How Successful Range's Buy Targets
Hate spending time and money every few years to buy a new range all? Ever think that there has got to be a better solution? The solution is to do what highly successful ranges do. The NUMBER 1 way they choose range targets is based on Return on Investment (ROI).
For the past several years I have been a Guest Speaker at the Archery Trade Associations (ATA) Trade Show. The topics presented were on Indoor Range Best Practices. I have been able to share our own personal experiences from running our archery range and pro shop for nearly 10 years and drawing insights from hundreds of ranges while operating SpyderWeb Targets for the last 10 plus years. Thanks to those people’s knowledge and willingness to share, I have been able learn and share some valuable information to many ranges. Given that, I believe one of the most important decisions a range owner needs to evaluate is the Return on Investment with regards to his/her target of choice. Thousands of dollars can be made/lost based on your choice of targets. For those of you whom have not done a ROI analysis, please join me as we “Leave the Status Quo” and learn more about the process of calculating ROI on range targets.
One of the topics we discussed this year at the ATA Show was related to the TV Show, Bar Rescue. For those not familiar with the show, Jon Taffer (Host) is the Bar Management guru who helps Bar Owners who are struggling with their business and gets them on the path to success.
In one episode, one of Jon’s support staff (drink expert) members was working with the bartenders at a business and explaining the importance of sticking within the guidelines of how much alcohol is poured into a drink. One of the bartenders was very sloppy with pouring drinks and putting twice the amount of alcohol required into a drink. She was very rude and combative to this guy whom clearly knew what he was talking about. So much so, that I believe she should have been fired on the spot. Instead of firing her, he laid out a graph that showed the ROI on a bottle of Liquor.
He explained that a mixed drink takes 1.5 ounces of Liquor and that by her pouring 3 ounces in the drink, it had a huge impact on how much Revenue they were losing. Given that a drink goes for $8.00 each and you could get 16 drinks out of bottle, one would expect a total of $128.00 in sales out of that bottle. Since Ms. Wonderful was getting only 8 drinks out of bottle, it was costing the bar $64.00 per bottle in lost sales. When you add the dollars up over a year, the could result in losses in the 10’s of thousands of dollars. Literally pouring money down the drain.
What does that have to do with Range Targets? A great deal. When we look at which range target to purchase, we can do a similar analysis. Some details we need to look at prior to analysis are the most popular paper targets shot on ranges and their wear patterns. They are as follows:
Wear Pattern Assumptions
NFAA 5 Spot
Vegas 3 Spot
Given the assumption that most ranges experience paper targets not being moved a great deal, we conclude this to be the most likely wear pattern.
Let’s see how much revenue we can generate from two different target types performing at different levels and how it Greatly impacts the ROI.
When you look at Targets A, it appears to be the more economical choice with an Investment of $2,000.00. However, it only lasts for 2000 shooters before it needs to be repaired or replaced. Thus, it is limited to $16,000 in revenue if you were to charge $8.00 per shooter. It has a ROI of $8.00 for every dollar invested.
When we look at Targets B (SpyderWeb Targets), we see a $3,000 investment will last for 5000 shooters before repair (would not need to replace). This would net $40,000 in revenue when charging $8.00 per shooter. ROI $13.33 per dollar spent.
Successful Ranges know that by not investing in the more durable design (that can be repaired), you are missing out on a higher ROI and losing out on 10's of thousands of dollars of revenue.. While not exactly like the Bar Rescue example, you can see the lost opportunity of greater revenue because of your choices.