This is a discussion on Ammo shortages don't make sense in a free market economy, within the Defensive Ammunition & Ballistics forums, part of the Defensive Carry Discussions category; Originally Posted by cvhoss What I'd like to know is who is getting the cash from the increased costs? If it's the manufacturers themselves, then ...
some dealers in town where charging $50.00 for P-mags, 29.99 for 20rnd XM193, and things like a rem. 870 express that i bought for $299. last year are $500.000, you cannot tell me that the manufactures nearly doubled the prices, the local shops are buying lots of airtime telling people "a national change is upon us and you 2nd amendment rights may be lost"
One small sports/gun shop owner I know said that he has a customer with 3 large ranches in Texas and bought $14,000 in ammo in a single purchase. I think he was preparing for the possible Mexico drug spillover.
When customers are stocking up like this it is hard to keep inventory. Best practice is buy it when its available or wait and eventually the stock will be replenished.
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I second the small pistol primer comment.....I am two months backordered at Cabelas now......I have 12 pounds of powder, plenty of brass and projectiles....but NO primers.....
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Since no economy is perfectly fluid, a system will adjust now and then to accommodate. But, such accommodation can't always be instantaneous or prescient. Thus, we get the ever-present price, supply and demand fluctuations, with occasional outages, spikes/crashes in price. In every sense of the word, the "free" market is working well.
One of the things I am doing is making note of which shops locally are profiteering. They are the ones that will not get my business, EVER. I have seen shops with tables at local gun shows selling twenty round Pmags for $20 each! Heck with a commercial account you can get the thirty round with the window from one of the major mail order places for $16.
I admit, I did pay way too much for small rifle primers. I got 1000 for $40. That is about triple what I normally pay. However I am never going to do business with that shop again.
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Cvhoss, sorry but that is the one time I have bought primers in the last two and a half years. I only bought those because I knew I didn't own any of that type so there was no point in digging through my stuff to look for them.
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From what I have read, here and elsewhere the ammo manufacturers are running at full capacity 24/7 seven days a week.
It may be the shipping department that takes Friday off, but the actual production of the ammo is round the clock.
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Good news (for me, anyway) the bullets I ordered back in JANUARY, should arrive this afternoon. Hopefully I can pick them up tomorrow or Wednesday.
These bullets were ordered the first week of January
I paid $72/1000 for 165gr RNFP (plated) projectiles. With shipping the bill came to $159
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It doesn't explain why ammo is so scarce. There are no credible ammo bans on the horizon. Demand for ammo has been high for over a year. Granted, usually the higher prices send the message through the markets to lower demand, and the Obama election short-circuited that. But ammo has been getting scarce for over a half a year now. People are looking to buy, and the top venders don't have enough to sell. Potential sales are sitting there on the table, unclaimed. I don't see why they don't start more shifts, etc.
If the firearms manufacturers are not investing and with the NObama administration saying they want all kinds of new restrictions (whether credible or not, or simply rumor) NO MANUFACTURER is going to invest in infrastructure if the government even HINTS that they maybe out of business in 2 to 4 years.His response, "we don't want to invest any money in the firearms manufacturing side of the business because we don't know what this new administration will bring within the next two years."
Purely simple economics. Infrastructure cost a LOT OF CAPITAL and the ROI (return on investment) is 5 to 7 years, why would you buy new equipment, I don't blame ammo and firearm manufacturers for not increasing production beyond what they are doing right now. There is simply no incentive to do so.
We can even go beyond what the Ammo manufacturers are going through by looking at NObama's "stimulus package" .
if you read "the package" the NObama Administration has left manufacturing IN GENERAL completely OUT OF THE PACKAGE??? There is no incentive for tool and die makers, or wood workers, or parts vendor's or any other manufacturer to invest in there companies. This is a UNBELIEVABLY HUGE MISTAKE.
Now if the Administration doesn't do anything in the next 12 months (in the way of weapon and ammo restrictions) then I would expect things to calm down, and I would expect price to fall accordingly
Last edited by Jmac00; March 30th, 2009 at 10:14 AM. Reason: spelling error (my spell checker went to work LOL )
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Keep in mind commodity shortages and prices. Having had the plumbing ripped out of property I own so the kiddos could get a bucks for the copper, I know that commodity shortages (and black market) exist.
Moreover, I am old enough to remember when price increases in sugar a flour
made caused huge increases in things like cola and bread, even though the raw ingredient cost changes were a fraction of the retail price.
It was gouging then, and there is gouging now, and there is a way to stop it.
I do considerably less shooting than in the past. If everyone cut back a little and stocked a little less, things might get back into balance.
While we as individuals no doubt consider our guns and ammo as necessities of life, most don't, and so I have no problem with letting market forces sort this one out. In the meantime, I "ain't" paying 8 bucks again for 100 rnds of min-mags, or 25 bucks for a box of 380. I have enough on hand for reasonable SD needs; and that it--- I won't do what Retsupt does, for example, and stockpile.
In fact, I think buying now is doing exactly what too many home buyers and stock buyers did; buying into a bubble and perpetuating the bubble.