Do you want to know how much money gun ranges make yearly? If YES, here are 7 factors that determine the income & profit margin for shooting range businesses. In order to have an idea of the amount a gun range owner is expected to make daily, weekly, monthly or yearly, you should clearly define the services that gun ranges offer.
A well-equipped gun range provides indoor and outdoor targets for firing weapons such as handguns, shotguns, rifles and other arms. Handgun ranges typically have their own indoor stations, while rifles can be shot at disks and a variety of other targets. It is the norm for a standard gun shooting range to provide target practice, shooting lessons, gun sales and rentals and protective equipment rentals and sales as well.
Experts state that the “Expected Lifetime Earnings” of a gun range is $1,586,424 and the whole making-money portion of this job mostly depends on your salesmanship skills, as well as the type of weapons you sell. Averaging around $38,000 per year, weapon sellers aren’t exactly rolling in it.
It is important to point that there is no one-mold-fits-all when it comes to how much a gun range owner can make. There are some factors that we are going to look into before giving an estimate of how much an average gun range owner makes yearly and these factors are;
7 Factors That Determine How Much Money Gun Shooting Ranges Make
Table of Content
- 1. The Size of the Gun Range
- 2. The Location of the Facility
- 3. The Type of Services that is Available in the Facility
- 4. The Management Style of the Gun Shooting Range Business
- 5. The Business Approach of the Gun Shooting Range
- 6. The Advertising and Marketing Strategies Adopted by the Gun Shooting Range
- 7. Number of Years in Existence
- Estimated Profit Margin for a Gun Shooting Range
1. The Size of the Gun Range
You will agree that no one can conveniently state the amount a gun range owner is expected to make yearly if you do not know the size of the facility and the number of members the facility can accommodate per session. A gun range business that operates from a small indoor facility is expected to make far less than a gun range that operates from a standard indoor and outdoor facility.
If your gun ranges facility is a large enough, it can accommodate more members and that will mean increased membership revenue – If membership at your gun shooting range facility is $1,200 per year, you only need 100 members to turn over $120,000 in annual revenue. Please note that you can build your gun shooting range to double that number of memberships within 24 months.
2. The Location of the Facility
We must not rule out the fact that location is a major factor that will determine the amount a gun shooting range facility owner earns monthly. If a gun shooting range is located in a highbrow area, an area with the right demography and lifestyle, the gun shooting range is expected to make more money.
The truth is that, you will struggle to make good money from your facility if you locate the business in an area filled with low income earners or in a ghetto or a place where the residents are busy working-class people.
3. The Type of Services that is Available in the Facility
Another important factor that will determine how much a gun shooting range facility owner is expected to make yearly is the type of services offered by the gun shooting range facility.
You will agree that the money a gun shooting range facility that offers indoor and outdoor targets for firing weapons such as include handguns, shotguns, rifles and other arms and also engage in providing target practice, shooting lessons, gun rentals, protective equipment rentals, gun and accessories merchandise et al, will be far larger than what a facility that offers only personal training and shooting lessons is expected to make monthly.
4. The Management Style of the Gun Shooting Range Business
Another key factor that will determine the amount a gun shooting range facility owner is expected to make yearly is the management style of the facility owner. Trust me, the results you will get when you are a good manager will definitely be far different from a gun shooting range facility owner with poor management style.
The idea is that a good gun shooting range facility owner will not just retain their old customers (members), they will also keep getting new customers (members) enrolling in the gun shooting range facility and making purchase especially through recommendations.
5. The Business Approach of the Gun Shooting Range
There are different business approaches that a gun shooting range facility owner can choose from and it will greatly influence the amount they are expected to make monthly and yearly. A gun shooting range facility owner may decide to operate only one location and do their marketing alone, they can also decide to go into franchising and also partner with other businesses that will recommend clients to them.
It is easier to find gun shooting ranges that operate franchises partnering with shooting clubs and security firms et al to make more money. In essence, a well-organized gun shooting range that works with others will surely make more money than a gun shooting range facility that only operates from one location.
6. The Advertising and Marketing Strategies Adopted by the Gun Shooting Range
Another key factor that will determine the amount a gun shooting range facility owner can make yearly is the advertising and marketing strategies adopted by the facility. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings.
The results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a gun shooting range facility owner that is engaging in aggressive advertising to make same amount yearly with a facility owner that is passive with its advertising.
7. Number of Years in Existence
Lastly, another key factor that will determine the amount a gun shooting range facility owner is expected to make on a yearly basis is the number of years the gun shooting range has been in existence. In business, the number of years you are in existence usually determines the amount you will make especially if the business is well – managed.
For example, in your first fiscal year (FY1) you might make a hundred thousand dollars (100,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make two hundred and fifty thousand dollars ($250,000).
In conclusion, the amount a gun shooting range facility owner will make yearly is strictly dependent on all of the factors listed above. In other to maximize profits, you should try as much as possible to keep capital investment at a minimum, and ensure that your gun shooting range is capital efficient.
Estimated Profit Margin for a Gun Shooting Range
Findings show that Profitability and Market Outlook for Gun Ranges is put at 8.35 percent annual growth rate projection, so there is plenty of opportunity for gun range businesses to make gains.
Interestingly, in most gun shops, the markup ranges from 10 to 35 percent for new and used guns. Pawn shops that retail guns are known to make 50 to 100 percent profit on their firearms. So also, margin on new guns hovers around 10 percent.
Please note that the fees for using indoor public shooting ranges vary widely with local costs, but a typical rate starts at $10 per hour, with targets available at a modest charge and in some gun shooting range, the shooter fees are just $10.95 per shooter with no time limit for the rifle and pistol ranges.
Additional fees usually will pertain to damaging target hangers, lights or baffles, up to damaging motors, which may cost as much as $200, per incident. In essence, the profit margin of a gun shooting facility will range from 10 to 35 percent and even beyond, all things been equal.