Handgun ammo, should I do it?????

[1911Operator]

Hey guys, so im thinking of starting my own ammo company. its going to be small but I am planning on pumping out about 80k-100k rounds a month in the beginning. I will have my FFL 06 and be licensed and insured before I start. Im trying to get a location going in NOR-CAL for now, so probably be based up here in Redwood city or near San Francisco. I wanted to ask you (the consumers) what fair prices would be? At first I will only be doing 45ACP and I am thinking of pricing it around $14/$15 a box? I would only make a small profit but im not really in it to make the money. I just love shooting like everyone on this forum. I miss the days when it was only $12 a box of ammo and everyone could afford to shot. Now, the prices are so high and with the new FEB 2011 law coming, the prices will be going higher since the only place you can buy ammo is at a gun store or you will be forced to reload yourself. Many people my age (25yrs), and like me, live in apartments and do not have the option to start reloading. So, what do you guys think? If business picks up and funds allow me to, I would like to be making 40S&W and 9mm since they are the most commonly and popular used rounds. I have no idea what prices I would sell the 40S&W & 9mm at but I would sacrafice a lower profit just to see people having a good time and enjoying the sport. My goal is to beat any prices from the big companies!

[wu_dot_com]

for one, 9mm operation is not going to be worth it. the margin of the 9mm is so low that it barely breaks even with cost. try 375, .44, 5.7mm, 50AE, 50 cal, etc. the margin will be much higher and you will actually make a small amount of profit to keep the business going. .45 will give you more margin over .40. i remember doing the calculation that comparing to avg cost of .45 from the show, a 2k investment (1 die, fully auto press, powder, primer, bullet, and misc) would take reloading 30K rounds match the pay back, and thats not counting the cost for brass.

hope this gives you an idea.

[rips31]

you'd have to do it for the love and hope business picks up to break even. best bet would be a niche market, like elite ammo did, tho. but since you're local, i'd patronize you.

[NotEnoughGuns]

I reload myself, 9mm FMJ is hardly worth reloading. If you want to start out you'd be better off reloading higher priced ammo. IMO you'd probably be better off working at wal-mart.

[1911Operator]

making enough to keep me from going under is good enough. like I said, im not in it to make the money. just want enough to pay for the work area rent, and utilities. but im trying to see what you guys think about the prices. I already have my plans all writen out and ready to go.

[sd joe]

Reloading is not only about cost, but for accuracy as well.

[GM_77]

If it pays for itself and any ammo you end up using I'd say do it. I've always wished this hobby I have would pay for itself.

As far as prices go here is a good place to check out the cost of ammunition from retail stores.

[NotEnoughGuns]

making enough to keep me from going under is good enough. like I said, im not in it to make the money. just want enough to pay for the work area rent, and utilities. but im trying to see what you guys think about the prices. I already have my plans all writen out and ready to go.

Not really. But if you must go for it then do it. California is a horrible place to try to manufacture a product. Maybe move to a friendlier place and sell to us deprived commiefornians.

[GSG222]

That would be a serious business decision. I have a friend who wanted to do the same thing years ago and eneded up giving me his loading device for free. There were way too many things related to the business that he was willing to tackle. I also hate the high ammo cost (that's part of the reason I reload my 45ACP), but I would think there are legitimate reasons behind it and the profit margin is not as high as one would think. Also, do you have a market to consume your products fast enough to sustain your cash flow? If you do, and if you do have the passion - go for it. I will buy

[1911Operator]

Reloading is not only about cost, but for accuracy as well.

I just made my first 200 rounds the other day. accuracy was amazing. I was afraid at first so I shot one round at a time. my friend tried them too. the shot 3 rounds into a hole the size of a quarter! I was really impressed by it. I took the target out to 25 yards and here is what I came out with:

7 rounds were in a 6.25" grouping and 1 flyer. It was my first shot and I know it because it hit to the right.

I was shooting my full size SA 1911 and about 1.5 secs between shots. I was really happy with the ammo I made, its my first time and it came out better then I was hoping for

[NotEnoughGuns]

I understand your enthusiasm but Kalifornia is probably the worst state to try to start a business let alone one related to shooting.

[1911Operator]

That would be a serious business decision. I have a friend who wanted to do the same thing years ago and eneded up giving me his loading device for free. There were way too many things related to the business that he was willing to tackle. I also hate the high ammo cost (that's part of the reason I reload my 45ACP), but I would think there are legitimate reasons behind it and the profit margin is not as high as one would think. Also, do you have a market to consume your products fast enough to sustain your cash flow? If you do, and if you do have the passion - go for it. I will buy

yeah i know..... lots and lots of work until you start! getting my FFL 06 and being insured would allow me to sell on gun broker. I can also have a website too. I know I would go nuts if I saw 1k rounds of 45ACP for $300. prob buy a few thousand since its ammo, i would end up shooting it eventurally.

[paul0660]

100k rounds at 15 per box is 30000 per month. Assuming you can sell all that, what is your gross profit (30000 less materials) and net profit (gross profit less all other overhead?)

[sk8804]

For acp thats a good price. For .40, which I shoot, fmj would be good at $13-15 a box of 50. I buy federal fmj from wally world currently for that price. For hollows it could range from $20-30 a box of 50, since i currently use Fed. HST from wal-mart at $22 a box of 50 and Winchester Ranger T for around $30 a box of 50. Good luck.

[NotEnoughGuns]

100k rounds at 15 per box is 30000 per month. Assuming you can sell all that, what is your gross profit (30000 less materials) and net profit (gross profit less all other overhead?)

probably -$10000