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Starting a Ammo Mfg Business

Discussion in 'Handloading and Reloading' started by Ruger4Life, Sep 29, 2011.

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  1. Ruger4Life

    Ruger4Life Member

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    I'm planning on starting a ammo manufacturing Business and I would appreciate any pointers anyone can give that would help me get started: i.e., regulations, licenses needed, marketing strategies, etc,.

    thanks!
     
  2. rcmodel

    rcmodel Member in memoriam

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  3. dprice3844444

    dprice3844444 member

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    se fla i love claymores 01/sot
    contact atf
     
  4. mdi

    mdi Member

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    You'll need lots of insurance. For the manufacturing (fire, explosions, etc.) and liability (idiots suing you for them shooting themselves).
     
  5. MissouriBullet

    MissouriBullet Member

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    Bullets. You will need lots and lots of bullets. Lead ones are best and I can tell you where to get them.

    Seriously, you start with the FFL06 license. It's cheap until you factor in the time involved in filling out the application. I especially enjoyed the section on "Impact of Proposed Business Upon Navigable Waterways." Then you shop for liability insurance with $1 million as the absolute minimum number. And logistics including supplies, like boxes for the cartridges, shipping cartons, picking a shipper, marketing, et al.. Don't forget the 11% FET on every sale you make which you must remit to IRS.

    And of course, you'll have to figure out zoning.

    And get the ITAR certification from the State Department. It's $2250.00 per year and takes about 3 months to get once you lose all of your hair filling out the applications, which are all written in Martian. It is true that most FFL06's do not have the ITAR certification and that's fine. 5 years of their time (well, less 15% for good behavior) and the one million dollar fine for not having it and being a manufacturer of munitions might be a feasible risk for them. Is it for you, too? One disgruntled customer and boom! Arrest warrant served by the FBI.

    Those are a few of the basics.

    Brad
     
  6. FROGO207

    FROGO207 Member

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    My question is WHY?? I investigated this years ago and kept my day job as an Electrician/Plumber for good reason. It is not just set up a couple Dillons in the garage and box the stuff up for sale. I think that it would be a rather costly adventure to under take, especially in this economy. If you do I wish you all kinds of luck--you'll need it.:scrutiny:
     
  7. Jim Watson

    Jim Watson Member

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    Uh, you ARE an extremely proficient and experienced handloader for your own use, aren't you?

    You are a good mechanic with a good shop, aren't you? (Not "mechanically inclined", GOOD.)
     
  8. RhinoDefense

    RhinoDefense Member

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    An ammunition manufacturing business is just like any other business. Most go about it the wrong way and fail. If you have the fantasy that you will be able to start with a Dillon or few and grow to buying automated machinery, you're just like the thousands before you that failed.

    Unless you are going to operate Camdex machines, forget about it. Loading on Dillons is only polishing the glass ceiling. It's just the way it is. Ammunition is a volume game. By volume I mean hundreds of thousands of rounds per month is a good start. If that press isn't running a solid 8-10 hours a day, it's not worth it.

    You will not be able to handle the volume alone. You will need help (employees) which brings extra burden upon yourself and more expenses for your business. Ammunition is a commodity.

    Asking for marketing an ammunition company is like asking for marketing an automobile company. What are you going to make? Decide what your catalog will be and then determine who would buy your product.

    It's basic business. Don't turn a hobby into a business. It will ruin the fun. If you don't know how to run a business, don't think you can learn along the way. Work a 9-5 or hire managers to manage the business for you.

    Get a formal business plan together and really, really do your research. I'm not talking about gun forums. What you're doing here is not research.

    Being an ammunition manufacturer is 80% business and 20% ammunition. Forget about the ammunition and think business. There are only a handful of ammunition manufacturers on this forum. You need to focus on business and not a hobby site.
     
  9. Ruger4Life

    Ruger4Life Member

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    Thanks for all the replies. I will take all under advisement.
     
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