How long can a LGS survive?

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[QUOTE="Navy87Guy]
If you’re paying someone $20/hr and they spend 12 mins doing a transfer call, that’s $4. At the going rate of $25-$50 per transfer, that’s a lot of “pure profit” (even more if you’re the owner and “paying” yourself).

There is a lot more involved in doing transfers than a 12 minute phone call. Not a shop in the world does a complete transfer in 12 minutes.[/QUOTE]

It's also not like they're just sitting there doing nothing during the transfer. My guy back in Sioux Falls usually did other paperwork or helped customers while on hold, etc. Usually he had his kids helping him in the shop so they'd all tag team things. It's all about being efficient with your time, multitasking and maximizing revenue streams.
 
Running an LGS in California is a challenge. Almost constant changes in state law and in some cases open harassment by State Agencies. I have heard they have even stooped to "set ups". Many won't complain or relate whats been done to them either. All this, and some of the highest prices, taxes and cost of living in the US.
 
Your definitions of “quick” and “easy” must vary significantly from mine. Granted, an FFL has to be careful with the paperwork, but the process itself is pretty straightforward. The only “investment” is the time it takes to make the call.
Spoken like someone who is wholly and completely ignorant of anything to do with a firearm transfer.


On average it takes my transfer dealer 5 minutes to call the State. Sometimes on a very busy day, he has to call back again later. In states that have online systems (like VA), there isn’t even any waiting on hold — just check the computer to see when it’s been adjudicated. That sounds pretty quick and easy to me.
How long does it take a mechanic to replace a $5 part? A plumber to fix a leak in a $2 section of pipe? It might take hours to fix that part. Just like complaing about a $1000 labor bill on a car repair, believing a firearm transfer is pure profit for five minutes work is just ignorant.

What you a customer see of the transfer is only the dealer verifying your 4473, making the NICS phone call, signing your 4473 and taking your transfer fee. Surely you don't think that's the only time involved in your transfer?:scrutiny:


If you’re paying someone $20/hr and they spend 12 mins doing a transfer call, that’s $4. At the going rate of $25-$50 per transfer, that’s a lot of “pure profit” (even more if you’re the owner and “paying” yourself). Is it as much as they would make by selling the gun, too? Nope...but it’s more than they would make if the new owner used a different FFL.
Anytime someone says "pure profit" in a post about gun transfers it's 99% chance that they know absolutely nothing about gun transfers or the gun business. The other 1% are FFL's making jokes about gun transfers being pure profit :D.
Does that $20 transfer fee include fines and imprisonment for violating procedures, errors or omissions in your recordkeeping?
Are your utilities, phone, internet free?
How about free toner and copy paper?
How about your liability and theft insurance?
Security system and three safes? Tell me where I can get more free safes.

Every day, Monday - Saturday I'll spend a minimum of an hour a day opening boxes, logging incoming transfers into my books and emailing customers that their gun has arrived. That doesn't include the time I spend answering the phone, answering emails, sending emails with my FFL to sellers or anything else related to running a business.

You pay a transfer fee because the dealer has an FFL, not for the time involved. Just like you pay a dentist because he has a DDS after his name, why you pay a Notary because they are a Notary.....not for their time. While to some dealers it may be "pure profit" because they already have rent, utilities, insurance expenses built into their budget, it most certainly doesn't account for time. It also doesn't include the time I spend idle, waiting for the customer who said he would arrive at 7pm tonight......but doesn't show for a week. It doesn't include the time I spend tracking down the buyer/transferee because the seller didn't bother including an invoice or note with the buyers name and contact info.
 
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My local LGS is doing a brisk business. They cover the full range of firearms from all eras. They have a huge consignment inventory, and use GB to their advantage by listing desirable guns on-line to increase exposure. They are not in the business of selling a bunch of ceracoated Highpoints and Heritage revolvers. It helps to be located an area with plenty of customers.
 
Fundamentally an LGS is no different than any other small business. The owners need to be engaged in the thing and working to see it profit. The owners have to be aware of the needs for marketing and the like, and knowing what the customers expect/want.

Doesn't matter if it's widgets, wasabi, or Winchesters.

Likewise, businesses have lifespans. If an owner wants the business to outlast their ownership, they need to take appropriate steps to achieve that end. Which is complicated, it's almost like launching a brand-new business. And the statistics are against you there. Only around 20% of all new businesses survive their first year (under 10% for restaurants).

LGS have an issue about 'image' too. The shelves need to "look" full to draw custom in. And you need a huge variety of random things to meet the random needs of your customers, too. Don't have 30mm Weaver front ring for that dude who just walked in? He may tell everyone "They ain' got nuttin' in at shop!" He might not. You (and you counter clerk) have no idea.

LGS are also under another burden--specialization doesn't help. A restaurant can serve only fried foods, or only fried chicken, and (might) survive. An LGS with nothing but 1911 in 45acp? Only .38sp revolvers? A Glock-only store? A person could try, but most of the traffic is going to ask for something not in the store.

There's not really a magic formula. And, that's putting aside all the present issues.

Recently found out that the semi-legendary Bachman Pawn & Guns over in Dallas closed. Businesses come and go.
 
...Recently found out that the semi-legendary Bachman Pawn & Guns over in Dallas closed. Businesses come and go.
Legendary for the rudest staff of any gun store in Dallas.;)
Went belly up six years ago supposedly because they lost their lease. Oddly, there are dozens of empty storefronts within sight of their old store. They also shut down their internet division and their gun show divisions.

I think it wasn't lack of business, just the owner ready to retire.
 
Now, I'm trying to remember where the CTD gun shop was, whether that was Frisco or McKinney.
When ARs were $1100, they had nothing under $1500, and dropping less than $2K was reason to question your tactical masculinity--not a pleasant store to visit.

There was a similar place at Eastchase and I-30 that had a microscopic range and nothing but ARs in four digit prices. Not only did they have a boorish and aloof staff, they had terrible hours, like 9-6 MF and 9-3 on Saturday.

So, in retrospect, I'm not surprised that not only did that store close, but they razed it, too.
 
Now, I'm trying to remember where the CTD gun shop was, whether that was Frisco or McKinney.
McKinney (where gun shops die regularly)

Closed in the last ten years:
Runner Runner Guns
Front Sight
Guns4Gals
Cheaper Than Dirt Guns
and a couple more I can't remember the name.
 
I talked to the owner of a local shop Saturday and he was talking about shutting down for a week or 2. He said he was tired of not having anything to sell and turning customers away empty handed. He had some hunting rifles, but probably only 7 or 8 handguns. He would normally have 50-60 at any given time.
This is what I was referring to - record breaking sales figures nationwide, yet some stores don’t get any inventory to sell. All those new guns and ammo are going somewhere.
 
McKinney (where gun shops die regularly)
LoL
And, actually McKinney is a good example of "it's not just gun shops." Even if they have a spectacular record for failure.

record breaking sales figures nationwide, yet some stores don’t get any inventory to sell. All those new guns and ammo are going somewhere
Well, related to Miller v Beccara, it turns out, that, from Jan 2020 through Mar 2021, ±1.5 million firearms were sold in CA--yes, anti-gun California--alone. And CA DOJ estimates that 370 thousand--about 1 in 4--of those were to first time buyers (or at least to people brand new to the CA registration process, their only measure).

So, what's the current NICS summary, around 20,22million calls? Call that about 5 million brand new shooters. That's around 10 million boxes of ammo right there. All while factories and industries were shut down for the couf. Also during a historically depressed availability of truck drivers, especially long-haul CDLs (see also travle restrictions due to couf).

That will make for bare shelves.
And near-empty shelves engage a weird reflex to buy up stuff.
"We" in the community have this "thing" where we all cope poorly with an LGS tha looks like a Soviet grocery store with gleaming, empty shelves.
Demand is high, and supplies are low.
There's some person out there waiting to buy a box of .41mag and is so frustrated they'd pay $1.75 per each for a box. Saw an ad on MeWe where a dude was selling small pistol primers--ten at a time.
If we weren't all crazy, we'd all go insane.
 
Mom and pops with nothing in the racks does not paint the whole picture , internet sales is where the real numbers are.
 
Well, as a small LGS owner, we seem to be doing fine. Dad is retired, and does it to keep him busy...I have a few other jobs that provide for my family. Yes, we are only technically “open” for 8hours per week, we will meet customers, pretty much anytime we can in the shop to accommodate them. We have been in business for 9 years now, and have some pretty decent relationships with a couple distributors that take care of us. We don’t bang people like big online companies, and are competitive during “normal” times. We will survive, because we don’t “need” to sell a certain amount.
 
Well, as a small LGS owner, we seem to be doing fine. Dad is retired, and does it to keep him busy...I have a few other jobs that provide for my family. Yes, we are only technically “open” for 8hours per week, we will meet customers, pretty much anytime we can in the shop to accommodate them. We have been in business for 9 years now, and have some pretty decent relationships with a couple distributors that take care of us. We don’t bang people like big online companies, and are competitive during “normal” times. We will survive, because we don’t “need” to sell a certain amount.
Eight hours a week? Sounds more like a hobby than a business.;)
 
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