Gross Margin on Ammo sales

[elSquid]

Yes, but the game will change in feb 2011 and that competition will be outlawed. So, we expect the prices to rise considerably and someone that could do high volume and discount heavily will probably do well. Just thinking out loud for now. Maybe even a mobile business that frequents IDPA comps and negotiates a commission to the range.

As a data point... Once I can no longer buy 9mm by the case online, I plan on hitting the local gunshows every few months and I'll buy from Miwall. Expect others to do the same.

http://miwallcorp.com/schedule/

-- Michael

[joelogic]

Not a dealer but as far as markup goes on reloaded ammo its at least 50%. I reload a case of .223 for $150 and its sells online for $275.

What kind of redtape and taxes go along with importing ammunition?

[HCz]

If you mean importing as in "imported from LA county" it shouldn't be that hard. AFAIK, at least until 2007, PMC brought/imported their ammo themselves. The company was somewhere in LA county. They don't sell it as retail.

[HotRails]

Yes, but the game will change in feb 2011 and that competition will be outlawed. So, we expect the prices to rise considerably and someone that could do high volume and discount heavily will probably do well. Just thinking out loud for now. Maybe even a mobile business that frequents IDPA comps and negotiates a commission to the range.

The 02/2011 ban completely slipped my mind. If you made it to both shows and ranges/IDPA comps then you might be able to compete effectively with MiWall. Good luck to anyone who can effectively keep ammo prices down in CA.

[ChrisTKHarris]

I heart PMC, do it.

[Seesm]

A business needs to make money so who cares what THEY pay but I bet its not all that much.

[Turbinator]

To the OP - if you are thinking of making a business out of selling gun stuff, then it is actually somewhat irrelevant what other retailers make on their own sales. You need to take into account your own overhead costs, your own profit targets, your own product costs, decide what is right for you to continue your own business, and figure out how much you can charge your intended market.

Wish you luck!

Turby