The only way you are going to compete as a small dealer is with service. However, the number of people today that are willing to pay a bit extra for great service seems to have dwindled greatly.
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Anybody here a successful dealer?
- Thread starter Cody01
- Start date
Your potential venture into becoming a new retail sales option in the market is great as it would allow for another sales option for many in your area or region. However, as has been pointed out the amont of capital money being bought to the table is not attractive enough to make a big fish bite. I also comend you for your efforts to pony up 10K of your own money or money that is not borrowed, as it keeps you from having debt at startup but yet again in the world we live in the amount you propose to spend is not attractive enough at this time.
I would hope that you dont throw in the towel jus yet as there are other option available to you such as putting together an application and business plan to show the entity in your community that handles Small Business Adminstration loans for individual desiring to start a business venture. I am not sure what the money down requirement is at this time but 10K is a great start on a down payment which could help you secure additional capital resources to start your venture.
However, if this is not appealing I completly understand as not many want to go to far into debt and I am a pas as I go person myself in most instances but I have been known to risk a little to gain a lot when it all makes sense.
I would hope that you dont throw in the towel jus yet as there are other option available to you such as putting together an application and business plan to show the entity in your community that handles Small Business Adminstration loans for individual desiring to start a business venture. I am not sure what the money down requirement is at this time but 10K is a great start on a down payment which could help you secure additional capital resources to start your venture.
However, if this is not appealing I completly understand as not many want to go to far into debt and I am a pas as I go person myself in most instances but I have been known to risk a little to gain a lot when it all makes sense.
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When I started my business 35 yrs. ago I did it on a hand shake. Still deal with them.
That doesn’t happen any more.
Crow
That doesn’t happen any more.
Crow
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also being a little guy starting out , if you invest capital in say XXX airgun and buy a dozen and have them on shelf , and xxx version2 comes out they you will need to discount it way below cost I have friends who run small airgun buisnesses and this hurts , and if you doing retail like Renting and legit you need to make like motorsaid 40% margin or you wont even pay overhead and taxes . I guess a side buisness from home may be easier $$$ and remember if you dont do service work and ammo , once sale is done for gun profit is done , with repairs and accys and ammo , I think the little guy can be profitable , the huge dealers get deeper discounts and sell alot to offset things ,
LOU
LOU
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Well a huge problem so far is getting anyine to even return emails regardless of buy i price and I have noticed this in business in general lately. Companies just don't reply to emails for chit these days.
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I have no "impossible dreams", but I simply wish there was an airgun "dealer" or rather a place that services airguns LOCAL to me! As in, within my own town/city! (smile)
In North Alabama, there are VERY few options and those options are at least questionable... (heavy sigh)
In North Alabama, there are VERY few options and those options are at least questionable... (heavy sigh)
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Its a noble pursuit, starting up your own shop. But as many have already opined, its a tight market. Only so many manufacturers are left in the game and they are either all tied up to a distributor or unwilling to do business with newcomers.
One approach to starting out may be to look for closeouts, like in the case of Numrich buying up all those Diana's a few years ago. But sourcing those kinds of one-off events are tough, takes knowing the right folks and having leads.
One approach to starting out may be to look for closeouts, like in the case of Numrich buying up all those Diana's a few years ago. But sourcing those kinds of one-off events are tough, takes knowing the right folks and having leads.
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Thank you everyone for commenting in this. Turns out my biggest problem doing an air rifle business is getting liability insurance. I have yet to hear back from any lawyers but I a bit of looking into this myself. Problem is that insurance companies are trying to charge me for being a full on firearms shop and I just can't justify paying that rate. After doing some reading I found that if I typed up a contract for buyers to sign off on that I have educated them on the safe usage of the products as well as encouraged the reading of instructions it would basically in 99% of cases remove the ability for someone to sue me for negligence in a court room. There is a chance they could have a great lawyer or the judge could be a real prick and screw me over. As a result I have decided not to pursue this business any longer due to the associated risk for such low margins. This venture not only got me into PCP but also somw people I know. We enjoy it a lot but I don't want the extra high insurance rate and risk of being sued so I am now just a consumer again.
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I think the suckers are us! LOL JK.You need to find a niche market, say for one/two things, like consumables so that you will have repeat business.
Maybe lollipops as I see more and more videos with air gunners shooting at suckers
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just an opinion from a guy who has a business, getting sued is a reality every business has but its not really as big of a deal as you think for small guys. spend the extra money and at minimum become an LLC. as for profit margins, the idea of making more than 10% on an item that you did not manufacture is not realistic. you sell airguns to get people in the door, then you make money on the repair/servicing of all airguns as well as maybe selling items you designed or various items with a reasonable margin. the only exception to this is if you're lucky enough to find a company looking to come here from overseas and you become one of the first dealers. as far as insurance goes, youre not opening an airgun shop youre opening a sporting goods business 
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I've tried to spin it like that but if I have an incident with an air gun they won't cover it because I wouldnt have been honest.just an opinion from a guy who has a business, getting sued is a reality every business has but its not really as big of a deal as you think for small guys. spend the extra money and at minimum become an LLC. as for profit margins, the idea of making more than 10% on an item that you did not manufacture is not realistic. you sell airguns to get people in the door, then you make money on the repair/servicing of all airguns as well as maybe selling items you designed or various items with a reasonable margin. the only exception to this is if you're lucky enough to find a company looking to come here from overseas and you become one of the first dealers. as far as insurance goes, youre not opening an airgun shop youre opening a sporting goods business
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fear is the biggest obstacle to overcome when deciding to open a business. you have to accept that there will be loses and above all have total faith in yourself and the job you do. what kind of realistic incident do you foresee?
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I own a nice house and have money in the bank. I dont want to gamble losing it all over some idiot.
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sadly this thread is why we are a nation of big box stores.
Manufacturing and services is the way to go if you want to open a business. If you can, buy an existing company and expand it. Same for
a retail air gun shop. You will usually come out way ahead. There are a ton of small items you need to run a business, and they all cost.
Form a LLC, Limited Liability Corp. and place only your business related assets in it. Keep all personal assets separate, like your house and personal
money. If your company is sued, it is the LLC that is sued out of existence. Your home and personal assets are safe and sound.
Doc
Manufacturing and services is the way to go if you want to open a business. If you can, buy an existing company and expand it. Same for
a retail air gun shop. You will usually come out way ahead. There are a ton of small items you need to run a business, and they all cost.
Form a LLC, Limited Liability Corp. and place only your business related assets in it. Keep all personal assets separate, like your house and personal
money. If your company is sued, it is the LLC that is sued out of existence. Your home and personal assets are safe and sound.
Doc
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You sure we aren't the suckers?You need to find a niche market, say for one/two things, like consumables so that you will have repeat business.
Maybe lollipops as I see more and more videos with air gunners shooting at suckers
Smitty
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How do you make a small Fortune in the Air Gun Business? Start with a large one.
I've started a couple business, nothing cheap about doing that. Cheapest one to start to date: Solar Lawn Care - All the equipment was 56v electric, solar panel on the trailers, charge controller, deep cycle battery, 2000/4000W pure sine wave inverter, Liability Insurance for cutting grass - $1,200 a year. Heaven forbid you hire someone - California Workman's Comps was 40% of hourly rate.
.FYI - To get my product that I hold the Patent on will be close to $400,000.00 in tooling and initial production run. My other product will only take about $50,000. Anyone need a Kidney? Used Lung? Left nut?
Smitty
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