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Jonny
Lv 6
Jonny asked in Business & FinanceSmall Business · 7 years ago

How much markup do you pay when you go to a gun range?

Does anyone know the average profit margin or overall profit margin of a gun range after one year or one visit?

4 Answers

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  • Trish
    Lv 6
    7 years ago

    "Markup" is generally used in reference to the resale of merchandise. Say, you buy a case of 100 widgets from the manufacturer or from a wholesaler for $100, meaning each widget cost you a dollar. You sell it for $1.50 each, a markup of 50 %.

    You are probably thinking of "net profit," which, even for a retailer of merchandise, is a more complex question than markup, because you have to account for fixed expenses (ones that don't go up with higher sales).

    I would guess that some gun ranges are not even reliably profitable, while others make a tidy sum. There's no "average" readily available.

    EDIT TO ADD:

    You might try posting a similar question on the Hunting Forum, but aimed at people's personal experience rather than national average data. Something like, "For those who have run a gun range, how much profit have you found is typical?" I'm sure there are people there who have run ranges, some of them nonprofit ones, and they would have an idea of the expenses.

  • 7 years ago

    This would be a tough question because a gun range's costs are pretty much all fixed. They are trying to cover rent/salary/insurance and their profit really depends on how many people they can get in there/what they charge/what there expenses are/ etc.

    If they are making you buy ammo or targets, someone can probably answer that.

  • 7 years ago

    Average doesn't mean anything for a business like that. Every one is different. Some might be losing money, some might make 50% after cost of mortgage, supplies, taxes, payroll, etc.

    About the only general rule is that if they're losing money, they aren't going to be around very long. And if they make more than about 15% on their investment, somebody is going to build another gun range to compete.

  • 7 years ago

    ??

    that is based on the owner's presumed net profit need

    and his expenses.

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