We are a smaller shop that doesn't have the same buying power of many other online ammo dealers that buy 100 times the ammo we do so we charge MSRP on ammo with no discounts at this time. Our cost through distribution has gone up so there's no margin for discounts on ammo, especially since it's very difficult to source right now.
CS Tactical
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I bought my 5" for $409, and was getting ready buy a couple more, one as a spare a one to have RMR milled. Then these shenanigans started and i got furloughed. Back to work now but the pistols are $540...Originally Posted by ER_STL
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Thing is, Vista Outdoor (parent company of Federal, Speer, CCI, Blazer etc etc) in their recent quarterly earnings report says their supply chain disruptions were minimal. The DEMAND is that LARGE!
From August ER:
Mark Smith
Okay. And then as we look at the ammunition market, any commodity or component shortages or issues that you guys see out there today?
Chris Metz
Well, that is - I mean, certainly, actually, to be honest, I mean there's not huge shortages in materials. There is more just capacity constraints, to be honest. I mean it's across the industry. You walk retail today, if you saw what our wholesalers and distributors are carrying, it's the leanest we've ever seen them in inventory, which is a really good sign, and it's one of the key differences between previous surges and this surge is, inventory levels are as clean as we've ever seen them.
The one thing I will say about commodities as well is our team has done a pretty nice job of commodity hedging, if you will. And we've needed it because we've had to pay overtime rates. We've had to pay surcharges. We've had to pay all sorts of premiums to keep our factory going in the current environment that we're in.
Mark Smith
Okay. And then last one for me. Can you talk at all, especially within Ammunition about backlog or maybe a different way of looking at it if we shut off all sales today? How long would it take just to refill channel inventory?
Chris Metz
Yes. So Mark, it's an insightful question. And I think if you talk to our retailers, which we talk to them all the time, they said, hey, listen, if everything were just to come to a screeching halt right now, it would take us months just to stock our shelves, to stock our warehouses to get back to a point where we feel comfortable that we've got the supply that we need. So that - there is - so that was kind of the first part of your question. What was the other part of your question, Mark, I want to make sure I address it?
Mark Smith
Yes. Just anything on that backlog, anything that you can quantify or help with on kind of how long you think maybe this goes just to try to catch up?
.
Chris Metz
Well, here's the interesting thing about backlog. So we had our strongest order writing month back in March, followed by our second strongest order month, which was this past month, July. So July, which is the beginning of our second quarter, was our strongest order writing month. So it certainly hasn't slowed down at all.
I don't feel sorry for people who want to buy a fire extinguisher when the stove is on fire. Neither do I feel bad for people who have seen ammo panics in 2008, 2012, 2016, and somehow didn't see election panic coming in 2020.
"Gunfighting is a thinking man's game. So we might want to bring thinking back into it."-MDFA
Beware of my temper, and the dog that I've found...
You bring up a good point. After 2012 I decided I wouldn't be caught flat-footed again and so I'm well-stocked for now. But if it drags on too long it may become an issue. The election was a known issue comming but I don't think anyone saw the pandimic and riots.
We could isolate Russia totally from the world and maybe they could apply for membership after 2000 years.
I agree, and I'm the same boat. There's no way for me to keep a lifetime supply of anything. I would say that in the future we should probably consider non-pandemic years to have two seasons: winter and riot.
"Gunfighting is a thinking man's game. So we might want to bring thinking back into it."-MDFA
Beware of my temper, and the dog that I've found...
But when things are available my reorder point on primers is gonna be what was my stocked up level.
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Its hard for me to determine at what point do inflated prices become gouging. So far the responses I've seen on this forum is more sensible than the comments on slickguns(.)com. The comments on that site think any increase in prices is considered gouging. I will say academy seems to be one of the places that have not dramatically increased their prices. Brownells just increased their 9mm prices last weekend. Midway prices are a little higher than prepandemic. Natchezzss seems to be unchanged for now. Despite all the inflated prices I've mentioned, they are not the worst offenders ive seen surveying online stores.
I am not seeing price gouging on ammo. I am seeing a lot of new buyers and/or shooters who have no frame of reference for what a box of fifty 124-grain 9x19 used to cost. Or what any other ammo used to cost. If you are new to firearms, $50 for two boxes of ammo is not that big of a deal after dropping $600 on a pistol, spare magazines, cleaning kit, and holster. I am seeing that a lot of buyers are ignoring ear and eye protection, so I doubt much actual shooting is happening.
What I am seeing is shortages of all types of ammo, from handgun to hunting rifle to rimfire to shotgun. My LGS has told me he can sell any ammo he can get with the exception of .45 GAP. Based on the handgun ammo stocks on my last visit, I believe it. No .32 ACP, no .380, limited 9x19, no .357 SIG, some .357 Magnum, little .38 Special, no .40, some 10mm, no .44 Magnum, no .45 ACP or .45 Colt.
Dove season is underway, and that ammo situation finally stabilized. I see cases of ammo (primarily Rio) on the shelves and I hear the shots from the fields behind and next to our home.
With deer season around the corner, common hunting ammo is unobtainium. A lot of people usually buy one or two boxes of ammo for deer season and are coming away empty handed this year. I do not remember ever seeing no stock on .300 Winchester Magnum or .243 Winchester, but I am seeing it now. Unusual or obsolete rounds like .32 Winchester Special are available at prices close to 2019 prices, but the demand for common calibers is very high.
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