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Ammo pricing at gun stores

Discussion in 'Ammunition & Reloading' started by Joshg, May 19, 2013.

  1. Joshg

    Joshg Portland Member

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    I thought I'd share some insight I have with everyone.
    I have someone very close to me who works at the main ammo and sporting goods distributer in the area. They pretty much cover everyone other than Wal-mart. Anyways the point I'm getting at is that I have access to the pricing that the LGS is paying. If they are telling you "we're paying a lot for it too". They are lying right to your face. They are getting it for maybe a few cents more per round than they were last year. All that extra mark-up is going right in their pockets and there is no reason for it.
    I'm not speculating or guessing, I've seen the numbers.
    I thought you all deserved to know.
     
  2. 2ndtimer

    2ndtimer SE Washington state Active Member

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    Josh, that may or may not be the case. My FFL guy goes through a major distributor, and that major distributor has not had the more popular ammo available for months. So while they show the wholesale prices that are only a little higher than they were previously, they have no stock available. If you are a retail store, you need to have product available, so you have to choose between paying higher than customary wholesale prices or telling your customers to go elsewhere. Some shops probably are paying much higher prices for their products and pass along those price increases to their customers. The big box stores sell lots of other products, so they can afford to backorder and wait. Also with the volume they order, stores like Cabelas, Bass Pro and Walmart will get their orders filled sooner than the small LGS will. Even so, a lot of the big box stores have been sold out. I am just saying that you can't assume that ALL local gun stores are ripping everyone off. Some of them are just trying to serve their customers by providing the products and generate enough revenue to be able to restock for the next customer.
     
  3. Joshg

    Joshg Portland Member

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    I will agree that I can't speak for all of them. But I can think of 5 or 6 in the Portland area that are in fact getting their ammo in from the distributer and are gouging badly. I don't want to name a specific store. But the price increase is going directly into their wallet.
     
  4. PaulZ

    PaulZ Oregon City Active Member

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    Please DO name the stores! why not? You put a statement out there 2nd timer questioned it; now it's evidence time.
     
  5. My 3 sons

    My 3 sons Bonney Lake Active Member

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    I agree with second timer. I have given thought to opening a store of my own now. The one thing holding me back is inability to get enough inventory to turn quick enough to make enough profit to survive. I feel bad for all the stores right now. Most of their gross margin doesn't come from firearm sales but the ammunition and accessories they provide. So they are faced with sell at regular prices on the little bit that gets to them and not make enough money or make more on what they do get and try to survive. Tough spot to be in for anyone.
     
  6. Joshg

    Joshg Portland Member

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    Everyone is entitled to their opinion on it. All I wanted people to know was: 1. Their prices haven't changed. And 2. The shipments are moving, the ammo is coming in and going out in record breaking numbers.
    I do get that some of the stores are not going crazy with it, this particular post isn't about them.
     
  7. deadshot2

    deadshot2 NW Quadrant WA State Well-Known Member

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    You state facts that you probably don't have. Do you see "Price Sheets" or actual invoices.

    I spent a good part or my working career in the business of buying directly from manufacturers and selling to customers. I can tell you that all those price sheets that are circulated mean absolutely NOTHING. It's the actual invoice that determines the purchaser's cost and those who buy more get larger "special pricing", "Discounts", and "Annual Rebates" based on purchases.

    Have you considered the fact that all those special prices may have gone away? The ones that only exist inside the manufacturer's computer and in a letter to the "Distributor" (first party the factory sells to). They were all put in place to encourage volume sales and product movement. Not necessary today.
     
  8. Joshg

    Joshg Portland Member

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    I am also in a business where I buy from manufacturers and resell to the customers. I am aware of how the system works.
    And I am talking about invoice pricing. My fiancé puts the orders together and directly handles the invoices and ships the orders.
    You can believe what you want and try and explain away whatever you wish. I for one don't feel bad for the "poor little gun stores" that are doing more business with higher profit than ever before. I posted this info to try and give people a heads-up on what I've seen. If you don't care or believe it go ahead and buy your ammo at 300% mark-up, no skin off my nuts.
     
  9. deadshot2

    deadshot2 NW Quadrant WA State Well-Known Member

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    Like someone once said "Those convinced against their will are of the same opinion still".

    I'll bet your fiance doesn't see those "rebate checks at the end of the year (sometimes quarterly) that may not be showing up now that the manufacturers can ship all they can produce. Kind of like why Car Dealers never have Sale Prices on cars that have two years of production sold out already.

    Anyway, those gun stores that are making those obscene profits needn't worry. The IRS, State, and Local Governments will take it all away in the end.
     
  10. P7id10T

    P7id10T Cedar Hills Bronze Supporter Bronze Supporter

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    To all of it, SO WHAT ?!?
    If you don't like the price of what you are buying, don't buy it. The internet is a great leveler of the playing field.
    The ingenious design of capitalism is it is self regulating. The market and pricing generally follow accordingly, albeit with some lead/lag. Vote with your allegiance, or wallet, or both. In the end, our hobby is extremely wasteful anyway.
    I'm not going to waste my anger or indignance on something like a fellow much like myself gouging poor bastards while he can. Or big box stores either.

    Where I work, there's an electronic propaganda sign on one of the walls, and one of the screen that flashes shows a glass of pilsner (i.e. light beer in my book) and warns, "avoid empty calories."
    Frack that! I'm going to load up on those "empty" calories, and in fact TRIPLE them with a beer I can chew while I'm drinking it.
    What's the point other than a pointless rant? That's it. Gouging, beer, bad drivers, ammo that blows up in your face. It's a tough world -- might as well stay in bed.
     
  11. Scout67

    Scout67 Milwaukie Member

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    Man Josh, bet you will think twice before sharing information that you thought would benefit others.
    These forums are like a shark tank with know-it-alls circling under a tightrope waiting for someone/something they can argue with.
    BTW, thanks for the info.
     
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  12. UncleSugar

    UncleSugar East County Member

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    No kidding, not sure why everything has to be a conspiracy, I know we are gun nuts, but we don't have to be crazy gun nuts.
    Seems obvious that the high prices are not coming from the manufacturer, some gun stores sell what little ammo they get at very good prices. From what NW Armory has been advertising on Facebook, they seem to be selling at a good price.
     
  13. Joshg

    Joshg Portland Member

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    Yeah, no more info from me. Ill stick to buying my ammo at cost and reading whatever other people have to say. Everyone seems to have a chip on their shoulder, well that or a stick up their ***.
     
  14. 2ndtimer

    2ndtimer SE Washington state Active Member

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    I don't know, Josh. Seems like you might be the one with the chip on the shoulder. Others have pointed out several other reasonable explanations for some of the seemingly excessive prices and suggest that maybe they all shouldn't be painted with the same "greedy SOB" brush that you seemed to try to in your original post. Here locally, my son works for a local department store that has tried to maintain reasonable prices on guns, ammo and components. But when they have to pay hazmat fees on their primer orders, and their distributor limits them to just 3000 primers per order, they need to recoup that $27 cost on just 3 bricks of primers. So instead of adding $1 per thousand (if they got 27 bricks), they have to add $9 each to recover their cost. They would love to be able to order all they want and charge less, but with their customers begging them for components, they are forced to buy on the spot market and pay premium prices. They then sell them for what seems like an exorbitant price. (Not to me, I won't pay $7.99 per box of 100) they have now dropped their price to $4.99 per box and are still limiting their customers to 3 boxes of 100 so everyone can have a chance to purchase some if they choose to. As the product becomes more available, I expect prices to drop back closer to pre-Newtown levels. But the market has indicated that it will support higher prices, so don't expect them to ever return to where they once were. And while many are vowing to never darken the door of "those gougers", I bet they will line up at "those gougers", if those gougers are suddenly offering bricks of CCI Mini Mags for $25 each. (I know I would!)
     
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  15. scrandall01215

    scrandall01215 Washougal,WA Well-Known Member

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    Also them stores have to make a profit, with less inventory to sell. You may call it gouging but it not really they still have the same overhead to cover with less volume, its called being profitable, there not in business to brake even or make a loss.
     
    My 3 sons and (deleted member) like this.
  16. RVTECH

    RVTECH LaPine Well-Known Member

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    On the 'flip' side of all this Sportsman's Warehouse has actually reduced prices. Before the buy back by the nameholder of Sportsman's Alliant powders (Bullseye, Unique etc) were around $21.99 a lb with primers at $39.99. Recently I paid $18.99 for Unique and $35.99 for a brick of SP primers. So are some retailers holding the line, yes - are some raising prices because they are reacting to their higher prices, probably - and are some raising prices for no other reason than to take advantage of the current situation? most likely. Buyer beware - always.