I don't see how anyone starts a new gun store any other way. If it's possible to stock high-end guns and go after that market, OK. If a new business can make most of their money off their attached range, OK again. But if selling "normal" guns out of store stock is what someone wants to do, I don't see how they can make a living at it.We're considering changing our business model to a "transfer-only/special-order only" model.
Not in the area you are looking for but just in case. Memorial Shooting Center does transfers for $30.00. The person sending the firearm has to call them. Then they will fax their FFL to them. They will not give you a copy.
Transferring firearms was better with the previous management at that place.
PSA makes $80 selling a gun with no communication with the customer. Drop ships from distributor.
Midway makes $70 selling the case of ammo with $6.99 shipping. No convo.
OpticsPlanet makes $300 selling the MAP priced scope with no sales tax. No convo.
LGS makes $0-$25 on transfer doing 20 minutes of receiving, paperwork, pick-up conversation, filing, etc., showing you how to break the gun down, listening to the story about how your dad used to... And then asking you if you know of a local range to go shoot your new gun when your case of ammo gets in.
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I might go pick their brain and ask about their business model. .
In my youth, that was the most common way to get a gun.Its an interesting experience going to the hardware store to get your gun.
Just a little inside baseball based on some posts I read.
1. When you "buy from Gallery of Guns", you're not really buying from them. You're choosing which dealer to buy from. They are the front end for a distributor named Davidson's. The dealer sets their markup and fees and then when you put that down payment on it, it forces the dealer to buy from that distributor, the dealer pays the balance owed minus your 20% down. When it says "pay in store this amount", after all the accounting is done, the dealer makes his profit there. Just a different way to skin a cat.
Incidentally, buying from Silencer Shop is the same thing. We set the prices as dealers. It's actually best to reach out to your dealer first. In our case, we sometimes have "better-than-our-Silencer-Shop-price" in store, but the worst deal is what SShop has...which is usually a good deal on its own. And you still get whatever the promo is (free brake, $99 22 can, $100 GC, etc). Sometimes we get deals like when we bought 20 Thunderbeast cans direct, we can sell them cheaper in house, or we get a dealer promo on SilencerCo like "buy 4 Omegas and get a Hybrid" and we pass on the savings to the customers. Always ask first!
2. MANY of the online stores are just drop shipping. Some have some inventory but often they just dropship (including Bud's, Gunbroker, Sportsmans Guide, etc). It's like fingernails on a chalkboard for me to get a gun "Sold by Sportsman's Guide, log in to your book from XYZ Distributors". That means I could have ordered that gun for the customer from the same distro. SG never touched it. They don't even log the gun in their books. They just processed an order and it took them about 30 seconds to do it. SG gets $50 profit for making the sale, I get $25 for doing the transfer...and the customer paid more than he had to.
I recommend that you ALWAYS ask your local dealer who you're using to transfer the gun in if he can match the online price. If I list a gun for $500 and SG shows it for $470, but my cost in the gun is $440 (a paltry 15% markup), the customer thinks "I saved $5 shopping online ($470+25 transfer)...aren't I clever!" But then SG dropships it. Had the customer asked me to price match (out the door), I might have said, "I can do it for $480 out the door". So the customer pays $15 LESS and I made $15 MORE. We both win! It doesn't sound like much, but that's a 60% increase in dealer profit! Wouldn't you like a 60% raise for doing the same work? And now I'M servicing the gun, not SG. If it comes in wrong, that's on me. If you need help, that's on me. I get the warm fuzzy because you "bought from me" and it feels like a relationship, not like you're picking up your mail at the PO Box. If I just do the transfer, you have to call SG with any problems or concerns. They sold it to you. We're just in charge of the paperwork at that point.
Just realize that I bet all of your receiving FFLs would like a shot at price matching out the door (or even beating it) if you just give them a chance. There are a few times that PSA might sell something below my cost. I can't beat that. But I bet I've done 50 transfers that I could have saved the customer money if he just asked...and made more for myself than the $25 transfer. Just ask. You might be pleasantly surprised.
Final anecdote: a couple of years ago a guy transfers a Noveske Infidel to us. Another guy comes in and asks if we can get that exact same gun. I order it for him. Both guns come in at the same time. Both customers come in to pick them up at the same time. The guy who bought it from me was $75 less and I didn't even have to discount it! Free shipping to the store. No transfer fees. Competitive pricing. I told that to the guy who paid more and he said "Oh, I didn't even think to ask. I just assume it was cheaper online. Well, I'm also looking for an LWRC." I showed him the price. $1550. He said, "Well damn, that's pretty good too. That's about what I've been seeing them for. Go ahead and order it for me."
Sometimes the online list price is less but once you add in all the extras (Brownell's $10 "firearm fee", genericonline.com $10 flat rate shipping, etc, and then the transfer fee), it's more!
And since we're advertising fees apparently: $25 Non-NFA transfer, $75 silencers, $150 Machine Guns & SBRs (or anything else that takes up a bunch of room in the safe for a year), and $5 per non-FFL-required item (If you have a Pelican case sent to the store without a gun, or a case of ammo to go with your transferred gun, or a giant box full of Aero parts that we happen to sell also...just send the receiver here and the rest to your house).
**obviously this is about new guns and dropshiping. If you find old guns, used guns, or collectibles online, transfers are the way of course.
You're absolutely right. Before the sales tax thing, and for buyers who are just about price, the B&M couldn't compete. If OP is selling a scope for 12% over cost, and I have to eat 7.25% sales tax and 3% credit card, I make 1.5% gross profit (still have to pay employees, website fees, rent, lights, insurance..and my food bill). OP meanwhile pays the same 3% credit card fee but then makes the rest of the 9%. They probably actually make more, but let's just leave it at that. So they make 9% versus my 1.5%. I can't compete on that. That's why they can offer free shipping, free returns, whatever.This may be true now that most online retailers are charging sales tax. But prior to 1 Oct 2019, I had a hard time finding a storefront willing to eat that pesky sales tax charge and beat online purchases. Add in a free shipping special, plus no internet sales tax, and I find it hard to believe you could beat PSA pricing before the recent sales tax change.
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