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Starting an Ammo business.

Posted: Thu Apr 23, 2009 9:28 pm
by Beiruty
What is need to legally sell Manufactured, or re-loaded Ammo with the intent to sell to the general Public?. If the the demand is so high and supply is so low and one can reload at 40% to 50%, it could be a small business success story.

Re: Starting an Ammo business.

Posted: Thu Apr 23, 2009 9:49 pm
by Oldgringo
Beiruty wrote:What is need to legally sell Manufactured, or re-loaded Ammo with the intent to sell to the general Public?. If the the demand is so high and supply is so low and one can reload at 40% to 50%, it could be a small business success story.
If you're planning on selling reloads, you might want to look at the cost of Liability Insurance first. :eek6

Re: Starting an Ammo business.

Posted: Thu Apr 23, 2009 10:21 pm
by Crossfire
You need an FFL to sell ammo. Start here: http://www.atf.gov/" onclick="window.open(this.href);return false;

Re: Starting an Ammo business.

Posted: Thu Apr 23, 2009 11:31 pm
by Greybeard
Since the others have touched on it, but no one has yet said it, another of Murphy's Laws is to the effect of "Everyone has a scheme for getting rich that will not work." ;-)

Proceed cautiously.

Re: Starting an Ammo business.

Posted: Fri Apr 24, 2009 3:19 am
by Mike1951
Don't forget, components are almost as scarce as loaded ammo.

Re: Starting an Ammo business.

Posted: Fri Apr 24, 2009 5:59 am
by longtooth
Especially primers.
I frequent a couple of National boards & Texas is really in better shape than most. :banghead:

Re: Starting an Ammo business.

Posted: Fri Apr 24, 2009 7:37 am
by RECIT
Doesn't everyone say not to shoot rounds reloaded by someone else?

Re: Starting an Ammo business.

Posted: Fri Apr 24, 2009 7:54 am
by tfrazier
The federal government (along with lobbies made up of the major ammunition and firearms retailers) has made it economically unfeasible for the average joe to start up a legitimate reload business. First, you have to have a type 06 ffl minimum, and the requirements for that are extensive. Unlike past decades, they now will verify local ordinances and codes with your city and county governments to ensure you are zoned for the business.

In the event that you have facilities and a location that meets or exceeds all the requirements, you will have to pay a yearly MINIMUM excise tax...I think it's currently $2,200. The ATF will also do mandatory annual inspections on the place you designate for your business.

It's just not worth it. Believe me, I've checked, and even if you can get your manufacturing cost per 50 down to less than $2.00 you will still have to charge near factory prices or higher in order to turn a profit.

Then add the cost of liability insurance (good luck even finding any insurance company that will include liability from reload sales in a policy) and all the other hassles and you'd be better off investing in a full blown retail store selling factory ammo. The investment would cost less.