September 1991 was a life-changing time for Dan Smith.
Military cutbacks left the California native and Air Force Reservist pilot scrambling to pay the mortgage on his new home and meet the basic needs for him and his wife.
“It was almost like getting fired,” Dan said of his 80 percent decrease in pay. “We had just bought a house four months prior. I had to come up with a way to make more money or lose my house.”
Dan’s entrepreneurial brain started to kick in, and his salvation came in the form of a century-old toy.
In the years prior, Dan started a side gig selling rubber band guns, a toy he enjoyed playing with as a child. “I had a few as a child and even made one or two back in the day, but I never grew up thinking I would sell rubber band guns as a living.”
However, nostalgia, and a new interest, flooded back during a gun show he attended in Pomona, Califiornia. A vendor showcased a product Dan had never tried before – a 12-shot, rapid fire, semi-automatic, repeating rubber band gun.
He was captivated.
“It was so fun!” The kid in him along with his business savvy prompted him to negotiate the purchase of several guns from the vendor right there on the spot, with a goal of reselling to friends and family.
“I took some to my squadron and sold them to my Air Force buddies,” he said. “I actually put them in my luggage when I was deployed to Saudia Arabia during Desert Storm and sold them to other military personnel in the compound where we were staying.”
With the loss of most of his income and a mortgage to pay, Dan turned to the rubber band guns. He already knew the toys sold well and thought it would bring in some quick cash to supplement his income. “I signed up for swap meets, market nights, street festivals, city celebrations, and more. I would sell them anywhere I could find a venue to sell in Southern California.”
Selling the toys was a way to make money while he figured out what he was going to do next. “I thought I would get a different job or maybe go back to school.”
That was more than 30 years ago. Dan, now known as the rubber band gun guy, has made a successful career with the popular children’s toy. His company, Magnum Enterprises, LLC, is the nation’s leading seller and manufacturer of rubber band guns, along with other lines of unique wooden toys.
“As I sold more and more of these guns that I purchased from the manufacturer out of Arlington, Texas, they soon asked me to be their western states distributor. They gave me all their accounts in the five western states and gave me a discount on wholesale if I bought in volume and would increase business in my territory.”
Dan held up his part of the agreement.
He bought a bunch of product, built shelves and a packing table and started his own distributorship out of his Victorville, California garage. He operated there for the next 6 years.
“It was a weird time,” Dan said. “I was still in the Reserves. One day I would be flying and the next day I would be hawking rubber band guns like a carny worker.”
Dan eventually left the Air Force Reserves and dedicated all his time to building his business – Magnum 12 Products which he changed to Magnum Enterprises, LLC after incorporating in 2001.
He soon outgrew his garage and moved to a 1,200-square-foot warehouse space. During that time, Dan and his wife also began to assess their life in Victorville, a city less than 90 miles from Los Angeles. “Life was getting less than desirable,” Dan said. “Clientele was getting worse, and crime was increasing.”
The couple was looking for a better environment to raise their three young sons. In 2004, despite Dan’s reluctance to move from his home state, the family packed up and moved to his wife’s home state of South Dakota. She was born and raised in Mobridge.
For nearly a year, Dan was driving back and forth, 1,300 miles one way, to operate his California business. “I was getting stretched in both directions. It was a tough time and a lot of stress, but slowly I decided our family moving to South Dakota would be a permanent move.”
He decided it was time to also move Magnum Enterprises.
“It worked out well and was a godsend. Rapid City and South Dakota is not a perfect place, but it is a kinder, gentler place than Southern California.”
His family thrived in Rapid City, and so did his business.
“My business would have had a harder time surviving in California because of increased cost – everything is tougher there.”
Dan has increased his space from 2,500-square-feet to 11,000 and moved from being a distributor to a manufacturer. In 2006, one of his major suppliers out of Medford, Oregon, shut down and Dan purchased all the equipment. Then in 2007, his original manufacturer in Texas also shut down. This gave Dan the opportunity to purchase and acquire the company’s equipment, product line, and customer base.
“I wouldn’t be where I am today if I hadn’t become a manufacturer. It was scary, but becoming a manufacturer gave me all sorts of options. Gave me control. Gave me flexibility to produce what I wanted when I wanted and how much I wanted. I was able to increase my volume.” That all became even more crucial in 2020 during the Covid pandemic when Dan and his team were producing an average of 1,200 toys a day.
While things have slowed down slightly, they are still producing 600 – 800 toys daily. Dan’s space is filled with 10,000 – 30,000 pounds of colorful rubber bands, a variety of styles of guns from rifles and pistols to Ak-47s, swords and axes. The featured gun is the Jr. Devastator – a Civil Ware style gatling gun that can shoot 96 rubber bands in 6 seconds. And Dan is always looking to diversify his product line. He recently added the 1960s popular toy called the Arrowcopter. He sells to hobbyists, gift and souvenir shops, farm and fleet chain stores and convenience stores.
Although initially Dan thought these toys were just a fad, he now believes rubber band guns will ever go out of style. They have been around for over a century. Ever since there have been inner tubes in automobile tires, kids have been making rubber band guns, he said. “Rubber band guns are a timeless, classic American toys. They are as American as Chevrolets and apple pies.”
The toys also come with stories and memories. Decades of neighborhood rubber band wars; brothers ambushing their sisters; children pretending they were cowboys, cops, or robbers. While Dan has diversified and modernized his products for newer generations, the same creativity and childhood play remain. No batteries, no lights, no screen, just a wooden gun, rubber band, and imagination.
“When I grew up, I never envisioned this is what I would be doing. I’ve always had the entrepreneurial spirit and dabbled in business a bit, but never though it would turn into a business of this scale.”
Dan is a hard worker. He is businessman. He is an entrepreneur. But more than anything, he is a kid at heart.
This article was originally published in the May 2024 issue of Elevate Magazine.
