Question for the community, reloaded ammo

[TAB]

would you buy once fired ammo from ffl06?

Not  some guy at a gun show selling bags, but a legatmite, business, with all thier ducks in a row.


Iat what price point would that become attractive you?  Example let's say a box of ammo is $25. At what point would it become interesting too you?

I would buy it, I just never see it for sale.  Which means either it's all staying local too the places that do reload it, they have contracts for lea that eat up thier time or it's cost prohibitive.  Maybe there is something else I am missing?

I have been pricing out Camdex  systems and have a pretty good idea on a start up cost, just trying too see if there is a market.

[Solus]

I think the biggest problem to overcome would be getting a reputation for reliability.

I remember when Black Hills started up and I was very leery of buying newly manufactured ammo from a No-Name company...one I'd never head of.  After trying them for a few boxes I gained confidence...and their reputation spread in reviews and publications.

I think any startup would face the same problems and more so for reloaded ammo.   

For sure you would need to offer a good cost savings over established manufactures to start with.

And perhaps selling to local shooting ranges and gun clubs might be a way to get noticed and a reputation.

The reloaders who might be potential customers attracted to a inexpensive source of twice fired brass for their own reloading.

Again, you will need to establish trust with potential buyers...

I have no doubt you would produce a quality product.

Good luck.
                                                                                                                                                                                                                 

[TAB]

I have some ideas about that, one of the cheapest ways to get results quickly would be to contact gun YouTube  people and see if i could talk them into trying said product.  Not a paid promotion, but here is 1000-3000 rounds, shoot it up. Another would be to get with the local Leo association, sponsor them in shooting events and provide ammo.  There are lots of angles too work, I am just trying too figure out if it's even worth doing.   Remember the feds take 17% of all guns/ ammo sales as an excise tax. So that has too be accounted for.   Between everything I would be looking at, it's about 250k to get started with enough tooling and stock to meet a mild demand.  The break even point is the question.  Example you could pretty easily do 10k rounds a day. Is 250k rounds a month enough to make money is the question.

[Rastus]

Good question.  I've shot a lot of Atlanta Arms remanufactured ammo back when I had time to train..or took the time to train.  I had no problems with it functioning properly....so on this basis the reman is good. 

I have some 308 reman I got from CMP (will get the name later) and most of it was super.  However, I have a batch with separating cartridges...maybe loaded too hot...I dunno.

Don't forget insurance cost......

[TAB]

Already priced that out, it's not near as bad as I thought it would be.   The box's, and those plastic bullet trays however are shockingly expensive

[Sponsor]

[Majer]

You also need to see who your customers will be and have loads that they will want to use. As an example,The ammo I use in Cowboy Action shooting, If I start with brand new Starline brass to load 1000 rounds, it costs me $12.35 per box of 50,Once I have empty brass to reload my cost per box of 50 is $5.55. Now if I were to buy factory ammo, Winchester 158 grain LRN-FP will cost me $38.00 a box of 50 plus tax and shipping. And it will be a heavier load than what I use, 158 grain bullet versus 105 grain.If you have a lot of CAS shoots in your area it might pay to carry the loads they like to use, same goes for IPSC and Practical pistol or 3 gun.

[TAB]

So if costs you $12 At what price point would  intrest  you?  That is the question I am really wondering about.  That is assuming the reload was simlar too what you wanted.

Let's be honest, guys that role thier own are not the target group.  It's more guys that want too shoot more for the same $/ shoot the same, but pay less. 

What I am kind of thinking is that if a box goes for $25, paying around $20 for a reloads is fair.  That is just my feelings about what it should cost.   The only real cost difference is virgin brass vs once fired.

[Majer]

If you were to offer a 105 grain LTC-FP bullet between 650 to 700 FPS, I'm pretty sure there would be a lot of CAS shooters buying them. One of the complaints I hear from new shooters is how expensive their ammo is. Most shooters are using .38's in their rifle and revolvers. The ones that shoot .45 Colt are paying close to $50.00 for a box of 50 that has a heavier bullet and recoil than is necessary for the game If you came out with a .45 Colt with a 160 to 200 grain bullet again, between 650 to 700 FPS at say $30.00 you would sell a lot of them. I would think that having ammo for the other shooting games that met power factor and such again would be a good seller. There are people that either don't want to or can't reload their own ammo and a budget priced source for the ammo they use would be a good seller.There is a woman that sells cast bullets as well as loaded ammo, she's getting $22.00 for 125 grain LTC-FP .38 special and is getting $32.00 for 200 LRN-FP .45Colt ammo.I see her selling a lot of the loaded ammo at the major matches she goes to.

[TAB]

That might be worth  while to do.  The comm'l  reloading machines are not cheap(38k)  conversion kits are also pretty spendy  at about 4k.    So it would be something I would really have too crunch numbers on.  I can see the 38/357, but 45 colt is basicly no. There is also significant  set up times.  So you pretty much want a decaded machine for each caliber.  Another option is getting one of the motorised dillion 1050. Even those are about 7k by the time you buy everything.  I am not sure the ~2k rounds an hour from one of those would be cost effective.  As the comm'l  machines are can produce 2-3x that and are significantly   more "hands off"     

For instance 45 acp with machine cost, taxes(remember feds take 17% form national parks), components, insurance, packaging comes out to about $.27 each.  Which would mean the box 50 would  me $13.50.  So realisticly we are talking say $18/ box as a starting point.  So 1 machine at 3k rounds an hour is only $210 in profit, add an a employee  there is not much left.  That is assuming I could even sell 500k 45 acp reloads a month.  Winchester white box from midway USA is $21/ 50 unless they are on sale, then they are $19

It's not a money making business up front, but when the tooling is paid off it 3 years it would be.

[MikeBjerum]

I have been thinking about this since you first posted it TAB.  I keep going into all of the legalities and internal quality control.  But, that is not the question:

I believe that the business is all about marketing.  What are you doing, who are you doing it for, and what makes your product worth buying?

Examples:
1.  You are making ammunition for practice and general plinking; 2. You are making down loaded ammunition for games like SASS; Etc.

Focus your marketing on what you are doing, why you are doing it, and your quality.

Price?  What is your cost of production, your legal and business overhead, and what is a fair profit?  Next, What will the market bear?  Calculate your price point two ways:  1. What is your total cost of production, and what return on investment do you want or need; and 2.  What is your competition's price point, and how far below it do you want to be (and can you do this given the expenses in method #1)?

Keep in mind that every business was at one time new and unknown.  Midway USA started with Larry, Brenda, and the girls sitting at the kitchen table, taking military surplus ammunition apart, cutting the brass down, and putting it back together.  Your concerns about being a newbie and how you feel about it - Sometimes we get too deep in our own heads, and we think the entire market is like "me" and my small circle.  It isn't!  If consumers were that deep and thinking, boat makers wouldn't worry about the amount of glitter in their gel coat on bass boats.  Price and packaging will probably sell 75% of your product.
Good luck!