Ammunition business?

Commodity businesses compete on price and availability.

That means you have to be price competitive with the big manufacturers, unless you are a niche player like Buffalo Bore.

And, the mature manufacturers have depreciated equipment, established supply chains, distributor relationships and production processes in place.

My bet is the start up capital would be low millions.

The biggest question is: what differentiates your ammo from everyone else?
 
I would see if you can beat Walmart prices AND online vendor prices. Federal .223 55 gr can be had for $325-$350/1000 online shipped.

Wolf gold (brass cased) .223 can be had for $300-$320/1000 online shipped.

This. And it's getting even cheaper. What will make your ammo worth the extra $60?
 
i wish you the best of luck and hope it works out. would love to see a pro 2a business succeed in this state that actaully sells to its residents. (F U springfield armory)
 
I've seen ammo and reloading prices fluctuate substantially over the past 7-8 years, basically due to shortages driven by fear of further government controls and restrictions.

As a business owner I'd be wary of buying high and selling low, during a period when ammo prices are declining. If you're working off short margins, as you seem to plan, that could be costly.

Good luck!

Rich
 
Thanks for the insight and thoughts everyone. It was exactly what I needed. Sometimes you think you have everything thought of and some of you guys bought up some good points. I really shouldnt have used .223 as a example for pricing as to be honest theres no money to be made on it unless youre buying 10k rounds at a time. Same goes for 9mm, even my vendors are around 9 bux a box of 50 which really isnt great once you factor in shipping, unless you buy a pallet full. Some calibers are marked up severely and others not so much.

I plan to do more reading and learning before I jump into this venture if I decide to do so. Like I said I wanted to start off selling commercial ammo to begin with and then as things evolve bring out my own line of ammunition once I have the right equipment to do so, my single stage wont do haha. Everything was just a thought that Ive been planning out for a while now so we will see which direction it turns.
 
Well I have thought about it for a long time and done all the research so far for licensing and such. As well as starting my FFL forms and MA AMMO sales license. But I wanted to see what kind of feedback I would get about starting my own ammunition business. It would be based out of Paxton MA but can conduct business in Worcester as well as surrounding towns and sportsman clubs. I dont really intend to get rich, maybe a buck or two here and there but my main purpose is to provide quality ammunition to the folks in MA, for a affordable non jacked up price. Anyways what is your guys thoughts? If the feedback sucks I might not bother but I'm already stepping in the right direction. Example AMMO prices would be typically 10-14 per box of 9mm
.40 S&W is about 13-17 a box and I can get .45 ACP for under 20 a box. Ive also contacted a few places and can do LARGE bulk orders and can track down anything from .32 to .50BMG or 5.7LF rounds.

You must have a good wholesaler lined up to charge $10/9mm box. Somewhere I have a spreadsheet I put together last year factoring all the costs (boxes, powder, bullet, primers, insurance, taxes...). And I could just make it work to reload 9mm for $10/box, but I would need to buy A LOT of Brass at once, just to bring the price down 0.01/0.02 per casing to make the numbers work.

In the end, I decided to not do it for several reasons.

There is a thread someone started not long ago about this same aubject. Maybe someone can post the link.

Then you need to remember, do you really want to sit down and move your arm up and down thousands of times every day after work just to make a couple of bucks for every box of ammo? And don't forget those thousands of rounds need to be organized in boxes which would take even more time.
Or...you can automate your dillon, and then risk blowing someones hand or face, are you willing to live with that? - I am not.

If you keep on reading, plan to start with enough material for 500K rounds, and have money to load another 500K rounds when you are done. Remember, raw materials are hard to get sometimes, so you can't plan on selling one box and buying enough for a second. Also, you don't want to keep people waiting for weeks. You need to have the ammo in stock, ammo doesn't go bad.

Go to gun shows, give free samples, maybe 10rd boxes with a business card and a schedule with all your other shows. Same at show 2, 3, 4, 5...eventually people will start buying form you and ordering online. Plan to give at least 5K-10K rounds for free to start building a name.
 
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Best of luck but there was a guy on the Michigan forums who did this... didn't go well for him. Not saying don't try just examine your costs. Also not for nothing why bother with cheap calibers like 9 and 40 and 45 depending on when you can get it. No offense but you won't make squat on those. Now if your talking 20 bucks a box for 10mm and 357 sig. Or cheaper 357 44 500 rounds you got yourself a market. But yes some guys here including myself will support you because I run a small biz. But a gentle way of putting it nes makes up a small minority of gun owners. Most are going to buy wally world cheap stuff just how it goes it's convenient
 
I wish you not just luck, but success.

I've always wanted to be an entrepreneur... it is hard. Planning is key.

If you're looking at NES, as your BOD... don't.
Find someone who you look up to, who is a successful business owner & pick their brain. Doesn't have to be firearms related.

Talk to other small manufacturers outside your area in similar situations to see where they've struggled to see where you can learn from them.

Cheers!

NETWORK!!! (you can't do it in a bubble)
 
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