Firearms & Ammunition Store in South Central PA - Nearly $6M in Sales
All employees capable of running the day-to-day operations!
All 6 employees in place at this firearms store are capable of running the day-to-day operations! With nearly $6M in revenue and a 21% profit margin, this South Central Pennsylvania retailer is well-known for their outstanding customer service, knowledgeable team of employees, and wide variety of products. Customers of all types frequent the store – avid gun collectors, hunters, recreational shooters, people looking for a home protection firearm, local law enforcement agencies, first responders, and military personnel can find something to fit their needs. Along with selling new and used firearms in an array of well-known brands (such as Remington, Smith & Wesson, Glock, and Browning) both in-store and online, this company sells accessories including ammunition, scopes, sites, and holsters. The revenue is generally split evenly between the sale of firearms vs. accessories. They also do firearm trade-ins, basic gunsmithing, scope installation, night sight installation, and total tear-down, cleaning, reassembly, and function checks. They sell approximately 3,000 firearms per year, with 1,000 of those sold to repeat customers.
Of the 6 employees, one of the store’s owners (50%) acts as Managing Member who runs the daily operations of the business and has extensive experience and expertise in gunsmithing; this owner is interested in staying on board as an employee. The other 5 employees are also capable of running the store on a day-to-day basis. The second owner handles general oversight and is looking to exit the business in order to plan for retirement. They work out of a 3,000 sq. ft. space and currently have 700 firearms in stock, valued at $1.2M. Rent is $2,600/month, with 4 years left on the current lease.
Priced at $3,290,000, this business is in a prime geographic location, has a solid reputation and client base already in place, and is poised for growth. A new owner could offer more online products by working with more distributors; the company currently works with three distributors but has memberships with 12. Opening the store on Sundays would also lead to a boost in sales.
Year Established: 2014
Location: Harrisburg, Pennsylvania
Service Area: Primarily locally based clientele
Products: Wide variety of new and used firearms for sports, protection, and recreational use, plus ammunition, scopes, sites, holsters, safes, etc.
Services: Gun trading, gunsmithing & cleaning to prepare firearms for off-season storage, scope installation, night sight installation, total tear down, cleaning, reassembly, and function checks of firearms
Customers: Local law enforcement agencies, first responders, military personnel, hunters, recreational shooters, people wanting to protect their home
Business Hours: Mon-Sat: 10am-6pm; Closed on Sundays
Lease: 3k sq. ft. building; $2,600/month
Reason for Selling: Approaching retirement
Personnel: 5 FT & 1 PT; all employees capable of running the day-to-day operations of the store
Seller Training Period: 3-6 months
Growth Opportunities: Work with more distributors (the business currently has memberships with 12 distributors, but only works with 3) – working with more would allow for more online sales
Current Owners’ Responsibilities: Owner 1: General Oversight; Owner 2: Managing Member (willing to stay on as an employee)
- 5 FT Employees
- 1 PT Employee
All 6 employees are extremely knowledgeable about each gun in stock at the store and are capable of all armoring services and point-of-sale. They are all certified instructors as well and can teach customers about safety features and how to shoot the firearm (with no ammunition).
- List Price: $3,290,000
- 2021 Annualized Cash Flow: $1,135,644
- 2-Year Average Cash Flow: $810,856
*amounts may vary
- Inventory: Currently 700 firearms in stock, valued at approximately $1.2M
- Intangible: Excellent location, large number of repeat customers, well-known for customer service
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$0||$0||$0||$0||$0|
|Compensation to Owner||$244,000||$150,000||$150,000||$0||$0||Does not need replaced|
|Owner's Child||$315,000||$150,000||$150,000||$0||$0||Acts as Store Manager: Would stay on board|
|11% Tax on total W2 Salaries||$61,490||$33,000||$33,000||$0||$0|
|Auto Expense||$145||$3,494||$6,084||$6,647||$1,243||Personal Expense|
|Replacement||$-56,667||$-85,000||$-85,000||$-85,000||$-85,000||To replace/retain owner's son as store manager|
|Seller's Cash Flow = Total Addbacks + Net Income||$571,888||$259,602||$268,581||$-68,881||$-75,272|
|Profit Margin||15.51 %||4.46 %||7.27 %||-1.99 %||-2.93 %|
- There was a definite boost in sales in 2020, largely due to the pandemic. As more people were working from home and looking to start/continue an outdoor hobby, gun sales surged. The seller stated that most people who buy their first gun come back for more, and most existing customers are not “one-gun” clients. They have customers who buy/trade on a weekly basis.
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