Wholesale

[blarby]

Can anyone explain to me ( who has experience, not just google fu ) how a wholesalers certificate helps in the firearms industry ?

Specifically, for ammunition and bullet components.

I've used them in other endeavors- namebly textiles, but have no idea as to their usefulness ( if any ) in a firearms endeavor.

I guess this would probably be more of a tax question, but it seems like most of the bullet manufacturing companies are in low ( and here locally, some zero ) tax areas.

In textiles, some manufaturers offered better pricing at the wholesale level, and in wholesale quantities. Does this exist in the FFL world ?


Thanks.

 

[oneounceload]

You get better pricing, but you need to order in appropriate quantities, most of which is too large for most folks to do the cash outlay for

 

[hso]

If you're a retailer you get retailer prices that are discounted off of MSRP. If you're a stocking wholeseller/distributor you get a discount below the retailer price. The pricing schemes for volume and other requirements within those two categories provide further discounts. Big wholesale distributors that stock inventory get the greatest discount. That's whether you're maintaining inventories of firearms, accessories, knives, gear, etc. What those specific percentages may be depends upon the line.

 

[blarby]

You get better pricing, but you need to order in appropriate quantities, most of which is too large for most folks to do the cash outlay for

And if this was for a personal use, I could see that. I'm not concerned with personal use quantities. I'm thinking somewhere in the neighborhood of $4-5,000 orders for manufacturing purposes.

 

[hso]

$4,000 initial purchases with appropriate business and tax information will usually qualify a business as a customer. The proper business license qualifying you as a manufacturer will usually earn a different (more desirable) classification. No one will go on just someone's word that they are a retailer, wholesaler, manufacturer and some gvt. documentation (business license or tax classification) is required.

 

[blarby]

I was figuring some sort of documentation would be required.

A wholesalers cert really just helps with the tax.... I suppose the business license itself and an 06 FFL would probably go a long way.

Just trying to put the ducks in a row- thanks , HSO.

 

[waterhouse]

It also varies from place to place. Some places will want you to submit a photograph of your store front or manufacturing area along with the licenses.

 

[Bubbles]

I'm not concerned with personal use quantities. I'm thinking somewhere in the neighborhood of $4-5,000 orders for manufacturing purposes.

That's a personal sized order. Manufacturers order by the pallet, it's only recently that we've been getting deliveries by the dribble due to the shortages in components.

 

[rule303]

$4-5,000 is nothing to a mfg. I would say you need to commit to six figure orders on a regular basis to be considered a "wholesaler" by most manufacturers.

 

[oneounceload]

Blarby, I think your amounts (4-5000) need an extra zero on the end. You mentioned for manufacturing and also trying to avoid tax (I assume retail sales tax), but there are also use taxes, the FET on sporting goods (IIRC, it is 11%) etc., etc.......

 

[blarby]

And thats what were lookin for...