Here It Comes: Shrinkflation

[VanceInWA]

We've all seen this before. Companies want to squeeze ever more profit out of their existing product lines, so they will maintain the same price point but sell a smaller quantity. That is what economists call "shrinkflation" when consumers are effectively paying inflated prices by getting less for the same price. Groceries are infamous for this. Dannon yogurt went from 8 ounces to 6 ounces. Ragu spaghetti sauce from 28 ounces to 23.9 ounces. A "pint" of Haagen Dazs ice cream is now only 14 ounces. The list goes on and on and on...

As I just saw at Sportsman's Warehouse, ammunition appears subject to shrinkflation as well. I was fairly amazed at the number of 45 ACP boxes being sold at yesterday's prices, but with shrinkflation quantities. Federal selling 45 ACP in 50 and even 20-round boxes. Same with Hornady and Remington. And others. I've never seen so many small-quantity boxes of 45 ACP on the shelves before. Ever. Same thing is happening with 9mm ammo.

There are three basic ways for a company to respond to inflation. They can raise prices, they can cut their margins, or they can engage in shrinkflation. Of those three options, shrinkflation represents the worst way for a company to treat its customers because it is an act of deception. It is an attempt to "hoodwink" the consumer into thinking they aren't paying inflated prices, when in fact they are. Fortunately, most gun folk are used to thinking in terms of price per round, so hopefully this deceptive practice won't be as successful with ammunition, but I'm still very disappointed to see it taking place.

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[solv3nt]

Are those standard FMJ or hollow point?

 

[Provincial]

An oft-overlooked facet of this is that the packaging cost per unit increases as the quantity of the contents is reduced. In other words, it costs almost as much to package, warehouse, transport, and sell a 20-round package as a 50-round one.

The end result is that the unit price ($$ per round) is higher. This is less efficient, and the consumer bears the added cost.

 

[Toxic6]

Or the federal 40 round boxes of .22lr….where's my other mag of rimfire at American eagle!

 

[Longwalkhome]

I was in Bimart today for dog food, smaller cans and higher prices. Something I did notice is all through the store the shelves were full and even piled up. Lots of ammo and gun stuff, Hornady bullets but first time I ever saw 338 bullets for $52 a hundred.

 

[Local Loader]

Using Sportsman's as an example they have already been over charging and raising prices on ammo, I've already been able to find ammo local and online for $1 to $20 cheaper than Sportsman's. They have done the same thing with reloading supplies all their brass, bullets and powders are more expensive than everyone else even the dies, holders, measuring tools, cleaners and presses are more expensive as well.

 

[VanceInWA]

Using Sportsman's as an example they have already been over charging and raising prices on ammo, I've already been able to find ammo local and online for $1 to $20 cheaper than Sportsman's. They have done the same thing with reloading supplies all their brass, bullets and powders are more expensive than everyone else even the dies, holders, measuring tools, cleaners and presses are more expensive as well.

Yeah, you're right. That was definitely my impression this morning. In fact, after visiting Sportsman's where I bought a 50-round box of 9mm for $19.99, I swung by Bi-Mart just to check on anything they might have different and the same box was selling for $17.99. Kinda getting soured on the big box retailer.

 

[TTSX]

This is nothing new.

 

[Local Loader]

Another example using Sportsman's is their gun prices. A Hi-point 45acp at most shops is $160-180 but it is $220 at sportsmans. I was there today and even the ARs are $100 to $200 more than other stores.

 

[VanceInWA]

Another example using Sportsman's is their gun prices. A Hi-point 45acp at most shops is $160-180 but it is $220 at sportsmans. I was there today and even the ARs are $100 to $200 more than other stores.

Hopefully they have someone watching this forum...

 

[solv3nt]

Remember like Bass Pro, Sportsman's was bought out by Cabela's.

*Edit - Merger didn't go through.

 

[TTSX]

Remember like Bass Pro, Sportsman's was bought out by Cabela's.

other way around, I believe

bass pro bought cabelas

 

[arakboss]

My dollar tree toothpaste is now a $1.25 and the container size went from 4.5oz to 4.1oz.

 

[Local Loader]

Yeah, you're right. That was definitely my impression this morning. In fact, after visiting Sportsman's where I bought a 50-round box of 9mm for $19.99, I swung by Bi-Mart just to check on anything they might have different and the same box was selling for $17.99. Kinda getting soured on the big box retailer.

I stopped buying ammo there a while ago and even stopped buying reload supplies except for primers.

Remember, like Bass Pro, Sportsman's was bought out by Cabela's.

They were not bought, the sale was canceled by basspro.

 

[solv3nt]

I stopped buying ammo there a while ago and even stopped buying reload supplies except for primers.

They were not bought, the sale was canceled by basspro.

Well I stand corrected!

 

[Stomper]

An oft-overlooked facet of this is that the packaging cost per unit increases as the quantity of the contents is reduced. In other words, it costs almost as much to package, warehouse, transport, and sell a 20-round package as a 50-round one.

The end result is that the unit price ($$ per round) is higher. This is less efficient, and the consumer bears the added cost.

This Texican man would agree WHOLEheartedly with you!

 

[Longwalkhome]

I don't need much but like to buy toys to mess with. When prices get steep then I don't buy and then I go find something else to mess with. Not often I shop local now because it's time and money wasted driving.

 

[VanceInWA]

This Texican man would agree WHOLEheartedly with you!

That was flipping epic! And spot on!

 

[Jay Walk]

As ammo starts to sit on the shelf

Sportsmans raising prices
Bi-mart lowering prices.

Today
Ammo inc brass 9 115 grain

Vancouver Sportsmans $20.99 five box limit
Bi-mart $17.00 No Limit

 

[arakboss]

As ammo starts to sit on the shelf

Sportsmans raising prices
Bi-mart lowering prices.

Today
Ammo inc brass 9 115 grain

Vancouver Sportsmans $20.99 five box limit
Bi-mart $17.00 No Limit

Sportsmans is trying to make up money they lost out on, selling all those cheap primers.