Is your archery range business truly maximizing its financial potential, or are you missing opportunities to significantly boost profitability? Uncover nine powerful strategies specifically designed to elevate your archery range's revenue and streamline operations, ensuring every arrow shot contributes to a healthier bottom line. Ready to transform your financial outlook and gain a competitive edge? Explore comprehensive insights and tools, including a robust archery range financial model, to propel your business forward.
Startup Costs to Open a Business Idea
Understanding the initial financial outlay is crucial for launching a successful archery range. The following table outlines the estimated startup costs, providing a clear breakdown of potential expenses from facility setup to initial marketing efforts.
| # | Expense | Min | Max |
|---|---|---|---|
| 1 | Facility Acquisition and Build-Out Costs: Initial investment for leasing, purchasing, renovation, and construction for an indoor archery facility. | $50,000 | $500,000 |
| 2 | Targets, Backstops, and Lane Equipment: Essential range equipment including durable backstop material, individual lane targets, and optional automatic target retrieval systems. | $15,000 | $40,000 |
| 3 | Rental Gear and Pro Shop Inventory: Comprehensive sets of rental bows and arrows, plus initial stock for an on-site pro shop including equipment and merchandise. | $20,000 | $75,000 |
| 4 | Insurance and Business Licenses: Costs for general liability insurance, property insurance, business formation fees, and local operating licenses and permits. | $3,000 | $10,000 |
| 5 | Online Booking System and POS Software: Investment in hardware and software for managing lane rentals, sales, memberships, and integrated online booking and waiver systems. | $1,500 | $5,000 |
| 6 | Initial Staffing and Certification Costs: Pre-opening expenses for recruitment, background checks, mandatory safety certifications (e.g., USA Archery instructor certification), and initial payroll for training. | $2,000 | $8,000 |
| 7 | Initial Marketing and Grand Opening: Budget for developing a professional website, photography, digital advertising campaigns, and hosting a grand opening event. | $5,000 | $15,000 |
| Total | $96,500 | $653,000 |
How Much Does It Cost To Open Archery Range?
Opening an Archery Range in the USA requires a significant initial investment, typically ranging from $75,000 to over $500,000. For a well-equipped indoor facility, the average startup cost falls between $150,000 and $250,000. This range accounts for various factors, from leasing a modest space to constructing a state-of-the-art facility. Understanding these core expenses is crucial for aspiring entrepreneurs like those behind 'ArrowQuest Archery Range' aiming for sustainable growth.
The largest portion of your budget, often 40% to 60% of the total, will be allocated to facility acquisition and build-out. Leasing a suitable space, such as a 10,000-square-foot commercial property, can cost between $50,000 and $150,000 annually. Beyond rent, expect to spend an additional $25,000 to $100,000 on necessary renovations, which include installing crucial safety netting and constructing proper shooting lanes. These upfront costs are fundamental for creating a secure and functional indoor archery facility.
Equipment represents the next major financial commitment, with a budget typically ranging from $35,000 to $115,000. This investment covers essential range components. Targets and backstops alone can cost between $15,000 and $40,000, ensuring a safe shooting environment. Providing rental gear, vital for attracting new customers to archery range, requires $10,000 to $20,000 for bows, arrows, and protective equipment. Furthermore, establishing an initial pro shop inventory, which is crucial for archery range pro shop profit, will demand $10,000 to $50,000. This diverse equipment base supports varied revenue streams for an archery business.
Beyond the primary expenses, several other initial costs contribute to the overall startup capital. Securing essential insurance and business licenses typically ranges from $3,000 to $10,000, ensuring legal operation and liability protection. Investing in technology systems, such as online booking systems for archery ranges and Point of Sale (POS) software, will cost between $1,500 and $5,000, streamlining operations and enhancing customer experience. Initial marketing and grand opening efforts require a budget of $5,000 to $15,000 to attract your first wave of customers. Finally, allocating $20,000 to $50,000 for working capital is essential to cover the first few months of operating expenses before the archery range achieves stable profitability. For more detailed insights into financial planning, you can explore resources like this article on opening an archery range.
Key Startup Cost Categories for an Archery Range
- Facility Acquisition & Build-Out: Typically 40-60% of total costs, including rent (e.g., $50,000-$150,000 annually for 10,000 sq ft) and renovations ($25,000-$100,000).
- Range Equipment: Budget $15,000-$40,000 for targets and backstops, essential for safety and operation.
- Rental Gear & Pro Shop Inventory: An investment of $20,000-$75,000 for bows, arrows, and initial retail stock, crucial for increasing average customer spend archery.
- Insurance & Licensing: Approximately $3,000-$10,000 for general liability and necessary permits.
- Technology Systems: Around $1,500-$5,000 for POS and online booking, supporting archery range management.
- Initial Marketing & Grand Opening: Allocate $5,000-$15,000 to generate initial buzz and attract customers.
- Working Capital: Set aside $20,000-$50,000 to cover operating expenses during the initial growth phase.
Is An Archery Range Business Profitable?
Yes, an Archery Range business can be highly profitable, provided it implements effective strategies for revenue diversification and strong customer engagement. Successful ranges often report significant net profit margins. For instance, well-managed operations typically achieve net profit margins between 10% and 25%, as detailed in profitability analyses for target sports businesses. This profitability stems from moving beyond just lane rentals to offer a variety of income streams.
Diversifying revenue streams is the most critical factor for an archery business to thrive. Profitable ranges, like our concept ArrowQuest Archery Range, generate substantial income from multiple sources. Lane rentals, while foundational, account for only about 25% of total revenue in successful models. The majority comes from other high-margin services.
Key Revenue Streams for Archery Range Profitability:
- Lessons and Coaching: These can contribute up to 30% of total revenue. Offering structured programs, beginner courses, and advanced coaching sessions attracts new customers to archery range and supports archery business growth. Pricing strategies for archery range lessons are crucial here.
- Pro Shop Sales: An on-site pro shop, vital for archery equipment sales, typically accounts for 25% of revenue. This includes bows, arrows, accessories, and maintenance services, significantly boosting archery range pro shop profit.
- Events and Leagues: Hosting leagues, tournaments, and corporate team building archery events can generate around 20% of revenue. These events foster community engagement for archery range and encourage repeat visits, improving archery range membership sales.
- Youth Archery Programs: Dedicated youth programs, like summer camps or after-school classes, can add significant youth archery programs revenue, often contributing to customer retention archery from a young age.
Ultimately, the profitability of an archery range depends on robust archery range management. This involves optimizing pricing across all services, diligently managing operational costs, and implementing effective archery range marketing. Utilizing online booking systems for archery ranges and social media for archery range promotions helps ensure high facility utilization and increases average customer spend archery, directly contributing to the bottom line. For more detailed insights into financial projections, you can refer to resources like this article on archery range profitability.
Can You Open Archery Range With Minimal Startup Costs?
Opening an Archery Range with minimal costs is challenging but feasible. A lean budget can start around $50,000 to $75,000 by focusing on strategic cost-cutting measures. This approach involves leasing a smaller space, acquiring used equipment, and phasing in services gradually. The goal is to establish core operations first, then expand as revenue grows.
A primary cost-cutting measure involves facility selection. Leasing a smaller, existing commercial space, typically 4,000-6,000 square feet, can reduce initial facility costs by 50-70% compared to a large new build. For instance, instead of spending hundreds of thousands on new construction, you might secure a lease with a lower upfront deposit and manageable monthly rent. Partnering with an existing community center or sports complex also offers a low-cost entry point, leveraging their existing infrastructure and potentially reducing permit complexities. This strategy directly impacts the overall startup costs for an Archery Range.
Sourcing quality used equipment significantly reduces expenses. For example, purchasing used rental bows, arrows, and targets can cut the initial equipment budget by 40-60%. This brings the cost down from over $30,000 to the $12,000-$18,000 range for essential gear. This includes basic recurve bows, durable foam targets, and safety netting. Prioritizing essential safety equipment first ensures a secure environment without overspending on new, high-end items initially. These cost-cutting measures for archery businesses are vital for maintaining a lean budget.
Key Cost-Saving Strategies for Your Archery Range:
- DIY Build-Out: Handle non-specialized renovation tasks in-house, like painting or basic lane setup, instead of hiring full-service contractors. This can save thousands on labor costs.
- Phased Service Launch: Begin with core services such as lane rentals and beginner lessons. Delaying a full-scale pro shop or advanced coaching until cash flow is stable reduces immediate inventory and staffing needs. This strategy directly impacts your archery range profit potential by managing initial outlay.
- Community Partnerships: Collaborate with local schools, clubs, or youth organizations for joint events, reducing individual marketing spend and building a strong community engagement for archery range from day one.
- Digital-First Marketing: Utilize free or low-cost digital marketing channels like social media (e.g., Utilizing social media for archery range) and local online directories to attract new customers to archery range without large advertising budgets.
Focusing initially on core services like lane rentals and basic lessons helps manage initial operational complexity and costs. A full-scale pro shop can be delayed until cash flow is established, allowing for organic growth in archery equipment sales. This disciplined approach ensures that every initial dollar spent directly supports critical operations, contributing to sustainable archery business growth from a minimal investment.
How Much Profit Does An Archery Range Make?
The annual profit for an Archery Range can vary significantly based on its size, management, and revenue diversification. A small operation might see a modest $30,000 in annual profit, while a larger, well-managed facility with diverse income streams can generate over $150,000. This range highlights the importance of strategic planning and effective archery range management to maximize profitability. Profitability hinges on moving beyond simple lane rentals and developing multiple income sources, which are key archery range strategies for sustainable growth.
Even a mid-sized indoor archery facility can generate substantial revenue from core services. For example, a 12-lane range charging $20 per hour per lane, operating at just 25% capacity, can yield approximately $124,800 in annual revenue from lane rentals alone. This calculation assumes a 10-hour operating day, 365 days a year. However, to significantly increase archery business revenue, additional services are essential, transforming the range into a comprehensive destination for enthusiasts and newcomers alike.
Diversifying revenue beyond lane rentals is critical for boosting overall archery range profit. Integrating programs and events can add substantial income. For instance, hosting two 8-week leagues per year, with 40 participants each at $120 per person, contributes an additional $9,600. Furthermore, offering structured youth archery programs revenue through summer camps can add another $15,000 to $30,000 to the annual income, attracting new demographics and fostering community engagement for archery range.
The ultimate archery range profit is heavily influenced by the ability to increase average customer spend archery. A well-stocked pro shop, essential for archery range pro shop profit, can add $50,000 to $100,000 in high-margin sales, directly boosting the bottom line. These sales often come with 30-50% profit margins on archery equipment sales. Additionally, selling branded merchandise, like branded apparel or accessories, requires a smaller initial investment and offers high profit margins, typically 50-70%, further contributing to efforts to boost archery range income.
Key Strategies for Boosting Archery Range Profit
- Diversify Revenue Streams: Move beyond just lane rentals. Offer lessons, leagues, workshops, and specialized events like corporate team-building.
- Optimize Pro Shop Sales: Stock a variety of archery equipment, accessories, and branded merchandise. High-margin sales significantly impact overall profitability.
- Develop Youth Programs: Introduce structured programs and summer camps to cultivate a new generation of archers and generate consistent revenue.
- Implement Membership Models: Encourage repeat business and steady income through tiered membership options with exclusive benefits, improving archery range membership sales.
- Host Corporate and Group Events: Promote the range as a venue for unique team-building activities, expanding your customer base beyond individual enthusiasts.
What Are The Challenges Of Running An Archery Business?
Running an Archery Range business, like ArrowQuest Archery Range, presents several distinct challenges that impact profitability and sustainability. The primary hurdles include managing high overhead costs, ensuring stringent safety and liability, overcoming seasonality, and consistently attracting new customers to archery range. Addressing these requires strategic archery range management and creative solutions to drive archery business growth.
One significant challenge for an indoor archery facility is the burden of high fixed costs. Commercial liability insurance for a target sports business is substantial, often ranging between $2,000 and $7,000 per year for a standard policy. Rent for a suitable 10,000-15,000 square foot prime location can easily exceed $10,000 per month, accumulating to over $120,000 annually. These fixed expenses demand consistent revenue generation to maintain a healthy archery range profit margin.
Ensuring safety is paramount and adds considerable operational complexity and cost. An Archery Range must implement strict protocols and employ certified staff. For instance, staff must hold USA Archery Level 1 or Level 2 instructor certifications, which cost between $150-$300 per person. A single safety incident can have devastating financial repercussions and severely damage the business's reputation. Maintaining safety requires constant vigilance, specialized equipment like backstops costing $5,000-$12,000, and ongoing staff training, all contributing to operational expenses.
Seasonality is another hurdle. Archery participation often peaks in spring and fall, with potential dips in summer and winter, especially for outdoor ranges. This fluctuation necessitates archery range strategies to diversify revenue streams, such as offering youth archery programs revenue through summer camps or promoting corporate team building archery events during off-peak times. These initiatives help to stabilize income throughout the year and mitigate the impact of seasonal lulls.
Attracting new customers beyond the core enthusiast group remains a significant challenge for any archery business. This requires creative marketing ideas for archery ranges. Simply relying on word-of-mouth is insufficient for sustained archery business growth. Effective archery range marketing involves active utilizing social media for archery range, running targeted advertising campaigns, and creating beginner-friendly classes and events to lower the barrier to entry for newcomers. Without a steady influx of new participants, maintaining high facility utilization and boosting archery range income becomes difficult.
Key Operational Challenges for Archery Ranges
- High Fixed Costs: Significant expenses for rent and commercial liability insurance ($2,000-$7,000 annually for insurance; $10,000+ monthly for rent).
- Safety and Liability: Strict protocols, certified staff ($150-$300 per certification), and ongoing vigilance to prevent incidents.
- Seasonality: Fluctuating customer traffic requiring diverse revenue streams like youth archery programs revenue and corporate team building archery events.
- Customer Acquisition: Need for consistent attracting new customers to archery range through proactive archery range marketing and beginner-focused programs.
What Are The Facility Acquisition And Build-Out Costs For An Archery Range?
Facility costs typically represent the largest initial investment for an Archery Range business. This significant expense can range from $50,000 for leasing and basic renovations to over $500,000 for purchasing land and new construction. Understanding these upfront costs is crucial for aspiring entrepreneurs and small business owners when developing their business plan and financial projections.
Leasing commercial space is a common approach for an indoor archery facility. A suitable commercial space, often between 10,000 and 15,000 square feet, typically costs between $5 and $15 per square foot annually. This translates to a yearly rent expense of $50,000 to $225,000. Location, market demand, and facility condition all influence these leasing rates.
The build-out for an indoor archery facility is a major capital expenditure. This phase can cost between $25,000 and $100,000. These costs cover essential elements such as installing proper lighting, constructing dedicated shooting lanes, and setting up office and retail spaces for archery equipment sales. A critical safety feature, backstop netting, costs approximately $5 to $10 per square foot and is essential for safety and insurance purposes.
Key Build-Out Elements and ROI
- Lighting and Climate Control: Investing in high-quality lighting and climate control systems enhances the customer experience, making the range more appealing and comfortable.
- Lounge Areas: Creating comfortable lounge or waiting areas encourages customers to stay longer and potentially increase average customer spend archery.
- Justifying Higher Pricing: These facility upgrades can justify higher pricing for lessons, memberships, and range time, directly impacting archery range profit.
- Membership Sales: Improved facilities are a strong selling point for improving archery range membership sales and overall customer retention archery strategies.
How Much Should You Budget For Targets, Backstops, And Lane Equipment For An Archery Range?
Establishing an archery range requires a significant initial investment in core equipment. For a standard 10-12 lane facility, a budget of $15,000 to $40,000 is typically needed for the initial purchase of essential range equipment. This includes critical components like targets, safety backstops, and lane dividers. Proper budgeting ensures safety and a high-quality customer experience from day one.
Safety is paramount for any archery range, making the backstop material a critical investment. High-quality, durable backstop material is essential to safely absorb arrows and prevent damage or injury. Covering the entire shooting wall of a typical range with this material can cost between $5,000 and $12,000. This foundational expense directly impacts the long-term operational safety and reliability of the facility.
Targets represent both an initial and recurring cost for an archery range. For 12 lanes, the initial purchase of large foam block targets can cost between $3,000 and $6,000, with individual targets ranging from $250 to $500 each. Beyond the initial purchase, replaceable target faces are a continuous expense. An initial supply of these faces for the facility can add an additional $500 to $1,000 to the budget. Managing these recurring costs is key to sustaining operations.
Technology Investment for Enhanced Archery Range Experience
- Investing in technology can significantly improve operational efficiency and customer satisfaction at an archery range. Automatic target retrieval systems are a prime example.
- These systems, costing approximately $1,500 to $3,000 per lane, allow archers to send and retrieve targets with the push of a button.
- Implementing such technology can notably improve customer flow, reduce wait times, and enhance the overall experience. This makes it one of the successful strategies for an indoor archery range looking to attract and retain customers, ultimately contributing to increased revenue and profitability for the business.
What Is The Initial Investment For Rental Gear And Pro Shop Inventory At An Archery Range?
Establishing an Archery Range like ArrowQuest requires a significant initial investment in both rental equipment and pro shop inventory. This dual approach is crucial for attracting new customers and ensuring long-term profitability. The total investment for a solid inventory of rental equipment and a basic pro shop typically falls between $20,000 and $75,000.
Investment Breakdown for Archery Range Inventory
- Rental Equipment: A comprehensive set of rental equipment is essential for newcomers and those without their own gear. This includes 20-30 recurve bows, a selection of compound bows, arrows, arm guards, and finger tabs. The cost for this core rental fleet ranges from approximately $10,000 to $20,000. This investment is vital for attracting new customers to archery range, providing an accessible entry point to the sport.
- Pro Shop Initial Inventory: An on-site pro shop is a significant revenue driver. The initial inventory for a basic setup can start at $10,000, while a well-stocked store might exceed $50,000. This inventory includes bows, arrows, targets, and accessories for purchase. Archery equipment sales from the pro shop can yield a 30-50% profit margin, making it a vital component of archery range profitability.
- Archery Merchandise: Beyond core equipment, selling archery merchandise at range, such as branded apparel, stickers, and accessories, requires a smaller initial investment, typically $1,000-$5,000. These items often offer higher profit margins, ranging from 50-70%, significantly contributing to efforts to boost archery range income and enhance customer loyalty.
What Are The Estimated Costs For Insurance And Business Licenses For An Archery Range?
Establishing an Archery Range like ArrowQuest requires a clear understanding of initial setup costs, particularly for essential insurance and business licenses. The estimated initial costs for crucial insurance coverage and necessary business licenses for an Archery Range typically fall between $3,000 and $10,000. This range accounts for various fees and annual premiums that are vital for legal operation and risk mitigation, directly impacting an archery range's profit potential.
One of the most significant and non-negotiable expenses is general liability insurance. This coverage protects your business from claims of bodily injury or property damage that occur on your premises or as a result of your operations. For a standard $1 million/$2 million policy, annual premiums for an Archery Range, categorized as a target sports business, generally range from $2,000 to $7,000. This is a fundamental requirement for any target sports business to operate safely and legally, and it's a fixed cost that must be factored into any archery range management plan.
Beyond liability, other critical costs include business formation and operational permits. Business formation fees, such as setting up an LLC (Limited Liability Company), typically cost between $100 and $800, depending on the state where the Archery Range is established. Additionally, local business operating licenses and various permits required to run an indoor archery facility can add another $200 to $700. These are baseline expenses for legal compliance and are essential steps for any aspiring entrepreneur looking to increase archery business revenue.
Key Insurance and License Costs for an Archery Range
- General Liability Insurance: Annual premiums typically range from $2,000 to $7,000 for a standard $1 million/$2 million policy. This is critical for any target sports business.
- Business Formation Fees: Setting up legal entities like an LLC costs between $100 and $800, depending on the state.
- Local Business Licenses and Permits: Expect to pay an additional $200 to $700 for necessary operational permits.
- Property Insurance: Covering the physical facility and its contents (including valuable archery equipment sales inventory) can add another $1,000 to $3,000 annually to the insurance bill. These are fixed costs directly affecting archery range profit calculations.
How Much Does An Online Booking System And Pos Software Cost For An Archery Range?
Investing in essential technology is crucial for modern archery range operations and profitability. The initial investment for an integrated online booking system and a Point of Sale (POS) software typically ranges from $1,500 to $5,000. This technology streamlines operations, enhances customer experience, and supports various archery range profit strategies, including managing lane rentals and pro shop sales.
A robust POS system tailored for an archery range manages various aspects, from lane rentals and lesson bookings to pro shop sales and memberships. The cost for POS hardware, which includes items like a terminal, barcode scanner, and receipt printer, usually falls between $1,000 and $3,000. Software licenses for these systems can be a one-time purchase or a recurring subscription, designed to support increasing archery business revenue through efficient transaction processing.
Subscription fees for integrated online booking and waiver management systems are a recurring expense, typically ranging from $50 to $300 per month. This technology is critical for operational efficiency, allowing customers to book lanes or lessons remotely, which improves the customer experience and optimizes staff time. These systems are key for attracting new customers to the archery range by offering convenience.
Cost Breakdown for Archery Range Technology
- Initial Hardware & Software Investment: Expect to spend $1,500 to $5,000 for core online booking and POS systems.
- POS System Hardware: A dedicated POS terminal, scanner, and printer typically cost $1,000 to $3,000.
- Monthly Software Subscriptions: Online booking and waiver management systems average $50 to $300 per month.
- Loyalty Program Integration: Often included in modern POS systems or a modest add-on fee, critical for customer retention archery and measuring archery range profit strategies success.
Implementing technology to manage archery range loyalty programs is a key strategy for enhancing customer retention archery. This functionality is often included within modern POS systems or can be added for a modest monthly fee. Such features provide valuable data to measure the success of various archery range profit strategies, helping to optimize membership sales and repeat business.
What Are The Initial Staffing And Certification Costs For An Archery Range?
Launching an Archery Range like ArrowQuest requires careful planning for initial staffing and essential certifications. These upfront investments are critical for establishing a safe, professional, and engaging environment. They directly impact your ability to attract and retain customers, fostering a strong community engagement for archery range operations.
Key Initial Staffing and Certification Expenses
- Pre-opening staffing costs, covering recruitment, background checks, and mandatory safety certifications for a core team, typically range from $2,000 to $8,000. This ensures you build a reliable and qualified team from the start.
- Certifications are a mandatory and critical expense. Budgeting for 3-4 staff members to receive USA Archery Level 1 or Level 2 instructor certification will cost between $450 and $1,200 total (approximately $150-$300 per person). These certifications are vital for providing expert coaching and ensuring safety.
- Pre-opening payroll for staff training and facility setup is a necessary investment. For a manager and three part-time staff over a two-week period, this can amount to $4,000 to $7,000. This period ensures staff are well-versed in sales, safety protocols, and crucial pricing strategies for archery range lessons, contributing to your archery range profit potential.
These initial staffing investments are fundamental for building a strong foundation. They help create a welcoming and safe atmosphere, which is essential for attracting new customers to archery range offerings and driving long-term revenue. Effective archery range management begins with a well-trained and certified team, directly impacting your archery business growth.
How Much Should Be Allocated For Initial Marketing And Grand Opening Of An Archery Range?
Establishing an 'ArrowQuest Archery Range' requires a strategic initial investment in marketing and a grand opening to ensure strong market penetration and customer acquisition. A dedicated budget ranging from $5,000 to $15,000 is recommended for comprehensive initial marketing efforts, the grand opening event itself, and the first few months of targeted advertising. This initial spend is crucial for generating buzz and attracting new customers to archery range facilities, setting a positive trajectory for archery business growth and future archery range profit.
Effective archery range marketing begins with essential digital assets. A professional website, ideally with an integrated booking system, is fundamental. Budgeting $2,000 to $5,000 for website development ensures a smooth user experience and efficient scheduling for lessons and range time. Complementary to this, investing $500 to $1,500 in professional photography and videography showcases the facility's quality and engaging environment, which is vital for online presence and promotional materials. These assets are key for building credibility and simplifying the customer journey, helping to increase archery business revenue from the outset.
A grand opening event is a powerful strategy for attracting new customers to archery range businesses. Allocating $2,000 to $7,000 for this event can cover various promotional activities, including local media outreach, free trial sessions, and expert archery demonstrations. These elements generate significant initial traffic and community buzz. Such events are highly effective in converting curious visitors into regular customers or even members, contributing directly to an increase in archery business revenue. It creates a memorable first impression, fostering community engagement for archery range operations.
Initial Advertising Campaign Costs
- An initial digital advertising campaign is critical for reaching a broad audience. Budgeting $1,000 to $3,000 for platforms like Google Ads, Facebook, and Instagram is recommended.
- Utilizing social media for archery range promotion is highly cost-effective, allowing precise targeting of potential customers.
- These campaigns can effectively highlight specific offerings, such as youth archery programs revenue opportunities and corporate team building archery events, broadening the customer base and enhancing archery range profit potential.