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If it is so bad yall should all let your ffl's go.
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If it is so bad yall should all let your ffl's go.
Many already have done so. I can name a dozen in the DFW area in the last year. Runner Runner Guns- Irving was the latest retailer......two weeks ago.
Hell, one trip to Dallas Market Hall you'll see the North Hall vacant and dozens of empty tables in the Main Hall. Fours years ago there was a waiting list for tables and the entry line stretched a hundred yards.
I do transfers, a LOT OF TRANSFERS. I don't operate a retail storefront, I don't have thousands of $$$$ tied up in inventory, I don't spend time showing off guns that the buyer will eventually buy off the internet for $200 less. All I will collect is $20 for the transfer. I would bet that recently I make more profit on the transfer than those sellers do on the sale. In many cases retailers are selling guns BELOW cost just to create cash income.
Lately the most popular firearm is the S&W M&P 9 or M&P 45.........a quick look at Slickguns shows those selling at $300 or less (free shipping/no TX sales tax)
RSR Distributors shows dealer cost at $343 + shipping. As a TX retailer you are going to collect 6.25-8.25% TX sales tax on that gun. Lets say you want 5% markup....that brings your price to no less than $382. Do you see any problems with the math yet?
First question is why the hell would someone buy from you at $382 when they can get it from Palmetto at $320?
How much markup are you going to charge?
How many of those S&W Shields will you need to sell to turn a profit?
How many will you need to order to get a quantity discount?
How many of your customers will come in and look at your display guns and then go home and buy from Brownells or Palmetto?
How many will you need to order to get the same discount as Brownells or Palmetto?
Can you afford to dump inventory at below cost? They can.
What makes you think you will approach anywhere near the volume of Bud's, Kentucky Gun Co, Brownells or Palmetto? You damn well better know, because those are going to be your competitors, not Billy Bobs Tactical Gun & Pawn Shop across town.
Oh, and it's not just the S&W Shield that's being dumped at cost or below.
Turn over your books to the atf. If your not in it to make money and run a business the atf doesnt want you to have an ffl anyways right?
I doubt there are few who invest $$$$ and don't plan to make $$$$$$$$$$$$$$. The problem is dreams don't equal sales.
And the fact that you think its a good idea to quit your current job, invest your life savings in the gun business and can't afford insurance tells us that you really haven't thought this through very well. Taking that into account, you may be the last person who ought to be giving advice to other FFL's.
Other than saying you have "been saving money for inventory".......do you actually have a business plan? If you don't, you are a fool. And a business plan is only good if the plan is valid or well researched. "Lotsa people buying guns" isn't market research. The Obama gun buying panics weren't a valid forecasting tool and even companies like Daniel Defense miscalculated. Heck, Remington, Silencerco and other manufacturers have had massive layoffs since the first of the year.....yet you think it's a great time to start a gun business?
All i see in here is some fear mongering ffl's with what i guess is bad bussiness models.
<----been in business for almost nine years. I average 2,000 Title I gun transfers a year and over a hundred NFA transfers a year. (and I didn't invest anything more than my time)
Do not confuse the advice you get here with fearmongering. I was told nine years ago that ATF "doesn't issue FFL's to home based businesses"....well that was bullshit. the gun dealer who told me that is now out of business. (and he had a retail storefront)
If you are so sure of your awesome business model......post it.
There is no better time to be a buyer right now.
True.
Those buyers have to buy from a ffl.
Well no shit Sherlock. The question is......WHY SHOULD THEY BUY FROM YOU?
Do you really think your "service" is worth a premium? Will your service beat Academy? Cabela's? or the kitchen table dealer a mile away? Will your service beat the pricing of an online dealer? You damn well better know before you go spend another $.
Are you prepared to weather a couple of years of a stagnated gun market before the next election? I hope so.
If your prices are to high cause you bought in at a higher cost when the market was up im sorry. If you really want to be a seller you can be right now. If you want to be the gun show museum guy you can, but dont tell me you cant make money right now.
Alrighty then.........lend us your knowledge. What guns have a lower
dealer cost right now than in December? What gun are you going to sell to make money on? What guns will you have in inventory that are going to make you rich?
What sales acumen do you possess that will convince a buyer to pay you $382 for a S&W Shield instead of $300?
The fact that you don't yet have your FFL means you aren't privy to distributor pricing.......so how the fuck do you know a damn thing about pricing and selling guns at retail?
What better time for first time vuyers to get into the black rifle market. Once they catch the bug thats it. If you are competitively priced and offer good service yiu can make money. Nfa stuff is slow, but the thermal market is crazy right now too with new technology at an all time low cost to the consumer market.
And you thought this up all by yourself? Is this your business plan?
DO NOT MISUNDERSTAND.
No one is telling you that you should abandon your dream, just advice from dealers who have seen this before. There are numerous threads on this subforum started by guys with little knowledge of the gun business. Some had lots of cash, but little business sense. Some had lots of business sense, but zero knowledge of the gun industry. One believed he could sell guns to people in Marfa, TX and make a living. Despite some great advice and warnings.....he lost his shirt.
No one here wants that to happen to any gun dealer, even a new guy. Sure, all you asked about was health insurance. You wrote "I asked for health insurance. I had another feiend tell me about some. Samaritan ministries and medishare. Maybe you all should look into them"............... if your business plan is equally well researched you are doomed to failure. Neither is insurance and they tell you that pretty clearly.
While waiting on your FFL to arrive I highly recommend reading every thread in this subforum so you don't repeat the same mistakes as others. Then join FFLsOnly.com