I.E. how would you go about becoming a dealer for Colt, or Sig, or any other manufacturer? I've been toying with the idea of starting an FFL for awhile, family business has some unused office space, had a chat with the old man and he's fine with me using it. I'm just curious what avenues you go through to get inventory. I wouldn't be starting off with huge orders, mostly doing transfers but would also like to keep some common/popular items on hand.

The bigger manufacturers, you don't become a direct dealer, generally, you just order from wholesalers.  Some mfgs have qualification programs to get better allocations and steeper price breaks from wholesalers by becoming an "authorized dealer" or "stocking dealer".  

Other manufacturers will sell to you in any quantity, direct, but you get better pricing and first chance at popular models if you're a consistent, high dollar, stocking dealer.

As a small dealer, you'll be establishing direct buyer accounts with the smaller manufacturers that interest you, and especially establishing accounts with the big wholesalers like RSR, Lipseys, Lew Horton, Jerry's, Zanders, etc.  You'll also probably get a lot of transfer traffic by signing up as a transfer dealer for some of the bigger gun websites.

Do places like that have requirements for becoming a seller for them or do they just let anybody with an ffl do it?

A lot of the bigger/better distributors only sell to brick and mortar FFL's. Some require you to send them photos of your storefront and gun counter. When you set up an account, you'll be on COD/pre-pay at first. Most of them let you set up to pay with ACH or electronic check. You can apply for credit terms but they want a boatload of references, personal guarantees, etc.

Are there any insurance requirements for an FFL? Or would I be covered by my buildings existing insurance?

From my previous life. Many years ago.
Stand alone brick and mortar LGS.
At that time...We were direct with: Browning, HK, Ruger, Remington, Winchester(Olin), Weatherby maybe one other plus several other companies that provided firearm related items like..Bianchi Leather, etc. as well as open accounts with 3-4 national distributors.
Yes..there is a buy in $ number and you must maintain those numbers each year in order to remain direct. I think back then each of those larger companies except HK required us to place our initial yearly order by March and the buy in was about $35K for each Company. I think the yearly minimum back then to stay direct was around $60K.
I am sure it has changed somewhat. I know many companies have done away with direct dealers and only sell to distributors.
The distributors will sell to you on terms if you can establish good credit or may only sell C.O.D.
Your goal is to get terms like 2/10 net 30 and maintain that relationship by not fucking up and paying your bills. The big guys do not need the hassle but you need them. Good luck

Insurance...yes.. Separate and you need it. Couple different types.
If you own the building consider a separate entity and lease to the store (yourself). Seek Lawyer help on your particular situation.

I'll go ahead and lay out my business plan, poke holes as needed.

In the family's store, there is unused upstairs office space I have access to free of charge.

I basically want to do a "home based FFL" but out of that office space instead of my own home.

I plan on mostly doing transfers/used gun sales, but would like the option of being able to order things for people as needed.


I don't have a lot of cash on hand, few thousand dollars. I would still need to work my day job full time but since it's in the same building I'd be using for my "gun store" I could feasibly multitask.

Does this plan sound feasible? Or am I missing a whole lot here. I want to keep my costs low and mainly just do this as a hobby/side gig. Not full time or trying to get rich off of it.

At roughly between 500 to a 1000 per handgun, your better off not going in too deep. You'll have a counter full of guns, a couple of regulars who come in and play with them but won't buy anything and you'll either end up having a fire sale to get of them or transfers to yourself and family which the ATF frowns upon since your not suppose to enhance your collection.

 

Well that's what I was thinking of trying to do, mostly transfers and keep maybe a handful of stripped lowers in stock. Anderson is local to me, I know the owners niece so I think I could at least be a dealer for their parts. (I wouldn't sell their complete rifles, not a fan)

Do you have an concept how slim the margins are on guns? You don't make shit selling new guns.

Yeah I know the profit margin is practically non existent. But I figured if I could do enough transfers it'd just put some extra cash in my pocket.

That's not a business plan. That's a back of the napkin concept. To write a real business plan, start here: http://www.sba.gov/writing-business-plan

Transfers are a headache, but used gun sales are a cash cow if you have access to high quality used guns in quantity. It's hard because everyone wants that. Now if you have $50,000-$100,000 cash to buy full 200-500 used gun auctions you will double your money without problem. Most ffl holders are small time broke dicks.

Go for it. Most ffl holders in my area have another business. Like a jewelry store or auto shop or related business. The markup is 10-20% usually. But that depends. Like the Pmr30 that is $295 wholesale are like $500-600 it seems. But the big issue will be your local zoning. The issue of an ffl is not arbitrary. If you are legal and can have a business there they must issue the license. And remember there is no minimum sales needed to keep your ffl. All the talk about they frown on that is bullshit. Remember with laws they are either legal or illegal. I say go for it. And if you have any questions just message me. I did what you are going through 3 years ago. I did it by myself. Don't buy the ffl123 crap. If you can buy a gun, you can get an ffl. And it helps to get your own firearm stuff for cheaper. I just email places and ask if they offer pricing if I forward my ffl. That way you don't chase around on the phone for the head monkey in charge. I go strait to the manufactures if possible. Otherwise I go to RSR or lipseys or whatever. Now they are all hard up. Sales have tanked recently. I do this with the barrel manufacturers too. Don't let the interweb know it alls misguide you. From experience they are all full of shit. Your area will dictate what you sell. I'm amazed at how things differ around the country. And don't keep a big stock. That's money you have tied up. Most people know what they want from researching the web. Then you order if and it's there in 1-2 days. Sig, kimber, and Benelli brands are harder to source. They have a minimum buy in. But once you find your way around you know how to order those too. So go for it and good luck. Let me know if you have any questions too. I got into it for gunsmithing and it leads to sales without trying. If you have a big social circle of gun people, you will be their go to gun guy. The 01 license is gunsmithing, pawnshops, and retail sales. So if sales is a zoning thing for home based, I would say I'm a gunsmith. Use the poorly written laws and rules to your favor. Most compliance officers interpret things differently. And when they say we recommend this or that, well I don't follow it. I only follow the law. Like they recommend putting all of your personal firearms in your bound book. Well screw that. It's not the law, and you can sell personal stuff differently if you know what I mean. That is why there is so much bullshit floating around. That and most people are stupid when it comes to this.

+1...what he said...

Don't listen to them broke dick interweb know-it-alls!  

Bullshit.





They will be if they follow your advice.

Everyone in every industry says there is no money in guns, car sales, seafood sales, restaurants, etc.

The fact is, no one wants more competition. Some view the pie as finite, and that there's only enough to go around.

Hey asshole I'm not talking gun broker. I'm talking estate or or whole confiscations. RE: dog town Tom

So, you resorted to hyperbole without qualification, and get mad when called on it?  This ain't GD....

ETA 14er

Ok pull your face out of his ass now. Hyperbole huh? You guys are really something. Probably the same queers that get pissed because smaller places doing transfers and you call it stealing business.

You've been a member since February..........read the fucking COC or your time here will be short.

BTW more than 90% of my transactions are transfers.....not sales.  I run 180- 200 transfers a month.
Another of your bullshit theories bites the dust.

I am crap when it comes to business planning, but having your "office" inside an actual business vs  your home sounds better for me for FFL.  Cos my knee-jerk reaction to "home FFL" is that the AFT can audit you so... if it's in your home it allows them to circumvent the 4th Amendment.  By putting it inside an actual business it keeps them out of your home.

Nonsense.
You don't give up your Fourth Amendment rights by having an FFL.
-ATF is limited to ONE compliance inspection per year.
-Compliance inspections are limited to the dealers 4473's, multiple sales forms, bound book and inventory......that's it. Anything else requires a search warrant. They can't go pawing through your sock drawer.....if they do, call their supervisor and tell them the IOI has a foot fetish.
-A compliance inspection may only be conducted during the dealers business hours.
-If ATF has reasonable suspicion that the dealer has committed a crime they will get search warrants for his place of business, his home, his vacation cabin, the "U-Store-It" locker and anyplace else where they believe that evidence may be located.

Hey ass licker make my time short then

Sure.

train wreck