[.50 BMG Freak]

This is the worst run on ammunition I've seen in my lifetime. It's a shame that avid shooter's have to suffer from insane ammunition prices affecting the availability of reloading components. Primers have been hit the worst, as far as availability goes. There is a bright side to all of this however.

When the panic buying subsides, you will see a mass of first time buyers with "buyers remorse" emerge from the smoke. When this happens, try and position yourselves to purchase their guns and ammo at a fraction of what they paid for it. It happened before with the the $2000.00 AR's - It'll happen again.

Being an FFL 07 and manufacturing ammunition, we are being hit hard as a new starting business. We don't have the deep pockets the major chains have to be a priority or even a consideration when in line to order supplies. All I can say is, hang in there and resist buying anything that you know is being price gouged. When folks stop buying, the surplus goes up - and the prices come down.

We are trying to educate the first time shooters and buyers to be patient and wait. Maybe it will pay off as whole, but I personally refuse to sell a box of 9mm for $50.00. For everyone's sake, I hope this run ends soon.

Any thoughts?

 

[BusaDave]

"price gouged" ? It is called supply and demand in a free market. It is funny how depending on the product people run around screaming about price gouging when it is just a simple supply and demand issue. This is a perfect example of the saying "depends on who's Ox is getting gored". You have to make hay while the sun shines as they say because it does not shine all of the time.

Remember---Buy Low Sell High.. It really is just that simple.

 

[.50 BMG Freak]

"price gouged" ? It is called supply and demand in a free market. It is funny how depending on the product people run around screaming about price gouging when it is just a simple supply and demand issue. This is a perfect example of the saying "depends on who's Ox is getting gored". You have to make hay while the sun shines as they say because it does not shine all of the time.

Remember---Buy Low Sell High.. It really is just that simple.

I understand perfectly about economics. When 5000 primers are normally $200.00 delivered and are now being sold on a regular basis on GB for $850.00 - that's price gouging. Nobody is screaming about anything - just touching on the subject.

 

[BusaDave]

I understand perfectly about economics. When 5000 primers are normally $200.00 delivered and are now being sold on a regular basis on GB for $850.00 - that's price gouging. Nobody is screaming about anything - just touching on the subject.

Sorry but you need to understand what the term actually means. Go here, and read and learn it is not what you think. Your arguments premise is fundamentally flawed. Yes they are more expensive due to supply and demand but this is not price gouging.

Price Gouging - Definition, Examples, Cases

Price gouging defined and explained with examples. Price gouging is the practice of raising prices on goods and services during a state of emergency.

legaldictionary.net

I want to add this because it certainly is relevant to this subject and the OP did make reference to the fact that they were a new business. Did in your business plan knowing how contentious the upcoming events surrounding the 2020 election would be have any contingency for a possible shortage of materials for your product? It seems to me that from your post you were aware of this situation happening in the past.

I wish you the best because anyone in the shooting industry I support but it does not matter what kind of business, specifically manufacturing you are in your Supply Chain is your life. I understand it is a challenge to balance cash flow not to mention debt with having adequate materials needed to produce the product. However, this situation with ammunition and components did not just happen overnight. Being in the industry and being a prudent business person were you not watching this potential nightmare scenario develop over the last 6 months?

 

[.50 BMG Freak]

Sorry but you need to understand what the term actually means. Go here, and read and learn it is not what you think. Your arguments premise is fundamentally flawed. Yes they are more expensive due to supply and demand but this is not price gouging.

Price Gouging - Definition, Examples, Cases

Price gouging defined and explained with examples. Price gouging is the practice of raising prices on goods and services during a state of emergency.

legaldictionary.net

I want to add this because it certainly is relevant to this subject and the OP did make reference to the fact that they were a new business. Did in your business plan knowing how contentious the upcoming events surrounding the 2020 election would be have any contingency for a possible shortage of materials for your product? It seems to me that from your post you were aware of this situation happening in the past.

I wish you the best because anyone in the shooting industry I support but it does not matter what kind of business, specifically manufacturing you are in your Supply Chain is your life. I understand it is a challenge to balance cash flow not to mention debt with having adequate materials needed to produce the product. However, this situation with ammunition and components did not just happen overnight. Being in the industry and being a prudent business person were you not watching this potential nightmare scenario develop over the last 6 months?

Yes I was watching it, and purchased an ample amount of supplies to get me through it. I understand your argument and how supply in demand works, however being that there is no federal law against it - it seems every time there is a run on the industry prices go through the roof. There is industry manipulation during these times - every time. Those that think there isn't, is just ignorance of the facts.

"Price gouging occurs when sellers charge excessively high prices for products and services during public emergencies. There is no federal price gouging law, although members of Congress have proposed such legislation in recent weeks. Most states have explicit laws that prohibit price gouging during declared emergencies, such as tornadoes, hurricanes, fires and pandemics." [specifically COVID - 19]

I personally got into this business because it's what I love. It's frustrating to experience and see the disdain from customers who want to do business, but are scared off by the current prices. One thing is for certain, everything comes to an end. Hope your business is doing well, and thanks for your input.

 

[Altonv]

Supply and demand has gone out the window in todays market. I will give you my find here in San Antonio. We have a sports store called Academy. They get shipments on Mondays, Wednesdays and Fridays. Before 5 am people start lining up waiting till a 9 am opening. Academy has not jumped on the band wagon and raised prices. A box of 50 of 9mm goes for $17 on average. Now half those people in line are hired to stand there by online ammo brokers who take that $17 box and turn it into $90 online price. On reloading I was fortunate to buy 1000 large and small pistol primers for $40 a 1000 from a small store in central Texas. But have heard them going for $300+ plus at gun shows. I have no problem with S&W raising the MSRP on several of the guns I bought, but when individuals create a man made shortage it is called gouging.

 

[MarkInTx]

I have seen the same thing at not only Academy but also at Bass Pro. My son worked there during summers and holidays while in high school in Receiving during the last "panic." Most days he had to be there at 5:00am, sometimes at 4:00am. After unloading the truck(s), they would stock shelves. He said that on ammo delivery days the shelves were stocked before the doors opened and an hour later they were getting calls to restock. People were grabbing ammo off the carts before they got to the shelves.
At the San Antonio gun show I stood and watched a guy pushing a baby stroller loaded with ammo stop at a table and sell boxes of 9mm marked $15.00 to the guy behind the table for $25.00. I watched the table guy change the price to $35.00 per box.

 

[BusaDave]

I have seen the same thing at not only Academy but also at Bass Pro. My son worked there during summers and holidays while in high school in Receiving during the last "panic." Most days he had to be there at 5:00am, sometimes at 4:00am. After unloading the truck(s), they would stock shelves. He said that on ammo delivery days the shelves were stocked before the doors opened and an hour later they were getting calls to restock. People were grabbing ammo off the carts before they got to the shelves.
At the San Antonio gun show I stood and watched a guy pushing a baby stroller loaded with ammo stop at a table and sell boxes of 9mm marked $15.00 to the guy behind the table for $25.00. I watched the table guy change the price to $35.00 per box.

That is called a free market arms length transaction between 2 willing and equally informed buyers and sellers. For those of you who have a 401k for example the odds are you are invested either directly or indirectly in the Stock Market. Is this gouging when a price of a stock say doubles in the span of 30 days? Hmmmmm

 

[kenhwind]

I get the supply and demand concept, and it is what it is. But there's a big difference between listing ammo / components in an online auction and letting "demand" set the price, and listing at the same ammo / components at "robber baron" prices.

In the OP's situation the component shortage, especially primers, is because of the ammunition demand and who makes the primers; The ammunition companies.

As a reloader I do not have a shortage of components or ammo for that matter.

It was my understanding that at the local WalMart before/PC, that when the ammo would come in that the sporting goods employee would call Bubba and Billy up to come buy it all up. This was mainly .22 LR.

 

[weagle99]

Supply and demand has gone out the window in todays market. I will give you my find here in San Antonio. We have a sports store called Academy. They get shipments on Mondays, Wednesdays and Fridays. Before 5 am people start lining up waiting till a 9 am opening. Academy has not jumped on the band wagon and raised prices. A box of 50 of 9mm goes for $17 on average. Now half those people in line are hired to stand there by online ammo brokers who take that $17 box and turn it into $90 online price. On reloading I was fortunate to buy 1000 large and small pistol primers for $40 a 1000 from a small store in central Texas. But have heard them going for $300+ plus at gun shows. I have no problem with S&W raising the MSRP on several of the guns I bought, but when individuals create a man made shortage it is called gouging.

If Academy were to raise the prices to meet the current demand then single individuals wouldn't buy everything in sight and others that really need ammo could purchase.

High prices in a time of shortage is a good thing 'Gouging' as some call it is a good thing.

 

[MitchM]

I fully understand supply and demand. I am a reloader also. What I dont seem to be able to grasp is WHY????? After 8 years of the last president and Knowing 2020 is an election year. Unless your a brand new shooter / gun owner, Why would you be having ammo or reloading supply issues ? I didn't have an ammo shortage with the last guy and I'm not having one now. I'm also not going to pay those prices.

 

[kenhwind]

There's an ammo vender that usually has some of the best prices. They have .44 Special listed for about $20.00 more then places like Brownell's, Midway, but they have some, Brownell's and Midway doesn't.

 

[Some guy]

That's the funny part about internet sales . Bait you to look after a search , go to Brownells , out of stock . They hope you stick around and window shop maybe even impulse buy.

 

[AEROCOLOR]

Only a very uninformed or lazy shooter is in ammo crisis right now.
There is no excuse to not have everything you need to stay shooting unless you buried your head in the sand from the last two shortages.
Self inflicted I say.
Now go vote!

 

[BusaDave]

That's the funny part about internet sales . Bait you to look after a search , go to Brownells , out of stock . They hope you stick around and window shop maybe even impulse buy.

Just use a search bot. Makes it easy to look at everyone pretty much including the one you mentioned.

 

[smutt]

Definition of Price Gouging
Noun

1. The practice of raising prices on certain types of goods and services to an unfair level, especially during a state of emergency.

Well we'll see if they call it what it is after 11/3. We're only in the pre emergency state at the moment.

 

[MarkInTx]

That's the funny part about internet sales . Bait you to look after a search , go to Brownells , out of stock . They hope you stick around and window shop maybe even impulse buy.

That is kind of like the story my Grandfather used to tell. His cousin(?) owned a men's clothing store in Wichita Falls during the Depression and my Granddad helped out on the weekends. (All numbers are made up because I don't remember.)
A lady comes in: My husband needs a new pair of pants.
Granddad: Yes, Ma'am...here they are.
Lady: How much are they?
GD: $7.00
Lady: Why so much? They are selling them down the street for $5.00.
GD: Why don't you go buy them there?
Lady: They are all out.
GD: Oh, when we're out we sell them for $3.00

 

[Kerz]

I really like that story!
Vic

 

[weagle99]

Definition of Price Gouging
Noun

1. The practice of raising prices on certain types of goods and services to an unfair level, especially during a state of emergency.

LOL. Who decides this? A population who doesn’t understand basic economics?

Not arguing with you smutt.

 

[BusaDave]

LOL. Who decides this? A population who doesn’t understand basic economics?

Not arguing with you smutt.

Definition of Price Gouging
Noun

1. The practice of raising prices on certain types of goods and services to an unfair level, especially during a state of emergency.

Well we'll see if they call it what it is after 11/3. We're only in the pre emergency state at the moment.

No lol that is only wishful thinking on your part. Need to read the entire article. Maybe consult with someone who actually is a SME in this area. It is not an easy emotional call as most would prefer. There is actual case law in this area.