I was looking into becoming a dealer for and was lead to believe I would be buying at similar pricing to the companies online. I got all geared up and legal for business. Went to place an order and found the pricing is very close to the prices online anyway. I asked why and was told they cater to those bigger ones online. So basically this industry is already locked up for any future competition to ever stand a chance.
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Anybody here a successful dealer?
- Thread starter Cody01
- Start date
It’s like any business, the larger the (wholesale) order, the deeper the discounts. Its hard to compete with large retailers that are ordering wholesale by the truckload.
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The whole airgun market is kind of interesting. My business partner Gene and I own Air Tanks Plus. We are located in CA, and we have not really made the commitment to start selling airguns. We have tried in the past as a non stocking dealer. When we sold an airgun it would be out of stock, and we would have to back out the transaction and refund the card. I see a lot of dealers allowing people to pay upfront and preorder airguns. We are not comfortable doing that. I think the best way to to sell airguns is to have inventory in a shop with a range where you can put the guns in the customers hands and let them shoot it. We are in CA so it would be a pain to set up an indoor range. So right now we are happy in our niche focusing on the PCP airgun accessories. It is really hard to compete on price with the big players, but we can on quality. If you are a new dealer, you could get started by becoming an Air Venturi Dealer, but the small profit margin would not be large enough to really make it and afford to advertise to grow your business. If you are interested in stocking any of the stuff we offer feel free to reach out.
Roger
Roger
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This is similar to most enterprises where a significant investment would be involved to get the dealer pricing.
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I was in business against large corporations for over 35 yrs. Service. Crow
The bigger they are the harder they fall.
The bigger they are the harder they fall.
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If your a dealer of say any brand, does the dealer have to pay upfront for the rifles and other gear from manufacturers? The more stock you can buy the less prices paid? Then only hope you can sell it? A small guy could never compete.
High end audio works a little different, there is a ton of manufacturers of audio gear but only a few dealers of each brand, maybe even only one dealer in the whole US of one brand. I believe the high end gear is sent to the dealers on credit, as most dealers would have a million dollars worth on the floor at all times and couldn't possibly afford to sit on it as very few people are in the audio hobby, ask yourself how many people do you know in the audio hobby?
High end audio works a little different, there is a ton of manufacturers of audio gear but only a few dealers of each brand, maybe even only one dealer in the whole US of one brand. I believe the high end gear is sent to the dealers on credit, as most dealers would have a million dollars worth on the floor at all times and couldn't possibly afford to sit on it as very few people are in the audio hobby, ask yourself how many people do you know in the audio hobby?
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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
Maybe lollipops as I see more and more videos with air gunners shooting at suckers
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Depends on the manufacturer and terms of the agreement. You can have a small showroom and everything can be drop shipped from the factory. You may have to buy all of the models for the showroom and buy into the franchise.
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I am hearing that if you as a dealer / retailer carry some brand, then other brands will not sell to you.
And i assume thats also okay, no one should be forced to sell their product to someone if they do not want to.
Speaking to my guy i also got a feeling he will be narrowing the amount of brands he carry, so 12 brands might well be history at his shop.
I get that too, i mean having a air rifle hanging on a wall for years, thats not good business, really you want to sell in months at the most.
And i assume thats also okay, no one should be forced to sell their product to someone if they do not want to.
Speaking to my guy i also got a feeling he will be narrowing the amount of brands he carry, so 12 brands might well be history at his shop.
I get that too, i mean having a air rifle hanging on a wall for years, thats not good business, really you want to sell in months at the most.
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Earlier in the year faced the same reality of buying into a Air Gun Dealership that there rifles came in kit form requiring finishing / assembly.
Real issue became $$$$ invested needs a respectable return in a PERCENTILE Profit on said dollars.
Having been self employed most of my working years ... To have a legitimate business & cover taxes, overhead costs, advertising etc etc the amount at MINIMUM in return needs to 30% to 40% * This just on the invested monies.
In my case ( which is not unique ) what my personal time was worth in finishing / machining / assembly & testing prior to a sale added to the cost of said rifle kits, & while on paper the profit looked doable ... But in reality the TAX MAN for a small business operating legitimately near all the profit would be gone !!! Selling with the states required sales tax the end product would need to sell for more $$ than the origins of the rifles sell them for factory direct !!
Absorb or reduce price to match a tax less sale elsewhere & you are profiting less once again. Loser on all fronts sadly.
Run a shady no tax operation and get busted for tax evasion .. no thanks.
I'm not going to work that hard, invest my own money for such meager returns ... so it never got off the ground.
Real issue became $$$$ invested needs a respectable return in a PERCENTILE Profit on said dollars.
Having been self employed most of my working years ... To have a legitimate business & cover taxes, overhead costs, advertising etc etc the amount at MINIMUM in return needs to 30% to 40% * This just on the invested monies.
In my case ( which is not unique ) what my personal time was worth in finishing / machining / assembly & testing prior to a sale added to the cost of said rifle kits, & while on paper the profit looked doable ... But in reality the TAX MAN for a small business operating legitimately near all the profit would be gone !!! Selling with the states required sales tax the end product would need to sell for more $$ than the origins of the rifles sell them for factory direct !!
Absorb or reduce price to match a tax less sale elsewhere & you are profiting less once again. Loser on all fronts sadly.
Run a shady no tax operation and get busted for tax evasion .. no thanks.
I'm not going to work that hard, invest my own money for such meager returns ... so it never got off the ground.
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Thats kind of what I am beginning to think. I like the idea of it but ideally it just doesn't pencil out.
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I'd rather crawl into a badger den than sell Airguns. A waste of time and money unless you have loads of it.
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When I was younger, every expensive hobby we got into my one buddy always wanted to become a dealer. His motives were to get things cheap to play with and still hopefully make some money. I believe it’s difficult for a reason and involves big commitment to protect the rest of us from guys like my buddy becoming a dealer. If it was easy we would all be dealers swimming in discounted toys and having the time of our lives.
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I've talked to a couple of manufacturers about this same subject. The company names are not important. You better have 25 to 30K to invest. Both of them sell their guns in crates of five to ten models, with minimum orders.
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I'll agree with Scott. We have become a Service based economy in the USA. Selling others products is for the Big Boys with DEEP pockets.
Now if you have a skill and sell your services? You can make a lot of money.
I've been offered several AG businesses in the last few years. The cost to buy them just don't equal the return I'd need.
I make good money with the skills I've sold for nearly 35 years.
Now if you have a skill and sell your services? You can make a lot of money.
I've been offered several AG businesses in the last few years. The cost to buy them just don't equal the return I'd need.
I make good money with the skills I've sold for nearly 35 years.
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Well after several attempts at reaching to suppliers for starting this it did make me realize I bettet quit before I invest. These places can't/won't communicate for chit. If it's this hard just to throw them $10,000 just to get started I csn only imagine how bad communication will be after they have my money and need service. I bet it would be non existant.
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Not to sound insulting .... Bringing 10K to the table is nothing in terms of a legitimate dealership of goods.
There are MANY who would jump at getting dealer cost on equal $$ amounts of goods just to get a couple guns and flip the rest.
Have 10+ fold to invest their likely to be a lot more interested IMO.
There are MANY who would jump at getting dealer cost on equal $$ amounts of goods just to get a couple guns and flip the rest.
Have 10+ fold to invest their likely to be a lot more interested IMO.
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