Why Aren't Local Gun Stores Flipping .223/5.56?

[R19]

Just was at a very busy local gun store this weekend that has no .223/5.56. They did not have any the last couple times I was there.

Why aren't they actively acquiring it from other sellers and flipping it for profit? What am I missing? Thanks.

[tenpercentfirearms]

Just was at a very busy local gun store this weekend that has no .223/5.56. They did not have any the last couple times I was there.

Why aren't they actively acquiring it from other sellers and flipping it for profit? What am I missing? Thanks.

Tell me where you get your .223 at and at a decent price and I will go buy it all and flip it.

I know people aren't flipping my .223 because it is currently a $1.00 a round. That is how I prevent people from flipping and it provides its own "customer limit".

If no one buys it, I will lower my price. If they buy it all, I will use that money to pay for the next batch that comes in from my back order.

I am not going to stand around in line at Walmart to buy three boxes just so I can turn around and make money on it.

Honestly, I don't think people fully understand the ammo demand right now. There is none available and because of that when it does become available, people are marking it way up. Suppy and demand. Everything will eventually smooth out, aka approach equilibrium. It just takes time.

[NapalmCheese]

Probably because they think the know how much they can sell it for and don't like the margins.

[Merc1138]

But think of the profit!

You could buy 3 boxes for $1 a round, then sell them for an amazing $1.05 a round!

[R19]

I was just looking at gunbot.net. I'm speaking about a local gun store doing it even if the margins are small. It would get more customers in the door and is better than 'we don't have any' for weeks on end.

I understand if the shipping cost makes it cost prohibitive.

[Excaliburr]

I think they are, but just cannot find enough for sale. Do you have some? Try offering it to them. I know they will pay you at least half what they can get from the market. Not many of us are willing to part with it that cheap. LGS have become more greedy in times like this and want to make it while they can. They like to double their investment and they do not want to get stuck with overpriced stock. As to buying from the wholesalers, they have been placing orders all along and getting 10-20% of what they order + it takes a month to receive. When the wholesalers do not have inventory, you know there is a problem. The problem resides with the Government making huge purchases and those out here who are hoarding all they can find for some reason. It really is a true capitalist market and those who have the money are getting what they want. Those of us out here who don't have the big bucks get stuck with whatever is left---the scraps. If you wanted .22LR all you have to do is pay $90 a brick and it will flock to you. There are many who will sell for that. So a wealthy person can go have a fun day at the range, while the rest of us sit on our ammo shaking in our boots that we won't be able to find replacement ammo at an affordable price. We also keep our firearms locked up in the safe and unloaded so they cannot be used. As if they can make their own way out to commit a crime. We are called law abiding citizens and have become slaves to the system. You want to correct this and become independent, then re-load and cast your own.

[chillincody]

maybe because they get it in and a fellow gun owner buys it to turn around and sale it at 5x the price ...........

[tenpercentfirearms]

I was just looking at gunbot.net. I'm speaking about a local gun store doing it even if the margins are small. It would get more customers in the door and is better than 'we don't have any' for weeks on end.

I'd rather not have any than risk getting stuck with expensive ammo. Plus you can't tell customers "hurry and get it before it is gone" if it is always there!

[sargenv]

Vallejo Gun show had 223 ammo available.. at $799/1000.. PMC stuff.. they had 50 cases of it and weren't selling any of it.. I think people are becoming weary of paying through the nose for this stuff.. or just flat out running out of money paying these exorbitant prices.

[R19]

Here is an example:

http://www.freedommunitions.com/5-56-M-193-55-gr-FMJ-B-p/b556m193r-b0500.htm

Buy it and sell it for $1.00/round in the store. At least they have some to sell.

[G60]

Maybe because they don't want to CTD themselves?

[VectorScalar]

Mine isn't because they value repeat customers. ;-)

[Excaliburr]

LGS around me are making tons of money right now and do not need to sweat the small stuff or the missed opportunities to make a living. If we quit our panic buying and held off for a month, then maybe they would change their mind. Let em rot with inventory! It is greed and that is a good thing in a free market, isn't it? Or would you rather have governmental regs on prices dealers can charge? Can't have it both ways. Personally I have not bought anything at these prices and continue to re-load or find deals from friends and likewise we trade amongst each other. I traded off some .22LR the other day for something I needed. It is as liquid as money right now. Can't re-load it, but a guy only needs so much. I am a merchant, not in this arena, but I can say that a merchant isn't going to flip anything for less than a 20% margin if their overhead cost them say 20%. We figure this stuff out way ahead of time. In the case of guns, LGS used to make only 10% (pre-panic x) on a gun..at least the ones I went to. Their bread and butter was accessories, ammo, special orders and they even used to charge for bore-sighting a rifle (imagine that!). Consumers hated to be nickled and dimed, so merchants simply add the price in to the scope and then say they will bore-sight it for n/c. Just like jewelry stores will mark up their inventory 300% and offer a piece on "sale" for 60% off. This makes you feel like it is overstock or you got a good deal. I am sorry, but what counts is what you paid, how hard it was for you to make that money and how much was that same item before. Inflation is something we have accepted and it has put more people in the poorhouse than you can imagine. Heck, I know people who would buy ammo instead of food and they try to live on social insecurity alone.

[Excaliburr]

One of the local LGS near me has a list of his regular "good" customers and when he gets something in they are looking for, he calls them to give them first right of refusal. This is why it can be important to develop a relationship with a LGS rather than a warehouse type store.

[R19]

Maybe because they don't want to CTD themselves?

CTD = contradict?