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March 14, 2006

Gun Dealers Dwindling

Well yes, they are. From the Christian Science Monitor:


The United States has more gas stations than gun dealers. "News flash?" you might think. But a decade ago, businesses licensed to sell firearms outnumbered gas stations 245,000 to 210,000. Since then, the number of licensed firearms dealers has declined almost 80 percent, according to a recent study of federal data.

The reason: changes in regulations in the 1990s that, among other things, required federally licensed gun dealers to comply with zoning laws and report certain information to local police.

Gun-control advocates contend that this dramatic reduction is a victory for "sensible" gun-control policy that has made it harder for criminals to get guns...

[...]

But there are a few things that both sides in the debate can agree on, such as the reasons for the decline in gun dealers. During the Clinton administration, three major changes took place: ATF tightened up regulations, the Brady Handgun Violence Protection Act passed in 1993, and the next year the 1994 crime bill passed, which also tightened gun regulations. As a result, the cost of a federal firearms license jumped from $30 for three years to $200 for the same duration. In addition, dealers were required to be photographed and fingerprinted, and they had to provide that information to the local police. They also had to comply with local zoning laws and prove they were engaged in "the business" of selling firearms.


While it is certainly true that raising the fee and having to actually "sell" guns has had an effect, I think the article misses another large factor. There are far fewer hardware stores and bookstores, drug stores and local supermarkets than there used to be, too. The strongest survived and consolidated and "big-box stores" have reduced their numbers as well.

Same in the gun dealer category. You now have Wal-Marts selling huge numbers of guns and ammo located at almost every exit of major highways. Large volume gun stores with low prices have also caused many small mom & pop FFL dealers to close. The rise of selling via the internet has been a factor. In other words, the same capitalist market forces that cause attrition in any retail area are at work in the firearm market as well.

Posted by Jeff Soyer at March 14, 2006 06:47 AM
Comments

Actually, the internet selling thing is helping some. We have two new guns stores that opened within a mile of the big honkin' gun store and range. I don't know how they survive, but they both opened within the last two years and look like they're doing pretty well. I'm having my FFL transfers done at one.

The internet saves sales tax, and usually the prices are better. The shipping and FFL on any gun over $500 is usually the same or less than the tax you would have paid, so at worst you break even, at best you do pretty well. And somebody's got to transfer the darn thing to you.

Posted by: ben at March 14, 2006 10:26 AM

I think another reason for a decline in FFLs is that there are many fewer non-dealers holding them. I knew several people years ago who had FFLs but were not in business. They just wanted to be able to order guns by mail.

Now, it's too expensive and intrusive to have a license unless you're actually making money selling guns.

Posted by: Steve Skubinna at March 14, 2006 01:33 PM

The extra costs and burdens placed on FFLs in the 1990s were promoted, in large part, by the "retail" gun dealers who saw their counter sales undercut by armchair dealers. They got their lobbyists to work on tightening up the rules to make it more and more difficult to be a dealer without a storefront.

Curiously, the earlier boom in FFLs was fueled in part by the heavy handed attitude of the ATF in the 1970s. If you bought more than a certain (unpublished and undiscoverable) number of guns in a certain time period you were labelled a "dealer," and if you didn't have a FFL you were subject to having your door kicked in at 0-dark-30 by "jack booted thugs" (Hubert Humphrey's phrase - remember him, the arch-conservative ;-) ) and being hauled off to federal prison. And of course they took all of your guns as "evidence." There were several well publicized incidents of this occurring, including (I think I recall) one fairly prominent collector who found that the ATF had simply dumped all his guns into a garbage can and put it in the back of a truck to haul them away. The best defense, if you were an active "gun person" who bought and sold guns a fair bit, was to just get the FFL and do the record keeping.

Posted by: wrangler5 at March 14, 2006 05:09 PM

Here in NJ, it's not the bog-boxes driving out the little shops; it's a combination of the small shops being unable to afford the insurance required to remain viable, and the lack of enthusiasm for gun-sports due to increasing regulation and lack of opportinities. All of the local and "hardware store" gun-dealers have closed in my part of the state, and many of the big boxes have dropped their gun/hunting departments as not worth the hassles. You need a special permit from the Police to work behind the gun counter as an employee...and some departments are 12-months behind in processing the applications.

In my area, only Dick's Sporting Goods still has their gun/hunting department; I don't think that Wal-Marts does anymore, and the "department stores" like Penneys, K-Mart and Sears have in years. Fortunately we have two specialty hunting and fishing retailers with strong gun departments the serve the whole middle-portion of the state these-days.

The State has also cracked-down on the FFL's that held licenses just to buy and sell for their own collections. That was a precieved loop-hole in the requirement to have a separate permit for eacha dn every handgun. Now, even retail stores have to have a separate State-issued permit on-file for every handgun in their inventories. Most just don't bother with handgins, including Dick's Spoting Goods...though I think they will special-order for you.

Posted by: Ted B. (Charging Rhino) at March 14, 2006 08:01 PM

It wonders me if anyone has a count on how many "03" "Curio and Relic" licensees there are? That licence was set up for collectors so we aren't as hassled by as many gun bigots. We can buy and sell many guns by mail with considerable lee way in what, exactly constitutes a C&R firearm. Batf has been very helpful and understanding with me.

Posted by: Gerry N. at March 14, 2006 08:47 PM

I don't have a number on C&R FFL holders, but I am very interested in curio and relic guns, and with but few exceptions that is what I own.

I would have loved to avail myself of the ability to have them delivered to my house and I would have loved to take advantage of the 4fer and 5fer deals. However, you must keep a record of each and be able to produce it or show its disposition if no longer in your possession, there is a requirement that you cannot trade or sell too many to enhance your collection unless you have an 01 FFl, but guess what? they don't tell you what that number is that comprises "too many". Further, you cannot move your collection, even if you move, without permission from the BATFE. So, I pay full price, lose out on the specials, but it is nobody's damn business what I own and if they kick in my door in the middle of the night to inspect they are burglars and can be dealt with that way. And though i don't expect to move, if I do, i don't have to ask permission to take them with me.

Posted by: straightarrow at March 14, 2006 11:51 PM

Don't forget the huge expansion of Cabela's, Bass Pro, Gander Mountain and such. These "big box" stores draw huge numbers and have spread to so many areas that it's dificult to be more than a days drive from any one of them.

Posted by: joated at March 15, 2006 07:43 AM

straightarrow,

I don't know where you got your info, but it's mostly wrong. Loosen your collar and take a deep breath.

Yes, you must keep accurate, up to date records, but batfe is entitled to examine your bound book by appointment only and moving your collection or where you keep it is your business only. The only thing address specific is that deliveries must be made to the addy on your license, and that address must be a physical location and not a PO box or similar. If you move, or wish to change the address on your license you just apply for an amended licence. That usually takes under two weeks.

Posted by: Gerry N. at March 16, 2006 07:04 PM
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