I'm not a FFL, but as a CPA I've been working with small business owners for almost 40 years to assist them in building their businesses and becoming more profitable. My tax clients have had a lot of successes during that time.

I also agree with the statements made by Rule3!

This is an interesting post that allows me to see the world from the FFL's perspective. You may not agree with me, but here's some food for thought:

1. Think about reducing your FFL transfer fees. Having a gun buyer come in to your shop, even if they did not buy the firearm from you is an opportunity to acquire a new customer at no cost to you. New customer acquisition costs can be very expensive (marketing, advertising, printed material, business cards, etc.).

2. The transfer fees in my area were $25.00, then the FFLs increased their fees to $30.00. I found a great FFL that only charges me $10.00. Guess where I'm always headed for my ammunition, accessories, outbound transfers, etc. ????????

3. And, the new FFL has a great business attitude, is very honest, and is very professional. He also knows a lot about firearms. Who do you think that I am going to recommend to all of my friends and Second Amendment supporters as the place to go for their firearms, ammunition and accessories? Hint: It's not the high fee FFLs! I have not been back to their stores in over two years. Believe me, that $20.00 FFL transfer fee differential has cost them a lot of money in terms of lost sales. Ask my wife!

4. This logic may not always be valid throughout the entire U.S., but IF a local FFL can sell me the same firearm for about the same price, then one of the only cost savings to the buyer is avoiding local sales taxes, offset by the shipping and insurance costs. IF I can buy the same firearm for about the same price locally, I will always buy locally. I want that local FFL to be successful and stay in business!

5. During the FFL transfer process, if this statement is true, always mention to the customer that "You know, I could have sold you that same 1911 for less than you paid for it" - Discount your usual sales price (cost + 15%) to acquire a new customer and perhaps a lot of future business. This may be an opportunity to create a network with other LGS owners that stock different firearms. If you don't carry or stock a particular brand or model, find another LGS in your area that does and come to an agreement on transfer prices.

6. If you are seeing important buying trends (people are buying a lot of new Smith & Wesson revolvers, but you can't meet the demand), this may be an opportunity to add new product lines or pressure your distributor for a higher brand or model allocation.

7. You may find that you have an opportunity to add new products or services, for example, a retired LEO who is also a long-time customer and an excellent gunsmith (or has XX years with firearms) just stopped by last week and told you that he has retired. He wants to work PT as a gunsmith.

8. My initial opinion is that Ricci's policy of a 15% markup over cost is competitive, although it may be driven by other factors in his geographical area.

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