Retail Prices, Big Box vs LGS

[Donny1]

I have been disgusted by the prices at LGS's during the pandemic. As many have said, supply and demand, what the market will bare, bla bla bla. And I do understand that LGS's need to maximize profits in tough times. Thankfully I have managed to have enough not to pay outrageous rates YET.

What I'm curious about is, what is the actual increase in cost for large retailers during all this. Are BassPro, Sportsmans, Midway, etc paying 100% more, 10-15% more? Yes costs are up but manufacturers have not charged double to large retailers, have they?. So if say BassPro is being charged 20% more for a box of 9mm and selling it for $50 dollars is that gouging (since they are not hurting for cash like a LGS) or is there a middleman, distributor, etc in the mix. Are they just getting "what the market will bare" vs the same markup as usual. Especially primers, are they still $100 out the door just because they know everybody needs them?

Not a rant, just trying to better understand the supply chain for ammo and components and who is actually making the extra cash. Yes there are increased costs but supplies, transportation, labor is up 20-30%, not 300% that the retail customer is seeing.

[tabascoz28]

It went to 80 and 100 and 200 awfully fast, before inflation or labor costs. All the states, even the ones with no state taxes and low minimum wages, so it's purely demand driven.
Over time, I've seen Sportsmans go up so now all primers are at least $45/k so maybe that's the new norm.

[JackEllis]

Purely guesswork here but the people who run retail stores aren't fools. Why should they sell primers at pre-pandemic prices to someone who will then resell those same primers for a 100% profit, which is entirely possible with $45/k primers?

I don't have any inside information but I suspect speculators are snapping up primers and then trying to resell them. At some point the speculators will run out of money and storage, or at least that's what I'm betting on.

Ammunition is slowly reappearing on retail store shelves and as shooters replenish their caches, primer manufacturers will direct more product to retailers. I have no idea how long it's going to take for things to settle down but I would not be surprised if we're in for another 6-12 months of relative scarcity.

[Kerplow]

I bought a couple pounds of powder the other day at an LGS. Paid about $50/pound.

While I was putting it away with my other powder jugs I noticed that the price has basically doubled since the last time I purchased, which was probably a few years ago.

I’m not sure if I got taken to the cleaners. I didn’t shop around and I don’t really care to. They had something in stock that I wanted so I bought it.

EDIT: I just checked midway and I paid about $7-9 more for the same pound of powder. Considering I didn’t have to pay hazmat fees and shipping I think it was a pretty fair price. I wouldn’t expect a mom & pop shop to compete with Midway, and it wasn’t really any more expensive when logistics are considered.

[67Cuda]

I recently purchased 9mm, 50 round boxes from two different places. Sportsman Warehouse and my LGS.

Sportsman: Federal 115 gr. $23.50 a box of 50
LGS: Blaser 124gr. $19.99 a box of 50

LGS: I also bought some Winchester M855 green tip 5.56 for 14.99 a box

I have a box of Blaser from 2015 in my 9mm can and it was $11.50 for 50 back then as a reference.

Just happy to find any ammo that seems reasonable. So far I have.

[JagerDog]

Big boxes (my primary experience is SW), have been "fair". But they have a lot wares besides guns and ammo to sell to keep the lights on. LGS "could" sell those primers for $50 and not be able to get anything to replace inventory with. No sales = no lights/staff.

I suspect big box has direct contracts with mfg's. I suspect LGS's do not. MFG is going to tend to satisfy direct contracts before middlemen. If middleman ha direct contract, then he's relatively free to supply who he want$.

So while I understand the predicament, SW has earned my loyalty.

[dezert lobo]

[tabascoz28]

There were 8lbs of 17 and 19 for $187 at my sportsmans. My 1lb of Unique cost about $30.

[Kerplow]

I just bought 1 pound of tight group from sportsman‘s warehouse for $30. The price was great, but I also stood in line behind two people for 30 minutes just to find out what kind of powder they have in stock. Yes, I paid quite a bit more for powder at a local gun store, but I was in and out in 10 minutes.

[Nomadh]

Much of the problem is supply. A store is used to and needs to make a penny a bullet to stay open and they sell 10000 bullets a day. If he only can sell 1000 bullets a day because of supply he needs to make 10 cents a bullet. What if hes worried he can only sell 100 a day?