Your Most Profitable Revenue Stream

Here’s how to break it down: Add up all the 9mm sales from the “before times.” In 2019, for example, your total 9mm revenue was, say $100,000. If you run at a 50% margin, this means you spent $50,000 on 9mm (product cost) and made $50,000 of profit. You now know to offset the 9mm profit, you need to add another revenue stream generating at least $50,000 in profit. What is the most profitable revenue stream in our industry? Classes!

Typically, classes with a high student-to-instructor ratio are very profitable. For instance, in a class of 10 students and one instructor, the profit margin might be north of 85%. If you want to generate an extra $50,000 in profit using this math, you’ll need to sell about $60,000 worth of classes.

Spread across 12 months, you’ll need to add another one or two classes equating to $5,000 in monthly revenue ($1,250 per week). In our area, attending a basic pistol course will cost about $125. If 10 students sign up, you just generated $1,250. If you can replicate this for 50 weeks, you just made up for not having 9mm available to sell.