Someone is going to tell us the 'Real' cost of ammo?? Not likely
Maybe they can tell us the costing on how a $12usd mag becomes $40cdn
while they are at it.
How much $ to start a small ammo manufacturing business here????
- Thread starter gopher1
- Start date
Someone is going to tell us the 'Real' cost of ammo?? Not likely
Maybe they can tell us the costing on how a $12usd mag becomes $40cdn
while they are at it.
You're making some pretty big assumptions. I'd love to hear how you came up with the square footage and power requirements... And we haven't even touched on outsourcing any of the manufacturing...
But let's not get bogged down in arguing over something that (really) none of us know anything about. We should be encouraging the growth of Canadian firearm-related businesses; and at the same time encouraging potential entrepreneurs to do their due diligence in assessing the feasibility of their prospective business endeavors. If it is truly unfeasible or impractical, they will find out. But it is wrong just to poo-poo their ideas based on assumptions... But hey, that's just my opinion...
Someone is going to tell us the 'Real' cost of ammo?? Not likely
Yes, if you look back at some of the surplus ammo threads you can get a good idea of what 7.62x39 sells for in Czechoslovakia. And Marstar said they would even put you in touch with their european distributors so you could import it yourself "cheap" if you want to.
In the end, the cheapest thing you can do is to buy in bulk from one of the existing Canadian distributors, unless you want to bring ammo in by the container.
Sure I am making some pretty big assumptions. But you MUST have your own building away from any other buildings. That is a govt requirement. That in itself is expensive so square footage becomes less important. You will also need clearances within the plant for stages of manufacturing, separate powder magazines etc. (powder would be purchased, not manufactured)
I would love to see some actual numbers, and I am sure a couple of people here have already done the homework.
Biggest hurdle is the very limited market in Canada. Even if you manufacture here, you are still only going to get a small % of the market and are going to be competing with the imported ammo.
Can you name the Canadian manufacturer of shotgun shells? They haven't exactly swamped the market here have they?
- Location
- Sudbury, On
I would gladly purchase canadian-manufactured ammo, even if it were the same price as it stands (~$19 per 50 box of 9mm).
I think there was one 6 months before that as well.....
...and there will be another like this one just before X-Mas...
- Location
- big sky country
I'd buy Canadian made .223 and .308 by the thousands. Go for it!
Right now on Gun Broker [item # 123369821] there is a .223 Industrial Loading Machine for sale $33,000. Don't listen to the nay sayers . If this is what you really want to do, then do your homework, put your heart into it and do it.
Don't get me wrong, I think it would be great to have a Canadian Ammo company. I would even consider starting one. BUT, there are some significant hurdles to making it PROFITABLE.
There are some people that would buy Canadian made ammo even if was a little more expensive. But most would not. That means you need to compete on price plus have good quality. Wolf Bullets and Combatmasters are doing well, why? Because they are CHEAPER. They also concentrate on handgun ammo, a much higher volume business than rifle ammo.
Marstar sold out of the Norinco 308 at $500/1000 in a week, not because of the quality, but because of price.
All you have to do is look at all the threads about how we are getting ripped off when gasoline is a few cents more, or how ammo is so much cheaper in the US.
Remember the joke about the difference between Canadians and canoes?
Canoes tip........
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Cortexburn
CGN Regular
To be profitable wouldn't it be best to aquire the contracts to supply ( or a portion of the contracts) the military, RCMP, city police, etc?
That and providing the regular shooters of Canada would be a decent investment wouldn't it?
With regards to other ammunition manufacturers, are the large government contracts they have not their "meat and potatoes" as it were?
That and providing the regular shooters of Canada would be a decent investment wouldn't it?
With regards to other ammunition manufacturers, are the large government contracts they have not their "meat and potatoes" as it were?
it seems cost prohibitive but then again how do companies in the states do it? sooner or later were going to have to start making our own products here in good old Canada and stop reliing on other counties
The US has 10 times the potential market size. Plus they don't need NRCAN to approve every load you sell.
Good thought, but the reality is the purchasing practises of most government agencies is that they go out to tender. Even if they don't go to tender, you would have to show them capacity and quality before they could even "officially" consider purchasing.
The tendering is so that they can't "favour" a particular supplier. Direct awards can and do occur, but typically for smaller dollar amounts that vary with each agency. Sometimes "approved" suppliers are also used, but you need to get on that list.
(of course, if there is a Liberal government and you have friends in the right places.......
)
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