So I already filed my ATF papers for my FFL

I plan on doing this semi full time as my licensed premises is actually my office where I have another business.

I already know the margins on actual firearms aren't the greatest and I know what I'm getting into.

The cost of office is peanuts which includes utilities.

Everyone always says find a niche to get into. I have a few ideas already but I was thinking about NFA weapons. Primarily cans and SBR's but my question has to do with supressors. I keep hearing "sell a few cans a year and your sot cost is covered"

I know most people will never release pricing info.

But what kinda margins are cans bringing ? Selling a "few" cans per year lets say 5 at $200 each. Do cans really have that sort of margin ?

Obviously we are all competitors but I was hoping to get some friendly advice.

Profits were better before 41F went into effect last week and silencer and SBR sales dropped off a cliff.

Stay away from the SBRs, too many build their own. If you want to get in, focus on cans, but it's not the best time to get started.

I know cans are best. But I'm trying to understand margins a little bit on em.

I honestly think it's a great thing to add. And don't take this the wrong way guys.

But

1. Sell can to buyer
2. Get 100% money up front
3. Help with filing
4. Sit back and relax while you have the can in hand and all money in hand.

Your money is safe and so is the product until ATF approves it. It's win win and for whatever reason ATF denies (not sot's fault ) there's gonna be restocking fees charged for the can. I'm not trying to be a prick but you got your money/profit and then something happens. All that work you did is worth something and no I don't mean the $50-100 fees for the NFA transfer only.

Any input guys?

A .22 can that you pay $200 dealer cost for can easily sell for $300. Profits on guns are typically in the 20-25 percent range. Cans can sell in the 40 to 50 percent range depending on local competition. If you are the only SOT in the area, you can can charge more and levy a hefty NFA transfer fee to discourage ordering by the customer and shipping to you. If you can afford to keep a decent selection on hand you'll do better as well. You see, they might save $100 ordering it and having it shipped to you to transfer, even after the transfer fee, but if you have the can on hand you can save them a couple months on the process by avoiding the Form 3 transfer from dealer to dealer. That alone people are willing to pay a premium for. Plus, if they can put their hands on the can in your inventory, the impulse purchase factor increases exponentially.

Well my plan was to stock cans. And I mean several types and quantity (yes I rather spend on cans than gun inventory )

Even tho 41f is in effect I think it will still be a good market for NFA. Also in my area not too many dealers are stocking dealers and the ones that do I've only found ONE that was actually super cool.

But thank you for answering my question.

And yes I am in the business to make money. Not for myself benefit. But of course would be great to acquire NFA items much easier.