making and selling ammo.

[slickest]

A friend and I have been discussing this a lot lately. I have read the atf site about the licensing needed, having insurance, and looking into finding a building to rent or own that would be in the correct zoning for building ammo on a commercial scale.
 
It would be a small operation at first. Most likely start out with a Dillon 650 and only make common cartridges at first like the 9mm and .223. I see them shot around here all the time. I would imagine it would be very hard to compete against the big dogs selling the 500-1000 round ammo value packs on the Internet and we would have to try keep business local at first and sell 250 round packs at the most and more than likely stick with 100 round packs at first. I'm sure some of you have thought of this, tried doing this, and might still be doing this.
 
If you wouldn't mind shedding some light on the subject I would greatly appreciate it. I'm curious as to what quantity of reloading supplies I will need to buy in bulk to even turn a profit and how much ammo per year am I going to need to sell and will I have to market more than just locally? Instead of sticking with making cheap range ammo should I be targeting specific ammo markets such as for competitions and hunting cartridges? One thing I didn't really see on the ATF site and I'm not clear on is are their different laws for making re-manufactured ammo compared to using all new components? Also is anything different for making cast bullet ammo compared to jacketed bullet ammo?
 
SO after all your taxes are paid, land/building payment is paid, and your marketing/packaging is paid can you even turn a profit going small time?
Any info appreciated. thanks for your time

[cwlongshot]

Make up a business plan... That will outline everything and make it easy to see the only way it works is with volume. By the sound of it a " build it and they will come" attitude is not gonna cut it when your making a couple bucks a box. Even on a efficient progressive like the D650.
Look at it this way, what's your time worth? How many can you produce, box and have ready for sale in one hour? Two boxes? Maybe a 4-5$ profit. That's only profit over materials and zero for your time. Add electricity, water, insurance, rent... Your in the red my friend...

Want my advice, Load for your own enjoyment and be happy.

CW

[Larry L]

You're not going to compete with guys loading ammo with machines. They can load more in an hour than you can all day. I'd suggest getting into custom reloading. There's actually quite a demand for it these days. There's a world of folks with custom rifles that use custom ammo but either have no clue how to reload or don't have the interest. A good friend is a prime example with his 6XC. He's paying $5.00 a round to have his brass stuffed back to original. Wait time for him is right at 6 months as the reloader he uses is that far behind. I'd figure out the insurances/permits, get a place out of town far from people, and have at it.

[45-70.gov]

you mentioned getting  into common ammo
seems like that would also be the  most competitive


i would  look into  more specialized....


.like make  cheap and good cast
have you priced  458 winchester??
http://www.ammunitiontogo.com/index.php/cName/rifle-ammo-458-winchester-magnum


i can make a good cast load....say 45-70 performance
for about  a dime ot 2


same for the 375s


30-30  is a no brainer with cast  and won't even need to be downloaded


the other 30s can be made to shoot  to 30-30 level....REAL CHAP WITH CAST


no this ammo won't be for every one
but  if you find your nitch  you have it  made

[slickest]

Thanks for your opinions. I kind of figured the profit margin on loading bulk common ammo by hand would be low. It's still just a pipe dream right now. More or less I have just been trying to think of some ideas to start a small buisness and this is one of them.

[Ladobe]

I agree, your pipe dream is a flop.   No way you can do enough volume to compete with just a Dillion and still make it profitable after all the expenses.
 
Specialty cartridges maybe a little closer, but few who have wildcats are not already reloading their own, nor would they trust an unknown - AND you're playing to a much smaller audiance.
 
Lots of ways to make money that are more feasable IMO, all it takes is a good imagination and some research.

[trotterlg]

I also think anything common will just fail.  If I were to guess at it, loading preminum bullets into preminum brass with name brand primers and powder in the big hunting rounds would probably be the way to go.  Like Barnes Solids for dangerous game into preminum brass that is hand loaded and visually inspected and weighed may get you some customers with deep pockets.  And, you could do it in the Basement.  Never know.  Larry

[charles p]

I think you will owe a 16% excise tax to the fed government.  Seems like you should be able to deduct the excise tax imbedded in the components, but probably not.


If you know someone who makes lures for sale, they can tell you about the paperwork and tax requirements of the Federal Act that taxes our sporting equipment.  Expect unannounced visits from G-men.

[45-70.gov]

http://www.fws.gov/laws/lawsdigest/FAWILD.HTML


11%


DID YOU RUN THE NUMBERS FOR   FICTICIOUS LOADING
 say  458 win mag......$47   for 20  cheapest.....up to $121  for 20


brass was about  a dollar   ..one  hitch in this caliber
i  once saw n add where some one would re-load your brass......a service for real oddball stuff


when ever i get a hairbrained  idea......i just run a bogus ad under a bogus e-mail
on graigs  list  or some thing  to test the market
some times thats all you need to move on and not wast any more time

[Steve P]

I knew a kid who wanted to earn money for his 50 caliber habit.  Started casting bullets to sell.  When he had enough money, he bought one of the magma casters.  When he got that running good, he saved up and bought another.  I think he had his 4th caster up and running before he was able to start on his 50 caliber guns.  Word of mouth got around he had good prices on bullets and other supplies he was selling locally so soon his profits started going up.  Got into machining 50 caliber bolt actions and making mega rifles (like 27 pounders).  His 50 caliber habit turned into a machining adventure and into bigger and better things.  It took him 3-4 years to get the bullet thing going good. 
 
It is good to dream, but know it is going to take some sacrifice along the way....If it were not for my buddies addiction to making bullets, i wouldn't get to shoot as near as much as I do now, and I dont shoot even 1/10th of what I would like to.
 
Steve

[Muddyboots]

Well this may give a jump start to consider. Asset Auctions is selling off an ammunition's manufacturing plant in WI.

"Auction: 47291 - Complete Plant Closure of Major Ammunition Manufacturing Facility in Wisconsin

[/size][/color]

Inspection Date:  Wednesday, October 3"

Here is link to it: [size=78%]http://brittonmg.assetnation.com/index.cfm/general/AuctionDetail/AuctionID/4442/page/3[/size]


Might be something there to get you started.


Muddy[/color]