Ammo Shortage 2013

[jofher007]

PLEASE WATCH THIS VIDEO!!

https://www.youtube.com/watch?NR=1&v=uWRx_EMNjk4&feature=endscreen

http://www.youtube.com/watch?v=7UMRmCitpN0

[Rickrock1]

Hmmm

[Renaissance Redneck]

He's just another whiner complaining about a predictable economic phenomenon. These people need to learn some basics about capitalism; their complaints are misdirected.

[Mad Jax]

Supply & demand, don't like it, but it is the way it is. I agree the ammo co. are making more than usual. But it just doesn't seem to be making its way here or gets snatched up B4 we get to it. Personally I would buy as much as I could get so I could visit my almost forgotten range. So by that action I would become just like the people I am angry with. We all know it will eventually come back, just not at what cost. Product mark up, permits & taxes they are trying to push through legislature. We might find then the price gougers may be cheaper. I do not condone this, mainly because our stocks are running low & we can't go shooting as often

[Ratboy]

flagging them on cl?

[Renaissance Redneck]

Supply & demand, don't like it, but it is the way it is. I agree the ammo co. are making more than usual.

I think it's more complicated then that. From what I'm guessing, the manufacturers themselves are probably making about the same profit per round of ammunition than they did before the "scare". Any increase in actual price per round is probably more a reflection of an increase in raw material costs (bullets, brass, primers, powder...... due to reduced supply), rather than an increased profit margin. Of course, the manufacturers will also tend to make more overall profit (NOT the same as profit margin) simply due to the increased volume of sales (due to increased demand).

Now, I'm sure there is a bit of increased profit margins at the manufacturer level; that's simply good business. But the huge prices seen on Craigslist and Gunbroker aren't coming from manufacturers. I say this because even when I find a rare box of ammo at Walmart or Big 5, the prices are nowhere near as high as they are in the tertiary markets. Where I think the huge price increases are originating is in the secondary and tertiary markets (and beyond!), not necessarily at the manufacturer level. Think about this; a gun shop sells 10 boxes of ammo in a specified period of time in a "normal" market, and makes $3 profit per box, for a total of $30 profit.

Fast-forward to today. The same gun shop has a demand for 20 boxes of ammo (instead of 10) during the same time period, but can only get enough supply from his sources to buy 5 boxes. If he still makes a profit of $3 per box, then his overall profit in that time period would be $15 (or half of what he made before the scare). Therefore, he'd have to double the profit to $6 per box simply to end up in the same place he was before the scare.

Certainly there are some opportunists out there, but by definition they are NOT gouging. I'm sure gun stores would much rather lower their prices and yet have plenty of supply to sell, rather than have high prices with no supply. It's just common sense.

Here is an example of one of the real "winners" in this game. Some prepper has, say, 10,000 rounds of .556 saved up; purchased at pre-panic prices. Along comes a panic, and people are paying 3-times pre-panic prices for the same ammo. The dude sells 7,000 rounds of .556 and triples his investment, and banks the money. He still has 3,000 rounds for when SHTF. Then, the panic ends, and he can re-stock his 7,000 rounds for about the same price that he did before, AND he has enough left over to buy another rifle!!! Makes sense to me!!!

[BisDak]

If high...don't buy!

Question is:

How much do you need?

Or

How much do you want?

Basic infantry load out is 7 x 30 = 210 rounds of 5.56.

IMO, One wouldn't be able to use all in a home defense sticky situation. Unless, house is breached by 5 or more battle ready, guns blazing Talibans. An M203 will be in order.


.

[Renaissance Redneck]

If high...don't buy!

Question is:

How much do you need?

Basic infantry load out is 7 x 30 = 210 rounds of 5.56.
.

Ah yes, but you gotta practice too! And in a "good" practice session I'll shoot a volume of rounds more than the basic load-out. Just sayin'!

[jofher007]

I just think its sad & disgusting at the same time.

[Mad Jax]

Redneck, I was refering to the CL gougers, but you make an excellent point on the increased pricing at the local gun store. I about killed over when I got a CTD add "300 rnds for $349" plus shipping.

[bigdawg86]

[Renaissance Redneck]

Redneck, I was refering to the CL gougers,

Gotcha. Cheers!

[MrExel17]

Intresting....

[jofher007]

Unfortunately this is also happening here on Calguns.net
there's some calguns members who are gouging on ammo prices and also on Firearm PPT . I believe Calguns needs to Fined those who are braking the Rules, and Banned them from Calguns.net

Don't you Guy's think so ?

[Dano3467]

Yep, to high don't buy. It just makes since...