I have been thinking of starting a reloading business from home but unsure of all the requirements and potential profit. I know you have to get a ffl and county blessing, and liability insurance. Is it worth it? Do a lot of people buy reloaded ammo?
thinking about starting a reloading business from home
- Thread starter vongh
- Start date
- Status
ArchAngelCD
Member.
I highly suggest you consult and attorney who specializes in that business because I would never trust anyone on a forum to give me that information, even a great forum like this.
Good luck and welcome to the forum...
Good luck and welcome to the forum...
RetiredUSNChief
Member
Ditto on both the attorney and the welcome.
Consult an attorney. Common sense dictates that anything having to do with ammunition will carry liability concerns that MUST be addressed.
Heaven help you if someone were to have their firearm damaged, or worse yet, be injured or killed due to something related to using your reloaded ammunition.
I can say this with authority.
A Type VI license has to be approved by the Fire Marshal in your area. If approved, you get the license, and your house catches fire?
The FD evacuates the nearby houses and lets yours burn down.
This kept me from getting a VI. A VII will not get this type of attention, but you have taxes to pay, like $2250 per year for ITAR (Google ITAR). This also takes the fun and profit out of this.
Break even point for range fodder is around 100K rounds annually. A lot of work for a little profit, and don't forget the 11% FET. Insurance? Get the point?
A Type VI license has to be approved by the Fire Marshal in your area. If approved, you get the license, and your house catches fire?
The FD evacuates the nearby houses and lets yours burn down.
This kept me from getting a VI. A VII will not get this type of attention, but you have taxes to pay, like $2250 per year for ITAR (Google ITAR). This also takes the fun and profit out of this.
Break even point for range fodder is around 100K rounds annually. A lot of work for a little profit, and don't forget the 11% FET. Insurance? Get the point?
rcmodel
Member in memoriam
Fuggedaboutit, unless you have a minimum of $500,000 to invest and lose the first year.
You need a ATF manufactures license, a butt load of liability insurance, ballistics testing lab fees, fire insurance, the local government blessing, a building, equipment, more insurance, record keeping & accounting department, an IRS, State, and Sales Tax adviser, more insurance, and a place to sell them after you reload them.
Unless you want to advertise & sell on the web.
Then you need a website and advertising department, a shipping and receiving department,
And more record keeping and insurance on shipments.
Plus annual DOT & HAZMAT training for all your help.
rc
You need a ATF manufactures license, a butt load of liability insurance, ballistics testing lab fees, fire insurance, the local government blessing, a building, equipment, more insurance, record keeping & accounting department, an IRS, State, and Sales Tax adviser, more insurance, and a place to sell them after you reload them.
Unless you want to advertise & sell on the web.
Then you need a website and advertising department, a shipping and receiving department,
And more record keeping and insurance on shipments.
Plus annual DOT & HAZMAT training for all your help.
rc
HighExpert
Member
I spoke with the owner of Bulldog reloading in Florida years ago when ammo was actually available about doing the same thing. His response was "Do you want to take my mess off my hands?" He said the profit margin was way less than he had anticipated. He was sick of dealing with lead tests for employees, transport fees to deliver to local ranges and everyone trying to beat him up on price. His reloads sold at the local range for $8.00 a box for .45acp and he got exactly $4 of it. His cost at the time was $3.40 so you see the profit margin or lack thereof. This was before everyone went crazy about lead bullets being used in their indoor ranges, before the government decided that bullets and guns were evil and before the BATF got into everyone's business on a regular basis. My advice...Don't.
SSN Vet
Member
I think that making cast lead bullets would likely be more doable, as I suspect the lion's share of the liability would be born by the person loading the ammo.
ITAR can be avoided if you do not sell internationally and make all your customers check a box that states they are not buying the bullets for export.
Lead is going to be an issue... but should be manageable
Workers comp will be pricey.... but if you have family members working for you, I'm pretty sure you don't have to pay it.
Having an FFL does put you on the ATF's radar screen in a big way, but as a bullet molder, if you run an upright business, keep good records, you could probably manage that as well.
ITAR can be avoided if you do not sell internationally and make all your customers check a box that states they are not buying the bullets for export.
Lead is going to be an issue... but should be manageable
Workers comp will be pricey.... but if you have family members working for you, I'm pretty sure you don't have to pay it.
Having an FFL does put you on the ATF's radar screen in a big way, but as a bullet molder, if you run an upright business, keep good records, you could probably manage that as well.
Thanks for the response. Your thought on the cast bullet business is another possibility I have thought of. Does anybody know where to obtain good tin to put into the alloy?
Second thought, I have large amounts of different calibers of brass, am not sure the best way to make the most money off of it. Any thoughts about that?
Second thought, I have large amounts of different calibers of brass, am not sure the best way to make the most money off of it. Any thoughts about that?
To reload commercially, it's not just the paperwork. You will have to find reliable suppliers for cases, primers, powder, bullets. Given the current frenzy, good luck on finding a supplier.
As to the large amount of brass you have, quickest way to convert that into $ is to sell them to a metal recycler. No business licenses, FFLs and ATF record-keeping are needed to do that.
As to the large amount of brass you have, quickest way to convert that into $ is to sell them to a metal recycler. No business licenses, FFLs and ATF record-keeping are needed to do that.
blarby
Member
oh boy......
TooManyToys
Member
- Joined
- Feb 12, 2011
- Messages
- 193
Please don't even think about scraping good brass!
...Offer your brass to reloaders for a little over scrap price by the pound, ship it in Post Office flat rate boxes and I will bet it will fly off your shelves!
...Offer your brass to reloaders for a little over scrap price by the pound, ship it in Post Office flat rate boxes and I will bet it will fly off your shelves!
ArchAngelCD
Member.
IMO if you want your bullets to be consistent you need the same alloy every time. Many small bullet manufacturers buy their alloy from a large foundry and they get exactly what they want, and every time.
Like said above, please don not scrap your cases, sell them to reloaders. If you have any 223 brass I'll buy it if the price is reasonable.
SSN Vet
Member
Ammunition is a high volume, low margin business. Unless you get into speciality ammo from the get go, you will really need to crank it out to make a nickle. Add that to the capital expense, insurance and issues of maintaining a class 6 FFL you may want to reconsider your idea. I also tend to lose interest in a hobby when I get too serious about it. Oh, forget about the idea of doing this in a residential setting.
CraigC
Sixgun Nut
The surest way to take the fun out of anything is to try making money at it.
I've worked in a gunshop while I was in college and enjoyed it. I have a fantasy of owning a successful gunshop. However, I will NEVER try to open one because I would hate to know that I had to feed the family selling guns. It ain't the ATF that ruins it for me, it's the customers. I could probably tolerate a week of stingy customers who found a better deal on the internet before I completely lost it. No fun, no thanks, I'd rather be a garbage man.
I've worked in a gunshop while I was in college and enjoyed it. I have a fantasy of owning a successful gunshop. However, I will NEVER try to open one because I would hate to know that I had to feed the family selling guns. It ain't the ATF that ruins it for me, it's the customers. I could probably tolerate a week of stingy customers who found a better deal on the internet before I completely lost it. No fun, no thanks, I'd rather be a garbage man.
- Status
