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profit margin on manufacturing firearms

Discussion in 'Business Discussion & Reviews' started by bunkerguy, Dec 13, 2012.

  1. bunkerguy

    bunkerguy vegas Member

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    how high is it?

    anybody know?
     
  2. Morpheus

    Morpheus Columbia Gorge Anyway, back on the farm.

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    It seems that brand new firearms have +/- 5%. How much distributors, wholesalers and others suck up no idea.
     
  3. FarmerTed1971

    FarmerTed1971 Portland, Oregon, United States Well-Known Member

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    I would guess 5-10%.

    R&D, Tooling, machinery, insurance and advertising are extremely expensive that's why you rarely see a firearms mfg startup. Not to mention the stigma involved in producing goods that kill. Most are an offshoot or subsidiary of another company. Companies spend millions trying to get government contracts and it is a gamble.
     
  4. Untamo

    Untamo Tigard (SW Portland) Member

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    Do it smart and anything is possible but start up costs are considerably higher than you think. You're not just going to buy a CNC and start popping out lowers or whatever it is. Mine were over a year in the making and untold, rather, painful-to-tell, sums of money. If done right though you can do OK.