Whether you sell handguns for self-defense, law enforcement, hunting, serious competition or plinking, your success is driven by a number of factors. These include your location, range/shooting/hunting availability, market demographics and hard-learned lessons. Every successful retailer has a few “essentials” he or she considers vital to profitability in the handgun segment of the business.

When Shooting Industry asked dealers and industry experts to share their success tips — along with mistakes to avoid — they presented a number of “most important items” that went beyond the right inventory, proper displays and salesmanship.

Regardless of whether you’re new to the gun business or a seasoned dealer, here is a collection of those essentials for maximizing your efforts in handgun sales.

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The laws concerning the sale of handguns are often different from long-gun laws in many states. Research and understand those laws and regulations.

“The laws in this state are so complicated you almost have to be a part-time attorney to figure them out,” said Carl Ingrao, owner of Four Seasons Guns in Woburn, Mass.
Ingrao, who is the top Smith & Wesson dealer in Massachusetts, presents a lot of information on his Web site, www.fsguns.com, about federal and state laws that govern firearm sales. On the Four Seasons home page, there are links to “Guns You Can’t Buy In MA” and to federal and state agencies. He also uses his e-mail newsletter to alert customers to legal updates.

“Even though the laws are bad, it means the big-box stores don’t sell handguns in this state. But you must be 100-percent sure of which handguns are compliant and non-compliant in your state,” Ingrao said.

In addition to knowing the laws pertaining to the sales of handguns, contact your ATF agent for additional information, advises Russell Rhodes of Neuse Sport Shop in Kingston, N.C. The shop offers handguns from Beretta, Browning, Glock, HK, Ruger, Smith & Wesson and Springfield.

“Call the local inspector for your area. There are quite a few additional hoops that we have to jump through when selling handguns compared to selling long guns,” Rhodes said.
Dealers also face additional challenges when different salesmen in a shop sell handguns to the same customer.

“Federal law requires that if you sell more than one handgun to an individual buyer in a five-day period, you have to send a form to ATF and to local law enforcement,” Rhodes said. “Sometimes it’s a trick to know if you’ve sold a handgun to the same guy five days ago.”
To avoid making a mistake, develop an internal procedure to track multiple sales.

Essential #2:
Consult with your insurance provider.

“You need to make sure your provider will write you a policy that covers carrying handguns,” Rhodes said.

Many dealers report it’s often difficult to get the insurance coverage needed. Joseph Chiarello & Co. has been providing insurance coverage to the industry for over 25 years. The company, which is endorsed by the NSSF, offers general and product liability and property insurance. Call 1-800-526-2199 or visit www.guninsurance.com.

Gillingham & Associates recently announced a new insurance program specifically designed for indoor and outdoor rifle and pistol shooting ranges and archery facilities. Coverage available includes general liability, property and more. For more information, visit www.outdoorinsurance.com.

Liability insurance is a benefit of membership in the National Association of Firearms Retailers. As a member, you can take advantage of various types of insurance coverage, including general liability, product insurance, burglary and theft. These products are available to all members including retailers, commercial reloaders, distributors and gunsmiths. Visit www.nafr.org.

The National Association of Shooting Ranges has an article on its Web site titled “Who Needs Product Liability Insurance?” Visit www.rangeinfo.org, click on “Range Resources,” then “Legal” in the “Business” section.

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First, display your handguns in a way that attracts customers, but, most important, is secure.

“Get a good, secure glass showcase to show your guns. Underline the word ‘secure,’” said Larry Ahlman, owner of Ahlman’s in Morristown, Minn.

Ahlman also advises limiting the number of handguns you display for a customer.

“If you put out more than three handguns at a time for a customer, they can play a shell game with you and you’ll lose one,” Ahlman said. “If someone wants to see a fourth gun, put one back first. I know I’m a little overcautious about security, but it (theft) does happen.”

Second, it’s important to know exactly where every firearm in your shop is at all times.

“We count all of our firearms twice a day to verify we have absolutely no shrinkage,” Rhodes said. “You have to find time to do that. You want to find the mistake; you don’t want the mistake brought to you by an ATF audit.”

If a gun is missing, Rhodes takes immediate steps to locate it.

“The first thing we do is review our count and our paperwork, to be sure it’s not a paper issue,” he said. “If that’s not the problem, then the employees who are doing the counting get the gun manager, and he immediately calls the president and vice president of the company and we come in.”

If it’s determined there is a shortage, company officials review video recordings of the department and examine all department records.

“If we can determine what happened and that it’s just a paperwork mistake, we do the correct procedures to fix it. If there is an actual theft, we immediately report it to law enforcement and to ATF. If it’s actual shrinkage that can’t be explained, we also report that to law enforcement and to ATF immediately,” Rhodes said.

“Be sure you have competent salespeople,” Ahlman said. “And having factory literature is important.” Ahlman carries handguns from Beretta, Smith & Wesson, Taurus and Walther.

Mark Rutan at Bill Jackson’s in Pinellas Park, Fla., agrees that product knowledge is key to making handgun sales.

“You have to know the guns you’re selling. It’s that way with almost everything you sell successfully. Product knowledge is the key,” Rutan said.

While you may have product literature lying on the counter, that’s not enough to ensure successful sales.

“There’s a huge universe of information out there,” Ingrao said. “Your employees should be able to discuss the features and benefits of each category of firearms, because customers are going to ask.”

While it’s important to know the product, Ingrao says employees should avoid being too opinionated.

“Sometimes a customer will come in and want a particular gun,” Ingrao said. “But the dealer will say, ‘That gun is a piece of crap.’ Or, ‘That 9mm round isn’t powerful enough, you need a .45 automatic.’”

When a customer has done all his research and is clear on what he wants, berating him will likely cost you a sale.

“If the customer knows what he wants, sell it to him,” Ingrao said.

Along with product knowledge, you must understand the market in your area.

“If you’re in an area where people are buying a lot of guns for personal protection, then you need to carry those guns,” said Ken Jorgensen of Ruger. “It’s the same if you have handgun hunters or those who are into competition.”

Your present customers, of course, are great resources on what area of the handgun market is growing or waning. Go beyond that, however, by noting articles in the local media on hunters, cowboy-action events and other competitions, and articles related to personal safety concerns. This will help you develop a strategy for expanding your customer base by offering handguns that meet the needs of your local market.

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“Many times customers come in and don’t know exactly what they want,” Ingrao said. “We ask a lot of questions to target what the customer wants. That way, we narrow the gun down to one for their specific needs.”

With a large selection of guns, you then have a variety of firearms to show the customer that will meet his needs.

In addition to Smith & Wesson, other handgun brands Ingrao carries include Beretta, Para-Ordnance, Ruger, Seecamp, Sigarms and Walther.

It’s also important to shun stocking the wrong handguns.

“We avoid certain guns just because we know we’re going to have problems with them,” Rutan said. “We sell quality guns that we know our customers will be happy buying.” Rutan reports that Bill Jackson’s carries Smith & Wesson, Taurus and Walther handguns.

Take advantage of the promotions offered by manufacturers and distributors.

FNH-USA is offering a free FN Shooters Pack with any FNP-9 or FNP-40 handgun purchased through Dec. 31, 2007. The promotion began Aug. 1. The pack, valued at $79, includes a Blade-Tech molded polymer holster, a polymer double-magazine pouch and a polymer training barrel. Visit www.fnhusa.com.

Taurus continues to offer a free one-year NRA membership with the purchase of a new Taurus firearm. Visit www.taurususa.com.

Along with offering a wide range of pistols and revolvers, carry the accessories that will enhance the profitability on each handgun sale.

“Have the holsters people want,” Jorgensen said. “Have speed loaders and extra magazines. If you have hunting clientele, stock extended eye-relief scopes. Those are a lot of peripheral sales and they’re sales that dealers make good money on.”

Having the right accessories will actually help you sell more handguns, dealers report. Jason Gilbert of Gilbert’s Gun Shop in Frankfort, Ky., says he’s had customers select a weapons light for mounting on a pistol before actually knowing which handgun they want.

“I’ve had customers come in and say they want the light and now let me find a pistol to go with it,” Gilbert said.