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Rifles, Reloading, Optics, Equipment
Rifles, Bullets, Barrels & Ballistics
Possible New Bullet Venture
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<blockquote data-quote="SidecarFlip" data-source="post: 836205" data-attributes="member: 39764"><p>Nothing wrong with those planks, so am I and so is Len and Andy. Due dillegence is all about ascertaining where your profitability lies and the rate that you can recoup your investment (which will be substantial, including, but not limited to machinery and personnel.</p><p> </p><p>Of course everyone wants their caliber produced in their favorite weight and design but thats not always practical and thats not what keeps the lights on because even producing those 'specials' will entail a cost per unit equation thats in keeping with the competition, in other words, you can't price yourself out of the market producing special orders, swaging is about quantity and quality, not a box of this then a box of that. That entails tooling changes and time is profit wasted and profit pays for the infrastructure, but, you already know that.</p><p> </p><p>My observation would be to concentrate (at first) on calibers that are the most common like (for instance) 308 Winchester, 300 Remington Ultra Magnum, 223 Remington and calibers where you can produce quantities of projectiles, offer them at competitive pricing and pay for the infrastructure and then branch off into specials because if you start out with niche projectiles, you'll one, struggle with your capital investment, two, price yourself uncompetitive and three, never grow because all you'll produce is specials.</p><p> </p><p>Everyone wants their 'favorite' produced, I get that everyday and so does Len and Andy, I'm sure. You have to take the 'long' look at what the whole wants verses the few and offer and produce what pays the bills, because the bottom line will be, if you can't produce even the 'specials' competitively, you won't stay in business and your venture will become insolvent and I'm sure, leave a bad 'taste in your mouth''.</p><p> </p><p>BTW, thats why I posted what I did at the outset of your thread. You already have concerns out there producing 'specials' (we all buy from them, not that we like the pricing because everyone wants a deal, thats human nature and it's human nature that everyone wants free samples or gifts but in reality neither pay the bills, in fact, they cost you money....). So, at this juncture you need to decide what road you will embark on, the payback time on infrastructure (if it's going to be a hobby or an actual, viable business venture) and your goals.</p><p> </p><p>The ' he wants this bullet design and caliber and she wants this is all well and good but you will need a basic design/caliber and price that to sell at a profit (to pay the bills) and then fiddle with the niche market.</p><p> </p><p>I run what I (and the IRS) considers to be a for profit business. Sometimes I consider it a hobby, sometimes a viable venture and most times a PITA.</p><p> </p><p>Just saying....</p></blockquote><p></p>
[QUOTE="SidecarFlip, post: 836205, member: 39764"] Nothing wrong with those planks, so am I and so is Len and Andy. Due dillegence is all about ascertaining where your profitability lies and the rate that you can recoup your investment (which will be substantial, including, but not limited to machinery and personnel. Of course everyone wants their caliber produced in their favorite weight and design but thats not always practical and thats not what keeps the lights on because even producing those 'specials' will entail a cost per unit equation thats in keeping with the competition, in other words, you can't price yourself out of the market producing special orders, swaging is about quantity and quality, not a box of this then a box of that. That entails tooling changes and time is profit wasted and profit pays for the infrastructure, but, you already know that. My observation would be to concentrate (at first) on calibers that are the most common like (for instance) 308 Winchester, 300 Remington Ultra Magnum, 223 Remington and calibers where you can produce quantities of projectiles, offer them at competitive pricing and pay for the infrastructure and then branch off into specials because if you start out with niche projectiles, you'll one, struggle with your capital investment, two, price yourself uncompetitive and three, never grow because all you'll produce is specials. Everyone wants their 'favorite' produced, I get that everyday and so does Len and Andy, I'm sure. You have to take the 'long' look at what the whole wants verses the few and offer and produce what pays the bills, because the bottom line will be, if you can't produce even the 'specials' competitively, you won't stay in business and your venture will become insolvent and I'm sure, leave a bad 'taste in your mouth''. BTW, thats why I posted what I did at the outset of your thread. You already have concerns out there producing 'specials' (we all buy from them, not that we like the pricing because everyone wants a deal, thats human nature and it's human nature that everyone wants free samples or gifts but in reality neither pay the bills, in fact, they cost you money....). So, at this juncture you need to decide what road you will embark on, the payback time on infrastructure (if it's going to be a hobby or an actual, viable business venture) and your goals. The ' he wants this bullet design and caliber and she wants this is all well and good but you will need a basic design/caliber and price that to sell at a profit (to pay the bills) and then fiddle with the niche market. I run what I (and the IRS) considers to be a for profit business. Sometimes I consider it a hobby, sometimes a viable venture and most times a PITA. Just saying.... [/QUOTE]
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