Thread: .22 ammo
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Old 02-10-2013, 15:18   #5
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Join Date: Oct 2003
Location: Michigan's Upper Peninsula
Posts: 11,320
CCI has custom built machinery, not something like a Camdex or AmmoLoad for a couple thousand rounds per hour. CCI's machinery manufactures 4 million rounds of rimfire ammunition each production day. A setup like theirs is a few million dollars in machinery and support.

Expansion on that production line means a new building, new machinery, new equipment support, and labor. It's not a snap your fingers move. The corporate board at ATK must give the OK for the expansion. Contrary to Internet belief, the profit ammunition manufacturers make on ammunition selling only to wholesalers isn't much. The wholesale distributors and retail dealers make more in profit per sale than the ammunition manufacturer does. Wholesale pricing isn't driven very much by retail pricing. Retail is generally set based on wholesale. The panic demand surges in recent years have no bearing on wholesale pricing, which has been stagnant for years.

If you want to make real money in this industry, you must manufacture it yourself and sell only to retail consumers and deal with the headaches associated with that (you better have a real good shipping department too). It's much easier for a business to sell wholesale than it is retail. Much less stress selling to only 20 companies than it is 37 million retail customers direct.
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