Wow, just wow. The replacement interval for parts Bob is based on round count, not clock time, I thought you might have known that but I guess not..
Abusing rental guns is not by design it is by the numbers. Renting a pistol until failure is par for the course. The Beretta you mention as an example consumed 150,000 rounds. With an average price of say $150/1000 (cheap Tula steel cased) that gun generated $22,500 in revenue for a pistol that costs around $600 to replace. The gun amounts to a cost of 3% of its total generated revenue from ammo alone. The Glock example at a failure point of 30,000 rounds works out to $4500 in ammo revenue for a $450 pistol, which are apparently being repaired under warranty at no cost. Guns are cheap in the rental market and waiting for parts or warranty costs revenue, replacing it with another gun is easy and hassle free. We haven't factored in day passes or other items purchased. With the cost of guns low and in many cases their use being near non stop, there is little desire nor time to do regular maintenance. Use them to failure then replace.
Interesting observations KiddX. I wonder what the man's armourer does all day with his and his staff's time.
Renting the guns out until they fail is quite insightful, you might have added "termial" failure. His armourers would be charged with maintaining the fleet until slides or frames crack or as was the case with the S&W 500 before a catastrophic failure takes place. Such failures are terminal and the guns have to be replaced.
He isn't making money when the guns are down for maintenance and he makes less when the guns are down due to premature breakage. He obviously is aware of this and it a concern since he is reducing the rotation time for the Gen 4 pistols from monthly to three weeks and I also suspect he has enough inventory to do the replacements within the 5K suggested period. He is trying to reduce their failure by increasing his maintenance. He is not, as you say renting then out until they fail although ultimately usage is what ultimately wears out the guns. That would make little business sense given his volume of business. The guns do ultimately fail. Some quicker than others. To him it just the cost of doing business.
Based upon your math I suspect you know very little about the workings of his range. If you took the time to read the thread as opposed to getting into a mindless discussion of what you think you know about managing a commercial gun range particularly in another country you might actually learn something. I did. I am quite confident the equivalent to his operation located in Los Vegas cannot be found anywhere in Canada. I know of no 24 hour, seven day a week operations up here. Do you? Dunn and Bradstreet have the info on what his operating ratios should be and judging from his posts I suspect he operates well above the average.
Having spent some time in Commercial Banking I think I have a pretty decent idea on the economics involved in firearm ranges and where their revenue opportunities lie. If you read the thread the owner tells you what guns are in demand and what drives the interest in the guns. He also discusses his maintenance regimen in a few posts.
Why don't you read the entire thread as most of the folks who replied on the thread did and do and then reflect on what you thought you new and what you learn new from the thread.
I had heard rumours of FBI contract slides having issues but noting as informative as the Gen 4 slides breaking prematurely. That might explain why the Gen 5 slides have been reinforced near the muzzle and redesigned behind the breach area. If you page through the thread you will see pictures of the areas where failures are occurring in the Gen4 slides. One slide apparently broke at the muzzle in the first 30 days.
Take Care
Bob
ps revenue kiddx is not profit Based on your numbers the company would lose $600 or approx. $200 per year on the gun since his revenues would just cover the cost of his ammo leaving nothing for the cost of the gun.
150,000 rds equals a cost of $22,500 you tell us. You then tell us total revenue generated according to you $22,500 just enough to pay for the ammo. You haven't dealt with his employee costs, nor the heat/air conditioning, lighting, maintenance on his leasehold improvements and the capital cost of the firearm. Your 3% figure is an interesting math result but doesn't mean much.
pps Your business model has some serious flaws. :>
he prob runs 24/7 so he could easy do a lot more
