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Thread: Who is price gouging the ammo?

  1. #1
    Member jd950's Avatar
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    Who is price gouging the ammo?

    Like the rest of you, I am seeing ammo that sold a year ago for $8.50-$9.50 pr 50 selling for $25-$35 per box and even up to almost a $1 per round. Local shops that I never bought from due to their high prices are now competitive with the online sellers. It seems even worse than it was last time we had an ammo crisis.

    I understand shortages will happen in such circumstances and there are always those who will want to profit from the shortages, but lead, copper, brass, propellants haven't suddenly gotten rare; the military hasn't suddenly started buying up vast supplies. It is all happening at the retail level (I think). If that is right, and if there is nothing that makes the manufacture or shipping of the stuff suddenly more expensive, I find myself wondering is where the primary price gouging is coming from? Leaving the inevitable gun broker re-sellers and places like cheaper than dirt out of it, Is it the manufacturer, the distributor or the retailer, or are all of them trying to make some extra money out of the situation?

    I suppose it doesn't matter, but I am curious.

  2. #2
    Site Supporter ccmdfd's Avatar
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    Quote Originally Posted by jd950 View Post
    but lead, copper, brass, propellants haven't suddenly gotten rare
    I've actually heard that is part of the problem. Some key ingredient imported from China is in short supply.

    I consider that completely rumor at this point. I have not tried to verify.

  3. #3
    It's called supply and demand....simple as that. I'm not being a smart-a$$, that's just the most straight-forward explanation and it happens with most goods when there's a sudden and sharp increase in demand that greatly exceeds the supply. This has been the case with guns, ammo and reloading components for the last 15 years or so. Sellers who choose not to raise their prices either have to try and limit how much an individual can purchase in order to ensure they have enough for other customers or they'll watch everything they sell end up for resale at significantly higher prices the next week.

    As noted, it's not just ammo right now, as guns are up in price as well. Grab-a-gun had M&P 2.0 compacts listed at $384 a year ago; they're $519 now. It's my loss for not buying a pair when I had last been looking at them...

  4. #4
    If you go to the websites of manufacturers who also sell direct(Federal, for example) you can compare their list prices with what you're seeing retail, and make your own conclusions.

    Smaller manufacturers who are direct sellers such as Atlanta Arms or Precision Delta don't appear to have done the 2x or 3x increases you're seeing at retail.

  5. #5
    Tactical Nobody Guerrero's Avatar
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    Economics, as much as I would like it to be different.

    Consider that the next time you hear a politician complaining about “price gouging” during a crisis, a dopey complaint for which both Left and Right have a weakness. Price gouging is treated as moral abomination and, at times, as a legal offense. You know what price-gouging is? A public service. Prices are how we ration scarce goods, and the pain associated with paying unusually high prices is how we learn not to put off laying in supplies until after the disaster has already happened. The guy with supplies to sell has, either through luck or foresight, managed to put himself in possession of what you need — and you did not. You don’t have to thank him, but you do have to pay his price. The profit he makes encourages him to keep planning for the future. If that hurts — it should. Maybe you’ll learn to do better next time. But the alternative to paying the higher prices isn’t paying a lower price — it is having no gasoline or water or toilet paper at all, at any price. You can try to regulate away that reality; ask the Venezuelans how that’s going for them.
    "The victor is not victorious if the vanquished does not consider himself so."
    ― Ennius

  6. #6
    @jetfire actually covered this in a recent episode of his podcast. Apparently Covid has really affected the mining and trucking industries which means that it’s harder and more expensive for ammo companies to get raw materials. Demand is also 10x what it is normally. People price gouging is the only reason there’s ammo available at all, otherwise people would just hoard it.
    My posts only represent my personal opinion and do not necessarily reflect the opinions or official policies of any employer, past or present. Obvious spelling errors are likely the result of an iPhone keyboard.

  7. #7
    Member Zincwarrior's Avatar
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    Quote Originally Posted by peterb View Post
    If you go to the websites of manufacturers who also sell direct(Federal, for example) you can compare their list prices with what you're seeing retail, and make your own conclusions.

    Smaller manufacturers who are direct sellers such as Atlanta Arms or Precision Delta don't appear to have done the 2x or 3x increases you're seeing at retail.
    I am not seeing smaller manufacturers with any ammunition available to purchase. I haven't seen any on the Federal site for some time either.

  8. #8
    We made an order with Hornady in July and were told it would be about 90 days because they are only running at half staff because of COVID.
    We could isolate Russia totally from the world and maybe they could apply for membership after 2000 years.

  9. #9
    I'd be gouging ammo prices if I was going to sell any

  10. #10
    Member jd950's Avatar
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    Okay, sure, I understand supply and demand and to a certain extent I understand economics.

    As it happens, I actually have plenty of range ammo. I don't "hoard" it but generally shoot enough that I pick up ammo whenever I see a good deal and therefore am likely to have several thousand rounds around at any given time. Prior to all of this madness, there were some pretty good deals available and I purchased quite a bit so am particularly "flush" with ammo right now. However, I am feeling a bit uncomfortable about shooting it as often I normally do when I see it unavailable or priced like it is plated in gold instead of copper.

    I gather my use of the word "gouging" got a couple of you a little worked up. Perhaps I should have found a less volatile word or phrase...maybe I should have wondered "Which part of the supply chain was economically benefiting the most from the current high demand for ammunition?

    The information about Covid, mining and raw materials is interesting. I was unaware of that aspect.

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