Different view on ammo prices, I think that gouging is rare, there is no normal.

[jmackenzie]

I buy the ammo that I don't reload from a guy in the south with an online store. Really nice guy, he told me that he has to charge much higher prices to stay in business, he is making less not more. Volume is down, he has to pay more for supplies and he is just trying to keep his doors open. I really doubt there is much price gouging, I think that people are just trying to keep their doors open.

Also, there is no normal in my opinion with ammo and reloading supplies. Sometimes prices are lower and you can buy anything that you want, sometimes there are shortages and you have a hard time buying certain things. I do not reload to save money, I reload because I enjoy it and it ensures that I have ammo during shortages.

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[Andy54Hawken]

I do agree that sometimes prices are low and at other times higher.

And there is nothing wrong with :
Striking when the iron is hot as the old saying goes....as well as making a profit on the items that you wish to sell.

With that said...
Selling something at a exorbitant price , just to take advantage of a situation is wrong , in my opinion.

As always do as you wish....I would rather do without , than buy items , at what I perceive as exorbitant prices.
Andy

 

[Eveskcige28]

I think most people are probably doing as you say. "Keeping their doors open" but I know for a fact people are, private party, price gouging. If you go on gunbroker there are people selling primers at $300 a brick. Meanwhile, most big retailers have the same prices or maybe slightly elevated. Now the local shops of course are having supply issues with primers, ammo, powder, everything. So it becomes a symptom of supply and demand.

 

[Eveskcige28]

Also regardless of politics or rioting or covid. Prices will always fluctuate due to cost of raw materials or fuel. Lead is heavy, therefore expensive to ship. If fuel prices go to $4 a gallon thats nearly twice the cost to ship. If scrap metal prices go through the roof like they did ten years ago that effects the cost to produce casings. And I have no idea the chemical composition that go into the powder and primers.

 

[jmackenzie]

Also regardless of politics or rioting or covid. Prices will always fluctuate due to cost of raw materials or fuel. Lead is heavy, therefore expensive to ship. If fuel prices go to $4 a gallon thats nearly twice the cost to ship. If scrap metal prices go through the roof like they did ten years ago that effects the cost to produce casings. And I have no idea the chemical composition that go into the powder and primers.

The main ingredient in powder is nitrocellulose (I think, I am no chemist), the last time I checked only one plant in the US made it. It would be subject to supply issues I would think. It is hard to handle and dangerous.

 

[mrchris]

I get what you are saying. In a past life I spent 20 years in the grocery business. One that is entirely based on razor thin margins and high volume. You'd ask new people what makes more money, selling 50 cent cans of chili for 99 cents or selling 50 cent cans of chili for $2? inevitably they'd say the $2 cans. They'd be right if you only sold 1 can either way. But at 99 cents we'd sell 1000 cans a week putting $490 in the bank. At $2 a can we'd sell 10 tops, a total of $15. But supposed we could only get 10 cans a week and had to make a living off of that only?

If you normally sell 5000 boxes of ammo a month, with a $1 a box profit, that is not a bad month but figure $1000 a month rent (simple numbers not realistic) another $1000 in various business expenses (utilities, advertising, etc) and that leaves $3000 a month or $36,000 a year before paying taxes and insurance.

Whether you sell 10 boxes or 10000 boxes many of those expenses are unchanged.

What happens if you can only get 100 boxes a month to sell because there is a lack of supply? The bills still have to be paid. Even then if the supply you can get is too low, even at a $100 a box markup you might not make enough to break even let alone put food on the table. Certainly not the shop owners fault, well beyond picking a fickle business influenced by politics and pandemics.

And yet 99% of the gun owners who turn their noses up at the guy and scowl about price gouging probably think he's unfairly getting rich off it.

 

[jmackenzie]

I get what you are saying. In a past life I spent 20 years in the grocery business. One that is entirely based on razor thin margins and high volume. You'd ask new people what makes more money, selling 50 cent cans of chili for 99 cents or selling 50 cent cans of chili for $2? inevitably they'd say the $2 cans. They'd be right if you only sold 1 can either way. But at 99 cents we'd sell 1000 cans a week putting $490 in the bank. At $2 a can we'd sell 10 tops, a total of $15. But supposed we could only get 10 cans a week and had to make a living off of that only?

If you normally sell 5000 boxes of ammo a month, with a $1 a box profit, that is not a bad month but figure $1000 a month rent (simple numbers not realistic) another $1000 in various business expenses (utilities, advertising, etc) and that leaves $3000 a month or $36,000 a year before paying taxes and insurance.

Whether you sell 10 boxes or 10000 boxes many of those expenses are unchanged.

What happens if you can only get 100 boxes a month to sell because there is a lack of supply? The bills still have to be paid. Even then if the supply you can get is too low, even at a $100 a box markup you might not make enough to break even let alone put food on the table. Certainly not the shop owners fault, well beyond picking a fickle business influenced by politics and pandemics.

And yet 99% of the gun owners who turn their noses up at the guy and scowl about price gouging probably think he's unfairly getting rich off it.

Exactly right