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

[larryh1108]

Unless the Feds regulate it and/or tax it, internet gun sales are here to stay. The newest gun people are now kids who grew up with the net, Amazon.com, Bud's, etc. The 18-25 year old market is internet savvy and here to stay. If you don't wish to change then be prepared to retire. It may not be how it used to be done but it is the way it's now being done.

I see internet sales taxes as a reality sooner rather then later. This will level the playing field a bit. An advantage of buying on the net is saving 5%-10% on sales taxes. A customer has to pay that in your store. Like it or not, that is added to your already higher prices. How can you compete with a lower selling price and no taxes? Accept the fact that the new gun buyer is going to buy online and then come to your store to pick it up and buy accessories. He may then see how nice you are, what a nice selection you have and how you want his business. He may not buy his gun there but he may come back for all his other needs. Guns can last for decades but ammo and supplies do get used and replaced. Specialize in the items that we use every day and forget about the fact that Bud's got the profit on the gun. Getting customers into your store is the hardest part of owning a business. Once you get them in, your service and attitude is what keeps them coming back. Transfers get them into your store. Once there it is your job and duty to make them want to come back.

Most stores offer loss leaders to get a customer into the store. Items they actually lose money on. It is an integral part of marketing. The theory is you get them in the store and then your superior marketing gets them to buy other things. Look at an internet transfer as your loss leader. Would you rather he came in to buy ammo that you have advertised at cost? Some will come in just to buy the sale ammo and others will also pick up the bigger profit items like SD ammo or reloading supplies. I just can't grasp the concept that you don't want a consumer of goods that you sell to walk into your store and hand you $20-$30 for some busy work. Research how much money it takes to get a customer into your store. The cost per customer will astonish you. Transfers are the cheapest advertising to get customers into your store other than word of mouth or referrals. Of course, to get those you need happy customers. How many people will the transferee send in when he's told to get lost by you refusing to do a transfer or to charge him $75 to make up for your lost profit? Are you kidding me?

 

[Sam1911]

Why not simply charge them a fee that equals what your profit would have been on a pre-paid special order?

That may be fine with them. But if they've found a deal that is really good -- say it literally beats your out-the-door price by $100, and you tell them you'll do the transfer but you're going to charge them ONE HUNDRED DOLLARS for the transfer, you're going to look like a crook -- taking all of the money he was trying to save and, completely arbitrarily, putting it in your own pocket.

You may feel that this is a great way to punish people for hurting the local FFL. But to the buyer who's found a good deal it will seem mean spirited and unethical. And your plan to band together to put an end to cheap transfers is going to look like monopolistic price-fixing on the order of Standard Oil or the mafia. Protecting ourselves by making sure that no one can get a better deal than we're willing to give. That's been "evil" in the eyes of the American consumer for a about a century.

BUT IF! That's not always the case. In fact I would say that's often NOT the case. Also whose to say they won't spend the same amount if they are charged a reasonable fee based on what your expected profit would have been for a prepaid special order?

No, it isn't always the case. I said that before. If you can meet the deal he's found, or come reasonably close, tell him so!

No customer is ever going to be pissed off that you said, "Hey, before you place that order, let me see what deal I can make for you." Reasonable, fair, gives him the chance to decide what his best value is.

Why do you suggest it's zero sum -- "Take the $20-$30 or take nothing."? Why wouldn't you build a relationship with your customers so they come to you first to buy a G17 ...

I said in that specific instance -- when you cannot possibly match the deal he's got, then you are not actually competing because you CANNOT. You are then faced with a zero-sum choice. Some money for the transfer, or no deal at all.

I completely agree that you should offer him your best deal and try to build that relationship of service. It's the only thing that will save FFLs, I think.

and not to you to act as a drop ship point for Bud's? You're also not factoring in the lost of revenue once word gets around that your LGS is really a licensed shipping point for Bud's.

But is that really lost revenue? It depends on if you think those sales are going to come to you anyway, or not. And it can be, as we said, that your reputation is that you're going to make them a counter-offer for a sale through your shop before you proceed with any transfer from an online retailer. That's certainly not a bad thing.

 

[jrdolall]

To the OP. I personally think you are crazy for opening a "gun shop". With that said I hope you open near me and I hope you are successful. I don't have a gun shop anywhere near me. I have a lot of pawn shops that sell a lot of guns. I have a couple of old hardware type stores that sell guns. I have "big box" stores that sell guns. All of these sell a lot of items other than hunting/shooting supplies though I don't really know the ratios. $1 million would not touch the inventory carried by Mark's in Birmingham but he has been around a long time.

A LGS is no different from any other small retail establishment. There are two ways to make money: volume or margin. I was a partner in a business for many years and my specialty was in cutting deals with suppliers and marketing. I always told my customers that there were three things involved if they wanted me to be their supplier. Price, quality(selection can be substituted for quality in a retail business), and service. They could pick two. No business can offer all three and stay in business at least not a business that is trying to make money. If you own a small restaurant and you just want to make a living then maybe you can offer all three. Quality in an LGS is debatable since a NIB Glock is the same at Academy as it is at Henry's LGS.
Anyone who discounts the internet will wither on the vine. The internet IS YOUR MAIN competition. If you don't believe that just ask Big Lots or Circuit City. You either must take advantage of the internet or you will fail to succeed. You may scrape by but you will not be successful. If you don't think that Bud's is your competition then you are living in the 1970's. If you are in Alabama then a pawn shop in Texas is your competition because of Google. Failure to recognize this fact will cost you a lot of money.
I define competition as an establishment that offers similar services or products. Walmart is NOT your main competition. If they are then you will fail. You, as a single store owner, cannot buy 30,000 cases of Tula ammo and put it in 5,000 locations. You can't get Remington to produce a gun specifically for you. Despite this there are stores selling against Walmart in every category every day, and doing well. You must do what they cannot do. Offer service and quality(different things). I came out of the restaurant business so I look at Walmart like I look at McDonalds. You cannot open an independent burger joint across the street from Mcd's and be successful selling burgers and fries no matter how good your fries are. Mcd's does not make money on their quality but on their volume.

The objective of any business is to take as much money from every customer that walks in your door as you can possibly take. If you want repeat business then you MUST do this in a fair and honest way. Most retail stores will not make a monstrous amount of money on any single sale but rather will sell a lot of smaller items and add it all together so don't necessarily try for the big sale all the time. Ever wonder why restaurants push desserts or drinks? Go to Outback and they have a menu with just drinks and one with just desserts at every table. The extra $5 spent on a dessert is pure gravy. Why do grocery stores have items hanging on racks at the cash registers and coolers with cold Pepsi right next to the register? They want to squeeze that last $1 from you. These are the "auxiliary" sales that you need in a LGS. Sell Realtree bottled water or some buffalo/elk jerky.

I once had a customer tell me "I don't want to be anything like Mcdonalds". My response was "You don't want to be successful?" I don't say you should have food like Mcd's but they ARE the most successful restaurant chain in the world so they do something right. Purchasing, distribution, advertising, inventory control, cash register control, consistency. All of these are things they do right. Price and service(fast but not necessarily good) are their two keys. None of us go to Walmart for the quality customer service yet they are the biggest retailer in the world. They have proven that low prices bring in customers. Price and selection are their keys.

As far as transfers go I think they are a great thing for a LGS. I look at them like the special order items I used to deal with. I brought in items for customers on an in/out basis. Using my normal markup I probably never made any money on these deals but the customer wanted it and the customer paid my bills. Do 10-15 minutes of paperwork at designated times. Don't allow transfers during your busy times unless the customer is willing to wait until you have a free person. Tell the customer what a great deal they got and ask him if he has seen your price on a box of ammo or if he has seen the newest Sig. There will undoubtedly be some people who abuse you and never spend much money but you have to take the good with the bad since most businesses can't hand pick their customers. Restaurants routinely do specials like "buy one dinner get one half off" and they usually do this on their slow days. Grocery stores do a lot of BOGO's hoping that you will buy a few things that are not on sale but they don't refuse to sell to you if all you buy is the sale stuff. Remember that the object is to extract as much money from the customer as possible.

Having 100% knowledgeable, friendly staff is a pipe dream but sure sounds good. These people will cost you $25 per hour and don't be afraid to pay them. You CANNOT overpay a good employee but you can definitely overpay a minimum wage employee that costs you sales.

People buy guns on occasion but people who shoot a lot buy ammo all the time. You must be able to compete with the internet on ammo. I did not say beat the internet. Compete. You can't possibly carry what CTD carries but you can be within $1 or so and sell it by the box. People who buy bulk ammo online are not going to start buying it by the box so don't worry about those people.

Places like Bud's have changed the way guns are bought and sold. You don't have to like it but you probably can't fight it. You MUST offer what Bud's can't. Whether that be smith work, firing range, good looking sales people or transfers will be market driven. Walmart has crushed the local grocery stores and local hardware stores. You can either accept that or not. It is true so you have to figure out what to do to be better than they are. You can't offer the same items and be 25% higher. Mcd's put the local drive in restaurants out of business.

I don't know who said this but it is true. There is no single key to being successful in business but the quickest way to be unsuccessful is to try and make everyone happy. There are going to be people that want what you cannot provide no matter what you provide. If you carry cheap stuff some will complain that you are arming the thugs. If you carry high dollar stuff then some will complain that you are too expensive. Businesses that can find the middle ground will be successful.

 

[Bubbles]

Unless the Feds regulate it and/or tax it, internet gun sales are here to stay.

What do you mean 'unless' - the feds do regulate it. A drop-shipper who does nothing more than maintain an online shopping cart to take orders and ship straight from the distributor to the transfer dealer is still required to have an FFL, with all of the hassles and associated joy of dealing with the ATF.

As for taxes, CA and WA both force FFL's to collect it; CA even forces FFL's to collect it on incoming guns from private out-of-state sellers. Don't think that other states haven't taken note of that untapped revenue stream.

 

[oneounceload]

But if the customer is looking at spending $100 or $150 more with you, you're really not even competing any more. He's got a great deal and you simply cannot begrudge him that he doesn't want to spend the week's grocery bill -- EXTRA -- just to take the one you've got in stock.

Not really - this would depend solely on the price of the gun - if it is a 500 pistol? Sure your view holds; if it is a $20,000 gun? an extra 100 is nothing

Please provide proof that Glock made a 50% margin at that sales price. I don't dispute the price. I'm sure he would have given them away for the tremendous sales they provided but I seriously doubt the cost to produce/sell a Glock is $38.00/unit.

The article I read said his guns cost him $52 to make, and he sold them to NYPD for right at $75 or so each - remember this was a single order for 30,000 units. The point is though, at least with Glock, is that he has a LOT of leeway in pricing towards distributors and wholesalers and they, in turn, can continue that process to their larger retailers.
I would also venture that Kimber, Remington, et al have similar programs.

We have one shop here that is a Master Kimber Dealer or whatever they call their top tier retailers now. In talking to them, they told me they had to have an initial order for $25,000 and it would have to include some of Kimber's less than stellar sellers - the ones that sit on the shelf because they aren't popular. Browning works the same way.

Most small shops can't afford to sink $25K in initial orders TOTAL, let alone for each line of guns they want to carry - inventory costs would sink then in a month, so they buy a few of several brands from distributors like Sports South, Jerry's, Ellet Brothers, etc., and their profit is tied to selling the gun at or real close to MSRP. Hard to compete with an internet seller in that regard, you aren't big enough yet to get the better discounts to compete, and you can't get that big because no one wants to buy from you at your current prices - it becomes a Catch-22

As to the sales taxes - you will see that after the next election - it will be coming on ALL internet sales and will cause a major issue for many on-line retailers

 

[leadaddict]

I'm curious, maybe a gun-shop owner can help me with the math. Let's say I want a Glock 17. Bud's currently has them for $499.00 (shipping included). With a $20 transfer fee, it ends up costing me $519 and you make $20. What can you sell a Glock 17 to me for and what would be your profit? Are you making $40 or $80? I'm just trying to understand the number behind the argument. - Thanks!

Fine, I’ll do the math myself!

So if the dealer’s wholesale price on a new G17 is $440 (+15 for shipping???), and they are selling it to me for $550, then then they are getting $95 from my sale. But I have to pay $588.50 (7% sales tax here). According to my math (using $455 as the dealer’s cost) that’s a markup of almost 21% (95/455). A 12% markup would lead to a price of about $510 or $55 profit, but a total price of $545.70 with tax.

And because I love numbers…

Scenario #1
Bud’s with a $20 transfer fee:
- “Price” = $499
- Local dealer makes - $20
- I pay - $519

#2
Bud’s with a $35 transfer fee:
- “Price” = $499
- Local dealer makes - $35
- I pay $534

#3
LGS Stock at 8% markup:
- “Price” = $491
- Local dealer makes - $36
- I pay $525.80

#4
LGS Stock at %12 markup:
- “Price” = $510
- Local dealer makes - $55
- I pay $545.70

#5
LGS Stock at %21 markup:
- “Price” = $550
- Local dealer makes - $95
- I pay $588.50

Interpret how you will. I find such things interesting...

 

[Scott Farkus]

Wow just as I predicted. All you need for a successful store is a million dollars worth of merchandise, lower prices than the lowest one on the internet, free gunsmithing, free transfers, clean and well lit, dont mind that people bring their lunch in and eat it, and free coffee.

Anyway, on transfers: when I started I charged $20, which was the lowest price in town. All I got were price customers. They were there because they only wanted to pay the lowest price for anything. Since I was 50 cents higher on Speer Lawman vs WalMarts White Box they wouldn't buy any. I never sold a single accessory, cleaning kit or supply or box of ammo to those customers.
I decided I felt like I was getting raped with every transfer and I wouldn't stand for it anymore. I raised prices to $40. I do many fewer transfers but the ones I do result also in sales of ammo and accessories, and often repeat business for guns. And I'm happy to do the transfer because the amount I make is almost as much as I would on a new gun.
The big advantage a place like Bud's has is that the customer can hike the sales tax in his home state. In TN that's 9.25%, which adds up quick on a $500 gun. I can easily beat Bud's prices and if they were required to collect sales tax, or I were required to collect it on the transfer, people would never buy from Bud's.

You have a legitimate point about the sales tax. Beyond that, if your in-person demeanor is anywhere near your internet demeanor, it's no wonder people don't stick around your shop long enough to buy accessories.

 

[Bubba613]

So if the dealer’s wholesale price on a new G17 is $440 (+15 for shipping???), and they are selling it to me for $550, then then they are getting $95 from my sale. But I have to pay $588.50 (7% sales tax here). According to my math (using $455 as the dealer’s cost) that’s a markup of almost 21% (95/455). A 12% markup would lead to a price of about $510 or $55 profit, but a total price of $545.70 with tax.

Except it's actually a 17.3% margin. It is shocking how few people, even those in retail, understand this.
Margin answers the question, what percentage of the sales price is gross profit? In this case, 550-455/550.
As for the comparisons, if the LGS doesn't provide any more than the big box store they probably deserve to go out of business.

Beyond that, if your in-person demeanor is anywhere near your internet demeanor, it's no wonder people don't stick around your shop long enough to buy accessories.

Reading and factual fail. My Google reviews are the best in my market. I am unpopular with price-driven tightwads who think they ought to get everything free.

 

[oneounceload]

i am unpopular with price-driven tightwads who think they ought to get everything free.

touche!

 

[leadaddict]

I thought there was a difference between markup and margin. (hence two different words)

But regardless, the difference between the first two scenarios and #5 is enough to make even a non-tightwad abandon the LGS for Bud's.

I consider myself a tightwad, but I was presented with a similar situation to deciding between options #2 and #4 and went with #4 because I have a good relationship with the owner. I would have gone with Bud's if his price had been in the the #5 range though. I love my LGS, he's awesome!

 

[oneounceload]

I thought there was a difference between markup and margin. (hence two different words)

Yep - just like percentages - working forward gives one number, backward another number, results of total remain unchanged

 

[Sam1911]

But if the customer is looking at spending $100 or $150 more with you, you're really not even competing any more. He's got a great deal and you simply cannot begrudge him that he doesn't want to spend the week's grocery bill -- EXTRA -- just to take the one you've got in stock.

Not really - this would depend solely on the price of the gun - if it is a 500 pistol? Sure your view holds; if it is a $20,000 gun? an extra 100 is nothing

Sure. I'm sorry, we'd been talking about a hypothetical Glock sale and a price of around $550. In the examples I'd been going with previously I was saying some X% of the gun's total value. But even that's not a hard and fast rule. I mean, even if you're buying a $20,000 Krieghoff, you aren't going to pay someone $1,000 (5%) to transfer it. But a $550 Glock transferrring for a fee of about 5%? Sure, that's about $28, right in the middle of the average price range.

 

[Yoda]

Maybe there's another way...

Instead of trying to compete with on-line sales, maybe you could exploit them. Whatever the on-line guys have, you have too. You don't try to beat the on-line prices, but you offer the buyer a chance to handle a gun before he buys it on-line, AND you help him find the best deal on line. Then he goes on line in your shop, and makes the purchase, with the gun shipped to you. You never have to handle much inventory, but you make a few dollars on each sale.

You may not get rich, but you might get something out of it.

- - - Yoda

 

[drsfmd]

I don't want to start the tax debate again, and get the thread locked, but do keep in mind that all states that have a sales tax also have a "Use Tax" that is the same rate as sales tax and is required to be paid on all out of state purchases. You may be ducking the tax, but it doesn't mean that you don't owe it.

 

[Keauxbi]

In this economy with this President?

 

[drsfmd]

Instead of trying to compete with on-line sales, maybe you could exploit them. Whatever the on-line guys have, you have too. You don't try to beat the on-line prices, but you offer the buyer a chance to handle a gun before he buys it on-line, AND you help him find the best deal on line. Then he goes on line in your shop, and makes the purchase, with the gun shipped to you. You never have to handle much inventory, but you make a few dollars on each sale.

You may not get rich, but you might get something out of it.

- - - Yoda

So I should stock every model of Glock so people can come and fondle my gun, then pay a $20 transfer to get the gun from someone else? That's a horrible business model.

 

[fallout mike]

The last gun I paid a transfer fee for I went to another town bc 1, the local guy is a arrogant sob and 2, he charges $50. I called a place 36 miles away. $25 if they didn't carry it and $35 if they did carry it. They didn't carry it and couldn't get it from their normal suppliers. They told me I was getting a great deal and they would be very happy to do the transfer. I called several other places in close by towns before this guy and they all acted like they were doing me a favor by going it. Anyway, I went and picked up the gun when it came in. They were very nice and loved the gun I had gotten. I have since bought a gun from them, numerous boxes of ammo in calibers I do not load, a scope, powder, primers, bullets and have sent a friend there and they have bought a gun, ammo, and reloading components. Im actually about to buy another gun from them in a couple weeks. They have received all this business from me just bc of a very reasonable transfer fee and great customer service.

 

[larryh1108]

The last gun I paid a transfer fee for I went to another town bc 1, the local guy is a arrogant sob and 2, he charges $50. I called a place 36 miles away. $25 if they didn't carry it and $35 if they did carry it. They didn't carry it and couldn't get it from their normal suppliers. They told me I was getting a great deal and they would be very happy to do the transfer. I called several other places in close by towns before this guy and they all acted like they were doing me a favor by going it. Anyway, I went and picked up the gun when it came in. They were very nice and loved the gun I had gotten. I have since bought a gun from them, numerous boxes of ammo in calibers I do not load, a scope, powder, primers, bullets and have sent a friend there and they have bought a gun, ammo, and reloading components. Im actually about to buy another gun from them in a couple weeks. They have received all this business from me just bc of a very reasonable transfer fee and great customer service.

Hmmmm, fantasy, huh?
I think not.

 

[gym]

The main thin that we are not talking much about, is good qualified sales help. Not just salesmen. When I owned the health club, "I refer to it because it was a hard sell" we were selling air. We already had the investment in equiptment and all that went with it, TV's, music, personel training, nutrician etc, the idea is to sell a total experience to someone not just a gun. Many sales people will revert to the cheapest gun they know they can sell. because it's a sale. It's the same as a Gym membership. I would have to go in and up-sell my own sales people. You know how hard it is to sell someone a more expensive item when your help has just sold them the cheapest item you carry, in order to secure a commission of at least something?.
But I would grab them and make them watch as I went back in to their customer and sold them a more expensive membership, because they needed it. It does no good for either the owner or the client, to sell them a product that is not going to end up making them happy, just to close a sale.
But you have to know how far you can take each individual client, which only comes with practice and having good sales people working for you. Pay for the best and they will make you money. Hire cheap and you will get unhappy clients who will never return.
It does no one any good to buy something that you are never going to be happy with just because you got a hell of a deal on it.
Most businesses make the mistake of trying to save money on the help instead of paying top dollar for top people.If you can't read someone in the first 5 minutes with 3 or 4 questions then you probablly are either going to lose them or sell them something that they are never happy with. Once you fit the client with the perfect product, the effect it has is trully amazing, you can do no wrong in their book, they will brag about you to their friends. This guy knew what I needed before I did, he is my go to guy, I know that he is going to take good care of me and anyone I send in. That''s what you want your clients to walk out feeling. Buds can't do that, and some folks know exactlly what they want and only need an order taker, you use you least skilled person on them, because they just want price and out. But many people can be turned around "in a good way" they just don't have all the info yet. that's where you use your talent. You need people who can read Mr Smith and instatlly bond with him, and know the product,people who can explain to him why he needs the 308 instead of the 243, or the 8 round remington instead of the 5 round mossberg, the gas powered instead of the pump. The 45 caliber instead of the 380. that's where you need to exell, all the other stuff falls into place, you now have a way into this mans trust. His familys safety, and his hunting pleasures. Why not have the scope mounted on that rifle now instead of waiting, we can cut you a deal on it today if you pick up one of our top of the line models, and let me show you why they cost a little more. Now you have ammo, clothing, knives, and everything the man is going to need. Some people are afraid to ask for money. They talk around it for 20 minutes. This is the most important part of the business, the rest is secondary, you need top quality sales people a friendlly gal at the register, and an overall feeling of "this is the right place for me to be in".

 

[msrfrog]

1 Be friendly.
2 You do not need a huge inventory , but you do need more than a serious collector might have. (something for everyone)
3 well lit
4 ammo
5 be friendly

One LGS has very few guns and is ok but I'd like to see more when I go in his prices are good though.

Another LGS has a much bigger inventory and is very friendly and does not turn his nose up at transfers. He told me if I see anything I want online and he will transfer it for me. That is great around this part of NY most guys act like you are a scumbag for wanting to transfer. Even if they can not get the gun you want. But his prices are a little steep but maybe there is haggle room .I have not purchased anything from him yet . I will soon hopefully.

 

[BSA1]

This comment is buried so deep it will not get read

I managed a indoor shooting range/gun shop once so here are some of my experiences;

Range Operation

Allow your customer unlimited range time per paid sesson.

What we learned that when you charge the customer by the hour the first thing they do is check their time on their watch, watch itc losely so they don't go over their paid hour and have to pay more. When the hour is up they pack up and leave without doing any shopping.

Unlimited range time is self regulating. How long does it really take to shoot and box or two of ammo? Most importantly the customer does not have to worry about paying exta for range time so there is no pressure to get off the range and leave the store.

Paint

Fresh light painted walls and ceiling.

Floor

Paint or floor epoxy. You don't want your range looking like a warehouse.

Venitilation

Excellent ventilation Slow moving air gags the shooter and makes it difficult to see the target.

 

[MedWheeler]

If it hasn't already been mentioned in your thread (I mentioned it in an identical one a little while back), consider not treating left-handed people like second-classers. Instead of making us look through countless rows of holsters trying to locate the handful you have for us (which usually aren't even together, but scattered throughout the rest of the inventory), set them on a J-hook or shelf set aside for them, and labeled as such.

 

[Sam1911]

Venitilation

Excellent ventilation Slow moving air gags the shooter and makes it difficult to see the target.

If you're going to build a commercial range you're going to have a WHOLE lot of money tied up in making that meet the EPA standards for lead safety. There won't be any slow moving air, I promise!

 

[Kynoch]

Unless the Feds regulate it and/or tax it, internet gun sales are here to stay. The newest gun people are now kids who grew up with the net, Amazon.com, Bud's, etc. The 18-25 year old market is internet savvy and here to stay. If you don't wish to change then be prepared to retire. It may not be how it used to be done but it is the way it's now being done.

I see internet sales taxes as a reality sooner rather then later. This will level the playing field a bit. An advantage of buying on the net is saving 5%-10% on sales taxes. A customer has to pay that in your store. Like it or not, that is added to your already higher prices. How can you compete with a lower selling price and no taxes? Accept the fact that the new gun buyer is going to buy online and then come to your store to pick it up and buy accessories. He may then see how nice you are, what a nice selection you have and how you want his business. He may not buy his gun there but he may come back for all his other needs. Guns can last for decades but ammo and supplies do get used and replaced. Specialize in the items that we use every day and forget about the fact that Bud's got the profit on the gun. Getting customers into your store is the hardest part of owning a business. Once you get them in, your service and attitude is what keeps them coming back. Transfers get them into your store. Once there it is your job and duty to make them want to come back.

Most stores offer loss leaders to get a customer into the store. Items they actually lose money on. It is an integral part of marketing. The theory is you get them in the store and then your superior marketing gets them to buy other things. Look at an internet transfer as your loss leader. Would you rather he came in to buy ammo that you have advertised at cost? Some will come in just to buy the sale ammo and others will also pick up the bigger profit items like SD ammo or reloading supplies. I just can't grasp the concept that you don't want a consumer of goods that you sell to walk into your store and hand you $20-$30 for some busy work. Research how much money it takes to get a customer into your store. The cost per customer will astonish you. Transfers are the cheapest advertising to get customers into your store other than word of mouth or referrals. Of course, to get those you need happy customers. How many people will the transferee send in when he's told to get lost by you refusing to do a transfer or to charge him $75 to make up for your lost profit? Are you kidding me?

Unless private FFL's band together in a confederation and refuse to act as drop-ship points for places like Bud's. Then place like that couldn't do business.

I always thought that one should be able to receive their gun at any USPO...

 

[Kynoch]

The last gun I paid a transfer fee for I went to another town bc 1, the local guy is a arrogant sob and 2, he charges $50. I called a place 36 miles away. $25 if they didn't carry it and $35 if they did carry it. They didn't carry it and couldn't get it from their normal suppliers. They told me I was getting a great deal and they would be very happy to do the transfer. I called several other places in close by towns before this guy and they all acted like they were doing me a favor by going it. Anyway, I went and picked up the gun when it came in. They were very nice and loved the gun I had gotten. I have since bought a gun from them, numerous boxes of ammo in calibers I do not load, a scope, powder, primers, bullets and have sent a friend there and they have bought a gun, ammo, and reloading components. Im actually about to buy another gun from them in a couple weeks. They have received all this business from me just bc of a very reasonable transfer fee and great customer service.

I'm not even sure I would drive 144 miles (36x2x2 -- we have a waiting period here) to save $15-25.00 In fact I'm pretty sure I wouldn't because that's almost 5 gallons of gas at what, $3.50 per gallon = $17.50 in gas alone.