They're banking on ego and keeping up with the Jonses'.
In the add, around the 3:20 re: match ammo, the guy's leading phrase is "Your friends will be full of envy, and you'll be full of smiles"
Sounds like they need to work on making more meaningful friendships to me.
In short, Stacatto has the funding and other resources to get into the ammo business above the “bunch of 1050s” level if they want to.
Stacatto’s current owner is a Billionaire (with a B) who is a shooter and is not shy about investing in the company and the shooting community. Stacatto recently bought the old Front site facility in Nevada and recently moved out of the old STI factory in Georgetown TX to a brand new and much larger facility located 20 minutes away on an 800 acre ranch. They’ve already built the first of several planned outdoor ranges in the property adjacent to the factory. The goal is for both locations to be shooting destinations for training and events.
They’ve been working on the ammo thing for a while. In addition to new product testing and production QC, they have a pro staff of shooters, a training division and they sponsor shooting events so going through a large volume of ammunition is certainly possible.
I do agree the retail pricing on their ammunition is unrealistic.