ammo production challenges.

[2bfarming]

I was approached by an aquaintance about being involved in a startup company to produce ammo. That I am aware of none of the folks involved have even a basic knowledge of reloading to say nothing of mass production.

I'm going to attend a meeting they are having for potential investors and I would like to be able to ask some tough questions. This whole idea is a non starter in my opinion based on what I know right now. I roll my own but I know zilch about mass production.

Who here has even a general insight into this industry? Liability, raw material suppliers, R&D challenges, etc.

What niches are there in this industry. Without a niche to get started they are screwed in my opinion.

Bring it.

 

[no1special]

Re: ammo production challenges.

has anyone done any research? liability insurance is big money. atf is involved. local zoning laws? shogun, straight wall cases, or bottleneck cases? much different techniques and equipment. retail outlets available? on-line? your own storefront? have you written a business plan? wow! babes in woods. step back and take a deep breath. lawyer! incorporate to protect your personal assets. what activities locally? idpa, trap, skeet, zombie? try to tap local market?

 

[2bfarming]

Re: ammo production challenges.

I'm not sure how much they have thought about the biz side but from the technical side they are WAAAAAAYYYYY outside their lane and thats where I want to grill them.

I'm sure if they have done any research at all they are going to have some dream of starting out with a couple camdex(or whatever their called) machines and gonna go factory direct for components. Pie in the sky stuff like that.

Is there no regulatory body for mass production? Can joe blow send the atf a couple bucks and shoot dillon a CC# and BAM your a manufacture?

How the hell do you QC hundreds of thousands of rnds of spent brass? Is there a machine that does this? I'm sure its cheap if there is. No way they could compete with new brass prices.

I'm gonna go out on a limb here and say that getting supplies consistantly is gonna be a BASTARD!!

Does the state dept get involved? Bet that would be cheap if they do.

I'm certain the few questions above are the easy ones.

 

[Wolvenhaven]

Re: ammo production challenges.

Camdex makes QC machines for brass as well. I just don't see how they're going to make any money doing this. Those factory machines run like $5-20k+ each, and you have to either have all the tooling to change calibers, or an entire other machine to do it.

 

[Inspector Gadget]

Re: ammo production challenges.

Some questions specific to the proposed biz, plus some that apply to any biz..
Do you have the operating capital to be able to commit to up-front purchase of supplies to lock-in costs?
Who's gonna keep on top of the paperwork to keep the EPA and it's cousins at the city/county/state level satisfied? How do you factor in the overhead for complying with all the rules and regs, now and those that might come down the road?
Who knows how to run the production equipment? What is it gonna cost you to hire/train/poach someone who does?
What's the likely return on your investment? Why is that a good investment? Can you get a better return by investing your money elsewhere, with a better risk/reward ratio?
What will they be providing that they do better than anyone else?

 

[treebasher]

Re: ammo production challenges.

Read this:

http://www.calguns.net/calgunforum/showthread.php?t=314780

 

[2bfarming]

Re: ammo production challenges.

That was an interesting read. Sounds like a real pita. I think inspector hit the nail on the head. What can they offer that isn't currently being offered? You see people all the time who find a niche in an industry that you would think had none left to find. In most cases its a person or group in a special set of circumstances that find these opportunities. Its really about who you know.

 

[hessian]

Re: ammo production challenges.

Are Jamison assets for sale?

 

[shootist2004]

Re: ammo production challenges.

Im sure there are quite a few regulations dealing with lead.

 

[The Mechanic]

Re: ammo production challenges.

First, you don't have to know the business to be successful but it helps. Next and most important is to understand your target customer base. Is it large or small, is it consumable or one sale and done, and profit margin per sale. Most important thing an owner can do to make his business a success in the people under him.
Sometimes it is better to make a 1/10 of a cent on a paper clip than a $1,000 on a one of a kind.