So You Own A Gun Store

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What to stock? What to avoid?

This is simple - stock the stuff that sells. Stuff that sells are 1911's, Glocks, 870's, 10/22's, SIG's, H&K's, Mini-14's (here in California), S&W revolvers.
You must remember that stuff that sits in your display case is money that could be in your pocket, or money that you could be using in a better way.
The way I ran my shop was that I would order anything that people wanted; In California we have a 10 day wait on all firearm purchases so people had to wait anyways - they can't come in and buy something and take it home that day, so no impulse sales.
If someone just had to see a product that I could not show them I would tell them to go to my competitor and check it out (Turner's Outdoorsman), they have a large inventory and the most expensive prices around, too (it costs money to have a large inventory). They would see Turner's price of $150.00 more than the quote I gave them for the same item.
My prices were the cheapest that my customer's could find and my service was the absolute best that I could provide!
Make sure you have the basic supplies and accessories -ammo, cleaning kits, protective eyewear & ears, gun cases, targets.
I skipped the whole reloading thing and would only do that special order - it ties up a lot of money in product that does not move fast.
Also, Bianchi and Galco holsters are cheap enough to keep a few on hand and are good enough for the average shooter - I would special order any holster that my customer needed; for those who really cared about their holsters, I referred them to Milt Sparks.

How to encourage new shooters? How to discourage bad choices?

Tough one here.
How about a free cleaning kit or eye protection for the "entry-level" .22's.
Or, in collaboration with the local range, offer free lessons with the purchase of new guns if the person states he is new to the sport.
Bad choices - first of all, don't sell junk (Bryco, Jennings, etc.). It is the customer's choice to purchase what he pleases - you may counsel him on his choices, but in the end it is his choice.

How to make the PR atmosphere in my local area more favorable to the idea of a gun store in the community?

Don't open a gunshop in San Fransisco.

How to advertise? Where to advertise?

Word of mouth is the best way I have found. But ads in the Sports Section of the local paper would work, but are very expensive.

Locations to avoid? Locations to prefer?

I found that people come to you, so you don't need the high-profile corner shop on Main Street. Don't open a store in a ghetto or high crime area - not worth it.

Interaction with customers?

This is easy, too! You want their money so you kiss their ass. You listen to them and don't treat them like they are stupid or that they are wasting your time.
You give your customers the best service you possibley can at the lowest price you can deliver.

Features that the shop should have?

Features that are great are a huge inventory and plenty of staff to help the customers. These are also the biggest things that are going to drive costs up - a big inventory is expensive to maintain and it's hard to be competitive when your overhead is driving you out of business. Also, employee payroll is generally the biggest variable expense a company has - get rid of 2 employees and you'll find that you now have $80,000.00 more per year - you must decide that proper balance of staff versus customers that fits your actual needs.

Stuff I forgot to ask about?

You have to remember that you are actually running a business, not supporting your hobby. One of the best gunshops in Orange County, CA is Ade's Gunshop. He does not have much of an inventory, but he will order any item you want and his prices are about $100.00 to $200.00 less than any other gunshop in So. Cal. About the only way to get guns cheaper is to have your own FFL. His customer service is exemplary. His focus is almost entirely on guns - none of the foo-foo stuff that just sits on the store shelves.
I would love to have a shop that is stocked like an Emporium with everything under the sun, but my belief is that you need to be lean-and-mean and focus on the core of your business to be successful.

Oh yeah, have a spot for "Consignment Sales" - these are guns that other people own and are trying to get rid of, but you sell them and keep a % of the sales. It is a good way to get free inventory.

LOW PRICES & EXCELLENT SERVICE = SUCCESS!
 
Be ready to order ANYTHING, and be nice with your suppliers, so there isn't a long wait.

It's better to make $25 on a quickie transfer than to buy a thousand dollar rifle that'll hang on the wall and get fondled for six months.

Oh yeah... AR-15 uppers - have several different ones on hand - quick, no paperwork and the customer feels like they've got a whole new toy...
 
Brad, thing is, a gun dealer likely won't make a lot over that on a gun... It's the add-ons that rack it up.

You might make $25 on a .22 target pistol, but $50 on the scope and mounts that the guy wants on it... Plus glasses, ears, etc...

Yeah, I know. I was speaking in general terms. Seems that many folks believe a 10 or 15% markup on everything is almost too much. They order all the accessories on the internet to save a couple of bucks, bust a vein and threaten to go GunBroker because 15% over cost for a gun is "gouging", then wonder why the gun shop on the corner went out of buisiness.

Having an almost-cost item that can be heavily accessorised is the hallmark of retail. Example: Radio Shack stereos - they sell you the stereo at a low margin counting on you to buy a bunch of cables, connectors, and misc accesories that have been marked up eight or nine hundred percent. Ever wonder why inkjet printers are relatively cheap? It's because the printer is a loss-leader to start you buying those $30 cartridges (that actually only cost about a buck to make).

Make sure there's enough light. Add a few fixtures if necessary. Have a big gooseneck magnifier on the counter - May get used a little, and promotes a "we don't have anything to hide" feeling. It's all about perceptions.

Issue every employee a bore light to keep in their pocket, too.

Paper the bathroom walls with ads, and have any outfit's wishbook you can scrounge laying around.

Except maybe www.dillonaero.com's catalog... That might be a bit much...

Heh Heh! :D

Brad
 
Scoundrel! Rapscallion!

jpcampbell recounted:

K-mart once placed an ad in the local paper advertising a sale on ammo that was below my cost, in the same ad they said they would beat any advertised sale price by 10% on any item they carried in the store, so I advertised Remington and Winchester ammo for $2.00 a box any caliber subject to stock on hand no limit Monday only 9 am to 9:30 am in the shopper paper.

K-mart was sold out of ammo in less than 20 min.

By the way I sold the k-mart ammo for $4.00 a box the next week.

You dirty no-good, low-down rotten dog, you!

I've had back spasms for a week and it hurts to laugh, you dirty no-good low-down rotten dog!
 
From Silverlance:
I know some people might get upset at this, but here it is:

Hire a pretty girl that likes guns, educate her well both on gun history, mechanics, and political carriage; then have her actively introduce customers to guns.
QUOTE]

I was thinking along the same line, but instead of the cute girl, I was thinking more along the lines of a sassy older woman, you know they ones - the kind that can call anyone from 8 to 80 "honey", and not offend anyone. You're likely to get a lot of women interested by having her there, and guys won't have to worry about a jealous wife/girlfriend seeing the hottie.

Coffee is always great. Allow the regulars to bring in their own mugs.

Welcome people to the stores, but allow them to gawk without being over their shoulder.

Notice when people are getting their hands full, and offer them to set their stuff on the counter while they shop, "No pressure, take your time, but you can set that stuff over here till you're done".


I'm only speaking from the customer side. And these are things that I've always enjoyed at gunshops.
 
Brad, 15-20% is about a typical margin on guns, for a medium sized gunshop. Some of the places manage to stay in business with 50% margins, but they're the ones that sell Glocks for $600.

The benefit to a 10% over cost policy on guns that are ordered out, is customers will think of that and call for pricing, before buying online. It also means that when you're starting out, you don't have to try and guess what customers will want, as much. Just see what kind of guns get ordered the most, and start stocking those. In addition to stuff that you're pretty sure will sell.
 
A few notes of my own, from selling televisions and cameras.

1. LISTEN TO THE CUSTOMER!!! If an informed customer comes in looking for, say, a $450 RIA 1911, don't spend 30 minutes trying to sell them a $2000 Wilson Combat-it just frustrates the customer and loses you business. Find out what they are looking for in a gun and offer suggestions.

2. If someone is about to make a purchase you know they are going to regret, offer alternatives-keeping silent will just result in a returned gun at best, and could turn them off of the shooting sports forever at worst (For example, I once saw a customer who was shopping for a first handgun buy a 44 mag snub revolver at the reccommendation of the sales clerk-and he had never fired a handgun)

3. Treat everyone well-You never know who is an informed customer with money-I have had the most unlikely people buy $4000 TVs from me. By the same token, the man in a suit and tie could be a thief/con artist. if something doesn't ring true, by all means be willing to decline a sale, even if it would lose you a lot of money. Fraud can bite you on the @$$, even if you are not directly responsible.

4. Always remember that a happy customer will come back-and may bring others with them :)
 
To address the margin/mark up issue, you make money on your product mix. Hard goods and soft goods, expensive items, inexpensive items. ONLY A FOOL (like some local gun shops i know) would try to make the same margin/mark up on every product.

Please take a lesson from another industry. Restaurants make their best margins on appetizers and desserts. Food cost on those items is usually @20-25% and the labor to produce (cut the cake, scoop ice cream, drop the fries or wings in a fryer) in fast, not complex, and generally cheap. So on a $6-7 dessert, they make GREAT margin, maybe $5.00.

Now lets got to the lobster or steak dinner that costs you $30-40 bucks. the food cost SUCKS on that plate, probably 50% with the entree, veggies, taters. And that grill guy costs more than fry cooks or waitresses to prepare the food. Margin rate is lousy, but the restaurant operator puts $20 bucks in the bank instead of the aforementioned $5.

Fixed costs apply equally to each sale. You're always gonna sell more wings than steaks, and the restaurant can't make money without a proper balance.

I would guess the same hold true other retailers like gun shops.
 
Please take a lesson from another industry. Restaurants make their best margins on appetizers and desserts. Food cost on those items is usually @20-25% and the labor to produce (cut the cake, scoop ice cream, drop the fries or wings in a fryer) in fast, not complex, and generally cheap. So on a $6-7 dessert, they make GREAT margin, maybe $5.00.

Now lets got to the lobster or steak dinner that costs you $30-40 bucks. the food cost SUCKS on that plate, probably 50% with the entree, veggies, taters. And that grill guy costs more than fry cooks or waitresses to prepare the food. Margin rate is lousy, but the restaurant operator puts $20 bucks in the bank instead of the aforementioned $5.

Fixed costs apply equally to each sale. You're always gonna sell more wings than steaks, and the restaurant can't make money without a proper balance.

I would guess the same hold true other retailers like gun shops.


You forgot the $2 iced tea. :D

Brad
 
But it's bottomless...

A few months back, I walked into a vendor that I used to do a lot of business with when I was working for The Big Pharmaceutical Company. Turned out my favorite sales guy had been switched to another area. So I ended up talking to the guy who was in charge of the wide format printing area.

"Hi. I wanna buy this."

Now, I'm wearing my standard garb of jeans, boots, and a t-shirt with a gun on it...

I don't think he took me seriously. Then he tried to sell me something else (that wouldn't be as nice for photos).

Finally talked him into selling me what I had researched to death, and wanted, and he was the only dealer of for about 150 miles... Okayfine...

While I was at it, I impulse purchased another printer from him. Impulse-purchased for $1,500... I think he was starting to twitch...

Then I started asking about die cutters... (you know, like for making stickers?)

Well, he clams up, and basically starts playing poker with me - "Oh, this is good." "Why?" And no real answer...

So a Bad Thing happened. I started doing my own research. Ended up buying a $4,000 machine from someone else. Why? If he'd answered a couple of stupid questions from a guy who was getting into the business, he'd have gotten the sale...
 
There is a local gunshop, that I try to avoid, because everyone seems to have the same attitude. If you don't come walking in able to purchase three of the most expensive guns in the shop(in other words with 30 grand in your pocket), then just get what you want and get the hell out, I'm not going to answer your questions, as you do not have the kind of cashflow that I want to see in my store. They stay in business because of lack of competition. For some guns they are the ONLY choice, for others you have to drive about another 15 miles up the road to a disagreeable part of town. With the exception of the one large chain store that sells handguns I have noticed this attitude prevailent at every small gunstore. Explains why I have only bought a single firearm from that gun store, and bought all the rest of mine and my wife's from that big chain store. I don't like supporting the chains, but when your staff and the owners are a bunch of greedy money hungry jerks, then I just assume put you out of business.

Remember not everyone has money. Offer some options. It is possible to get quality firearms and junk firearm prices. Even those who don't have money falling out of their wazoo's deserve to share the right of self preservation. I had to save up just to get my concealed carry permit. That was only 65 bucks. I had to put my handgun on layaway for the full 3 month period, and it was a 400 dollar Springfield XD. I ate top ramen for those three months as well, and hitched rides to work isntead of driving just to be able to afford the sucker. Offer a layaway program to those who don't have gobs of credit, or gobs of money. Do you really want a store filled with elitist customers who have no patience for those without money, and who really probably aren't the safest people to have around firearms?
 
Quick addition. You never know when that poor guy is going to come into some money. I'm almost done with my degree,a nd am also starting a new nicely paying job here very shortly. I plan on buying quite a bit in the way of firearms before hellery gets into office and lets the UN takeover our country. Guess which shop I am NOT going to buy from?
 
Consignment sales would seem to be a good way for a small gun shop to put inventory in the case at little expense. The only capital investment is the display case and a bigger safe, and you get a fixed margin when the item sells. Be willing to call the consignment item seller offline and forward an offer if you have a potential buyer with a twitch to lay down cash.

Seems to me that a lot of first-time buyers and most heavy repeat buyers (hobbiests such as myself) like to buy used moreso than new, so long as we're talking about quality firearms. Catering to that with an focused consignment strategy would not seem misplaced.
 
I can also agree with that. My first store purcahase was a used Tanfoglio Witness fullsize long slide in .45ACP. It was from that store I was referring to. I have since sold the gun. I bought it for 175 dollars, with two magazines. One was fairly new, the other was in good shape, but had rusted quite a bit at one point and had been cleaned up and smoothed out. The only thing "wrong" with the gun was a curved guide rod which redirected the point of aim just a touch in one direction or another depending on which direction it was curving to when it was reinstalled. Other then that the blued finish was heavily worn in spots from shooting and holster wear. After I got my XD I never carried it anymore, I got tired of having to pull up my pants every 30 seconds or so. Plus every time I pulled up my pants I had to grab the bottom of the holster/gun to help pull them up, which only served to scream out, HEY HE'S GOT A GUN! The guy I sold it to, was cleaning up his act, and had a clean record(I checked), and wanted a home defense gun, he had no intention on ever carrying it. So far it whas worked great for him. He has taught his wife how to shoot it, and he leaves it with her as a home defense gun because he is usually out of town on work, and wants to keep his family safe. I also gave him all the Speer Gold dot and told him to use that for defensive ammo and use the ball ammo for practice. So far so good. Nobody has been shot.
 
I'm curious: how many people who have posted on this thread have owned their own businesses and, of those, how many have owned retail businesses?
 
Yup, and yup. Five long years.

Oh, and I drove by a gun shop today. Wasn't in a hurry, so I didn't really mind that Guy #2 was fiddling and shooting the bull with several friends, while I waited on Guy #1 to finish paperwork on the lady in front of me. Guy #2 might not have worked there, because he sure wasn't working... Then him and his buddies started scoping out a Playboy... I dunno. Anywho...

15 seconds after Guy #1 got through with the lady customer, I basically pointed at something in the counter, and said "I think I wanna buy a Kel-Tec." Guy opined that they weren't as nice as the small Kahrs, but then again they didn't cost as much either (while he was unlocking the case). Fondled for a moment, said "Paperwork." Little bit of talking, playing "who do you know" while I was playing connect the dots with the crayon, he called it in, I bought a box of ammo, and we had a happy Bogie...

15 minutes later, and a little gratis testfire session on their range, and I was outta there.

Oh yeah. Their sign is misspelled. Gonna sell 'em something else.
 
Monkeyleg asks:

"I'm curious: how many people who have posted on this thread have owned their own businesses and, of those, how many have owned retail businesses?"

I have been a Dealer in Firearms for 6 years and have owned a gun accessory business for 3 more years for a total of 9 years in the retail firearms/gun accessory trade.

And just as an FYI: In California I needed SEVEN (7) separate licenses, permits, & certificates to sell handguns!
 
Not that I have any idea how much of a shop's revenue is made off of these two sources and it may be necessary for some to survive - but as a customer, not charging the full amount for a background check ($25 for a phone call? Uhh...) and cheap transfers (say $20 or under, and for internet orders, try to pricematch as best you can) are great. Back in CA, it ran about $70 to transfer anything - really put the kibosh on my plans to assemble a C&R arsenal capable of arming a small African nation. ;)

Hire people who do not reinforce the gunshop stereotype. Don't hire any "Special Forces" guys who will blather about 'Nam and the time they blew a VC straight in two with their .45.
Don't hire anyone who thinks a .45 will blow someone in half, period. It's hard for newbies to make informed purchases when the guy behind the counter is insisting that a 1911 is roughly equivalent to a 12-gauge at point blank range, and everything else just goes straight through and leaves a little hole.
Their answer to any question they are unsure of should be "I don't know." No advice is better than bad advice.
They should be personable, humble, and not demeaning to women. ("Well, little lady, this here .25 should be about what you can handle...")

As far as organization goes, I much prefer shops where guns are arranged by maker, model or type. Stock .22s in all flavors - one of my only grievances with my otherwise awesome local shop is that the guy has a few 10/22s and nothing else. I imagine they'd be popular sellers, though probably not at a huge profit margin.

Don't focus on any one thing. Stock a few RIA 1911s, stock a few Wilson Combat. Stocking cheap milsurps is a great way to make me come back, and I know from experience that plenty of Bubbas will buy a Mosin at $100-120 if you want to turn a profit.

Carry a decent range of accessories. If all you have are a couple of Uncle Mike's universal nylon holsters and $30 boresnakes, it kills the urge to accessorize one's newest purchase.

I'm sure that all of this is impossible to do while actually maintaining profitability - but there ya go. :)

I'll address each of your questions later - for now, gotta run. Good luck!
 
I made a trip to a little gun store in Terrell, Tx a couple of years ago, Chadicks. Now this is a rather high end store, one where you should call and let them know you are coming as the doors are always locked.

The wife and I get there and are admitted and the manager has to take care of a few items in the back and says look around for a while. We looked alright, handling guns in the 5 and 6 figure price range although we did not know it at the time. About 20 minutes later he brings out a little 28ga I had called about ( nowhere near the earlier mentioned price range) which I ended up buying, and answering questions about most guns in the shop for the next hour and half.

No pressure, no one looking over your shoulder every minute. I realize this treatment is not possible in every setting, and I had been there only once before, about two years prior and had purchased one shotgun at that time, so was known, but not what I would call a good customer. They did on both occasions hold a check for a couple of days so I could transfer money from a savings account to cover the check, in fact I told them up front the check would bounce that day.

I'll be back there some day when I get the itch for another higher grade gun.
 
Before you even stock up on supplies, hire employees, etc....LOCATION, LOCATION, LOCATION.

I'd make sure the shop is in an affluent and safe area. Not only that, check the politics of that city if they're pro or anti-2nd Amendment.
 
I would think it would benefit you to have a gunsmith on site or very close by. A real gunsmith, not just a clerk than can change grips or mount a scope. You might think about a youth shooting program and hunter safety. It would help to have a range close by so that you can try out a gun if the customer is ready to buy. Sponsor a turkey shoot and provide guns for people without them. Use the turkey shoot to fund little league, senior sober graduation or other causes. A turkey shoot before Thanksgiving gets people thinking about putting a gun on lay-a-way for Christmas. Have a big buck contest. I guess it boils down to becoming involved in the community. Have a shop that is comfortable and accomodating for law enforcement, hunters, target shooters and wanna be Rambo's. As pointed out earlier, giving away a box of bullets and a target with the purchase of a new gun and free scope mounting with the purchase is more than an internet seller can do and service is what is going to keep people coming to you rather than the internet.
 
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