why there is no one import the cheap ammo from China?
- Thread starter jack1021
- Start date
####, where do I begin?
Let's start with a fantasy shall we?
Let's assume I'm interested in selling Norinco commercial 7.62x39 ammo.
I know with the numbers of various SKS's and VZ-58 rifles in Canada, this ammo will sell well, depending on price. The Chinese tend to sell the stuff in wooden cases of 1200 rounds, and the Canadian consumer is hard pressed to buy such a case unless the price is under $200.
Since the odds are I can't sell all the ammo myself in a timely manner, I'll probably try to line up two or three like minded storefronts who will take skids of product. I'll also likely have larger mom and pop stores who will order 5-10 cases at a time. Bulk shipping from my warehouse to the bigger players will probably average $7.50 a case, compared to the $25 per case for the average consumer. However, I'll also need to give the resellers a price break so they can sell at the same price I do and still make a buck. Just for arguments sake, let's just call this $25 in transport or dealer costs.
It's also going to take at least a year, if not more from the time I need to pay for the ammo, to the time I get paid for it. (Two years is probably more like it) Since I'm either paying interest on a line of credit, or I'm out the potential interest my capital could be generating, let's just assume the cost of the capital outlay is $25 per case.
Then of course there is the cost of the labour and storage to inspect the shipment in customs once it gets to Canada. Best case scenario, you should expect this to cost $5 per case.
Since I don't ever deal with sea containers, shipping costs, or the brokerage fees, I won't even speculate on the cost to get the ammo from Norinco to Vancouver.
That still leaves the cost of the ammo itself, and I would have to assume Norinco is getting at least $50 per case.
My best guess is that it's costing the importer around $105 per case plus the cost of shipping, against the retail price of less than $200. Still, not a bad profit, if the shipping costs can be managed.
Now just hope that when your ammo hits the market,
1) You don't find that 6 container cars of even cheaper surplus has just arrived at 80% of the retail cost.
2) You don't wind up with repackaged military surplus with corrosive primers despite being promised factory fresh, or steel jacketed when you've promised your bigger range operators copper jacketed, or steel core when you've been promised all lead.
Then of course you've got to contend with NRCAN demands and costs to test and approve the ammo, and the requirements for bilingual packaging.
And then of course you've got the internet issue. It's great that you can get the message out quickly, but the double edge is that every mouth breather will be #####ing about how the $200 case of ammo is $25 cheaper across the border.
Let's start with a fantasy shall we?
Let's assume I'm interested in selling Norinco commercial 7.62x39 ammo.
I know with the numbers of various SKS's and VZ-58 rifles in Canada, this ammo will sell well, depending on price. The Chinese tend to sell the stuff in wooden cases of 1200 rounds, and the Canadian consumer is hard pressed to buy such a case unless the price is under $200.
Since the odds are I can't sell all the ammo myself in a timely manner, I'll probably try to line up two or three like minded storefronts who will take skids of product. I'll also likely have larger mom and pop stores who will order 5-10 cases at a time. Bulk shipping from my warehouse to the bigger players will probably average $7.50 a case, compared to the $25 per case for the average consumer. However, I'll also need to give the resellers a price break so they can sell at the same price I do and still make a buck. Just for arguments sake, let's just call this $25 in transport or dealer costs.
It's also going to take at least a year, if not more from the time I need to pay for the ammo, to the time I get paid for it. (Two years is probably more like it) Since I'm either paying interest on a line of credit, or I'm out the potential interest my capital could be generating, let's just assume the cost of the capital outlay is $25 per case.
Then of course there is the cost of the labour and storage to inspect the shipment in customs once it gets to Canada. Best case scenario, you should expect this to cost $5 per case.
Since I don't ever deal with sea containers, shipping costs, or the brokerage fees, I won't even speculate on the cost to get the ammo from Norinco to Vancouver.
That still leaves the cost of the ammo itself, and I would have to assume Norinco is getting at least $50 per case.
My best guess is that it's costing the importer around $105 per case plus the cost of shipping, against the retail price of less than $200. Still, not a bad profit, if the shipping costs can be managed.
Now just hope that when your ammo hits the market,
1) You don't find that 6 container cars of even cheaper surplus has just arrived at 80% of the retail cost.
2) You don't wind up with repackaged military surplus with corrosive primers despite being promised factory fresh, or steel jacketed when you've promised your bigger range operators copper jacketed, or steel core when you've been promised all lead.
Then of course you've got to contend with NRCAN demands and costs to test and approve the ammo, and the requirements for bilingual packaging.
And then of course you've got the internet issue. It's great that you can get the message out quickly, but the double edge is that every mouth breather will be #####ing about how the $200 case of ammo is $25 cheaper across the border.
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The one major factor...get a boat to come straight to Canada from China! Most shipments go thru U.S. waters which means the yanks will confiscate all of the ammo from China. Thank mr. clinton for that bit os genious.
Scott
Scott
GENTLEMEN;
A couple of points,
ONE; The port of Vancouver will NOT let ammunition land there.... You have to find a shipping line that goes directly from China to East Coast Canada and is willing to accept ammunition. (Travel time is about 6 weeks)
TWO; Beleive it or not it is cheaper to move the ammo to Europe and then to Canada.... (Travel time about 6-8 weeks)
SO first you pay for the ammo, then they ship (2-3 weeks) then allow at least 6 weeks for travel time. Then, if you are lucky 1 week for Canada Customs) If your cargo is in Halifax allow 4-5 working days to arrive at our warehouses. Montreal on the other hand allows for 1-2 day delivery.
NOW you have the ammo for which you paid some 3 months ago....
CANUCK223 has a pretty good appreciation of the situation....
1) You pay for the ammo
2) You pay for the shipping (ouch....)
3) You pay for Canada Customs inspection fees....
4) You also pay for the inland shipping to your facility (ouch & more ouch)....
OF COURSE the Chinese are never on time, never.... So you do not advise dealers in advance, do not publish advertising.... Not until you have it on hand, by then you are 4 months into the venture....
On the other hand I can have my Czech ammo moved from our warehouses overseas to our facility here in under 3 weeks, on time with all documents in place.... Now tell me, which way would you go ??
Happy New Year to all
John
A couple of points,
ONE; The port of Vancouver will NOT let ammunition land there.... You have to find a shipping line that goes directly from China to East Coast Canada and is willing to accept ammunition. (Travel time is about 6 weeks)
TWO; Beleive it or not it is cheaper to move the ammo to Europe and then to Canada.... (Travel time about 6-8 weeks)
SO first you pay for the ammo, then they ship (2-3 weeks) then allow at least 6 weeks for travel time. Then, if you are lucky 1 week for Canada Customs) If your cargo is in Halifax allow 4-5 working days to arrive at our warehouses. Montreal on the other hand allows for 1-2 day delivery.
NOW you have the ammo for which you paid some 3 months ago....
CANUCK223 has a pretty good appreciation of the situation....
1) You pay for the ammo
2) You pay for the shipping (ouch....)
3) You pay for Canada Customs inspection fees....
4) You also pay for the inland shipping to your facility (ouch & more ouch)....
OF COURSE the Chinese are never on time, never.... So you do not advise dealers in advance, do not publish advertising.... Not until you have it on hand, by then you are 4 months into the venture....
On the other hand I can have my Czech ammo moved from our warehouses overseas to our facility here in under 3 weeks, on time with all documents in place.... Now tell me, which way would you go ??
Happy New Year to all
John
mebiuspower
CGN Ultra frequent flyer
- Location
- Morontario
m39a2 said:
Just imagine that, when you open the wooden crates all you get is box load of people.
Hungarian stuff on the other hand.... are very hot.
- Location
- Montreal, Quebec
Ammo is heavy, transportation is expensive.
