Andrew William Pence
A business plan to legally manufacture and sell AR-15’s, with a market for expansion and growth through accessories. Focused on three dimensional printing technology, how to build, how to market, the mission statement, competition, ethics, and legality. The AR-15 Business Plan
“Tungsten has the highest melting point of any pure metal, it is more resistant to fracturing than diamond, and it is much harder than steel.” ("Tungsten - Element information, properties and uses | Periodic Table," n.d.). With a synthetic mixture of Tungsten Carbide and other unnamed metals to keep the recipe secret, my associates and I could easily manufacture the world’s most durable and lightest AR-15. The AR-15 is a magazine-fed 5.56 mm semi-automatic rifle. New technology has been developed to produce the weapons more rapidly. Social Media has enhanced marketing concepts. The gun trade is highly competitive. Manufacturing and finances
Technology today has made manufacturing quite simple. For example, “Interested gun owners will simply need an internet connection, a 3-D printer, and the necessary raw materials, and with a click of the mouse, a layperson can have a workable unregistered weapon without a serial number or record of its manufacture.” (Meyer). Those are essentially all of the resources we would need. We would also need to create a template for the lower receiver, which is the firing mechanism and a template for the upper receiver. Both receivers combined would produce the weapon. A 3-D printer can start at thirty thousand dollars and the need to constantly order raw materials to manufacture the weapon would be the only costs of the company. Lower receivers, by themselves are on the market starting at four hundred and fifty dollars. The full weapon generally has a price range from five hundred fifty dollars to two thousand dollars. That’s a rough estimate on the revenue that can be generated. Once the 3-D printer is paid off, everything would be pure profit minus the raw material expense and licensing fees. There is room for growth. We could later branch out and design different modifications and accessories for the rifle. The AR-15 is one of the most customizable rifles. Accessories we could later manufacture, include; compensators, lasers, tactical flashlights, scopes, quad rails, fore grips, slings, and many more. Management and responsibilities
As a start-up business, there are three of us willing to partner. We would split all expenses and revenues three ways. We would have twenty four hour coverage on printing the receivers, each taking an eight hour shift, as the demand arises. Each lower receiver would be priced for sale at four hundred seventy five dollars, and each upper would cost seventy five dollars. A full rifle, put together, would cost five hundred ninety nine dollars. Each component will be engraved with a new world ordinance logo. We would incorporate a perpetual inventory system. Rifles do not come in packaging, but if they are shipped, they will be well-protected to withstand the shipping process. We handle each customer respectively and rush them their product as soon as possible. Everything would be handled in-house. The shop can be set-up in a basement, which eliminates property costs. Each firearm will come with a life-time warranty which will include; discounted repairs and free shipping. The warranty will be extensive covering various specifications and will be void if excessive abuse is apparent. Marketing
The target audience is other veterans, interested gun owners, federal and local government agencies, and overseas contractors. “According to Gallup, 61 percent of white males in the South own guns today.” (Dickinson). It would be easy and cheap to market the product via social media outlets and veteran networks. I have over two thousand people on my Facebook account, more...