Not sure if this is the right place for this topic, but here goes...

 

Friend of mine, who is a FFL, and I are interested in setting up shop in Mercer County. He would run the store and manage inventory. The range would be set up as a smaller venue - 6-8 booths, depending on the layout. The retail would be guns and ammo only...no archery, clothing, etc.

 

Although we have a couple of options in the area, they are both members only. I would like to have a range option in Mercer to serve as a more local walk-in facility (we have a building in mind already).

 

The barrier is a fairly significant startup cost.

 

My concerns are these:

In these times of nutty ammo costs, would the casual shooter still spend the cash to go through some rounds? If there are no membership fees to support the overhead, this might be a problem.

But my only option right now as a non-member of any club is to drive 45 minutes away (at best) to a range where I can rent a booth for an hour, buy a box of cartidges, plink a bit, and go home.

 

Last time I shot in lakewood, the lanes were 2/3rds empty on a weekend. So I'm thinking there are others out there skipping the range in order to sit on the ammo supply (as am I to some degree). This is why I hesitate to join any private club...if I rarely plan to use up my supply, I can't justify the memership fee. (like paying on contract with my gym and then never actually going)

 

What are your thoughts on this concept?

Before you go any further.....Check your local laws,building variances and usage,the city father's outlook on having a range in their town and then look into permits,insurance and licensing.

If you then have a favorable outlook draw up a business plan and see if any lending institution will give you a loan. Since GE capital is recently publicized as not continuing to lend to Firearms related business, I believe other institutions will follow suit and your resources for a loan diminished.

You do realize that even a "smaller venue -6-8 booths" may not be feasible and will still run into several million dollars.

Before you go any further.....Check your local laws,building variances and usage,the city father's outlook on having a range in their town and then look into permits,insurance and licensing.

If you then have a favorable outlook draw up a business plan and see if any lending institution will give you a loan. Since GE capital is recently publicized as not continuing to lend to Firearms related business, I believe other institutions will follow suit and your resources for a loan diminished.

You do realize that even a "smaller venue -6-8 booths" may not be feasible and will still run into several million dollars.

 

Thanks for the feedback. We were looking to self-fund the project, but several million would break the bank. We had pegged a bit lower. One can dream though. In the meantime I'll have to drive to Lakewood.

Thanks for the feedback. We were looking to self-fund the project, but several million would break the bank. We had pegged a bit lower. One can dream though. In the meantime I'll have to drive to Lakewood.

 

Why dont you drive to PA?

50k per lane average plus building, insurance, initial cost of backstop +it needs to get re-done every few years, zoning permit costs... its an expensive venture....

I have a spreadsheet about this for when I considered opening my own range. I contacted TarketWorks, and Action target. The rough estimate was about 30K per lane with the cost ranging from $1.50 to $3.00 per lane to run per hour. If you have one person on the range, you are paying as much (running the filters) as you would if they were full. And that is if the building already exists.

 

Either way, you are looking at a $1,000,000 startup cost. You have to buy the building because no landlord in his right mind would lease a building to you that will become a toxic soup of lead.

 

There are gun range trailers and shipping containers that may be a more cost-effective solution, and they are already in the box, just plug it in. That may be better solution for you, but I believe they run $300,000 per lane. You can read more about it here:

http://www.ais-sim.com/training_products/training_products_quickrange.htm

 

The real question is: do you want to start a business where:

 

* You are constantly vilified by the public

* You are constantly subject to regulation and inspection by state, federal and local agencies

* Your margin is only 10% (at least on guns, on ammo it is about 200%) This is why gun shops sell clothes and holsters.

* Your products are only available to 14% of the market (estimating the number of gun owners in NJ)

* Your biggest seller (pistols) can only be bought once per month

 

Ammo is the least of your problems. I contacted USA Ammo to provide ammunition for my store and they promised that they would deliver 9mm and .45 in pallets of $10,000 as my ammo vendor. But that was 2 years ago. Even ranges are having trouble finding ammunition now.

 

My suggestion is not to do this. It will take at least 5 years to recoup your investment ... if you do at all.

BTW,

 

If you really, really want to do this, PM me. I will sit down with you and your friend and go over all of my spreadsheets with the two of you. Maybe you can find a way to make it work, but I've already done the research so you don't have to.

BTW,

 

If you really, really want to do this, PM me. I will sit down with you and your friend and go over all of my spreadsheets with the two of you. Maybe you can find a way to make it work, but I've already done the research so you don't have to.

 

I keep chuckling at something Pizza Bob said at the Pennington Starbux meetup last month...

 

How do you make a small fortune in the gun business?

Start off with a Big Fortune !!!!!!

 

By the way +1 for for sharing your research research with others.

I'd say nj does not need anymore indoor ranges. But gun stores are welcome.

Thanks for the feedback. We were looking to self-fund the project, but several million would break the bank. We had pegged a bit lower. One can dream though. In the meantime I'll have to drive to Lakewood.

 

I believe there is federal funding available for people setting up public ranges