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Terrorism, Crime and Political Discord Drive Sales. Although firearm background checks are not a 1-to-1 ratio of actual gun sales, May 2016’s checks decreased 16%, compared to May 2015; however, with the June terrorist attack in Orlando, background checks increased 23% over May’s.
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Terrorism, Crime and Political Discord Drive Sales • Although firearm background checks are not a 1-to-1 ratio of actual gun sales, May 2016’s checks decreased 16%, compared to May 2015; however, with the June terrorist attack in Orlando, background checks increased 23% over May’s. • The Orlando incident, specifically, and the general concern about increasing crime and possible additional gun restrictions increased January through June 2016 background checks 18%, compared to the first six months of 2015. • This is a welcomed trend for the industry, as the latest manufactured firearms report from the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) revealed that 2014’s 9.0 million was significantly less than the 10.8 million during 2013.
Better Days for Manufacturers • The July 2016 issue of Shooting Industry reported that Ruger was the #1 US firearms manufacturer during 2014. 2015 sales were better than 2014; and it enjoyed a 26.35% increase in net sales ($173.1 million) during Q1 2016, compared to Q1 2015. • Smith & Wesson, #3 on the list, posted a 56.4% increase for its Q3 2016 (ending January 31) firearm division net sales ($194.7 million), compared to Q3 2015. • Many manufacturers continue to relocate or open new facilities in “gun-friendly” states. According to 2016 analysis from WalletHub, New Hampshire, Idaho, Connecticut, Minnesota and Montana were the top 5 states dependent on the firearms industry.
Shooting Sports Are Minor Outdoors Activity • According to 2016 data from Statista, gun ownership in the US, as measured by the number of households owning 1 or more guns, has remained relatively steady, with 2015 ownership at 41%; 2014, 42%; 2013, 37%; and 2012, 43%. • The Outdoor Foundation’s 2016 Participation Topline Report revealed that no outdoor activities popular with youth, 6–24, involved firearms. Among those activities that youth 13–17 aspire to enjoy, shooting was the only one on any list, at #9. • Among all age groups of adults, outdoor activities involving firearms did not appear in any of the popular, favorite or aspirational top 10 lists, although the report revealed handgun hunting increased 10% from 2014 to 2015.
The Long-Gun and Handgun Markets • According to data from Southwick Associates’ 2015 HunterSurvey and ShooterSurvey, 67% of all long-gun purchases were for rifles, with 43% of those for modern sporting rifles (MSR) and the remaining for traditional rifles. • Southwick Associates also reported from its 2015 surveys that handguns sales exceeded $3 billion, with 77.4% semi-automatic. The average price of a handgun was $500 and 43% of all transactions occurred at independent dealers’ stores. • The top reasons for purchasing a handgun during 2015 were informal target shooting, 75%; to test ammunition or firearm accuracy, 25%; to sight a firearm, 29%; and competitive shooting, 14%.
Americans Want Both Rights and Restrictions • The firearms industry views the election of Donald Trump as favorable; however, the paradox remains that 81% of all Americans, according to Pew Research Center August 2016 polling, still favor background checks for private and gun show sales. • Even Republicans and people who lean Republican favor background checks, at 78%, as well as a federal database of gun sales, 50%, and laws to prevent the mentally ill from buying guns, 79%. • Women favor a ban on assault-style weapons, at 60%, and high-capacity ammunition clips, at 55%, compared to men, 44% and 45%, respectively. Somewhat surprisingly, less than 50% of adults 18–29 favor these bans while more than 50% of older adults do.
Advertising Strategies • The promotion SalidaGunshop in Colorado hosted for a Boy Scout troop is a beneficial promotion for any firearms retailer to encourage more participation among youth and women. Not only did the boys enjoy the activity, but also many of their mothers joined them. • Another opportunity for gun shops is to offer a special price on a firearms storage lockbox for first-time buyers. According to one storeowner, younger gun purchasers are particularly focused on security and safety and often want secure storage for other valuables. • Firearms retailers can benefit from the many recent movies (Hunger Games) and TV shows that feature archery by adding archery/bow hunting inventory, which might appeal to a different customer base. Offer a free DVD of such a movie with a qualifying purchase.
New Media Strategies • Because young adults have the largest hunting license churn rate and socializing is important to this age group, retailers must post social media content that appeals to this audience, such as videos from young groups of hunters showing their shared enjoyment. • Gun stores can generate social media participation and interest by using polls and surveys. Ask questions about people’s views on guns as well as determining what products they like or don’t like in the store and what new items they’d like to see offered. • Gun stores are more likely to attract interest from young adults by using social media to introduce advanced-technology products and apps. Ask current customers who have used these products to post videos demonstrating their uses and benefits.
