I am currently involved in the Development of Importation and Shipment of Ammunition in “Container Quantities” to Australia, and the situation is the same.
Initial cost of 7,62 ammo varies from $400 to $600 US CIF (Cost, Insurance AND Freight) to our Home Port. That gets it to our country. Then we have to add 10% GST ( a general “sales” Tax,) and 5% Advalorem Customs Duty, so that brings it up to $500 to $700 roughly per K.
Convert this to Aussie Dollars (AUD.1==USD 0,70) Then add the Freight Agents administrative costs ( about AUD $100 per container) and Trucking to your Depot ( about $200 per container), so by then , with the Ammo in your (Importer’s Store), you are now at about about $800 to $1000 Aussie Dollars per 1,000… add your profit margin…say 25% ( as suggested)…that makes $1,000 to $1,250 AUD per K, and it is still in your warehouse, or at a Gov’t Explosives Magazine ( for such a large quantity–so extra overheads)
Australia is a Huge country, and Road Shipping DG (Hazmat) charges are about Twice Normal Inert Freight. So by the time it hits the Gundealer (Aussie Importers are also usually Distributors, there is not the extra levels that there are in the USA (Importer-Distributors-Jobbers-Gun dealers/Discount stores), the cost to the Customer will be about $1200 to $1500 Per Thousand for new-made or very recent Military 7,62 Nato, brass cased, probably Non-corrosive, either Berdan or Boxer.
That is based on Supply quotes from major manufacturers outside the US-Nato alliance.
IN order to get any local (Retail) price for Milsurp 7,62 Nato in Aust. for under $1,00 AUD per round, one has to acquire it at around US $0,20 or less per round, and in Container sized quantities (Most suppliers will NOT even consider Orders for Less than a couple of Containers (20 footers), or about 1,6 Million rounds ( FCL ( 16-18 tonnes Nett) is about 800,000 rounds.)
I know that Australia is not the USA , in terms of either market size or usage (we aren’t allowed Semi-Autos, for instance, and there is NO Class III Community; So the general shooting community here could absorb about 8Mill. 7,62Nato a Year ( 6Mill. for the Target Competition Shooters --Bolt action Target rifle) and the rest by General shooters (Service rifle, Plinkers, etc). That makes 10 or so containers…One shipment. And an initial investment of some $400 to 600,000 US before even starting…
JM has explained pretty well what the financial implications are for a US importer/etc…and for the Retail customer/shooter.
It’s not as easy at it is sometimes made out to be.
The days of landing 10 to 20 million rounds of Milsurp ammo in one hit, and having it sold or pre-sold, almost immediately, at low prices(“pennies per round” ) are long gone, for any type of ammo ( Milsurp or otherwise).
The Europeans,(those who can shoot Milsurps) think nothing of paying over EU$(Euro) 1.00 per round at retail…So, as Bill Gates said several years ago: “Rule One: Life ain’t easy—Get used to it!” ( Speech to a High School Graduation Class).