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Posted: 11/30/2016 4:20:55 PM EDT
Hi Guys,


I tried searching but I couldn't find any clarification on my desire for an FFL home based operation with a commercial location for a warehousing exemption.


I am looking to dive into this industry but to first approach it from a feasible standpoint by running it as a home based FFL first.  One of the things I noticed is lack of support or lack of willing distributors and dealers willing to work with a home based FFL vs ones at commercial addresses.  My main intent is to run an FFL from home after hours and weekends.


Now this is my question as it regards to the warehousing exception that allows FFL's to warehouse in another location without a second FFL:

I own a commercial building that I am at every day of the week, due to the nature of the business (Technology), it would not be proper to have this as the place of business for a side gun business especially with visitors.... however, this would be the most ideal location to receive packages and sign personally for anything coming in from any distributors/vendors or any dealers.  I do not plan to conduct any transfers out or sales or anything of this nature from this commercial location, it's simply a "receiving warehouse" for all intents and purposes.   I can have a TL rated safe installed here if it is required without a problem.  I would transport the packages home and conduct the transfers and customer interactions out of the home.


Does this meet the definition of the warehouse exception or does this mean I would need a second FFL license as it's a second physical location?   If it meets the warehouse exception, does the warehouse face the same scrutiny as the actual business location (in this case, the home) in terms of zoning?



Hope that makes sense.


§ 478.50 Locations covered by license.
The license covers the class of business
or the activity specified in the license
at the address specified therein. A separate
license must be obtained for each
location at which a firearms or ammunition
business or activity requiring a license
under this part is conducted except:

(a) No license is required to cover a
separate warehouse used by the licensee
solely for storage of firearms or ammunition
if the records required by this part are
maintained at the licensed premises
served by such warehouse;


(b) A licensed collector may acquire
curios and relics at any location, and dispose
of curios or relics to any licensee or
to other persons who are residents of the
State where the collector's license is held
and the disposition is made;

(c) A licensee may conduct business at
a gun show pursuant to the provisions of
§ 478.100; or

(d) A licensed importer, manufacturer,
or dealer may engage in the business of
dealing in curio or relic firearms with another
licensee at any location pursuant to
the provisions of § 478.100.
View Quote
Link Posted: 11/30/2016 4:31:53 PM EDT
[#1]
That is fine but good luck getting anyone to ship to that address, unless you make it your mailing address so it is on your FFL.
Link Posted: 11/30/2016 4:35:19 PM EDT
[#2]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
That is fine but good luck getting anyone to ship to that address, unless you make it your mailing address so it is on your FFL.
View Quote



I assume making it your mailing address on your FFL that would require a second FFL or making the commercial location the actual FFL?
Link Posted: 11/30/2016 4:39:17 PM EDT
[#3]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



I assume making it your mailing address on your FFL that would require a second FFL or making the commercial location the actual FFL?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
That is fine but good luck getting anyone to ship to that address, unless you make it your mailing address so it is on your FFL.



I assume making it your mailing address on your FFL that would require a second FFL or making the commercial location the actual FFL?



An FFL license has two addresses. A premises address and a mailing address. The premises addresses has to be your place of business, but your mailing address can be anything. Mine is a PO Box.
Link Posted: 11/30/2016 4:51:24 PM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



An FFL license has two addresses. A premises address and a mailing address. The premises addresses has to be your place of business, but your mailing address can be anything. Mine is a PO Box.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
That is fine but good luck getting anyone to ship to that address, unless you make it your mailing address so it is on your FFL.



I assume making it your mailing address on your FFL that would require a second FFL or making the commercial location the actual FFL?



An FFL license has two addresses. A premises address and a mailing address. The premises addresses has to be your place of business, but your mailing address can be anything. Mine is a PO Box.


Ah ok.  That would be the ideal scenario:  Making the commercial address the mailing address (warehouse) for receiving everything.


So this is doable?
Link Posted: 11/30/2016 4:54:10 PM EDT
[#5]
Yes and you could still store stuff somewhere else if you wanted.

It is not uncommon for folks to store excess inventory at an undisclosed location for security reasons.
Link Posted: 11/30/2016 10:15:36 PM EDT
[#6]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Yes and you could still store stuff somewhere else if you wanted.

It is not uncommon for folks to store excess inventory at an undisclosed location for security reasons.
View Quote

Same for nfa stuff?
Link Posted: 11/30/2016 10:40:13 PM EDT
[#7]
Please allow me to be the turd in the punch bowl:

Now is an incredibly stupid time to go into the gun business. It wasn't the smartest move before, but now . . . . holy shit
Link Posted: 12/1/2016 12:33:55 AM EDT
[#8]
My mailing address is a po box. My premise is a commercial. I've only come across davidsons that will ship to an alternate address. Many of them won't ship to even my mailing but only the premises address.
Link Posted: 12/1/2016 12:34:29 AM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Please allow me to be the turd in the punch bowl:

Now is an incredibly stupid time to go into the gun business. It wasn't the smartest move before, but now . . . . holy shit
View Quote



Definitely agree with you on this. 200% actually.
Link Posted: 12/1/2016 9:38:37 PM EDT
[#10]
I'm having a great time in the gun business doing transfers (only).  I agree that being a stocking dealer seems like a tough way to make a living.
Link Posted: 12/2/2016 10:57:17 AM EDT
[#11]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Please allow me to be the turd in the punch bowl:

Now is an incredibly stupid time to go into the gun business. It wasn't the smartest move before, but now . . . . holy shit
View Quote


If you are stocking rifles, perhaps.  I don't exactly plan to do that.  I plan to fill a void in the market that has a lot of people where I am at, upset with local stores.


When the stock market is down, that's when you buy in.  I'm am buying right now.  Black Friday set a record sales day in a single day for gun sales, the industry is alive and well.


I have other companies to cover me, that's why I am approaching this from this direction.
Link Posted: 12/2/2016 9:58:23 PM EDT
[#12]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


If you are stocking rifles, perhaps.  I don't exactly plan to do that.  I plan to fill a void in the market that has a lot of people where I am at, upset with local stores.


When the stock market is down, that's when you buy in.  I'm am buying right now.  Black Friday set a record sales day in a single day for gun sales, the industry is alive and well.


I have other companies to cover me, that's why I am approaching this from this direction.
View Quote


Good luck to you, I used to live in MI before moving to Georgia and the local gun shops in my area left something to be desired. Having said that, my local shops here in GA are amazing.
Link Posted: 12/4/2016 12:14:30 PM EDT
[#13]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Please allow me to be the turd in the punch bowl:

Now is an incredibly stupid time to go into the gun business. It wasn't the smartest move before, but now . . . . holy shit
View Quote

Depends on your life style and debt. Like most people if your living beyond your income yeah.
Link Posted: 12/4/2016 12:27:53 PM EDT
[#14]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


If you are stocking rifles, perhaps.  I don't exactly plan to do that.  I plan to fill a void in the market that has a lot of people where I am at, upset with local stores.


When the stock market is down, that's when you buy in.  I'm am buying right now.  Black Friday set a record sales day in a single day for gun sales, the industry is alive and well.


I have other companies to cover me, that's why I am approaching this from this direction.
View Quote



Palmetto State Armory sold Shields for $299 shipped on Black Friday. That's about $40 less than your local dealer's wholesale cost. In other words, that would be at least $40 less than YOUR wholesale cost should you become an FFL. How are you going to compete against that?
Link Posted: 12/4/2016 5:35:20 PM EDT
[#15]
Discussion ForumsJump to Quoted PostQuote History
Quoted:..... Black Friday set a record sales day in a single day for gun sales, the industry is alive and well....
View Quote

Things you should know before jumping to conclusions:
1. The source of "record sales day" is the FBI NICS. The ONLY thing they are actually counting is the number of FBI NICS checks run on that day. In twenty six states, a background check is not required if the buyer holds a firearm permit that is an exemption to the FBI NICS check. In short, NO ONE really knows if there were "record sales".....just record NICS checks.
2. Black Friday sales set a record? That may be because there were huge price drops, not due to panic buying that occurred in previous Black Friday's. Panic buyers don't care about price/value, they just care about getting a gun before they are banned, restricted or regulated even more.
3. As far as the industry being alive and well.............have you been asleep? Stock value in S&W and Ruger dropped the day after the election. With the possibility of anti gun legislation out the window for the near future, investors know that S&W, Ruger and the rest of the gun industry aren't going to score the record profits as in 2008/09 & 2012/13. Look for more inventory dumps and lower prices over the next several months. Remember, Daniel Defense, Remington and others have had layoffs during the Obama years. Until the election of Obama in November 2008, firearm sales were relatively stable year to year. People bought guns on Black Friday because they were on sale. Add in the panics caused by Obama and there was a HUGE spike in sales that continued until manufacturers were running multiple shifts. As soon as demand was met.....layoffs began.
4. I can name a dozen licensed dealers within twenty miles of me who jumped into the retail gun biz and lost their shirt within two years. They assumed that record gun sales meant there was a goldmine in retail sales. Sadly, they didn't have a clue. Distributors and manufacturers take care of their biggest clients first. That happens in any industry and guns is no different. If you aren't spending a minimum of $10-15K a month it's unlikely you'll get a phone call returned.
5. After a sales spike, there is a sales dip.
6. Are you able to buy in the quantities that will enable you to be competitive with Bud's, Palmetto, Kentucky Gun, Grabagun or other online retailers?
Link Posted: 12/5/2016 10:21:56 AM EDT
[#16]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



Palmetto State Armory sold Shields for $299 shipped on Black Friday. That's about $40 less than your local dealer's wholesale cost. In other words, that would be at least $40 less than YOUR wholesale cost should you become an FFL. How are you going to compete against that?
View Quote



I'm not selling shields
Link Posted: 12/5/2016 10:30:24 AM EDT
[#17]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Things you should know before jumping to conclusions:
1. The source of "record sales day" is the FBI NICS. The ONLY thing they are actually counting is the number of FBI NICS checks run on that day. In twenty six states, a background check is not required if the buyer holds a firearm permit that is an exemption to the FBI NICS check. In short, NO ONE really knows if there were "record sales".....just record NICS checks.
2. Black Friday sales set a record? That may be because there were huge price drops, not due to panic buying that occurred in previous Black Friday's. Panic buyers don't care about price/value, they just care about getting a gun before they are banned, restricted or regulated even more.
3. As far as the industry being alive and well.............have you been asleep? Stock value in S&W and Ruger dropped the day after the election. With the possibility of anti gun legislation out the window for the near future, investors know that S&W, Ruger and the rest of the gun industry aren't going to score the record profits as in 2008/09 & 2012/13. Look for more inventory dumps and lower prices over the next several months. Remember, Daniel Defense, Remington and others have had layoffs during the Obama years. Until the election of Obama in November 2008, firearm sales were relatively stable year to year. People bought guns on Black Friday because they were on sale. Add in the panics caused by Obama and there was a HUGE spike in sales that continued until manufacturers were running multiple shifts. As soon as demand was met.....layoffs began.
4. I can name a dozen licensed dealers within twenty miles of me who jumped into the retail gun biz and lost their shirt within two years. They assumed that record gun sales meant there was a goldmine in retail sales. Sadly, they didn't have a clue. Distributors and manufacturers take care of their biggest clients first. That happens in any industry and guns is no different. If you aren't spending a minimum of $10-15K a month it's unlikely you'll get a phone call returned.
5. After a sales spike, there is a sales dip.
6. Are you able to buy in the quantities that will enable you to be competitive with Bud's, Palmetto, Kentucky Gun, Grabagun or other online retailers?
View Quote



Look, I'm fully aware.  I was asking for technical questions, not why my business model won't work out for me or you or anyone else.


I opened up a company in 2008 when everyone told me it's a dumb idea, I made a lot of money.  I entered the housing market and bought and sold houses during the 2008-2012 range of worst times to buy a house, I made more money than I could have imagined.

Just because the market is bear doesn't mean there isn't opportunity.  Bears leads to bulls.



I'm not competing to the big wholesalers or the large volume dealers.  That has never been my intent.   You can compare me to PSA if you will, but keep in mind, I'm not competing them.  I don't care to directly compete, in fact, I want to work WITH the larger online retailers and take in their transfers and provide a service for the locals here, make it expedient and quick as possible with the utmost comfort and privacy.


The warehousing question was more in lines to explore other avenues of options and flexibility.



Link Posted: 12/20/2016 4:46:05 PM EDT
[#18]
For the answer to the original question:

https://www.atf.gov/file/4256/download
https://www.atf.gov/firearms/qa/may-firearms-be-shipped-licensee-address-different-business-premises-address-identified

This is from the ATF.  For those that say it can't be done, don't tell the guns I get in this way.  Oh, and don't tell me the business isn't good to get into and I'll fail.  You probably would, but that's you and not me.  Or anyone else.

Jeff
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