re: Can someone explain the fireworks stand business model?

Graduated with a guy whose family owns one of the big fireworks companies. Think it was TNT Fireworks. The model is they buy the inventory from the manufacturer and then have a network of vendors and property owners they rely on to sell the fireworks. Vendors being the people who set up the stands, and the property owners lease the land the stands are on to TNT or the main group for the 4th and NYE.

Profit Margins are high. They make all their revenue 2 weeks out of the year basically.

There are conventions from what I understand where they can go and check out new products and decide on their inventory for the year. I think most fireworks are manufactured in the same place and are branded or labeled based on the Firework Company that purchases.

quote:

---

Profit Margins are high. They make all their revenue 2 weeks out of the year basically.

---

Former coworker just bought out a dude last year that had about 20 locations around San Antonio. The reason he is a former co-worker is because of him jumping into this business. The former owner already had the locations on lock down. This is the cut throat part of it, getting and keeping the locations. Like you said, the actual fireworks are dirt cheap but not as cheap since they come from China and Covid put a huge scare in the firework market. Each stand pretty much gets the same stuff every time so they know what to order and it literally comes in a storgage container straight from China. It is pretty much balls out for him right now getting all the stands set up to the locations. Then he has to get the warm bodies to actually man each one in which he uses lots of family for this and pays very well the outside help he needs. Between New Years and 4th of July, he will pull in a little over 6 figures for those 20 stands.