Reloading profitable

mblount · July 11, 2014, 06:09 PM

I am currently a partner with a Gun barrel manufacturer and we mainly deal in the AR 15 barrels. We are considering acquiring the equipment to make and sell Ammo. We have the proper license and we already own a warehouse that houses our CNC Barrel machine. I know the demand is there for certain ammo but does anybody know is it possible to compete against your " Hornaby's "?

jwrowland77 · July 11, 2014, 06:11 PM

Well, that's why most of us reload. Not that we save money, but shoot 2-3 times more because we can load for half the price, or more. Plus it's more accurate than store bought ammo that's made to fit everyone's firearm.

I'm sure it could be profitable for non-reloaders that see your ammo cost less than the big manufactures.

kilimanjaro · July 11, 2014, 06:28 PM

The other companies competing with Hornaby's seem to be able to do it.

A nice match load for .223 would certainly have a market. FMJ will always have a market if the price is comparable to the others.

Get a good graphics design for your box.

jmorris · July 11, 2014, 09:30 PM

Would have been better off two years ago but why not?

If you want to make the most profit you should do "odd ball" rounds. Everyone makes .223/9mm but go for ones that folks don't do. A good example if you were ahead of the curve would be 300 blk but everyone has already jumped on that boat.

If your starting out make good "nich" ammo, for profit.

Just know, of you make one bad round, game is over.

Lucas McCain · July 12, 2014, 12:37 AM

You are going to face the same problems we reloaders face. Finding brass, bullets, powder and primers.

Machineguntony · July 12, 2014, 12:39 AM

If you could find the equipment and machinery to manufacture .22 rimfire, you'd be a zillionaire. I'd buy some in bulk.

skizzums · July 12, 2014, 12:42 AM

I have a friend that works for GA Arms right by my house, I have met the owner a couple times. Pretty much reloads is all the business they do. they do very well, have a huge shop here and sell nationally. not a lot of employees. they do a large sum of their business having other people sell their ammo at gun shows and at all the other LGS. most of the ammo sold is pistol ammo, but also do a lot of 223 and sell specialty hunting/target loads for most rifle calibers. I would think the biggest question is how are you planning to sell and market the ammo, and what marketing/labor/insurance costs will be associated with selling ammo. I think all of us re-loaders secretly have a dream to get rich selling it one day, especially when you see how cheap it can be made if "cheap" is what you're going for

kilimanjaro · July 12, 2014, 11:09 AM

A match 223 and 308 would be good. Love to see 30-40 Krag, 7.5 Swiss, and good niche rounds on the shelves.

jag2 · July 12, 2014, 06:00 PM

What Lucas said. How do plan on getting your components? Long standing customers that have and will place huge orders can't get what they want. If you had done it a couple of years ago and had accumulated massive inventories of all the necessary components you might have done okay but remember, you run out of just one of the four components you are shut down. My guess (and it just that) is that it will be a couple of more years before things even out again. If you remember a few years ago we had a primer shortage followed buy a bullet shortage (which still exists to some extent) and now for the last six months or so powder has disappeared. So if you have some answer that covers all those contingencies then you have my blessing. Go for it

StripesDude · July 12, 2014, 07:22 PM

From a cost of goods sold standpoint, most of us are saving 60-75% vs store bought ammo. So figure if you have volume buying power (purchasing hundreds of thousands of dollars in bullets, brass, powder and primers at one time), your cost would drop dramatically from what it costs the average hobby reloader.

Then you're looking at equipment (could be tens or hundreds of thousands of dollars), liability insurance for an ammo manufacturer, a secure and fireproof area to store hundreds or thousands of pounds of powder and primers, and a pretty good marketing budget to get your food in the door and your name out there to compete with the big boys.

Lots of costs other than brass, powder, bullets and primers.

sig220mwxxxx · July 13, 2014, 10:44 AM

You would have to go a great amount of volume in order to really profit. In the early 90s shortly before I started handloading myself, in Fort Worth, Texas I found a small gun shop that sold their own handloaded ammo in addition to factory stuff. I bought from them for a while and while I never had any problems with it, I saw one person come in one day with complaints about 223 ammo not cycling through his semi-auto rifle. I watched as they broke it down and weighed the charges and they indeed were found to be too light on several of the loaded rounds though not on all. Quality control was lacking at least in that incident. I soon started loading my own and have no idea how they did afterwards.

std7mag · July 13, 2014, 11:57 AM

And TONS of Liability insurance!!!
This is going to be your major cost!!
Also, before you start a reloading business, you may want to check with your Zoning!! You may not be allowed to reload there!

chris in va · July 13, 2014, 12:47 PM

Make 22lr. $$$.

mboylan · July 14, 2014, 03:47 AM

.22 LR has about a $30,000,000.00 start-up cost and has to be done in huge volume to make even a small profit. That's why no one except Remington is starting up or building new lines.

Remington has been working on it for at least a year. It will probably be a year or more before the added capacity is operational.

5R milspec · July 16, 2014, 07:43 PM

yes it sure does mostly in the pocket but always in the load for each weaponof choice

July 11, 2014, 06:09 PM	#1
mblount Junior Member Join Date: June 6, 2013 Posts: 3	Reloading profitable I am currently a partner with a Gun barrel manufacturer and we mainly deal in the AR 15 barrels. We are considering acquiring the equipment to make and sell Ammo. We have the proper license and we already own a warehouse that houses our CNC Barrel machine. I know the demand is there for certain ammo but does anybody know is it possible to compete against your " Hornaby's "?

July 11, 2014, 06:11 PM	#2
jwrowland77 Senior Member Join Date: March 23, 2012 Location: Conway, Arkansas Posts: 1,398	Reloading profitable Well, that's why most of us reload. Not that we save money, but shoot 2-3 times more because we can load for half the price, or more. Plus it's more accurate than store bought ammo that's made to fit everyone's firearm. I'm sure it could be profitable for non-reloaders that see your ammo cost less than the big manufactures.

July 12, 2014, 12:37 AM	#5
Lucas McCain Senior Member Join Date: March 7, 2013 Location: Callaway, MN Posts: 361	You are going to face the same problems we reloaders face. Finding brass, bullets, powder and primers. __________________ If you have time to do it twice, then you have time to do it once right and put your name on it

July 12, 2014, 12:39 AM	#6
Machineguntony Senior Member Join Date: June 22, 2013 Posts: 1,277	If you could find the equipment and machinery to manufacture .22 rimfire, you'd be a zillionaire. I'd buy some in bulk. __________________ Sent from Motorola DynaTac 8000x

July 12, 2014, 12:42 AM	#7
skizzums Senior Member Join Date: July 1, 2013 Location: Douglasville, Ga Posts: 4,615	I have a friend that works for GA Arms right by my house, I have met the owner a couple times. Pretty much reloads is all the business they do. they do very well, have a huge shop here and sell nationally. not a lot of employees. they do a large sum of their business having other people sell their ammo at gun shows and at all the other LGS. most of the ammo sold is pistol ammo, but also do a lot of 223 and sell specialty hunting/target loads for most rifle calibers. I would think the biggest question is how are you planning to sell and market the ammo, and what marketing/labor/insurance costs will be associated with selling ammo. I think all of us re-loaders secretly have a dream to get rich selling it one day, especially when you see how cheap it can be made if "cheap" is what you're going for __________________ My head is bloody, but unbowed

July 11, 2014, 06:28 PM	#3
kilimanjaro Senior Member Join Date: November 23, 2009 Posts: 3,963	The other companies competing with Hornaby's seem to be able to do it. A nice match load for .223 would certainly have a market. FMJ will always have a market if the price is comparable to the others. Get a good graphics design for your box.

July 11, 2014, 09:30 PM	#4
jmorris Senior Member Join Date: November 22, 2006 Posts: 3,077	Would have been better off two years ago but why not? If you want to make the most profit you should do "odd ball" rounds. Everyone makes .223/9mm but go for ones that folks don't do. A good example if you were ahead of the curve would be 300 blk but everyone has already jumped on that boat. If your starting out make good "nich" ammo, for profit. Just know, of you make one bad round, game is over.

July 12, 2014, 11:09 AM	#8
kilimanjaro Senior Member Join Date: November 23, 2009 Posts: 3,963	A match 223 and 308 would be good. Love to see 30-40 Krag, 7.5 Swiss, and good niche rounds on the shelves.

July 12, 2014, 06:00 PM	#9
jag2 Senior Member Join Date: June 30, 2009 Location: dallas Posts: 773	What Lucas said. How do plan on getting your components? Long standing customers that have and will place huge orders can't get what they want. If you had done it a couple of years ago and had accumulated massive inventories of all the necessary components you might have done okay but remember, you run out of just one of the four components you are shut down. My guess (and it just that) is that it will be a couple of more years before things even out again. If you remember a few years ago we had a primer shortage followed buy a bullet shortage (which still exists to some extent) and now for the last six months or so powder has disappeared. So if you have some answer that covers all those contingencies then you have my blessing. Go for it

July 12, 2014, 07:22 PM	#10
StripesDude Member Join Date: June 29, 2014 Posts: 88	From a cost of goods sold standpoint, most of us are saving 60-75% vs store bought ammo. So figure if you have volume buying power (purchasing hundreds of thousands of dollars in bullets, brass, powder and primers at one time), your cost would drop dramatically from what it costs the average hobby reloader. Then you're looking at equipment (could be tens or hundreds of thousands of dollars), liability insurance for an ammo manufacturer, a secure and fireproof area to store hundreds or thousands of pounds of powder and primers, and a pretty good marketing budget to get your food in the door and your name out there to compete with the big boys. Lots of costs other than brass, powder, bullets and primers.

July 13, 2014, 10:44 AM	#11
sig220mwxxxx Senior Member Join Date: April 16, 2011 Location: Marshall, Texas Posts: 104	You would have to go a great amount of volume in order to really profit. In the early 90s shortly before I started handloading myself, in Fort Worth, Texas I found a small gun shop that sold their own handloaded ammo in addition to factory stuff. I bought from them for a while and while I never had any problems with it, I saw one person come in one day with complaints about 223 ammo not cycling through his semi-auto rifle. I watched as they broke it down and weighed the charges and they indeed were found to be too light on several of the loaded rounds though not on all. Quality control was lacking at least in that incident. I soon started loading my own and have no idea how they did afterwards.

July 13, 2014, 11:57 AM	#12
std7mag Senior Member Join Date: June 23, 2013 Location: Central Taxylvania.. Posts: 3,609	Get a good lawyer!!!! And TONS of Liability insurance!!! This is going to be your major cost!! Also, before you start a reloading business, you may want to check with your Zoning!! You may not be allowed to reload there!

July 13, 2014, 12:47 PM	#13
chris in va Senior Member Join Date: December 26, 2004 Location: Louisville KY Posts: 13,806	Make 22lr. $$$.

July 14, 2014, 03:47 AM	#14
mboylan Senior Member Join Date: March 31, 2011 Posts: 120	.22 LR has about a $30,000,000.00 start-up cost and has to be done in huge volume to make even a small profit. That's why no one except Remington is starting up or building new lines. Remington has been working on it for at least a year. It will probably be a year or more before the added capacity is operational.

July 16, 2014, 07:43 PM	#15
5R milspec Senior Member Join Date: December 11, 2009 Location: South Carolina Posts: 360	yes it sure does mostly in the pocket but always in the load for each weaponof choice __________________ life is great but its better when you can own as many guns you wish to own.for me I haven't bought enough yet.