RANGE USA Closed up shop in the middle of the night

[xsubsailor]

On 4/29/2019 at 12:58 PM, SonnyCrockett said:

 Looks like Ill be driving to Millington

 

 I could give you a list of reasons not to, but the straw that broke the camel's back was when I was told to remove my hat when I entered. They'd had a robbery recently and were making everyone take off their hats, and I believe sunglasses. I haven't been back since.

[MacGyver]

15 minutes ago, DaveTN said:

We All think owning a gun shop or a range would be cool; and it probably would be. But there is a lot to think about. Your target market and where you are would be critical. Over the last few years we have seen it go from $15~20 a day to $20 or more an hour to shoot. It would be great if you could get enough of that business to stay open. But as more ranges open; can you do that?

The outdoor range I go to went from $5 to $10 a day. I think that’s pretty reasonable for a range with a pistol range and a 300 meter rifle range. You might have to wait on the weekends for the rifle side. I mostly just shoot on private property anymore.

Online sales have got to be hurting them. If you want a M&P or Glock, most shops have you covered. But many of us are buying guns after our basic needs are met that the stores don’t stock. You can’t blame them for that; they can’t all stock what the big box houses stock. Some are happy to get the transfer fee; some are not.

My dream would be a monster range. Indoor range, outdoor range, pistol rifle, archery, with range fees low enough to keep people shooting and a gun shop that could match the online prices. I can’t afford the start-up, but I bet someone does it; we have two major players in the MidState that could pull it off.

Even the major players here in middle Tennessee have had a tough time making a go of it. 

The gun business is hard. You’re a brick and mortar showroom for people to go handle stuff that they’re then going to buy online. Inventory cost is high. Margins are low. Zoning restrictions abound. Someone walks into your range and shoots themself. It’s hard to do well.  

There ought to be a “basic gun store finance” class for anyone looking to open a shop. It ought to go into the horror stories in detail - because they happen more often than they don’t.  I’ve seen more retirement accounts cleaned out than I care to think about.  Even the big boys have looked at hemorrhaging bank accounts and tried to enter mergers to stop the losses.  

We need good shops.  We need to support good shops. It’s a shame that there are so many bad ones.  

[DaveTN]

18 minutes ago, MacGyver said:

Even the major players here in middle Tennessee have had a tough time making a go of it. 

The gun business is hard. You’re a brick and mortar showroom for people to go handle stuff that they’re then going to buy online. Inventory cost is high. Margins are low. Zoning restrictions abound. Someone walks into your range and shoots themself. It’s hard to do well.  

There ought to be a “basic gun store finance” class for anyone looking to open a shop. It ought to go into the horror stories in detail - because they happen more often than they don’t.  I’ve seen more retirement accounts cleaned out than I care to think about.  Even the big boys have looked at hemorrhaging bank accounts and tried to enter mergers to stop the losses.  

We need good shops.  We need to support good shops. It’s a shame that there are so many bad ones.  

I think the best thing that could happen for gun stores would be for manufacturers to sell direct to FFL’s instead of going through distributors. I understand why they do it. But a distributor adds no value to the private end user; only cost.

I can’t count the number of times I called a local dealer about a gun and they have told me they don’t have it, but can get it. When? Well they don’t know because they are dependent on their distributor who couldn’t care less about a single gun. If they could get online, check inventory and place an order; they would know when they could have it. Instead, I can get online and know when it will be to them, but they won’t get the sale; just the transfer. I’m willing to pay a local dealer a little more so he can make a profit, but not a ton more. But I won’t order with an open ended delivery date.

I don’t need to go to a gun store and jerk them around to look at a gun I think I may want; and I don’t do it. I can decide by online information, videos and reviews. If I get it and don’t like it; I sell it.

That’s the problem that needs to get fixed for our local gun shops. Not just telling us we need to pay them more and hope a gun comes in within a reasonable amount of time so they can stay in business.

[SonnyCrockett]

https://www.fox13memphis.com/top-stories/range-usa-closes-its-doors-for-good/944511865

[MacGyver]

Apparently the building that Shoot Point Blank is in is for sale as well:

https://www.crexi.com/properties/155057/memphis-tn-shoot-point-blank

This is curious - though I expect it's a pretty smart corporate play to recoup development expenses while locking in a low lease rate for the next 15 years.

[AKVAT]

42 minutes ago, MacGyver said:

Apparently the building that Shoot Point Blank is in is for sale as well:

https://www.crexi.com/properties/155057/memphis-tn-shoot-point-blank

This is curious - though I expect it's a pretty smart corporate play to recoup development expenses while locking in a low lease rate for the next 15 years.

Wow. So what does that mean?  Will the new owners raise the lease rate to lock in a higher rate for Shoot Point Blank for the next 15 years?  I just hope they make enough to sustain an increase.  I really hate to see ranges closing down.  More close than open.

[KahrMan]

1 hour ago, AKVAT said:

Wow. So what does that mean?  Will the new owners raise the lease rate to lock in a higher rate for Shoot Point Blank for the next 15 years?  I just hope they make enough to sustain an increase.  I really hate to see ranges closing down.  More close than open.

The new owners can not change his current lease.  The range has 16+ years left on their lease.  Rent can only increase 5% every 5 years.

[TomInMN]

22 hours ago, krunchnik said:

Yup-I am one of the displaced employees-I started at Range USA almost 2 years ago and enjoyed my work there very much.

I was the armorer which is going to be a hard job to replace.I got my Sig and Glock armorers certificate while I was employed also.

 

Krunchnik, where are you looking for work, and what kind of work are you looking for? Are you in a position to relocate?

I'm not in a position to to hire you, but someone on the forum might know someone who is.

[krunchnik]

1 hour ago, TomInMN said:

Krunchnik, where are you looking for work, and what kind of work are you looking for? Are you in a position to relocate?

I'm not in a position to to hire you, but someone on the forum might know someone who is.

Thanks for thinking of my plight

In all honesty I think I will hold on for awhile-I am 60 years old this year and have very little want for a major relocate considering we have one planned 5 years from now.

Hopefully something in the part time line will come up and I can work about 20 hours a week.

I really hoped I could get another 5 out of RUSA but that's not happening

I think all my coworkers were as surprised as I was-it is a bummer for sure.

[Jedfro]

I will truly miss RUSA!   I loved the laid back atmosphere. It was great to drop in there on weekdays and shoot as long as you want.  Service was also very good.  Great cakes at the snack bar were a terrific bonus! I wish the employees much success and hope that they find future employment quickly.

[Jdlee1]

I purchased my son a year membership just the end of March 2019 and they didn’t even say anything. He hasn’t even been one time yet. There has to be some way to recoup my purchase?

[DaveTN]

https://www.commercialappeal.com/story/money/business/development/2019/04/30/range-usa-memphis-gun-shooting-closes/3626261002/

Quote

 

Unclear if consignment customers will get property back

Greg Gillen of Cordova heard the range closed Tuesday morning and stopped by expecting to see employees still there.

Two years ago, he dropped off two pistols for the company to sell on his behalf through their consignment service. He said he had gotten a couple of offers but felt they were too low so he turned them down and asked the company to keep trying to sell them.

"I know businesses come and go," Gillen said. "It's different when you have personal property inside. I thought they were doing me a service. They did themselves a service. They got two free guns."

In the letter, the company told customers to email any questions to info@rangeusa.com. Gillen sent an email but said he didn't expect to get his property returned.

Hours after sending the email, he still had no response.

While Range USA didn't offer any explanation for why it closed, Mark Oliva, director of public affairs for the National Shooting Sports Foundation, said gun ranges have only become more popular recently.

"Anecdotally, we've actually seen an increase of new gun ranges opening up," Oliva said, adding that the new rangers are more welcoming than those in the past. "They are not so much looking like your cinder block, darkly lit building with a gun counter. They're bright. They're open and more suitable toward families and communities coming together."

After several emails and phone calls, no one at Range USA could be reached for comment. It's not clear if customers who prepaid for membership or others like Gillen who used the company's consignment service will get their property or money back.

 

 

https://www.localmemphis.com/news/local-news/range-usa-customers-demand-refunds-following-unannounced-closing/1964879968

Quote

 

MEMPHIS, Tenn. (localmemphis.com) -- Range USA customers are frustrated after Range USA unexpectedly closed its doors.

The well-known gun range was open for over a decade. Now, people who bought memberships want refunds.

"We bought it because we just started coming and we really enjoy it, and thought we'd save some money," said customer Jessica Smith. "But now we're out that money because nobody contacted us."

Smith says she was not contacted by e-mail or phone. She purchased her $250 membership at Range USA last month.

A notice posted on the front door read in part, "It's been an amazing 16 and a half years, but as they say, 'All good things must come to an end.'" No reason for the closure was given.

"I was mad, I was very mad," Smith said. "Just for the simple fact that we work hard for that money."

In the hour Local 24 News was on the property, at least 15 people walked up to find the doors locked.

Tennessee records show the corporation is still active, but the Better Business Bureau lists it as out of business, suggesting customers with disputes can seek legal advice.

"You have to prepare for those things and be solvent to get through the rough times," said Angie Smith, who bought gift certificates for her husband.

Most online reviews are positive about the company. A source told Local 24 News the closure wasn't a surprise and that the company has been underwater for a while.

Customers say Range USA has not answered calls or emails. The business also deleted its Facebook page. The Jackson location's Facebook page is also down.

Local 24 News reached out to the owner but have yet to hear back.

 

 

Edited May 1, 2019 by DaveTN

[TomInMN]

On 4/30/2019 at 7:19 PM, krunchnik said:

Thanks for thinking of my plight

In all honesty I think I will hold on for awhile-I am 60 years old this year and have very little want for a major relocate considering we have one planned 5 years from now.

Hopefully something in the part time line will come up and I can work about 20 hours a week.

I really hoped I could get another 5 out of RUSA but that's not happening

I think all my coworkers were as surprised as I was-it is a bummer for sure.

I'm glad you're not under the gun to find work, I know how much fun that is.

If you have the time and inclination, it might be worth investigating whether it's feasible to work with a few local shops and ranges, to sub out the type of work you did for RUSA.

I'm not sure how things like federal and local licensing or insurance would come into play if you're contracting rather than employed, but there might be something there if you're willing to chase it a bit.

Edited May 2, 2019 by TomInMN
Fixing autocorrect "help".

[TomInMN]

Probably not much help for folks looking to recoup their membership cost, but wouldn't ATF be interested in the consignment guns that aren't returned to their owners? Isn't that theft?

[DaveTN]

18 minutes ago, TomInMN said:

Probably not much help for folks looking to recoup their membership cost, but wouldn't ATF be interested in the consignment guns that aren't returned to their owners? Isn't that theft?

On the guns, it’s probably theft if they refuse to return them. It would depend on what the contract they signed says; could be civil.

My guess is that the local PD could do as much or more than the ATF; and do it faster. They won’t wait on phone calls or emails; they will go to the homes of the owners, if they are still in the area.

But ATF almost has to be involved in this depending on what they are doing with their license.

Edited May 1, 2019 by DaveTN

[A.J. Holst]

You have to have great staff and a commitment to excellent service to overcome price, especially in this industry.

What are you doing to encourage buyers to pay $1 -$4 more per box of ammo?

Are buyer's willing to pay pay more for your gun when your staff actually took the time to discover needs, wants, and desires?

When someone buys a gun, does your staff take time to upsell? Gun cleaning, holster, sling, magazines, optic, etc.

(Give a discount on a accessories when buying a new firearm - see how your items per ticket increase)

Consult your crystal ball when stocking guns and inventory.

[AKVAT]

When you have your own business, it takes an amazing amount of time to sell, upsell and market outside of the shop to new clients, not just in the shop.  I think many people underestimate the marketing and marketing constantly changes because of technology and services like GunBroker.  I think a range business can be viable, but the commitment needs to be just as much to marketing, as to maintaining a storefront, range and inventory.  So, you have to love guns and marketing.

[Grayfox54]

We've all seen this before. Gun shops come and go. There are always people left hanging in the wind with guns on consignment, orders placed, guns to pick up, etc.  Most of these problems are generally worked out. There are usually legal issues that have to be sorted out and that takes time. Customers may not be happy and I don't blame them. But be patient, it'll all be sorted out.

What concerns me is that this was a well established business with a loyal customer base. Then it closed up without any warning at all??? What's that all about? I'm curious to know just what happened? 

[AKVAT]

Sevier Indoor Range just closed this past Dec 31. There was some advance notice, but not a lot. They had been around for quite some time. It also seems fashionable to have multiple investors involved in ranges. In this case, it feels like the business location was not turning a good profit per square foot so the investors are going to do something different with it. It’s just business in their minds. What if the majority investor is not as pro-gun as the others? In my mind, there are way too many ranges closing, and not enough new ones to replace them. 

(I belong to a very special team of range business and technical specialists. Pm me if you know someone who could use assistance.)

[A.J. Holst]

18 minutes ago, AKVAT said:

Sevier Indoor Range just closed this past Dec 31. There was some advance notice, but not a lot. They had been around for quite some time. It also seems fashionable to have multiple investors involved in ranges. In this case, it feels like the business location was not turning a good profit per square foot so the investors are going to do something different with it. It’s just business in their minds. What if the majority investor is not as pro-gun as the others? In my mind, there are way too many ranges closing, and not enough new ones to replace them. 

(I belong to a very special team of range business and technical specialists. Pm me if you know someone who could use assistance.)

If a prime location in Sevierville, I understand a min profit per square foot.

Without proper capitalization and patience to outsell your inventory depreciation, I don't know how to do it.

1 million for a desirable indoor range, another 500k or so for inventory and operating cash. Balance staffing expenses (payroll, withholdings and admin) Monthly property expenses if you own or lease is probably a few thousand per month.

I'd want another 500k of idle / accessible cash to be comfortable.

Dare I say, location, location, location?

My preferred LGS is Smoky Mountain, indoor range is Bud's. 25 minutes from the house, but not particularly convenient .

My meaning is it's a dedicated trip - no other reason to drive that way off hours and I don't pop in when working in the area because I'm working.

[AKVAT]

Yes, location is important. So is marketing. Sevier indoor range was inconvenient, depending on what direction a person was driving from.

 

[A.J. Holst]

9 minutes ago, AKVAT said:

Yes, location is important. So is marketing. Sevier indoor range was inconvenient, depending on what direction a person was driving from.

 

Marketing - if you can't see it, you can't sell it.

An acquaintance has a range and teaches HCP classes.

His marketing is advertising by word of mouth and a website.

AKVAT brings up a great point with marketing - a consistent messaging, both free and pay as you go.

We learn about new companies and services available on the web typically through traditional media - television, print, and radio. Add soical media outlets and good key words for search engine optimization (SEO) and off to the races.

[MacGyver]

A million dollars won’t come close to opening a modern range.  The HVAC and air filtration alone run more than that. 

[Ronald_55]

1 hour ago, MacGyver said:

A million dollars won’t come close to opening a modern range.  The HVAC and air filtration alone run more than that. 

I worked in Pigeon Forge back in the mid 90's The very sucessful business owner said then that to start a business you needed 1 million in the bank to live through the ramp up period. That was after all the initial costs like leases, construction, fixtures, inventory and such. To put this in perspective she was also talking about a business with a dozen or less employees of a non-specialized nature. Think retail sales staff, wait staff, stock positions, and the like. So payroll is on the low side. Just think if you have very skilled and specialized staff (instructors, armorers, etc).

So unless you have a way to really minimize expenses, a million is not gonna cut it today. Maybe if you owned the location, had a couple of employees like you and family working long hours for little pay,  and a business model with minimal inventory debt you could squeeze by. It is asking for failure though. 

Shooters Edge in Piney Flats closed at the end of last August suddenly. Basically the guy that started it said he was pushed out by the main investor. He posted begging someone to buy the building before the owners (a leasing company) gutted it. As far as I know it all got demolished. I actually toyed with the idea of opening one before they opened.  After reviewing all the safety requirements for backstops, hvac, and cleanup I gave up. Legally you pretty much need a full hazmat suit and respirator to even sweep up. Even an outdoor range has to mitigate the lead contamination. I know one that actually digs out the berms to remove the lead every few years. They sell it to people in the guise of cheap lead to mold with, but I think it is basically to pass off the legal responsibility for disposal.

[SonnyCrockett]

21 hours ago, DaveTN said:

https://www.commercialappeal.com/story/money/business/development/2019/04/30/range-usa-memphis-gun-shooting-closes/3626261002/

 

https://www.localmemphis.com/news/local-news/range-usa-customers-demand-refunds-following-unannounced-closing/1964879968

 

The ATF and the Police should visit Scott,he was the owner of the range.  This is theft of membership money and firearms until its returned.