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Thread: Who is price gouging the ammo?

  1. #11
    Perhaps the government should control the prices?

    One cannot wish for communism only when it benefits them.

    I think the retailers holding prices high are doing a favor to those who did not plan ahead. At least there is some ammo for the guy with nine calibers and a box of ammo for each......

  2. #12
    Chasing the Horizon RJ's Avatar
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    Quote Originally Posted by Grey View Post
    I'd be gouging ammo prices if I was going to sell any
    This is how I imagine you, but with 9mm

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    Kidding, Time to lay in a supply was "before." How much "before" will/would guide prices.

    I remember trying to start shooting in 2013/2014; you had to get to WalMart just when they offloaded ammo, in order to snatch up a couple boxes of Winchester "battle packs" they had left. It went quickly. I ordered many a round of reman from places like Freedom Munitions to save a few bucks. LGS prices were insane; when I found out about "defensive ammo", I was horn-swoggled at the prices they wanted for a box of 20 cartridges of Black-Death Super-Velocity Raptor-Claw Jacketed "Man Stopper" rounds.

    I do feel sorry for those who are genuinely concerned about their safety, manage to find, let alone actually purchase, a hand gun, only to find out they simply can't locate average quality practice and training ammo. But if demand goes up 10X, in the shit show that is 2020, the fixed supply of raw materials, production capacity and supply chain flow isn't going to keep up, and the only adjustment that can happen it to raise the prices.

    It's economics 101.

  3. #13
    Quote Originally Posted by RJ View Post
    This is how I imagine you, but with 9mm

    Name:  scrooge.jpg
Views: 801
Size:  89.6 KB

    Kidding, Time to lay in a supply was "before." How much "before" will/would guide prices.

    I remember trying to start shooting in 2013/2014; you had to get to WalMart just when they offloaded ammo, in order to snatch up a couple boxes of Winchester "battle packs" they had left. It went quickly. I ordered many a round of reman from places like Freedom Munitions to save a few bucks. LGS prices were insane; when I found out about "defensive ammo", I was horn-swoggled at the prices they wanted for a box of 20 cartridges of Black-Death Super-Velocity Raptor-Claw Jacketed "Man Stopper" rounds.

    I do feel sorry for those who are genuinely concerned about their safety, manage to find, let alone actually purchase, a hand gun, only to find out they simply can't locate average quality practice and training ammo. But if demand goes up 10X, in the shit show that is 2020, the fixed supply of raw materials, production capacity and supply chain flow isn't going to keep up, and the only adjustment that can happen it to raise the prices.

    It's economics 101.
    I might be able to do that into a small kiddie pool, I'm not nearly the ammo sexual that some of PF are...

  4. #14
    It's all a plot to drive up the popularity of .32s and .44s.

  5. #15
    Frequent DG Adventurer fatdog's Avatar
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    Quote Originally Posted by RJ View Post
    It's economics 101.
    My baseline assumption until proven otherwise is that anyone under the age of 50 who attended public schools has no understanding of that subject, since it long ago ceased to be taught.

    One only has to look at the popularity of Bernie, and large swaths of other public officials and members of congress to conclude the basic economics has become a banned subject and a despised truth.

  6. #16
    Site Supporter CCT125US's Avatar
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    Quote Originally Posted by DanM View Post
    @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.
    Also episode 328 on Ballistic Radio.

    http://ballisticradio.com/
    Taking a break from social media.

  7. #17

  8. #18
    Quote Originally Posted by fatdog View Post
    My baseline assumption until proven otherwise is that anyone under the age of 50 who attended public schools has no understanding of that subject, since it long ago ceased to be taught.

    One only has to look at the popularity of Bernie, and large swaths of other public officials and members of congress to conclude the basic economics has become a banned subject and a despised truth.
    34 years old and I have a firm grasp of economics.

    Central planning is an idea older than you, but I will agree it seems to be making a comeback in the US.

    As others have stated, it's due to a massive increase in demand and a global reduction in supply of raw materials, and national reduction in supply of assembled components due to Covid work stoppages. Go figure, forcing businesses to stop work reduces supply of goods.

    The point of all economic/business activity is to take something of little value and convert it into something of greater value. There is no rule saying you only charge consumers what your raw materials cost. You price your product as high as the market will accept.

    It's really no different from selling a used firearm second hand. What you paid for it has no bearing on the current value, only consumer demand. If it's an antique or collectable piece (high demand, low supply) it'll be worth significantly more.

    The shortage we're in right now won't go away after the election. The consumer base has expanded dramatically, supply issues still persist, and it's likely that demand will remain high or even increase as we see more civil unrest.

    As bad as it seems right now I'm actually glad that ammo is at least available. Back in 08/09 I literally couldn't find 223 at any price. I ended up buying reloads from a friend of a friend so I could attend a class I had registered for. At least today I can get ammo if I feel like spending 3x what it was in January.

  9. #19
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    Quote Originally Posted by jd950 View Post
    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.
    As noted the answers are increase demand and reduced supply. The reduced supply has to do with both raw material and transportation issues as well as reduce staffing at ammunition Plants due to Covid. These factors affect both domestic and foreign/imported ammunition suppliers.

    The more interesting part of the equation is the increased demand. While there are tens of millions of gun owners in the United States and they own hundreds of millions of firearms, the fact is that the average firearm is purchased and never shot, purchased and shot once and to a lesser extent purchased and shot once or twice a year. Most gun owners are not really shooters and this do not normally buy ammunition.

    Due to COVID and civil unrest, many of these people are now feeling the need to “stock up” on ammunition for the guns they own but do not really shoot. Add to this record breaking, unprecedented gun sales, many to first time buyers who need ammunition to go with their guns. The last factor is that some of the non-shooting gun owners, spurred by current events now want to hit the range to “knock the rust off.”

  10. #20
    The shortage may or may not go away after the election. Depends on how it goes. If there is a massive swing to the left, I see it getting worse. If it remains staus quo it probably gets better. If there is a swing further right, within a year (giving production time to catch up) it gets better. And those who are still in the acquisition phase of gun buying are going to be like pigs in slop when everyone who bought a gun anticipating war in the streets will sell off. And no one will be complaining bv about getting the stuff at pennies on the dollar when supply goes back to a glut. It's happened with all the previous panics.

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