This is mostly what we manufacture..
A whole lot of things come to mind in response to this question!
I think the biggest thing is resources.
Some of these type firearms take a long time to convert to semi-auto in a manner that the BATFE FTB will approve.
You have to be able to keep the doors open while working through all the hurdles.
The project has to be big enough to re-pay all the time/effort/money invested.
Your company has to have the machines and know-how to actually move the FTB approved design from a hand fitted prototype to a production line.
You need REAL money to advertise.
You need to be a licensed, bonded and insured manufacturer or the distributors won't even talk to you about stocking your product. That insurance alone is a huge overhead. Add on medical coverage for the employees.
OH, and don't forget that the BATFE collects Federal Excise Tax (about 10%) on every firearm that you manufacture. It comes right off the top.
Now factor in the office staff it takes to track all the records and keep the "bound books" in order. Figure at least 250 entries a week. Expect to cease operations at least once a quarter to conduct an internal audit. That will take a day or two. Also expect to handle a BATFE compliance inspection at least once a year. That can be a few days or a week. BATFE is taking note of all the manufacturers. They just conducted their first "Manufacturers Conference" in Washington. They put out some new guidance and restated a lot of areas where they noted "weaknesses".
Try and figure out what states, counties and cities have regulations prohibiting sales of the firearms you manufacture! Some won't even allow a non-functioning "non-gun" example to be sold/possessed. It is a lot of reading, and the BATFE states you have to abide by all the state laws.
I think you can get the idea that this isn't easy...
It is why we do most of our work under contract as it can reduce the initial costs. Buying/owning hundreds of part sets can idle an awful lot of needed working capitol. With Banks tightening up on business loans you have to watch every dollar spent.
I am typing too much!
This all seems so much more reasonable an effort when we are test firing product!
Regards,
Richard C. Hamer
Factory Representative
Wise Lite Arms
Class II Manufacturer
07 FFL SOT
FAX: (940) 433-8096
WEBSITE:
http://www.wlarms.com/
SALES:
[email protected]
INFORMATION:
[email protected]
) sold to civilians due to liabilities and other stuff. Civilians tend to do stupid stuff with guns (shoot up schools or North Hollywood) or convert them to automatic (violating even more laws!). Government, while killing on a larger scale, tend to be justified if they do something wrong.
