It’s no secret there’s a shortage of ammunition and firearms. Unfortunately, this shortage has triggered a retail frenzy over the past 18 months. Nearly 40 million guns were purchased legally in 2020, and another 4.1 million were bought in January. U.S. gun sales in January surged 60% to 4,137,480. This makes it the largest single month since figures started to be recorded in 1998. The gun sales industry has become an example of the double-edged sword effect—the basic rule of supply and demand. The less guns, ammo, and supplies that are available, the more people will be lined up to grab any and all inventory as soon as stores stock up. Moreover, without inventory, most shops cannot compete to drive customers into stores. So, where does this end, and what can pawn shops expect in firearm sales through 2021? First off, what happened? Short answer, 2020 happened. Let’s be frank: What didn’t go wrong in 2020? First, COVID-19 hit full force in early 2020, shutting down businesses, manufacturing plants, retail stores, and so much more. By our estimation, this lit the match to cause one serious chain reaction in the firearm industry. Next, our country found itself caught in the midst of a political war. It was the perfect storm. This media-driven “molotov-cocktail” hit the country hard. The minute stores opened, ammunition was swept off the shelves. Firearm application submission went through the roof. More than 21 million gun background checks were conducted in 2020 – up 60% from 2019. All while firearm and ammo manufacturers were still shut down. The end result – one of the largest shortages we have ever seen. Shortages are lightening up. The good news is most of the manufacturers and distributors have stepped up. As of April 2021, we are seeing signs of inventory coming down the pipeline. Companies, like Ruger and Smith & Wesson, have come forward to ensure their customer’s new processes are in place and that product is coming. While it may take some time to restock circulation, we can all sleep a little easier knowing that firearms and ammunition manufacturers are doing their part to make more inventory available in the very short term. This scenario would likely put the general public at ease and in turn decrease the instant demand for guns, ammo, and supplies once again bringing balance to the firearm industry. A shift in power For gun stores, pawnshops, and firearm customers the not-so-good news is a major shift in power has taken effect. One of the largest most controversial items on the forefront of the Biden Administration’s docket is gun control. We may very well in fact be in the midst of firearm history as we know it. In March of 2021, a bipartisan coalition in the House of Representatives passed two bills to close what they refer to as “loopholes” in the gun background check system. Additional major changes are mounting from the Biden Administration aiming to appoint a new Director of the ATF as well as working to pass more restrictions and laws around manufacturing guns, purchasing guns, and yes simply owning guns. Should these reports have any truth and beyond that new laws put into place, this will surely impact the firearm industry as a whole. To what level we can’t exactly say at this moment. We might assume this could make it more difficult to purchase and possess guns and ammunition in the United States. This could push the American consumer market to continue to line up around the block awaiting retail distribution deliveries. The long and the short of the barrel If trends are telling us anything, like a pawnshop or any firearm retail store, it’s more important than ever to stay informed of ATF compliance and offer customers the ability to legally purchase a firearm in the most convenient ways possible. With demands seemingly increasing through 2021 and lines to purchase becoming longer, retailers should aim to find ways to better serve their customer base. Streamlined digital solutions like the E4473 integration will prove largely valuable to keep things quick, simple, and law-abiding when it comes to gun sales. For more information on E4473 and how we are working to digitize a 360-degree firearm selling experience, check out our website! Sources: https://www.usatoday.com/story/money/2021/02/10/this-is-how-many-guns-were-sold-in-all-50-states/43371461/ https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/07/fact-sheet-biden-harris-administration-announces-initial-actions-to-address-the-gun-violence-public-health-epidemic/ https://www.foxbusiness.com/lifestyle/gun-background-checks-2020-record-firearms
What is Secure Digital Storage? For anyone who is in business today, data is one of the most important assets. It’s also one that criminals are only too happy to steal. Or try to. Because of that, protecting your data needs to be a high priority. Putting a lock on your storeroom office isn’t enough. Having passwords on employee computers isn’t enough. Having a firewall on your network isn’t enough. And hoping that nobody will be interested in your data is definitely not enough. So what does secure digital storage look like in 2021? Let’s look at four factors. Security Protocols For Secure Digital Storage For firearms dealers, the customer data collected on Form 4473 needs to be captured and then stored securely. Gun and pawnshop owners need to understand the sensitivity of the information they work with and take responsibility for their role in keeping it safe. If they’re using security protocols that aren’t compliant and stringent, including both document and storage encryption, they are putting their customer data at risk. Stringent security protocols include: Keeping firewalls up-to-date Organizing users by security level Proper key management Continuous monitoring and auditing Thorough staff training that doesn’t create unnecessary roadblocks to doing their work Secure E4473 Online Account Creating a secure E4473 online account is the easiest way to keep your data safe. Our 3-step account setup includes an admin email account verification and remote login security. Our system allows you to have complete control who can access your data at an employee level and protects your data from being accessed locally on office computers and in age-old filing cabinets. Not to mention our system allows for remote secure login from any computer that has internet access so that your account can be monitored even when you’re not in the office. Strict Password Protocols Few people remember this now, but in 2013 Adobe had a data breach caused by weak password protocols. It was big and embarrassing. Weak passwords are an easy way into your records and therefore are a very important part of overall data security. “According to the Verizon Data Breach Investigations Report, compromised passwords are responsible for 81% of hacking-related breaches.” Among other things, secure passwords are long, but not necessarily complex, and should be protected by hashing before they’re stored. Make sure any system you use has strict password protocols. Protection From Cyber Attacks Effective protection from cyber-attacks requires continuous monitoring of hacker’s actions and constant upgrades to your security protocols based on this knowledge. Sophisticated protection includes identifying the user’s network, device, and actions. Even the rate at which they are typing can be an important indicator of potential fraud. E4473 is the first solution on the market to offer ATF-compliant Digital Storage. Our goal is to increase the safety and security around firearm transactions while helping to alleviate errors and time wasted. When you use E4473, you can have confidence that you are using the most up-to-date protocols for secure digital transactions and storage.
Do legal gun purchasers have a right to anonymity? In light of the second amendment, that would seem to be a rhetorical question, but some gun control lobbyists have been arguing for years that making records of gun owners public will reduce crime. Personal identity protection and the storage of private data are critical issues for firearms dealers and their customers. Currently, gun ownership privacy is still protected by the federal government and Congress has enacted privacy-protective legislation in order to preserve second amendment rights. The 1986 Firearm Owners Protection Act did several important things related to private personal data: It repealed certain recordkeeping requirements for the sale of ammunition. It prohibited the ATF from centralizing or computerizing firearms purchase records. It reduced criminal penalties for recordkeeping offenses from felonies to misdemeanors. It forbade the ATF from keeping a registry directly linking non-national firearms act firearms to their owners. Form 4473 and Privacy Most of the private information that a firearms dealer collects is on ATF Form 4473. Currently, the information gathered on this form is protected and its transfer is highly restricted. In addition to completing the 4473, FFLs must also record the sale in their transaction log. A dealer must keep this log the entire time he is in business and is required to surrender the log to the ATF when he retires. Form 4473 contains the customer’s name and address, the background check transaction number, the gun’s serial number, and answers to questions about his or her eligibility to purchase a gun. The dealer must keep the Form 4473 for twenty years and is subject to inspection by the ATF. Many believe this record-keeping system creates an informal national firearm registration and that makes 2A supporters cautious. While it is not centralized, it is important to note that the information of a gun purchaser is held by the retail dealer. Since licensed sellers, manufacturers and importers are responsible for recordkeeping, private data is only as secure as the storage and maintenance systems in which it’s held, which is something to think seriously about if there are concerns about personal identity protection for firearms transactions. Personal Identity Protection Now and In the Future Beyond the Federal level, states vary considerably in how they prioritize privacy and regulations. Recently, Congresswoman Marjorie Taylor Greene of Georgia introduced the “Gun Owners Privacy Act” (GOPA) which would prevent the government from unlawfully compiling and storing data from background checks on gun owners and further strengthen Federal regulations. Because firearms are a divisive topic in the United States it’s difficult to predict what regulations, or lack thereof, will come into play in the future. What gun owners and FFLs can do now, is ensure that their privacy and that of their customers is protected. The best way to do this is with secure electronic transactions and storage that guarantee 100% compliance such as E4473. E4473 eliminates the liability and hassle of paper records. It offers unmatched data security & consumer personal identity protection and operates with a five-star security protocol, including document encryption, storage encryption, and two-factor authentication. E4473 provides bulletproof security and privacy, reducing liability for FFLs, and providing a better experience for customers.
What do customers want in a gun purchase experience? According to discussions in various online forums like The High Road, a large part of it is excellent service, including speedy and hassle-free firearm transfers. While the cost of the gun is always an important factor, small gun shop owners (LGS) can compete without offering bargain-basement pricing or extensive inventory if they can offer a great experience. Contrary to popular belief, aggravation is not an inescapable part of buying a firearm. FFLs who want to be successful will pay attention to the following five strategies for increasing sales and profits. Build a Firearms Community Building a memorable experience in your store is important. Celebrate the culture and convictions of the firearms enthusiasts in your community — whether it’s bagging a bear, drinking coffee in the blind, flushing upland birds, or calculating the wind effect on the range. Spend time with them when they come to the shop: hang out, make friends, and be welcoming. If they’re not there to shoot the breeze, get them in and out quickly. It also helps to be active in the local community and have a mobile or direct mail communication strategy so that you can stay in touch between visits. Differentiate Yourself from the Competition Your shop is probably not the only one within driving distance of your potential customers, and just about everyone has access to the internet. To differentiate yourself, begin by asking what your community values. Can you offer training classes, gunsmithing, accessories, optical equipment, or faster, hassle-free paperwork? For example, if you can lessen or remove the friction in the transfer process, you’ll quickly develop loyal, repeat customers. You have the expertise—you know things your customer doesn’t. How can you make your knowledge available to them and become recognized for that? Know Your Customer Whether you’re aware of it or not, you have a niche, so become an expert in it. Do your best to know the laws regarding firearms in your area, not just the ones pertaining to FFLs. For example, do you live in a “stand your ground” state or one with a “castle doctrine”? How old do people need to be to carry a handgun? Can employers prevent employees from having firearms in the parking lot? What are the unique hunting laws in your state? (In Kansas, game birds may only be taken in flight.) Due to ATF-required record-keeping, specifically the 4473 Form, you already have quite a bit of information about your customers. Consider developing some high-level buyer profiles to boost your marketing efforts. Offer Excellent Service Service is the differentiator between firearms retailers, whether they are big-box, online, or local gun stores. Excellent customer service includes useful information, respect, patience with questions, and fast turnaround times. For people who know what they want, the longest wait is likely to be processing the 4473, with wait times increasing in proportion to the number of people in the store. One customer described his experience this way: “Well, the rifle the guy brought out was damaged with a big ding that had taken the finish off the top of the receiver. But by that time the second guy had left and had to get called back. Another wait. The second rifle looked OK so I was allowed to start on the Form 4473 on the computer. After completing the NICB [sic] check the clerk had to call another guy back a third time to double-check that all the Ts had been crossed and the Is dotted properly and I was finally allowed to pay and leave. The entire process took about 2 hours from the time I entered the store.” Don’t let this happen in your store. People are inclined to pay a little more for great customer service, including knowledge of gun laws and how to deal with NICS and the BATFE. And finally, you don’t want most of the time people spend in your store to be filling out the 4473. Stay ATF-Compliant for Firearm Transfers There is a lot of misinformation circulating about completing Form 4473 as part of a firearm sale. Some of it comes from the fact that workers at the sales counter often don’t have the same level of knowledge as the FFL. That in itself is aggravating enough, but when that lack of knowledge or confusion about the process causes customer frustration, LGS sales are negatively affected. Even worse, if the knowledge gaps create areas of non-compliance, the firearms dealer’s license could be revoked. For example, you don’t want one of your employees handling Form 4473 to the customer as if it was their receipt, and yes, this has happened. The ATF is very clear about how the Form 4473 process is supposed to take place. If you’re ever audited, the IOI will be looking at it with a microscope. Your job is to balance the needs of your customers with the requirements of the ATF. It’s possible to accomplish both of these goals at the same time and do it better than the competition. The E4473 platform allows your customers to breeze through Form 4473 while keeping you 100% compliant with ATF regulations. Fast track your firearm sales with E4473.
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