The Ammunition Business

[HOUSTON RICK]

I am certainly no gunsmith, but like a lot of people looking into handloading, I wonder whether,much more experience down the road, it would be a sensible retirement pursuit to sell handloaded ammunition at gunshows without losing money. There is the AFT 6 license and insurance, but are the components always too expensive to sell at a profit in the current market? Anyone done or doing this? thanks, Rick

 

[SEIndSAM]

I know someone who used to do this, but the price of insurance ran him out of business.

 

[gregintenn]

I know someone who used to do this, but the price of insurance ran him out of business.

That would be my guess as well.

I've had good luck making custom belts and holsters as a somewhat profitable hobby.

 

[S&WIowegan]

I sold handloads in the early 90s for a while but cheap imported ammunition ran me out of business. I think it was S&B from Czech Republic that undersold me, but then Wolf came along.

I have a friend who owns 3 Dillon Super 1050s and does custom handloading for competitive shooters. They provide the components and he the time and skill. He gets paid for time and equipment. When things get real scarce, the biz goes down in a hurry.

 

[federali]

On Commercial sales

As others have mentioned, once you deal with the insurance, overseas competition and the BATFE sleeping in your bed, You would probably have to cast your own bullets and obtain primers and powder at wholesale prices if you hope to turn a profit.

A casual friend ran a highly successful commercial reloading business on Long Island, NY, selling to gun shops and many police departments. But, that was in revolver days when most departments trained and qualified with reloaded wadcutters.

The sudden transition to autoloaders and the emerging practice of practicing with what you carry, gradually began to erode his business until it was no longer profitable to remain open. An explosion in a powder reservoir which killed a worker, didn't help.

 

[MyDads38]

And I don't know if it still pertains to reloaded ammo, but you used to have to pay 11% excise tax to Uncle Sam on each box of reloads that you sold. And let the Fed Gov't screw up one of your payments you send in and you are 6 months + getting it straightened out!

I don't see it as a viable small business venture these days, as was mentioned above; once LE went to semi-autos, most departments have to qualify with factory ammo. Back in the revolver days, they used wadcutter reloads. And then there's the availability of components...

 

[chief38]

As much as I love this hobby (and I do) I would not want to have to count on supporting my family from anything related to guns. The reason is that today everything and anything could change on a dime either putting one out of business or severely restricting it. The restrictions and laws are getting so ridiculous and hard to follow just as an enthusiast - I could not sleep at night if I derived my income from this, but that's just me........

 

[M3Stuart]

First let me say that I don't have all the information and don't totally understand the licenses, insurance, etc.

That said; one or more of the ranges I shoot at has a contract to sell all their used brass to a reloader who then provides the range their 'range ammo' which is typically priced at least a few bucks less per box than the very cheapest stuff you would ever find in a store.

During the recent chaos, they often had supplies of 9mm and .45ACP when nobody else did though their prices did go up during that time and they would limit you to one box.

In summary: if you have a specialized customer (in this case - a shooting range) and specialized supply (ample supplies of range brass), I'm thinking it COULD be profitable.

 

[Bkreutz]

First let me say that I don't have all the information and don't totally understand the licenses, insurance, etc.

That said; one or more of the ranges I shoot at has a contract to sell all their used brass to a reloader who then provides the range their 'range ammo' which is typically priced at least a few bucks less per box than the very cheapest stuff you would ever find in a store.

During the recent chaos, they often had supplies of 9mm and .45ACP when nobody else did though their prices did go up during that time and they would limit you to one box.

In summary: if you have a specialized customer (in this case - a shooting range) and specialized supply (ample supplies of range brass), I'm thinking it COULD be profitable.

In today's legal climate, all it would take is one incident to bankrupt the handloader. Notice I said incident, a shooter could have brought a pocket full of suspect handloads, or have a cracked barrel, or a number of other things. He has an explosion and then gets a lawyer. How deep are your pockets? Deep enough for an involved lawsuit? Too many risks IMO for the meager profit potential. I won't even give my handloads to anyone, much less selling them. I will teach someone to handload, I'll even let them use my equipment, but that's the extent of my involvement. I've never had a problem with hundreds of thousands of rounds I've loaded, but I don't trust things I can't control.

 

[df06]

What Chirf38 said.
Things can change fast and when they do, its often "not for the better."

 

[Culina]

I had a friend that came up with the great idea that "we" could start an ammunition company since he couldn't find any .223 and he was waiting in line to pay $1 a round. Then I had to burst his bubble and tell him that components couldn't be had either.

 

[fredj338]

You can make some $$, but unless you buy huge quantities of components from a wholesaler, you aren't making much $$. You would need a high end machine, a 1050 at a minimum. The time involved is extensive & licensing, fet & ins, just not worth it to me. Don't forget, you need packaging too. Yes, I did this back in the early 90s, my niche was ammo for CAS shooters. There were limited choices for low vel lead bullets in many calibers. I made enough $$ to pay for my ammo.

 

[Moe Mentum]

One bad round, one lawsuit and your done ! Not worth the risk.

 

[fredj338]

One bad round, one lawsuit and your done ! Not worth the risk.

This alone would not stop me. You run liability risks in almost all businesses. He lack of profit & the time & the regulations are the real issues for me.

 

[rwsmith]

Some questions to ask

How many bullets would you have to sell to make it worthwhile?

How often can you rent a table at a show?

How many would you expect to sell at each show?

How much overhead in time and money will it really cost?

I think it's possible. My Speer book says that Vernon Speer started out by rolling .22 cases into jackets for his bullets and selling them to his friends who were frustrated by war shortages. Times are different, but maybe the scarcity of ammo could be a catalyst for helping things happen.

BTW Speer was helped along by a talent he had for designing and making his own machinery.

 

[HOUSTON RICK]

How many bullets would you have to sell to make it worthwhile?

How often can you rent a table at a show?

How many would you expect to sell at each show?

How much overhead in time and money will it really cost?

I think it's possible. My Speer book says that Vernon Speer started out by rolling .22 cases into jackets for his bullets and selling them to his friends who were frustrated by war shortages. Times are different, but maybe the scarcity of ammo could be a catalyst for helping things happen.

BTW Speer was helped along by a talent he had for designing and making his own machinery.

How much is a fully equipped Dillon 1050 these days? No matter what you do in dealing with the public, it is risky. Manufacturing bullets has lower insurance rates than legal malpractice insurance.

 

[Moonman]

HOUSTON RICK,

Dillon Super 1050 $1719 base, options are;

Powder Check System, $69
Low Powder Sensor $42
Aluminum Bullet Tray $42

That's it, because it basically comes with everything including the DIES.

 

[gregintenn]

One bad round, one lawsuit and your done ! Not worth the risk.

One defective gun, or one stupid customer and to court you'll be going.

 

[fredj338]

I think it's possible. My Speer book says that Vernon Speer started out by rolling .22 cases into jackets for his bullets and selling them to his friends who were frustrated by war shortages. Times are different, but maybe the scarcity of ammo could be a catalyst for helping things happen.

BTW Speer was helped along by a talent he had for designing and making his own machinery.

That was a diff era. Few regulations, no lic & few major bullet suppliers, lawyers never sued anyone for being stupid. Today, totally diff enviro. Even the guy that started HomeDepot said he couldn't do it today. If you just want a hobby that pays for itself, yes it can be done.

 

[Smithhound]

Insurance and legal issues aside remember this, when you start doing something you enjoyed as a hobby for a living, the fun rapidly wears off.
Your best bet, if you want to get serious with it is to find a 'niche' market and have your customers come up with their own brass. The few times I've tried to help people out they've always left the brass lay and then gotten mad when I refused to help again. Much easier for them to have you do all the work and bear the expense. Sadly that's the way much of life goes.
Rad