Home-Based FFLs:
Why Are We Pariahs?
In Shooting Industry’s Jan. 2022 Letters To The Editor column, we published a letter from Matthew Sims, a home-based FFL operating out of Gray, Ga., who questioned the policy of wholesalers refusing to sell to home-based dealers. The letter read, in part:
“Someone should do a story on why the home-based dealer is treated like a pariah. Does our money not spend as well, or is it just because the wholesalers are afraid we’re going to make too much money by not having enough overhead? Or is it simply collusion — the brick-and-mortar dealers just don’t want the competition and they have managed to convince the distributors we’re not worthy of their business? Inquiring minds want to know,” he said.
In my response to Sims, I affirmed Shooting Industry’s target audience will continue to be the storefront dealer first — but we recognize business has evolved, especially over the past 24 months. This exchange has generated a significant amount of reader mail, we’re including some of these responses below.
$0 Spent On Advertising
James Sagstetter, owner of Detroit Armament in St. Clair Shores, Mich., claims to have spent nothing on advertising, and yet has enjoyed a robust business since opening his home-based store two years ago because of the customer service he provides.
“My customers come to me primarily for one of two reasons: my prices are the best or they like the way I do business better than a conventional gun store. Getting a commercially zoned location with a retail space takes all of that away.”
He continued, “The fact I’m different or lower-volume doesn’t make me any less worthy of the same opportunities to do business. I spend the exact same U.S. dollar, right?
I appreciate the Editor’s comment business has evolved. Customers have evolved, too. There’s demand for this business model. My company is no less a business than any other FFL, and I believe my business is no less worthy of the same opportunities to do business than any brick-and-mortar storefront.”
There’s demand for this business model. My company is no less a business than any other FFL, and I believe my business is no less worthy of the same opportunities to do business than any brick-and-mortar storefront.
James Sagstetter, Owner of Detroit Armament
COD Payments Take Away Advantage
Sam Summey, owner of B&S Gunsmithing in Flat Rock, N.C., shared he’s been in the firearms business for 16 years and maintains strong ties with two distributors, but has struggled establishing relationships with several others due to not having a storefront.
“I have to back Matthew Sims’ stance concerning major distributors only giving support to the brick-and-mortar stores,” he said. “Over the years I tried to establish business relationships with several other distributorships and because I didn’t have a 1,500+ sq. ft. retail facility, I was denied. One distributor’s financial officer, after a 13-year relationship, decided my open-account status would be denied — even though I had never missed making my account current. Oh, they would still honor my business as a ‘partner,’ but only on a cash on delivery basis. This is unfair to my customers because I would have to raise my prices to an uncompetitive level. So, yes — Matthew has a right to be pissed off.”
Added Flexibility Key
Jesus Cabrera, owner of The Right To Bear Arms in Racine, Wis., shared his choice to run a home-based store allows for more flexibility in special orders.
“Just received the latest issue and saw the comment about home-based FFLs being shut out of major distributors for not having a brick-and-mortar store. It’s definitely disappointing, to say the least. Being small, we can offer a customer to special order a lot of firearms that aren’t usually available on the shelf of big-market stores,” he said.
“We have overhead because we have inventory — we’re not in it just to make a buck.”
Anthony Macaluso, Owner of Hook & Line
My Area Couldn’t Support A Retail Store
Maintaining a storefront in a town of just over 4,000 people (according to the 2020 U.S. Census) would be nearly impossible, claims Darrell Taylor, owner of Taylor’s Guns & Tackle, based in American Falls, Idaho.
“Just a quick note about the ‘Why Am I A Pariah?’ letter in the Jan. 2022 issue. I have an in-home gun business (of 30 years) in a town of less than 5,000 people. This small town couldn’t support a brick-and-mortar store. As such, I have trouble getting guns because I’m limited by the number of suppliers that will deal with a small dealer. Thanks for listening,” he said.
Based in a rural part of Maine, Gordon Keen of Streetsweeper Tactical, says his area likewise would struggle to support a brick-and-mortar store — something he has experienced personally.
“I’ve asked myself the same question as Matthew Sims a few times,” he said. “There are a few distributors that will sell to homebased FFLs, but only a few. Most won’t and I don’t have the answer. These days and times there aren’t enough to stock the brick-and-mortar guys. Personally, my house is just that, my house — not a retail store. Although I live in the country, I’m sure I speak for my neighbors: We certainly appreciate not having the extra traffic and unknown vehicles that would be common at a brick-and-mortar store, which I did have at one time. But that’s probably for another article.”
Storefront Dealer Responds
While the majority of the responses to Sims’ letter have come from home-based FFLs, Anthony Macaluso, owner of Hook & Line in Violet, La., weighed in.
“My response to Sims — yes, you are a pariah. I’ve owned a sporting goods store for 32 years, with employees working for me. We realize home-based dealers have no overhead. But how does he have an FFL without a brick-and-mortar store? We won’t do transfers for anyone who didn’t buy from a brick-and-mortar store.
“We have overhead because we have inventory — we’re not in it just to make a buck. We’re in it to serve the public and not to make too much money.”
Contrasting perspectives on this subject — we invite your feedback to continue the dialogue. Send comments to: editor@shootingindustry.com.
