winchester shotgun. OK, fine. The same guy later that day comes in with the same shotgun he bought at Wal-Mart and wants the thing assembled. So I tell the guy $20 and he balks. This was not a regular customer. I suggested he return to Wal Mart and ask them. He pointed out they don't do that. I point out that had he spent $20 more for the same gun he would have left my shop with the gun assembled and he would know how to take it down and assemble it. I spent 5 min assembling the gun, showed the guy and took his $20.

It isn't rocket science.

Ron
 
Sam, I realize that. But drsfmd works a gun shop. He should know the going rates for things. And the 10% thing I've said more than once would require more thought.

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I didn't read the whole thread, but something from the new local sporting goods store needs mentioning. They keep their guns behind the counter, in a glass case. Each has a string tag with model info/price. You can't read 3/4 of them because they are flipped over or obscured. If I can read what it is, and what it costs, I'm much more likely to stick around and ask to handle it. If I can't, I get impatient and walk away.
 
By the way, for those of you who have complained about guns being behind glass or behind the counter out of reach... do you want to buy a gun with dings all over it? Most folks won't, but that's what happens to guns that are within reach of customers.
 
[Mod Talk: If this can't stay completely friendly, we'll just not discuss it any further at all. We're all pals. Differences of opinion are fine between pals. Persuasion is a lot more compelling than derision. Thanks.]
 
I've noticed that we seem to be ignoring the women and new gun owners, which we've already said to cater to. We r familiar and comforrtable with buds because we spend time reading gun reviews, and discussing them here, I have a hard time believing that buds is the first place a new shooter would go, they are going to want the help and experience of the staff to help them through the process. I can prtty much gurantee you that a good percentage of people here in fl don't even know what a 3 day waititng period is let alone how to order a gun online
 
drsfmd said:
By the way, for those of you who have complained about guns being behind glass or behind the counter out of reach... do you want to buy a gun with dings all over it? Most folks won't, but that's what happens to guns that are within reach of customers.
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I think the bigger complaint is when guns are out of reach that do not have readable price tags. I'll admit, I'd like for the guns to be accessible to the customer, but I completely understand why a LGS wouldn't want that. I'm fine with that. Just don't make me have to wait for an employee to ask what a gun costs.
 
There is a hardcore fallacy here that some seem keen on trying to sell -- that someone making the effort to purchase a gun from Bud's is going to load-up with high-margin supplies and accouterments when they come to pick up their firearm. While I think it happens now and then I strongly suspect it's the exception rather than the rule.

Those types are precisely the kind that wait until MidwayUSA or CTD has a deal on shipping and then they load-up with all their needs...
 
+1.
When I had the cheapest transfer price in town I did a bunch of transfers but no other sales. When I raised prices to among the most expensive I also got other sales.
 
If a person can find a gun online, (many places charge an online cc fee) pay for it, pay for shipping, and pay a reasonable ($20) FFL transfer fee and the local shop STILL can't match or beat the price, there's something wrong with the local shops pricing model!
 
When I had the cheapest transfer price in town I did a bunch of transfers but no other sales. When I raised prices to among the most expensive I also got other sales.
Click to expand...
But surely that wasn't the only thing you changed. I'm sure you didn't have a shop full of X,Y,and Z and none of it ever sold while you were doing cheap transfers -- and then you raised your transfer price and suddenly folks flocked to your door to buy X,Y, and Z...? That doesn't seem like the whole picture. Something improved about the inventory you were stocking, your advertising, your in-stock pricing, etc, that helped that shift along. In other words, you must have changed more about your business than just choking down one revenue stream. Simply convincing some people NOT to come to your store didn't magically start up a flood of new sales. Did it?

If a person can find a gun online, (many places charge an online cc fee) pay for it, pay for shipping, and pay a reasonable ($20) FFL transfer fee and the local shop STILL can't match or beat the price, there's something wrong with the local shops pricing model!
Click to expand...

As has been pointed out several times, folks not paying the sales tax, or the use tax either, is part of what's "wrong" with that model. That's not the shops' fault and there's little they can do about it. However, it is probably changing.
 
No.
When I advertised the lowest price I could not sell a box of ammo or a cleaning kit because they could get it cheaper at WM.
When I raised prices I sold all those things. The difference was not the store but the customers. At higher prices I was dealing with value buyers rather than price buyers. So they were receptive to the value propositions I offered. Stores generally get the customers they advertise for.
Being the lowest price is poor strategy in retail, imo, because there is always some other SOB out there who will sell for a nickel less. Even WalMart is running into trouble with competition from Dollar stores and the like.
 
"I think the bigger complaint is when guns are out of reach that do not have readable price tags. I'll admit, I'd like for the guns to be accessible to the customer, but I completely understand why a LGS wouldn't want that. I'm fine with that. Just don't make me have to wait for an employee to ask what a gun costs."

Not just the price. When you are looking at 15 AR mag wells and trigger guards from 10' away, it's hard to tell what is what since there are so many AR manufacturers and varients. Even if you can see the price, it's hard to see from there why this is a $750 gun, and that is a $1750 gun.
 
1) Friendly customer service. Most LGS I've been to are staffed by grumpy, arrogant, know-it-all types with no people skills.

2) Realistic prices.

3) Get a good selection of guns that are popular on the 'Nets but are not available locally (for us here, it's CZ-75 and clones - not a single LGS I called carries one, for whatever reason). This is a good way to get people in.

4) Don't charge an arm and a leg for FFL transfer. They will find a cheaper FFL transfer elsewhere but they will not be coming back.

5) Maintain a strong web presence, it's the key to success, imho.

Good luck !
 
If a person can find a gun online, (many places charge an online cc fee) pay for it, pay for shipping, and pay a reasonable ($20) FFL transfer fee and the local shop STILL can't match or beat the price, there's something wrong with the local shops pricing model!
Click to expand...

Not hardly - the shop still has to pay shipping; if he is a stocking dealer, he has purchase minimums and therefore inventory carrying costs; he has to collect tax which many hold against the LGS, while they do not remit the equal use tax due on interstate shipments. Small stores that do not have drop-ship arrangements like Bud's can't buy the gun for what they are selling, and they have all of those other costs to consider
 
Pilotperk said:
Hi, thanks for looking at this thread. Would you please tell me the top 5 things you would need/want in the gun shop of your dreams? Me and my partner are opening a gun shop in Florida and we are going to go all out. If you don't mind also list the top 3 things you dislike about most gun shops you have visited in the future. We will also have a gun range at our location. Any and all ideas will be used in our thought process during this stage. Thanks again, Ron
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After thinking about this a while I think you will need to:

* Focus on handguns and other guns that Wal*Mart won't carry.

* Focus on buying, selling and trading used guns.

* Focus on being the "consignment kings."

* Provide basic gunsmithing services and things like ultrasonic cleaning.

* Charge a flat $50.00/gun if someone shows up with a receipt from Bud's, etc.

Please avoid:

* Being rude/condescending to customers.

* Not having the price clearly visible on guns.

* Pricing guns at offensively high prices.
 
leadcounsel said:
If a person can find a gun online, (many places charge an online cc fee) pay for it, pay for shipping, and pay a reasonable ($20) FFL transfer fee and the local shop STILL can't match or beat the price, there's something wrong with the local shops pricing model!
Click to expand...
LOL! That's a good one! Bud's buys cheaper due to volume. Their margins are slim which are made tolerable by huge volumes. Their OH/sales $ is tiny compared to a brick and mortar shop. That translates into a lower price. They ship guns for "free" ("very cheaply", again based on volume would be more precise) and typically sales tax isn't collected locally on what they sell.
 
I'd like to be able to buy ammo in bulk. And, ammo prices in the gun shops I frequent is very expensive. So having frequent sales on 9/40/45 ammo would be nice, sort of a thank you for using your range and buying your guns. Not having to use ammo bought from the shop to shoot a rental gun.
 
So what happens when their gun kabooms from ammo you say customers must use to use their range? You are getting sued in a very bad way. You have no defense. You made customers use your ammo that kb'd. My argument in court is "your honor, I've literally fired thousands upon thousands of rounds with 0 issues. I go to this range and they say I have to use their ammo. I did and now im missing 1finger part of another and lost 60% of the vision in my right eye. I......just don't know if I can ever pick up a gun again im so traumatized." Guess what? I now own your store.
 
I've never purchased a gun from buds or other discount place Online nor ammo.. However I am blessed that there are two lgs's near me (50 miles apart) that don't charge anywhere near msrp. One only charges me 10 bucks to do a transfer since I've done so much business with him.

Selection selection selection - should be your first priority. Nothing makes me walk out faster than when all I can see is black plastic.
Clean organized shelving. I'm not going to dig through your trash.
Clearly marked prices. I'm not going to ask for prices
Good selection of accessories and knives.
Have a clear sign (s) stating your policies regarding, transfers, orders, layaway, ccw, loitering, pointing weapons. Etc.


Good luck.... As you can see from this thread you'll need it!
 
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