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Don’t Repeat the FFL "Inventory Sins" of the Past

Over the last several weeks, the firearms industry has been booming thanks to public concern centered around COVID-19 and the societal impact it is having.  With millions of Americans concerned about the protection of life, liberty, and property; it’s easy to understand why demand has increased. 

The industry has seen demand spikes before; 2008, 2012 and 20016 being prime examples.  However, after each one of these periods gun shops across the country were forced to close.  One of the leading causes for shops going under was that they didn’t have a strategy to manage their inventory investment and made critical mistakes that caused them to tie up precious cash.  It’s easy to make these mistakes and any buyer that has been around more than a year or two has done it to some extent.  The trick is to have a plan to minimize the impact and avoid repeating the “sins of the past”.

Below are a few basic strategies you can implement...

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FFL Consultants Daily FFL Crisis Brief # 6

What You Can Do Today:

  1. WE RECEIVED MANY CALLS REGARDING NICS DELAYS TODAY: 
    1. Advise all customers that NICS is so backed up that we are hearing 3-5 day delays are routine and any delays requiring a human check are being slated for release on or after (25+ days out).  If you receive a delay with a Brady release date that is more than the traditional 3 business days, you MUST adhere to the date returned to you on the MIDI report for each NTN.  >>> BE SURE TO CHECK YOUR NICS STATUS REPORT DAILY for UPDATES. 

 

  1. Where gun stores are not designated "essential businesses" (see article below), some FFL owners have moved to board up front glass windows to create an EXTRA LAYER of protection / security. It may be prudent to purchase plywood and necessary materials before businesses are shut down. 
  2. FFLs are asking; "Can I move my guns to my home for safe keeping is shut down?".  The answer lies in a) your ability to reach an ATF...
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FFL Consultants Daily Crisis Brief # 4

Crisis Actions FFLs Can Implement Today

  1. As cases ramp up where you are, INCREASE the health protection of your staff by increasing "safe-distancing", using creative ways to protection including for using gloves to handle all paperwork, guns, money during the crisis.  The medical science reporting tells us that the virus (germs) can live for several hours on paper and several days on hard surfaces so do your best to PREVENT CROSS -CONTAMINATION and use sanitizers and alcohol sprays to prevent illness. 
  2. Plan for "Stay at Home" directors if your state is in the "Top 5" of cases reported. (see above).  We predict that this directive will be rolled-out slowly but surely as states are affected.  The governor of each state has the authority to do so.  This will include calling out the National Guard to assist in monitoring compliance, hand out supplies, etc. 
  3. We have spoken with FFLs in California who have NICS / DROS pending or DELAYS that are now...
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Los Angeles County , CA "Safer at Home" Order - FFLs are NOT an Essential Business

To access the Los Angeles County "Safer at Home" order issued on 3/19/20 click the link below.  This will be VERY SIMILAR language to any other order issued where you live by your governor. 

Note that Firearms Dealers / Ranges ARE NOT listed as an "Essential Business" and would therefore be required to remain closed during such an action.

http://file.lacounty.gov/SDSInter/lac/1070029_COVID-19_SaferAtHome_HealthOfficerOrder_20200319_Signed.pdf

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Protecting Your Firearms Business and the Public During a Crisis

By John Bocker, NSSF Security Consultant Team Member

An emergency or crisis can erupt at any time, and it is your greatest responsibility as a firearms dealer to maintain your inventory in a way that prevents any threat to public safety. This includes your firearms sales and compliance practices, especially when it comes to dealing with a surge in demand, as well as securing your inventory if it must be left unattended.

It’s Not Too Late to Put a Plan in Place

The best time to design a crisis plan is before you need it. Although that may not always be the situation for all our FFLs today, it’s not too late to create a plan and kick into high gear with basic protocols to protect your business, your inventory and, most importantly, your staff and the public.

The first thing to consider when an emergency occurs is the increase in concern for personal safety. With this, we typically see a rapid increase in sales, which can lead to a depleted supply chain. This increase in...

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What Does the Pandemic Mean for YOUR FFL Business?

OK FFLs Friends and Partners,

 

We are contacting you directly as a "VIP" partner, Premium FFLC Client or someone we have worked with or supported in recent years.

 

Here we are with the a situation we never expected to occur. Also one that most of you were not prepared for. 

 

But panic is not necessary.   This is real BUT it's NOT TOO LATE for FFLs to react!

 

And we are ready to help you with your plan!

 

I’m writing to you about how you can succeed as a firearms dealer managing through this unforeseeable and untimely crisis involving Covid-19 but before we get into that let me tell you a little about us.

 

Most of you may know JC (John Clark) and me (John Bocker) as “JC & JB” from our Facebook, Linked-In or Instagram posts and videos, or maybe you’ve attended one of our many Pawn Expo or ATF-NSSF workshops at SHOT Show and across the country in recent years. 

 

And most...

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Why are firearms traces important?

Uncategorized Feb 26, 2019

Why are firearms traces important? The first thing we should answer is what is a firearm trace and how is it used by law enforcement?

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) National Tracing Center (NTC) is the country's only crime gun tracing facility. The NTC mission is to conduct firearms tracing to provide investigative leads for federal, state, local and foreign law enforcement agencies. The purpose is to provide critical information that helps domestic and international law enforcement agencies solve firearms crimes; detect firearms trafficking; and track the intrastate, interstate and international movement of crime guns.

Firearms tracing is the systematic tracking of a firearm recovered by law enforcement through the chain of distribution to identify the first retail purchaser. The reason firearm traces are important is that they support investigative leads, possibly linking a suspect to a firearm in a criminal investigation, identifying firearms...

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Conducting Firearms Inventory

Uncategorized Feb 26, 2019

Conducting a firearms inventory is an important aspect of business operations. Most importantly it should be done in an effort to prevent and detect the loss of firearms, but it should also be accomplished to ensure the accuracy of the inventory of the assets of your business.  

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has provided guidance on conducting inventories, focused on identifying and preventing firearms inventory loss by theft or improper recordkeeping. In addition, inventories support accurate record keeping, conducting inventories helps ensure all firearms are properly recorded in your A&D records and ensures those firearms that have been transferred have dispositions recorded.

The following steps should be taken to conduct an inventory and ensure that inventory processes are in line with ATF recommendations and how they conduct inventories during an Inspection.

  1. Identify all open dispositions. An open disposition are those firearms recorded...
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Gunsmithing or Manufacturing - When the lines are blurred...

Uncategorized Feb 26, 2019

Their can be a very blurred line when it comes to the differences between gunsmithing and manufacturing, gunsmithing tasks can very easily become manufacturing activities. Gunsmiths and/or Licensees need to be mindful that the more a firearm is altered and modified for the purpose of offering it for sale to the public, the stronger possibility that they are manufacturing.

The ATF has provided some guidance bringing clarity in identifying as to when a manufacturing license is required. A person engaged in true Gunsmithing only requires a Dealer’s (Type 01) License. There are, however, circumstances in which a Gunsmith may be required to have a manufacturing license. Those situations where a person should obtain a Manufacturer's (Type 07) License are generally as follows;

To clarify, per federal law, a Manufacturing Licenses is required if the person is performing the operations as a regular course of business or trade, and is performing the operations for the purpose of sale or...

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Complete Your Security Camera System with a Public View Monitor

Most FFL’s invest wisely in closed-circuit security camera systems and have upgraded to the newer digital or network video recording systems.  But what value is there in installing a large public view monitor at the front entrance or over your gun counter to alert criminals to the presence and recording capabilities of your camera system? 

Installing public view monitors can serve as a strong deterrent to otherwise bad or illicit behaviors. Public view monitors are normally suspended from a ceiling and face retail customers as they enter a store, reminding them that surveillance video is being used.

Most security system installation providers will advise that you should include or upgrade to a large color video monitor to alert visitors and employees that they are, in fact, being recorded. Overt monitors today are sleek and lightweight in design and can integrate into any environment. And with advances in today’s camera system software, you may be able to...

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