Introduction To Retail FFL POS Systems

Gun store and range owners are rapidly migrating to new point-of-sale (POS) systems.  Several factors are driving the increased adoption by retailers.  One, the new systems offer several cost-effective installation options.  Retailers can have the hardware installed in their location, or the system can be cloud-based.  Cloud-based systems are hosted in virtual servers, accessible by most devices, and from any location with a reliable connection.  Two, the new systems are extremely powerful and very easy to use.

Firearms retailers, like all retailers, are continually driving to reduce costs and increase profits.  The information generated by a POS system can be a valuable tool to help identify opportunities.  The systems can be even more useful when connected to other retail systems, such as inventory control, range management, and ATF compliance systems.

Retailers can use the information to improve their cash flow with better replenishment strategies.  The customer data can be used to develop promotional programs.  A fully integrated compliance system can significantly reduce the effort needed to be fully ATF compliant.  For example, retailers using the Orchid eBound^TM system can expect up to a 40% reduction in labor associated with ATF compliance tasks.

Each of these benefits can have a positive impact on a retailer’s bottom line.  Depending on the number of opportunities identified, the savings could defray much of the costs.  While the benefits can be very enticing, an FFL owner/operator should proceed carefully.  All business implications should be taken into consideration, especially when it comes to ATF compliance.

Top 3 ATF Compliance Considerations for a Retail FFL POS System

Type 01 Retail FFL ATF Compliance Data

Migrating from a paper-based system

Unfortunately, there are not a lot of options for expediting the transfer of data from a paper-based to an electronic system.  Manually transferring data can be a time-consuming process and extra care should be taken to make sure that the records are transferred accurately.  To take full advantage of an electronic system, users will often set up vendor records, product data and FFL trading partner licenses in the new system prior to migration.  Loading static data can help with data validation as you transfer the data.

Migrating from an electronic legacy system

When you are moving from an existing to a new electronic system the migration should be much easier.  Review the POS system to understand what features it has to help you migrate the data.  Some systems will provide you with standard templates for you to use to load the data.  Typically, the data in electronic systems are more consistent and more accurate.  As such, the data can be generally copied and pasted into the new system or template for easy transfer.  However, it is highly recommended that you do a thorough review of your data.  It is important that you do not move a mistake from one system to another.  Pay special attention to fields that are used for ATF compliance, such as Manufacturer, Importer, Country of Manufacture, Model, Caliber / Gauge information.

Likewise, while you have an ongoing responsibility to ensure that your gun store compliance records remain accurate, this is a great opportunity to review both the accuracy and completeness of your eBound Book transactions. First and foremost, conduct serialized firearm inventory.  Make sure to account for the firearms that you physically have and the open dispositions in your bound book.  If you find discrepancies, you should fill out an ATF E-Form 3310.11, an Inventory Theft/Loss report. Second, if you identify errors in the Bound Book, correct them as appropriate. Both activities should be conducted in the manner prescribed by the ATF regulations.

A clean start will help you sleep better at night and focus on running your business, not chasing new errors.

Firearm Retailer – Specific Compliance Functionality

Implementing a new software system can provide many benefits. In today’s Gun Store POS systems, two of the best features are their ability to integrate with other applications, and the number of tasks they can automate. Critical point-of-sale features for the modern firearm retail / range operator include an electronic 4473 (or e4473), integrated NICS checks, and NFA / eForms functionality. Some gun store POS systems will include all of these functions, while others may offer a mix but provide a lower price or enhanced functions somewhere else in the system. The tradeoffs you make should be evaluated based on the time (and money) impact on your business. For example, you may purchase a well-rounded retail gun store POS that lacks NFA functionality, but that could be augmented with the best-in-class NFA eForms capabilities offered by a company such as Silencer Shop. If a large volume of your business is based on suppressor sales, the combination of retail firearm POS and Silencer Shop kiosk could be of great value.

Retail Firearm Compliance Support System

Last, but not least is your support system. You operate a gun store – usually a Type 01 Federal Firearms Licensee – and you will be inspected by the ATF at some point. Knowing that the top ATF inspection violations (ref 2019 data) are related to the 4473, you must have an FFL support system to back your business. From our perspective, the top two considerations include: (a) have one number to call – It’s no fun when you call your POS software provider with a question about the Bound Book, and they respond with“That’s a compliance question. Please call our partner!” That’s maddening. And, (b) how will you prep for and be supported heading into an inspection?  Ease of data export and timeliness of support response are critical factors that can impact your ability to sail through a retail ATF inspection….or to wind up with on-site visitors for weeks or more.

In short, don’t make your retail gun store POS decision based on business functionality alone. Who supports you, and how you are supported are critical to your ongoing success.

Summary

After spending years as CEO of one of the largest retail and range POS systems, I’ve had the benefit of seeing what really matters and what does not. Making a POS purchasing decision is not easy and you’ll be tested with low-dollar, no-risk, monthly payment options.  Do yourself a favor and consider both the business benefits and the top 3  ATF Compliance Considerations for implementing a Retail FFL POS System.

Ready to Learn More About Orchid’s Expanded Offerings? Contact Us Today.