Joining A Buying Group

What’s In It For Me?
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Image: jozefmicic / Adobe Stock

If you’re in the firearms retail segment of the industry, joining a buying group has probably been a consideration at some point. (And if you haven’t explored this option yet, do so soon.)

As its name suggests, a buying group is a group of stores that pool their buying power together in order to get better pricing for its members by purchasing directly from the manufacturer. There are three major buying groups in the firearms space: Nation’s Best Sports (NBS) headquartered in Fort Worth, Texas; Sports Inc. based out of Lewistown, Mont.; and Worldwide Buying Group with headquarters in Kent, Wash.

Significant Advantages

In my career in the industry as a retailer, director-level employee at a top distributor and as a vendor currently displaying at all three buy-group shows, I’ve seen the acquisition of products from all sides. There are many advantages to being in a buying group.

One significant advantage is each group has a buying committee dedicated to the shooting sports. These committees are comprised of member-retailers with expertise in the categories, along with staff from the group headquarters. These committees negotiate the best deals on behalf of the members. Some of the committee members are from very large-volume retailers and know about the best deals offered in the industry, far beyond what is known from just being in your store every day. 

For example, you may have negotiated a good price when purchasing a pallet of 9mm range ammo — figuring because buying a full pallet would equate to getting the best deal. However, unknown to you, there was a much lower price on a 100-pallet program. One of the committee members knows the program is out there and negotiates it for the group. Now, they’re getting the 100-pallet price even though they bought only one pallet.

Another advantage of these committees is they see up-and-coming products you may not know about. This is a huge benefit at SHOT Show; all these committee members are on the show floor looking for new opportunities for business with those new manufacturers (think of “the basement” 10′ x 10′ booths) you didn’t get to. A committee member may get you onboard before other retailers in your market even hear about the innovative new manufacturer. 

One small example is GoatGuns, which produces 1:3 scale realistic miniature diecast metal firearm copies of the Greatest Guns of All Time (GOAT). The AR-15 version has a detachable/loadable magazine, adjustable-length stock and is 11″ long. I wouldn’t have given this product line a second look, probably not even a first, but NBS had them at the August market and it was one of the busiest booths at the show. Is selling miniature guns going to fund your retirement? Of course not, but it puts a little money in the till at a good margin and, more importantly, sets your store up to be known for having new products — which draws in customers. 

Remember you’re operating a store, not a museum — people want to see new items.

Focus On What Matters Most

Anthony Keefer is president of The Sportsman’s Shop in East Earl, Pa., and a Sports Inc. shareholder (Sports Inc. is a 100% member-owned group). Keefer shared some of the business-altering benefits of becoming a member.

“The networking opportunities at Sports Inc. are second to none. You’ll have the chance to connect with leading dealers from across the country, share insights, exchange business strategies and form valuable partnerships. Whether you’re looking to expand your product offering or learn from others in the industry, the connections made here are priceless,” he said.

The Sportsman’s Shop benefits of belonging to Sports Inc. go beyond the product deals, according to Keefer.

“Sports Inc. also offers valuable member benefits that help run my business more efficiently,” he said. “I have access to healthcare programs, shipping discounts with UPS and other business services that provide savings and make my operation run smoother. These benefits save time, money and stress — letting me focus on what matters most, growing the business.”

Attending A Buying Group Show

Each of these three buying groups holds two shows a year, one being shortly after SHOT and another before the fall season, typically around August. Attending both is a must to get maximum value from your membership.

Glenn Duncan, owner of Duncan’s Outdoor Shop in Bay City, Mich., is a longtime NBS member who follows NBS’ slogan “We Support Those Who Support Us” with his buying habits. Duncan shared there have been years where he has gotten more value out of attending the August show compared to the busier February show.

“The slower pace of the August show gives me time to do a deeper dive into products I may have just glanced at during the show earlier in the year,” he said. “Besides ordering products closer to the actual selling season, the slower pace gives me more time to network and attend the NBS educational opportunities offered at the summer show.”

These shows or markets are like a distributor show (some of you may attend/remember these) or a micro-SHOT Show. Attending member-stores can see “Hot Show” special pricing, place orders for at-once shipments and, in most cases, schedule shipments out. 

The groups put a lot of effort into making these shows beneficial for the members.

Besides the buying opportunities, the groups use them as platforms to get information to the members. Usually, some sort of a large meeting is held — giving members a type of “State of the Union” presentation on where the industry is, what is occurring with sales and trends and if there are any new threats to retailers/ranges they need to be aware of. 

At these meetings, the buying committee for each major category will point out what are the best-of-show items, and which manufacturers are really supporting the group. 

Keith Collier, owner of Cypress Creek Indoor Range in Florence, Ala., and part of Worldwide (a member-owned co-op), shared how the relationships he’s developed with other Worldwide stores have elevated his business.

“As a Worldwide member, I have learned so much about retail — what works and what doesn’t, new trends in the industry, purchasing strategy and so much more,” he said. “Being friends with retailers across the U.S. who you can call for advice, help with inventory and just to talk about current trends is huge!”

Similar to Keefer’s experiences, Collier’s benefits as a Worldwide member are also gleaned at an administrative level.

“Being a member/owner of Worldwide helps administratively by giving us access to consolidated billing, vendor support, our employee retirement plan, discounted freight and multiple service vendors,” he noted.

According to Collier, Worldwide’s two annual shows are must-attend events: “Hosting two great shows a year is awesome! If you’re able to get into a buy group, make sure to attend the shows. That is where you find exclusive deals, form long-term relationships and learn the newest industry trends and expectations.”

Being in a buy group will also put you on the map, so to speak, with sales representatives. Upon joining, the vendors are alerted a new member has signed on and your inbox will be flooded with representatives wanting to talk about their brand.

What About Distribution?

Does all of this mean distributors aren’t needed? The answer is a resounding no; you definitely still need distributors. Getting shipments from manufacturers is often choppy at best, as most are experts in manufacturing — not so much at shipping on time. Distributors, however, excel at shipping quickly with a huge selection of products that can be delivered in days rather than weeks or months. 

In addition, distributors also don’t require purchases in bulk quantities. Don’t underestimate the importance of this; many times you’re better off paying more to buy less at a time and keep your turns up. If you figure the carry cost for an item is at 2% a month, it doesn’t take long to wipe out the buy-group savings if the product doesn’t turn quickly.

The Biggest Benefit May Surprise You

To sum it all up, Collier had these parting words for us: “I can’t imagine running a successful independent retail store without being in a buy group. While the access to exclusive deals and items, direct communication with manufacturers, better pricing and better availability are great, the biggest benefit may be the networking with other successful store owners and others in our industry.”

Buy groups have requirements to join including length of time in business, minimum sales volumes and other qualifications that need to be met. Below is the contact information to find out if one is a fit for you. 

 

Nation’s Best Sports: Contact Julie Cerza, Executive Director of Membership & Member Services (jcerza@nbs.com).

Sports Inc.: For inquiries, visit sportsinc.us/prospective-dealers.

Worldwide Buying Group: Contact Tanya Stenerson, Director of Member Recruitment, Services & Events (tanyas@worldwidebuygroup.com).

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