State of the Second hosts John and Kaylee sit down with Dan and Danielle, the husband-and-wife team behind Ammo Squared, to break down an ammo model that works nothing like the gun store. Ammo Squared started in their garage in 2015, right as the country was coming out of an ammo shortage. Dan, who was working in tech as a product marketer with a SaaS background, had a simple thought: what if you could put away a little ammo every month the way you put money into a 401k, then pull it when there's a shortage. The first version ran on WordPress, sold ammo in $5 increments, and vacuum-sealed small quantities like seven rounds of 45 ACP. That pivoted fast. The company has since moved through a string of warehouses, from a 1400 square foot space up to 7500, and is now looking at a 20,000 to 30,000 square foot space, probably in Texas.
The core of the conversation is how the program actually works. You set a budget, pick your calibers by percentage like a mutual fund, and the system auto-buys on the schedule you choose. Ammo accumulates in your online account down to a fraction of a round, priced just below the market median, until you have full shippable boxes. You decide when to ship with triggers like every $300, every thousand rounds, or every six months. Because you can buy without taking delivery, customers can exchange calibers, sell their inventory back at the market price, or hold ammo as what Dan and Danielle call a security blanket. They walk through 2020, when the model got its real test: customers who had been accumulating for years just hit the ship button while everyone else stood in line. New signups came in so fast the company had to start a waitlist. PMC came through with pallets when distributors ran dry, a relationship that started with an unplanned booth visit at SHOT Show.
Much of the back half is a shared war-story session about the shortages. John, who worked behind a gun counter and on the manufacturing side, recounts empty shelves, a single store order of 996 guns, a steel-case case of 9mm for $112 per thousand rounds, and people reselling 22 ammo at gun shows. Kaylee ties it back to new and rural shooters, the intimidation of the gun store, and why a clearly labeled practice-versus-defense breakdown helps people who do not know what they do not know. They cover state shipping rules like California's background-check requirement, the trouble with Alaska and Hawaii, catalog trimming from 500 variations down to about 60 common calibers, free shipping over $250, and Ammo Squared's pending-state system for handling shortages. To find it, the team points to ammosquared.com and a newsletter signup.
Questions this episode answers
What is Ammo Squared and how did the business start?
Ammo Squared is an ammunition subscription and storage service that lets people accumulate ammo over time instead of buying it all at once. Husband-and-wife co-founders Dan and Danielle started it in their garage in 2015, coming out of an ammo shortage, after Dan imagined funding ammo monthly like a 401k.
How does the auto-buy and accumulation model work for a customer?
You set a budget, pick your calibers by percentage like a mutual fund, and the system auto-buys on the schedule you choose. Ammo accumulates in your online account down to a fraction of a round until you have full shippable boxes, and you choose when to ship with triggers like every $300 or every thousand rounds.
Can you sell ammo back or exchange it for a different caliber before it ships?
Yes. Because you can buy ammo without taking delivery, customers can exchange calibers, sell their inventory back at the market price, or just hold the ammo as a security blanket. This flexibility is built into the program and is part of what sets it apart from a normal purchase.
What happens to Ammo Squared customers during a shortage like 2020?
Customers who had been accumulating for years simply hit the ship button and received their ammo while everyone else stood in line at empty stores. Demand was so high that new signups came in faster than the company could handle, forcing it to start a waitlist.
How does Ammo Squared price the ammo it ships?
Ammo is priced just below the market median, and it accumulates in your account down to a fraction of a round until you have full, shippable boxes. Because customers buy without taking immediate delivery, they can also sell inventory back at the current market price.
How does shipping work, including state rules and the free-shipping threshold?
Shipping is free on orders over $250, and you control when it happens through triggers like a dollar amount, round count, or time interval. The company handles state-specific rules such as California's background-check requirement and the added difficulty of shipping to Alaska and Hawaii.
Why do new and rural gun owners find the program useful?
New and rural shooters often find the gun store intimidating and don't always know what they don't know, so a clearly labeled practice-versus-defense breakdown helps them choose. Co-host Kaylee notes the program lets people start somewhere small and build up at their own pace.
How did the relationship with PMC start and why did it matter?
The PMC relationship began with an unplanned booth visit at SHOT Show. It mattered because when distributors ran dry during the shortage, PMC came through with pallets of ammo, keeping Ammo Squared supplied while the broader market went empty.
Chapters
00:00 — Welcome and introducing Dan and Danielle00:21 — Starting in the garage in 201503:42 — How it works from the consumer side05:38 — Trying new brands and selling ammo back06:50 — Pricing and the 2020 shortage test09:51 — Turning ammunition into a SaaS product12:24 — Education, budgets, and the ammo security blanket16:30 — Distributors, buying power, and PMC at SHOT Show21:03 — Shipping rules by state and Alaska and Hawaii25:17 — Curated variety and the new-shooter experience30:14 — Gun store intimidation and getting talked down to39:42 — Nine million new gun owners and the shortage45:00 — Oddball calibers and game-time buying decisions1:00:13 — The pending state and trimming the catalog1:06:13 — Three most-asked questions and diversity of ammo1:17:25 — Where to find Ammo Squared and sign off
About the guest
Dan and Danielle are the husband-and-wife co-founders of Ammo Squared, an ammunition subscription and storage service they started out of their garage in 2015 as the country came out of an ammo shortage. Dan was working in tech as a product marketer with a SaaS background and built the first version of the site on WordPress. The company has grown through a series of warehouses, from a 1400 square foot space to its current 7500 square foot space, and in 2020 raised about $400,000 from roughly 650 small investors through a WeFunder equity crowdfund, most of them customers. Danielle has been a firearms owner for a long time; she and Dan went shooting on their first date when she was 19. [VERIFY their roles/titles beyond co-founders]
Key quotes
"if I would have just been putting away a little bit of ammo into, like, a 401K" — Dan
"one thing that, that I always tell people, we don't have a magic wand to make ammo appear when there isn't any in the market." — Dan
"you should have ammo at home, you should be shopping deals" — Dan
"the interesting thing with our program is that you can purchase ammo and not take delivery." — Danielle
"it's literally like an ammo savings account where you build up your supply and you could be anywhere." — Dan
"what I like about your program is you can start somewhere" — Kaylee
"if our customers at least have confidence in knowing that, hey, ammo squared's got my ammo, I don't have to go and stand in line" — Dan