Fireworks For Sale: Selling Fireworks For Beginners
September 15, 2016
Looking to start your own fireworks retail business? This information should help guide you through the process of your new project. Below is a checklist for you to go through to help you plan and start your business. We also have a list of items that we, Spirit of 76 Fireworks will be able to provide including materials, advice and other items to build a successful fireworks retail business.
Finding a Location
Find a location that would be suitable for fireworks sales. Make sure the location will meet city and county ordinances for retail sales. Find a location with preferably good weekend traffic or everyday traffic. Fireworks are typically bought on weekends and during holiday shopping. Make sure there is ample parking with easy in and easy out access. Most fireworks sales happen over a short time and you want to be able to handle large volume of traffic and be able to move people in and out as quickly and easily as possible.
Lease or Own? If you already own a great piece of property you are ahead of the game. That will lower your start up costs and be able to add to your profits. If you are looking to lease land or building to retail work with the landlord to be flexible with the lease. You may only need the land for a month a year or need to sign a multi-year lease to ensure that you can have the location each fireworks season.
There is a lot to go into this factor. Location, demographics, size of retail location, personal comfort zone, desired sales.
Minimal budget - $5,000. This is for low-risk, low-budget new retailers. This will give you a decent variety of products with a little bit of back up on popular items. Typical location size 20X30 tent or 8-16’ stand.
Middle seasonal budget $12,000-20,000. This give you more variety and back stock for promotional and popular items. Typical location size 30’X40’-40’X60’ tent or 16’-32’ stand.
Large seasonal location $30,000-50,000. This is for high traffic, high demographic locations. Location size 60X100+ tent and multiple stands.
Large year-round retail store - $50,000+. This all depends on size of location, but if you are thinking to have a monster store 6,000 sq ft or more you will need a large budget to fill the location for your year around needs.
Come up with a budget for start up costs and fireworks. Start up costs are one-time purchases at the time you start your business. This includes POS systems, tables and shelving, Tent or stand (if not renting).
- Recurring costs
- Lease or Mortgage
- Staffing and security
- Tent (if renting)
Permits and Licenses
Most fireworks retail permits and licenses are ran through the state fire marshal’s office. You can call or visit the state fire marshal’s website to find out how to apply for your license. Some states have deadlines and a process period. We recommend getting the permit process done as early as possible. You will also be required to have a federal and state tax ID.
Hire trusted staff. Family is a great place to start. Teachers are also a great source of staffing, They typically have summers and New Year’s off and they typically can manage and organize well. Having a resident pyro on hand is always handy. Someone enthusiastic and knows fireworks will help sell more product.
Hire staff that can work holidays. Typically your busiest days are the day of the holiday. Train staff on all procedures, registers, floor sells, fireworks safety.
Tent Rental or Buying
Fireworks Stands or roadside stands are popular in southern states like Texas, Louisiana and Oklahoma. They also an option for states that do not allow sales from tents. Stands allow the retailer to fully close and lock up at night and lessen the need for overnight security.
Fireworks Tents are popular for areas that allow inside sales on a non-permanent location.
Renting a tent for first year retailers is advised. It gives you the option to test out the size of a tent, Renting a tent through a respective business also gives you comfort that the tent is set up professionally and it is insured if something happens.
Buying at tent is best if you are sure about the industry and size of the tent. You can also have the option of having the tent for other events through out the year. Having a tent for retail will bring more of a need for overnight security. You could hire professional security, retail staff or employ yourself to watch over the tent at night.
What Spirit of 76 Fireworks offers retailers
Available through the Spirit of 76 Website:
- Accurate online ordering system
- Shows Order History
- Barcodes on invoices to program POS
- Printable price tags with great product descriptions
- Ability to download invoices in spread sheet format for inventory, pricing, profit analysis
- Ability to save multiple shopping carts
- We can create a sample retail stock order in your account
- Look up current availability in multiple warehouses
- Detailed product descriptions and videos
What Customer Service can help with:
- Advice on any topic listed on the checklist
- Including budget, retail location size, business plan
- Advice on product selection, pricing, marketing and advertising
- Tablets with your products video for floor sales
- Live Product Demonstrations
- Weekend of Demonstrations we offer seminars/discussions on retail management and marketing
- Staffing with over 50 years of retail and wholesale experience