How profitable can a Gun Store and Outdoor Range be?

[b_s_c1]

I have been operating a small gun store out of my house and have been playing around with the idea of opening my own gun store and shooting range. I have found 60 acres for sale, at a very reasonable price and in a good location, and would have room for a 900 yard range with 15-20 benches for rifles and 10-15 stalls for pistols. There is no zoning restrictions on the property and I will be using the NRA Range Consultants for the range build.

I will try my hardest to have the range 50 BMG and NFA weapons compatible.

The facility will have classrooms for CCL and hunters education classes, and I would like to hold competition shoots.

I estimate the start-up price would be around $450,000. This would cover land, buildings, stalls and $250,000 for inventory. A little more than half will be out of my pocket with the rest coming from investors.

I have done my research on opening a range and gun store and have read many old links on THR. That is why I figured this would be the best place to ask. Can this idea be profitable? I know there are many variables that have to fall in line to start making a profit. I would like to hear from some owners/operators of a firearms store/range, but any replies would be helpful.


Thanks

 

[Sam1911]

Well, they say the quickest way to make a small fortune in the guns business is to start with a large fortune...

Do you have any business education? It might be wise to take some classes in running a small business. Or even to hire a consultant to help you do this wisely.

So much depends on your location, client base, competition, and so on.

Running a for-profit range is a daunting proposition. I belong to a private sportsmen's club that charges $55 a year for a membership but lets me shoot on 12 different ranges/pits any time all year round. In the past, I've paid $500 a year to be a member of a different private club with roughly similar facilities. The closest for-profit range I can think of charges a per-hour or per-half-hour rate that I once calculated would be running me nearly $6000 a year based on how often I shoot at my current club (for which I pay $55, remember).

My point with all that is, how are you going to set your rates? And what is your "hook?" How are you going to compete with other facilities near by? (900 yds. is quite a draw, but most folks will be happy with 100 yds.) You're going to host competitions? That's awesome. What kinds? How much are you going to charge competitors to shoot? Are you going to be forming a local IDPA or USPSA club and setting up stages for them? Or are you going to try to get an established local club to come and pay you for the chance to set up and run their own matches on your range? Arranging, setting up, and administrating shooting matches is a lot of work. Are you going to take time away from your business to do that work? Or will you expect others to do that for you so that you can make money from the fees of those who come shoot? How do the governing bodies of those organizations feel about that arrangement?

Is this in an area where everyone has a few hundred acres to shoot out their back door? Are there decent/free state or federal lands nearby to shoot on? Or is this 15 minutes outside of a major metropolitan downtown, where folks will be line up around the block to get some range time, even at $20/hour?

Just a few thoughts. I like the idea of more ranges being built, but there do seem to be a lot of questions to answer.

-Sam

 

[oneounceload]

Unless this is swamp land, the amounts you mention seem very low and optimistic.

Do you have a business plan drawn up? 6months to 1 year's worth of operating capital?

$200,000 for land, buildings etc??...around here, just your construction permits, taxes, business licenses, etc. would run over 50,000. Then there are business insurances, payroll taxes, etc........

CAN it be profitable? Sure, if you're in the right time and right place with right product/service.

Good luck!

 

[testosterone]

Making money with a gunstore seems real, so long as all the other elements that make a retail location successful are meet.

Making money with a range??? that I think would be pretty hard.

 

[LeonCarr]

Use the money to build a 100 yard INDOOR rifle range in Victoria or on the outskirts. That way you can shoot rifles (with the right bullet traps) year round in any kind of weather. No problems with mud or having to worry about berms sagging or stray bullets.

Yes, it does mean a building over 300 feet long and an expensive ventilation system, but your liability concerns (The number one thing with running a range) will be greatly reduced. Also factor into your costs several million worth of liability insurance.

Just my .02,
LeonCarr

 

[Floppy_D]

If I were in your spot, I'd want information from current range owners, FFLs, landowners, police, and small business owners in your area. They can tell you a LOT more than we can, tailored to your needs.

Local market weighs a whole hell of a lot compared to internet conjecture, and good luck with your research and endeavour.

 

[Sam1911]

Just tossing out some numbers regarding the range:

If you assume that you want the range to pay off your $200,000 land & buildings investment (assuming the retail store will handle the other $250,000), it could break down this way:

If you can bring in 17 shooters a week who will each use the range for 1 hour, and who will pay $15 per hour, you will pay back that principal in 15 years. (Your range is bringing in $13,260 per year, gross.) Of course, there will be a lot of interest to pay, and grass to get cut, and maintenance on the range, and the power bill, HVAC, ventilation filters, etc. Better make that 34 shooters per week. Will another $13,260 cover all that stuff? Sure doesn't seem like much operating capital, but might work for you.

But what about range officers? Are there going to be any? Are they going to get paid? How much? What are your hours? How many officers do you need to cover all those shifts? If you're only paying them $6.62/hour, each one working a 40-hour week will need another 17 shooters a week to cover his salary. Call it two ROs, and 34 shooters a week to cover them. BUT, that's before taxes, so really you need about another 17/week to get their social security, etc. taken care of. Wow, we're up to 68 paying customers a week. More than 11 every day, six days a week. (Gotta close sometime, right?)

BUT, what about insurance? I have no idea what that would cost, but it won't be pennies.

How much tax will you be assessed each year?

And so on it goes.

I don't have a tremendous business background, but these are the items I'd start investigating.

-Sam

 

[offroaddiver]

The ranges around my neck of the woods that might be "profitable" are either so busy or so costly that I very rarely visit them. The cheapest range I visit has nothing but very basics and is a small town's police range, so not always the best. The other private range has rules out the wazoo and about the same driving distance to my favorite range.

Rules for any business, Find something that you can offer that people want and they will pay you for it. Higher end clients, higher word of mouth, etc more you can get.

 

[thriftyjoe]

Allot of profit can be generated from selling equipment at the range store.

For example, even if you host a tournament for free (i'm not suggesting) people showing up always buy things, especially if it's reasonably priced.

I dont know how it works in your neck of the woods but small profit is generated from selling the leftover brass where i live.

 

[b_s_c1]

Thanks for the replies.

I have done my homework and I have most all expenses fiqured out.

Oneounceload-If you new the price of the land and the layout of the land you would understand how it can be done for $200,000. I have bids for everything am confident it can be built for $200,000.

Sam- All very good points and they have all been taken into consideration. I will have the rest of the fiqures I need for an est. monthly expenses by the beginning of next week. I know it is going to be expensive to run and maintain. That is why I asked the question.


FloppyD-I have talk to most all the people you listed in my area. I got very good feedback from most and blown off by a few. Guess you really cant blame someone for not giving me info when I will be there competition. The county officials and current customers love the idea. The local law enforcement will be willing to use it for there trainnig and will become there practice range for the swat snipers, pending range fees.


The only range in my area is a 200 yrd gun club which I was a member of. The cost is $135 for a yearly membership with a $5 range fee. The range was always full because it is the only one around. Myself and many other members wanted more out of a range. Once a rifle is sighted in 200yrds is not challenging.

Land is abundent in this area and anyone can find I place to go sight in a rifle or pop of a few rounds. This is where the dilemma comes in. Can I offer something to bring these people out to my range and once they are there make them want to come back.


Please keep the replies coming.

 

[NMGonzo]

What about just a open range for shooting silhouettes.

 

[BullfrogKen]

I'm the President of the sportsmen's club Sam1911's talking about.


And I'm an accountant.


If you're serious about your project, PM me a way to contact you and we'll have a conversation.

 

[The_Pretender]

If you could buy all the land, but maybe only use half of it (500 yards is still a thrill and would cover 98% of your clientele, you could potentially arrange the layout to where you lease/rent the other half to some other sort of operation that doesn't mind the area and have them pay your bills for you. Let them worry about digging up the costs. No?

I should have stayed awake more in class....

 

[bearmgc]

You forgot the liability insurance required for a range, usually $1million minimum, depending on the rquirements of your area.

 

[docsleepy]

If you make money off the range, I'd be amazed.

I would want to get as far away from that liability as I could. I would want to set up a 501(c)(3) tax deductible charitable group to do the range. Something that can get sued and I'm not in any way affected. Find some way to gift them JUST the land needed for the actual range, to further move the liabilty away from you. Do it in such a way that NO ATTENDANT IS NEEDED!!!! THat removes a ton of costs.

Then I'd run some sort of concession area, gunsmith, gun store (depending on how much traffic or how much usage) either right there or in the nearest high traffic area to the range. I think you'll make way more money off the sale of ammunition, services, firearms than you ever will off the range.

I pay $65 to be a member of a non-profit range. That's my entire range cost.

I have bought 2 rifles, one press, 4 different sets of dies, multiple pounds of powder, thousands of primers, hundreds to thousands of rounds (depending on caliber), 4 scopes, multiple pistols.....get the picture? My purchases from gunstore type places DWARF my purchases from the non-profit range. Follow the money. That's where the profit will be.

my .02 worth

 

[THE DARK KNIGHT]

You want to talk about making bank on a gun range?

Open a gun range, public, 25 or 50 yard indoor or outdoor range capable of handgun/rifle/shotgun, and a little shop full of ammunition in northern NJ.

The only shop around here is enjoying being packed, from open to close, almost seven days a week, 10 ports at close to $20 an hour each. The line is literally out the door saturday and sunday.

Who wants to be a millionaire?

 

[GojuBrian]

Hey b c s 1,

I wish you all the best on your investment!!

 

[b_s_c1]

Liabilty insurance was not overlooked. I already have a quote for the covarage I will need just for the range. After a little more planning I will be able to get a quote for the store.

Thanks everyone.

 

[oneounceload]

As I said before as well, don't forget operating capital for 6 months to a year - enough to cover all costs assuming zero sales - inventory carrying costs, utilities, salaries, taxes, insurances, etc. to make sure you can survive until completely established.

And if you can buy land, get permits, build a building, including water and septic for under $200K - that os one heck of a deal

 

[b_s_c1]

Thanks oneounce load. That has all been taken into consideration. I know it is a very good deal. That is why if I am going to do this it needs to be on this property.

I am not looking for a get rich quick investment. I am just need to make sure it will be profitable so the doors can stay open. I am not planning on quitting my full time job to do this eathier, so it will not be my only source of income.

I will have full time employees and work the range/store on Friday/Sat/Sunday. This is something I love to do so as long as I can pay the bills I am really not worried about how much goes into my wallet. Not that I dont want to make money off the idea, but staying open without going under is my main concern.

 

[Balog]

Ways to draw people to a range: steel targets and spinners set out on the range. At Rio Salado iirc in Arizona they have a bunch of large steel targets, and it's a lot of fun. A non-square range where people can draw from holster and fire, move and shoot etc. Idpa, ipsc, steel matches, cowboy action, 3 gun etc. Competitive shooters are generally more profitable and less liability. You'll probably make more selling ammo, small parts for common platforms etc than the range.

 

[Sam1911]

shooters are generally more profitable and less liability

This is certainly true. However, it leads us back to my previous question:

Most IDPA, USPSA, SASS, and other such matches are set up and hosted by the members of a local club dedicated to that sport. That local IDPA/USPSA/SASS club is most often composed of the members of a local sportsmen's club or gun club. Those members have both a shared responsiblitiy for their club's facilities and equipment, and free access to use those facilities (assuming that their dues are paid an they're members in good standing) as needed for practice, and for building/maintaining/storing their props and equipment, and for setting up for and running their matches.

I'm having a little difficulty in picturing how this relationship would work with a for-profit, commercial range. No one is going to want to pay you $15-$20 an hour for three or four hours of set-up before a match -- time in which that range would also have to be closed to other shooters. No competative shooters are going to want to pay you $15-$20 an hour to shoot an IDPA match that might take 3-4 hours to shoot (for a club-level match...a Sanctioned match could take 10+ hours to work through). That could easily mean $100 to shoot a match, assuming they have to pay a match fee to the group that set it up to cover equipment, targets, etc. Add ammo costs and ... well, I certainly wouldn't be able to attend!

So do you instead make some kind of "Membership" arrangement whereby organized shooting groups can pay yearly fees to have exclusive access to sections of the range on specific days an/or times? Do all the competitors visiting still have to pay your hourly fees as well as their match fees?

If you need the income from those ranges (a certain number of shooters per hour) to keep the lights on, but the match shooters take part of that range out of commission for one full day and four evenings a month, how do you work out an equitable arrangement?

I'm very curious. It seems complicated, but I'd sure like to see it work.

-Sam

 

[b_s_c1]

Very good point Sam1911. Those are some of the details I dont have ironed out. I know what I would like to do with the range but I dont think I will be able to do everything I want. Those were some ideas I had to attract people to the range. I am more concerned about the # of people per hour to keep the lights on at this point, but would like to incorporate some of the other activities along the way.

 

[hotshotshoting]

probably very underestimated numbers.... the idea of an inexpensive indoor range just doesn't exist... the air system required will run you at least 2-5 million....


the outdoor range is definitely more doable

 

[skiking]

Disclaimer: I don't know the first thing when it comes to operating a gun store/range, but will throw a few things out there that came into my head.

I think that it would be smart to legally separate the range from the store so if somebody shoots them self, your store isn't in direct line of fire(no pun intended). You may find that even though you have the ability to shoot 900 yds, you really have to think about other people shooting. My local range just downgraded from 1000 yds to 600 yds and realigned because the land 1/4 mile beyond the 1000 yd targets was subdivided.

I would suspect that you will probably find that the range would be a net profit only because it increases traffic to the store. You may want to charge an annual membership fee to the range so you aren't so worried about keeping it full, but keeping a bunch of members, and if it is full great. I would personally look at just keeping a clean range that isn't out of the way too much. Around here I am a member of the local range because I can save the amount of the membership fees in gas money by going to the private range instead of driving out to the public range which is an extra 30 miles each time I want to shoot, so I shoot more often than before I was a member, which means more stuff I need to buy.

How high of a traffic area is the property, there is a local gun shop here that is a very nice shop, and I go there if I am looking to buy something they stock, but it is a shed in the guy's backyard that is hard to find unless you know it is there. You may have to pay more money to find a better location, but I don't know, you may have a great location there.

Several things to consider, is there a well? If not, you may want to set aside 20-50k just to get the well drilled. Probably another 15k for an engineered drainfield if required. You will probably need some pretty major dirt work done which will run 10s of thousands. You will most likely want a road out to your targets because I wouldn't use a range that made me walk 500+ yards to set up targets, and you don't want people bogging down in mud on rainy days making ruts, so bringing in 15000 yds of gravel at $12/yd isn't far fetched and you will need a parking lot too. With that said, I don't know your local laws, water table depth, or soil types, and am just thinking about conditions around here.

These may or may not be things you overlooked but, i don't know. It may be a good idea to consult a civil engineer in your area as they would know your area and you then shed some liability and may be cheaper in the long run than figuring things out the hard way.