Author Topic: 50BMG  (Read 8224 times)

Offline general918

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50BMG
« on: December 02, 2008, 11:37:50 AM »
Is anyone interested in becoming a firearms manufacturer?

Offline TehVice

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Re: 50BMG
« Reply #1 on: December 02, 2008, 11:49:15 AM »
That's a very broad question.

Offline general918

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Re: 50BMG
« Reply #2 on: December 02, 2008, 12:01:34 PM »
I'd like to start manufacturing firearms, but like most I don't have the capital. I have a lot of resources and experience, not enough money.

Offline RB Precision

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Re: 50BMG
« Reply #3 on: December 08, 2008, 08:23:50 PM »
It has crossed my mind, not sure if it's worth the hassle.... Why?

Offline general918

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Re: 50BMG
« Reply #4 on: December 22, 2008, 11:42:17 AM »
I have worked for firearms manufacturers in the past and now that my noncompete agreement has expired I would like to pursue some of my ambitions.  I'm looking for a business partener who would be interested in becoming a manufacturer of firearms.  Firearms would include military and civilian type. 

Offline trailblazer

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Re: 50BMG
« Reply #5 on: December 22, 2008, 12:48:50 PM »
what is involved in becoming a firearm maker? how do you get your ffl stuff? do you have to go to school for gunsmithing?

Offline Hunter01

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Re: 50BMG
« Reply #6 on: December 22, 2008, 05:13:57 PM »
I wouldnt be mutch help Im not a machinest but it has always interested me. I'd like to see a semi auto 50 that is realistic in price I have a hard time believing that it cost anywhere near the 9000+/- barretts gets.

Offline fishfactor

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Re: 50BMG
« Reply #7 on: December 22, 2008, 08:21:09 PM »
As to the semi auto 50 bmg... bohica is suppose to have one in the works for around $3K.  I hear sometime around next summer.  Current waits on his 50 bmg bolt action uppers for the ar platform are approaching a year, but getting shorter from what I've read on the forum.  I should have mine in a few more months. www.bohicaarms.com

Offline IOWOLF

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Re: 50BMG
« Reply #8 on: January 07, 2009, 07:24:28 PM »
Alot of the purchas price of guns goes towards liability Insurance, so I have heard.

Offline JFettig

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Re: 50BMG
« Reply #9 on: January 07, 2009, 09:26:30 PM »
Sure, maybe.

You might not want to be so vague in this... PM me with more info.

Jon

Offline Tango Chaser

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Re: 50BMG
« Reply #10 on: February 01, 2009, 01:33:26 AM »
Here are some upfront costs that have to be paid.

07 FFL

ITAR registration - $1750 - $2200

Insurance - $30,000 a year

Tools and equipment

Work space

Local business license and fees.


Better to sell everything but the receiver and avoid some of the costs and ATF involvement. Been down this path already and called it quits.

Offline general918

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Re: 50BMG
« Reply #11 on: February 09, 2009, 07:42:32 AM »
According to your numbers it doesn't look like going half way would really save you much except the hassle, and if you're not ready for that, then being a business owner is out of the question.  It's all about marketability and the product you are offering.  I wouldn't expect to come on the market with a standard AR and compete with people who have been in the business for years.  Consider this, at a previous employer.  The total manufacturing cost and overhead assumed to make a semi-auto .50 BMG $2400.00.  The current MSRP is $8,900.00.  So yes of course there has to be profit and yes there would be headaches, but for some those hurdles are worth jumping. 

Offline 1petmonster

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Re: 50BMG
« Reply #12 on: March 31, 2009, 03:46:15 AM »
And dont forget the $500,000 you will need for at least 1 decent CNC lathe, 1 CNC machine centre, tooling, heat treatment equipment, a quality TIG and MIG welder, anodizing, blueing and parkerizing equipment and of course the Quality materials you need to do it... Sorry to put a dampener on your dream..

Offline Tango Chaser

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Re: 50BMG
« Reply #13 on: May 17, 2009, 07:28:07 PM »
Quote
According to your numbers it doesn't look like going half way would really save you much except the hassle, and if you're not ready for that, then being a business owner is out of the question.  It's all about marketability and the product you are offering.  I wouldn't expect to come on the market with a standard AR and compete with people who have been in the business for years.  Consider this, at a previous employer.  The total manufacturing cost and overhead assumed to make a semi-auto .50 BMG $2400.00.  The current MSRP is $8,900.00.  So yes of course there has to be profit and yes there would be headaches, but for some those hurdles are worth jumping. 


I didn't go half way. I made/purchased all parts for my business minus the FFL part. Nothing i made or sold was regulated by the ATF so no reason for them top even be on my property. They've already raided a dozen gun manufacturers, seize their inventory, and never filed charges. Take Cav Arms for example.

I find it very difficult to believe the $2400 cost included all overhead. Just the rent on the building, utilities, insurance, annual fees and licenses, and loan payments for all the equipment can add up to having to sell quite a few guns a month just to make payroll. I suspect the MSRP is 3 times the assumed cost to cover monthly overhead.

My figures don't include the costs shown by others. Items not covered in my short list.

Hiring a CPA to do your taxes
ITAR payment is annually
Insurance is annually
Business building in an industrial area $1000 a month
Local ordinances may require an EPA survey before business license can be issued.
Utility payments
Lathe
CNC machine
parkerizeing/coating equipment
bits and mills
work tables
computer to track orders and inventory
Cost of raw materials
Media blaster
Milling fluids



I had $20,000 sales in my first year of making AR upper receivers in .45 ACP. My annual profits that year, $3000. I made just enough every month to pay for my gas, lunch at work and more raw materials. I did this from my garage. Had I rented a building to work from, my profits would have been about $1500 for the year. And your asking someone else to front all this money.

Come up with a business plan that shows all the expenses, market potential, future of the industry, etc., and then you might attract a financier. I'm not saying don't go for it, I'm saying, I think you are underestimating the cost involved with starting up from scratch and the profit margin in guns of any kind.