can anyone help me understand projectile pricing?

[problemchild]

I searched the web for the cheapest 308 projectiles that were copper jacket with a lead core. I found some for $266/2000. That works out to $133 per 1k. One thousand projectiles weigh 20.8lbs. If you divide $133 dollars by 20.8lbs you get $6.39 per pound.

On the spot market today lead is going for .89c per lb. On the same spot market copper is going for $3.04 per pound.

Now the bulk of this bullet is lead in weight with a fraction being copper. So we have a 95% price per pound at .89 cents and a 5% at $3.04 per pound.

WTF makes the bullets cost $6.39 per pound?

PLEASE dont post some stupid smart azz answer if you dont know!!!!!!!!!!

[Revoman]

I would say that when Nike manufactures a pair of shoes, it costs them $25. Add on advertising, business license, packaging, profit, overhead, operating costs, insurance, and on and on........your get the picture. So the final cost to the consumer is over $100!

Assume that the same holds true for making bullets, although the raw costs seem minimal, there must be hidden costs that are tacking on making the cost seem more than it should.

Possibly all of the lead that they are currently using was bought back when lead was much more than today. Same for copper. Metals fluctuate dramatically, especially when the Chinese buy so much of a commodity.

[SixPointEight]

How about needing machinery? That presents a significant cost.

[Fjold]

You need the forming dies and presses to make the jackets and the lead wire machines to make the proper diameter lead stock, the machinery to install the lead in the cups and then other dies and presses to final form the bullet.

There are engineers, quality control inspectors, line workers, ballisticians, maintenance people, administrative people marketing and sales people, warehousemen and probably a lot more to pay.

Also packaging and shipping costs, advertising, utilities, taxes, building lease or purchases, there is a long list of indirect costs.

In just about any manufacturing business (except for ones that use precious/scarce materials) the raw materials costs are a small percentage of the total costs.

[Adub]

You forgot to throw in production cost and profit margin into that equation. I don't know any business that sells something for their cost. They get the raw material (from someone who is going to charge more than market most likely), they turn it into a product and they sell that for material cost+labor+desired or able to get profit margin. Also you are probably buying from a reseller who now had to pay for shipping to get that original product from the manufacture and also wants to make a profit.

Companies like Oakley are probably buying their raw chemicals to make their sunglasses for practically nothing but then we don't know how much it costs to manufacture each pair as far as labor goes (there is also research and dev that goes into for them so we don't know how much they spent to pay the guys in the white coats to come up with their lenses and frames) but I bet it comes nowhere near the $100 to $300+ range their glasses cost for us. They get whatever they can and I think we are in a "realm" that we see some of that.

We have all heard "bullets are cheap, life is expensive." And manufactures are going to charge whatever they can before they start to see that demand curve start to recline and people no longer buy from them so they operating at the profit maximization point.

[bohoki]

they just have to keep the price slightly cheaper than the cheapest surplus

that is their only incentive

which explains why .270 fmj cost more than .308 fmj there is no real surplus competition

[RaymondMillbrae]

Cost of the boolit manufacturing machines
Cost of getting the components shipped to them
Licenses and city/state permits
Maintenence materials for thier equipment/machines
Rent, water, electricity
Cost of having employees (salary, medical, dental, etc...)
Building and employee insurance
Advertising
Etc, etc, etc...

Need we continue?

That, and just keeping the price of ammunition competitive within the market. (No need undercutting anyone, as it will also hurt them in the long run by driving ALL costs down).

Just basic business SOP.

In Christ: raymond

[problemchild]

Forgot to mention the bullets came from Serbia where they have no business license. Engineers are paid 166.83/month. Power is cheap. Buildings are cheap. Employees are cheaper maybe 8 dollars a week.

So why do they cost so much? All that "stuff" was around before when bullets were 20/1000.

[SixPointEight]

Shipping costs a lot.

Or you could call the company and ask.

[Linus]

PROFIT!

[KeithET]

Beyond material, manufacturing and overhead costs you have supply and demand.

You may have noticed demand has outpaced supply a bit in the past two years. You may have also noticed that the price increases started about two years ago.

As long as the demand is high and supply is having trouble keeping up with it the prices will increase.

Also, don't think that once supply catches up with demand the prices will go back to what they were. They may stabilize at a new level but they will never go back to what we think they should be.

Unfortunately this is the way things work. We don't like it but that's the way it is.

KeithET

[problemchild]

Shipping costs a lot.

Negative.

I can buy a widget from China at walmart for 1.00 dollar Where is the shipping on that?

[problemchild]

OK I called Prvi in Serbia. I can order 200,000 projectiles for distributer cost. Any one want to go in 1/8th's? Thats 25,000 bullets each.

[Adub]

Negative.

I can buy a widget from China at walmart for 1.00 dollar Where is the shipping on that?

Weight, quantity, and location diff. They get a huge discount because there is TONS of products coming from there everyday vs a single heavy box from serbia.

[KeithET]

OK I called Prvi in Serbia. I can order 200,000 projectiles for distributer cost. Any one want to go in 1/8th's? Thats 25,000 bullets each.

How much for 200,000 projectiles? Whats the shipping cost?

Just curious?

KeithET