The American Business of Guns

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The Second Amendment has made the United States the world’s largest firearms market. While gun ownership in every other country is a licensed privilege, in America, it’s a constitutional right. In the simplest terms, the American civilian market is the most coveted and lucrative prize for gun manufacturers and dealers anywhere. Any gunmaker that captures a fraction of this market earns more than they would from any government, military, or law enforcement contract.

But the gun business is unlike any other. With tens of thousands of different models offered in various configurations, trims, and calibers, pricing is opaque and knowledge is fragmented. Every firearm is like a stock, which goes up or down based on supply and demand for that specific model. In this low-information industry, successful dealers and stores must wield intuition, knowledge, and relationships to predict and stock what customers will want to buy.

For generations, brick-and-mortar gun stores have filled the knowledge gap between manufacturers and consumers. Insulated from the Internet, they possess the knowledge and inventory across brands and provide education to civilians that no single gunmaker ever would. It’s a market unlike any other in the world, where a VC-backed startup or corporate entity can’t muscle in and carve up competitors with cash the way they do in other industries. With the blanket ban on marketing and the generational suppression of information, word-of-mouth and relationships are the only path to success for gun stores.

In this Modern MBA Original, we go boots on the ground with one of the largest gun dealers in the nation, Mister Guns, who owns 4 stores across Dallas, and Zero Whisky Tactical Arms in Austin – an emerging, high-end gun shop that was once the second-highest seller of Barrett .50 caliber rifles in the state.

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Thank you to PC Gaming Videos for permitting use of his video game compilations:    / @pcgamingvideos