[djl295]

Hey guys,

I am considering purchasing an existing small web business that sells ammo subscription boxes (meaning you pay to receive 100-500 rounds every month). Before I purchase the site, I am trying to see if this is a good idea. Purely from a research perspective, not advertising, would this be a service of interest to you guys?

Let me know your thoughts.

Thanks
Daniel

 

[nvshooter]

100 to 500 rounds every month? That would be way, way too much for me. Given the nation's dismal economic conditions, I'd be surprised if many sign-up for such a thing. It could always be kept in storage, ready for the day when the Tree of Liberty requires watering with the blood of patriots and tyrants. Five hundred rounds of 5.56mm NATO is anywhere from $160 to $200 when each round is 32¢ to 40¢ a pop. That's money that can go toward groceries or gasoline. Or toward "national health insurance." But do not listen to me. Never listen to those who are too afraid to take a leap of faith because they may also be too afraid to fail. I'm talkin' about myself, here...

Assume you get a following. From where will you obtain a constant-- and increasing-- supply of ammo to meet the demand? One more mass-shooting like the Sandy Hook hoax, and we'll find ourselves right back to where we couldn't find pistol powder for three years.

Many things to consider, such as "Why is the owner selling what might be a profitable business?" Maybe it ain't profitable? Maybe he's trying to unload it on the next rube who comes along?

 

[joe12180]

I re-load so I don't buy that much ammo. Sometimes some 22lr and once in a while something else. But could not use such a service as I only buy the odd box now and again.

 

[broom_jm]

I could see this having a very limited market with competition pistol shooters, but when those guys get serious about competing, they start loading their own.

My guess is this is a business destined to fail.

 

[shreck]

Hello , if it is 'Your thing ' you will succeed , if not then you wont .
Sounds like there is good premise to the venture.
A list of customers and history would help but its not the most important thing to consider ! How much does it excite you ? Thats important.
Can you see yourself doing what needs to be done ?
Can you do better or as good as the owners?
Can you see your self doing it years down the track?
Do you think it will help you grow / learn how to make it work?
Is there of shoot opertunities that excite you.
If it took 5 years to start making a decent profit would you start?

 

[nsb]

Statistically, eighty-five percent of all small start-up businesses fail in the first year. Lots or reasons why and I won't go into it here. I will say though that too many of them are people trying to make a hobby or an interest into a profit making enterprise. In this case you're going to be very exposed to changing political climates, regulations both state and federal, shipping costs and restrictions, and to be honest, competition from anyone and everyone selling ammo. It's a big field of competition. Running any kind of business you'll soon find yourself mired in regulations even if you have no employees. I love shooting. I shot competition for many, many years and still shoot way more than the average shooter. However, other than opening up a brick and mortar store I don't think your chances of success are very high. Just my two cents.......

 

[Submoa]

As for me, I reload so it wouldn't be something that would gain my interest. But us reloaders are a small piece of the industry and sport.

SMOA

 

[HarryS]

Seems a limited market.

The price should be very low: software (probaply not his to sell, licensed); URL unless very good and unique worth little; supply agreements with major ammo dealers are probably the same as you could ask for today.

If you want to just start your own, I suspect you could be up and running for less than a grand.

 

[HiDesertHunter]

would this be a service of interest to you guys?

Not for me and not because I reload but it is my experience buying ammo is something most want to be able to shop for, look at, and be able to physically carry it out at the time of purchase. And along with that is most will buy the amount they need and either store it or shoot it up and only THEN buy more. Having it come each month is not something I would want to have happen as it might get out of hand and wind up with more than I want and maybe too much of something I do NOT want. I see a LOT of potential detractors to this.

 

[JBelk]

Postage would be the killer. No matter the amount, would have to go hazmat and that is more than the ammo is worth in small batches.

 

[nsb]

Postage would be the killer. No matter the amount, would have to go hazmat and that is more than the ammo is worth in small batches.

Actually, there is no HazMat fees on loaded ammo packaged in ammo boxes. It's needs an ORM-D sticker on the package (I guess they call it something different now....recent change). I've sold a lot of ammo on line (when I quit major competition I had a lot to get rid of). Still expensive to ship though.

One other thought on this: if you're a "manufacturing business", you're regulated by your local, state, and federal EPA regulations. Lots of costs there also. Monthly, quarterly, and annual tests for pollutants. They'll even measure the water coming out of your toilet and you pay for the tests. You'll also have to keep records and be elegible for on site inspections. If you're planning on selling reloaded ammo it only gets worse with the liability. I'd find something else to get into. I don't see any profit in this at all. FWIW, after I retired for about the fifth time I worked as a consultant helping set up manufacturing business. It's a lot of work and the return on even the profitable ones didn't show up for several years after start-up. If you give it a try, good luck.

 

[MikeG]

Yup. Don't forget your federal license for ammo manufacturing, etc.

Dillon, Hornady, and all the folks that make progressive presses will be your competition. You are a couple decades behind, just starting out....

 

[broom_jm]

A local business was making boutique ammo and tried to expand into the more common 9mm, 223, 308, etc. They quickly discovered that escalating insurance and regulatory costs made it so they had to either produce HUGE volumes, or struggle to show any profit. The government has more than one way to restrict our 2A rights, sadly.

 

[Marshal Kane]

In addition to all of the comments above, you'd have to be able to undercut the big box stores. What are your chances of getting ammunition for less than what the big box stores pay? Highly unlikely you could do that. I'd say pass on this idea.