Armory Sponsor
Posted: 10/26/2009 6:22:52 PM EDT
For my MBA I'm working on a project to open a gun shop here in Anchorage, Alaska. Currently this is a "what if" complete business and marketing plan, however I have built a business in the past (non-retail) and am in a position to do so again if it were to pencil out...so far it seems like it'd be a really tough haul! So I want honest opinions from those in the business; believe me I have no dreams about just getting to play with toys all day  Even if your opinion is it's stupid to get into it let me know....just tell me why.
I could use any advise anyone out there has from inventory financing to feasibility questions. For the project there is only $25,000 cash "seed money" and the rest would need to be borrowed...heck these days that may end the project right there! The "ideal" scenario would be to round up enough cash to open as a fully stocked store, not a 3/4 empty business where the answer given to customers is "yeah I can order that". In addition if any current shop owners are available I'd really like to chat directly about pricing/margins and such so I have an idea how your books work. ETA Update: It may or may not matter in the grand scale, but the "seed money" is now $50,000. |
| It's not that I'm not "willing to dish", it's that we follow a different business model (custom builds, refinishing, and gunsmithing, versus dealing). Not a lot of profit in dealing unless you can move lots of product. OTOH there's a lot of demand for good service & repair work, and not a lot of people who can do it. |
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That's kinda my line of thought. I do not see opening just a gun shop as a good way to make money. There is not a lot of margin in guns. You can make some money in accessories. Having an indoor range is a plus but cost more $$. Gunsmiths seem to be in demand right now. Quoted: It's not that I'm not "willing to dish", it's that we follow a different business model (custom builds, refinishing, and gunsmithing, versus dealing). Not a lot of profit in dealing unless you can move lots of product. OTOH there's a lot of demand for good service & repair work, and not a lot of people who can do it. |
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The idea is to be a gun shop yes, but also stock ammo & accessories. I figure the guns will help to bring people in, however I know the new gun margins are actually very small. Up here in Alaska ammo is a real key. Most of the quality shops here have ammo & accessories (holsters) being their primary moving items. |
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Being in a remote area like you are will mean you are going to need a gunsmith in-house. You are going to need someone to do general smithing, not just an AR/AK mechanic. I worked in OK for a few years as a gunsmith in a couple of shops, and that would be the most bang for your buck. Let the smith do repairs and you take 20% for the space in the shop - you both make out and he gets to practice his trade without the overhead of owning a shop. This kind of arrangement will also be incentive for him to do his best work and increase the productivity which will bring business into your store. If you can find someone with school credentials that would be the best in your situation, since you could have no idea of the competence of the guy until he hacks a job and loses you a customer - plus the cost of making his abortion right.
Let the smith be responsible for tool expenses, and parts ordering, etcetera. Those are headaches you don't need and it will save you in the long run. Brownell's used to have a gunsmith referral program, you might want to see what they can tell you. Also check with some gunsmithing schools, most of them have a job placement staffer that is looking for opportunities for their grads. Good luck! 
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Armory Sponsor