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Fireworks: Fun and Lucrative

Fireworks: Fun and Lucrative

By Angela Altass

While selling fireworks is a fun, rewarding and lucrative business, it is important to follow rules and regulations, says Bill Raynault, general manager, western branch, Mystical Distributing Company Ltd.

“Please learn the federal regulations on selling fireworks,” states Raynault. “Work with your fireworks vendor to determine if there are also any local bylaws that need to be considered when selling fireworks.”

There are federal explosive regulations that govern the purchase, sale, storage and display of consumer fireworks in a retail store. Municipal bylaws might also require a permit or inspection by local fire departments.

Some municipalities allow for the sale of fireworks all year, others a few times a year, and a handful only one day a year, notes Raynault, adding that fireworks stored in a cool dry location away from direct sunlight will extend the life of the products, maintaining performance value for many years.

Keeping the products away from direct sunlight is also necessary when the fireworks are on display in the store.

“Don’t put them by the window,” cautions Raynault. “Federal regulations restrict the sale of fireworks to persons 18 years or older and always provide a safety instruction sheet with every sale.”

Fireworks assortments are fast sellers as they are pre-budgeted and come with a good variety of fireworks, says Raynault.

“These assortments will vary in price and the larger priced ones will contain multi-shot cakes,” says Raynault. “These multi-shot cakes have similar colours and effects to what you would see in the big Canada Day displays. Work with your fireworks vendor to get a variety of different types of fireworks as a starting point to determine what your market wants. We have seen many businesses start out with 10 per cent of their revenue coming from fireworks to, a few years later, it’s 60 to 75 per cent of their yearly revenue.”

Fireworks vendors have banners that can be placed outside your store, as well as internal signs, to let your customers know that you sell fireworks, says Raynault.

When selling fireworks, “do it right,” states Matt Bialek, president, BLAST-OFF Fireworks, who notes that compliance is a critical aspect of any fireworks program.

“Partner with a full-service distributor who can maximize category profitability at your store,” says Bialek. “This means factoring all elements of your fireworks program into the equation, including great quality products, family-friendly packaging, competitive pricing and discounts, free promotional tools, free shipping, free inventory and category management tools, guaranteed sale terms, and program fixtures and displays. It is absolutely essential to respect laws pertaining to the safe sale of fireworks. You want to ensure that the firework products are being sourced from a reputable supplier with permits, permissions, insurance and retailer protections in place.”

BLAST-OFF Fireworks offers a free regulatory assessment to stores launching fireworks programs. Training materials, retailer guides, online resources, one-on-one support, training, and compliance check-ins are also available to Blast-Off clients.

In Canada, there are eight main categories for fireworks products. Family packs and finale cakes are two categories that demand the most attention, says Bialek, adding that it is also important to consider traditional favourites like roman candles and barrages.

“A small selection of fireworks isn’t likely to generate the returns you desire,” says Bialek. “You need to offer selection, variety, and a wow-factor in today’s increasingly crowded retail space.”

Now is the time to ramp up for the summer fireworks season, advises Bialek.

“July 1 is Canada’s number one fireworks holiday of the year,” says Bialek. “However, fireworks seem to be for any occasion. The market has really grown. Birthdays, family reunions, memorials, graduations, camping trips, gender reveals, community functions are all popular times for fireworks. Holidays like Valentine’s Day, Halloween, and Diwali have seen exponential sales growth within the fireworks category. While you don’t have to go all out in the shoulder or off-seasons with fireworks, our best retailers offer a year-round selection in their stores.”

A free vendor training course and safety instruction sheets are available from the Canadian National Fireworks Association (CNFA). Further information is available at www.c-nfa.org.

Bill Raynault, general manager, western branch, Mystical Distributing Company Ltd., provides the following guidance on fireworks selection:

  • Ask your fireworks vendor for their minimum order to get free shipping. This is a good determination of keeping your costs low while understanding the ‘buy in’ price for selling fireworks.
  • As the federal regulations outline you can’t have fireworks out in the open for customers to touch unless they are in an enclosed transportation of dangerous goods (TDG) carton. If you have a shelf behind your sales counter then count how much space you have and work with your vendor to determine the number of items you will want on display.
  • Vendors also have fireworks cabinets that keep products enclosed or have various items in the TDG packaging that you can have out on the sales floor.
  • Start small with a good selection of items then monitor how fast you sell out of a certain category of firework.
  • Selecting products to sell is also determined by your surroundings. If you are in a city then the residential lot size is small so you’ll want to carry products that can be used in those smaller lots. If you’re in a rural area you will find the larger lot items will be better sellers. However, some municipalities are a mixture of the two! By starting with a sampling of different types of products you will quickly learn what sells best.

 

Matt Bialek, president, BLAST-OFF Fireworks, offers the following notes on selling fireworks:

  • Consumers must be 18+ years old to purchase fireworks. If in doubt, check ID.
  • Consumers must not be under the influence when purchasing fireworks.
  • Loose firework products must be secured, preventing access by minors.
  • Fireworks should not be stored to excess at retail sites. Your vendor can assist with managing legal quantity limits.
  • Encourage retail customers to be safe and follow instructions on each item.
  • Provide free literature take-aways to customers.

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