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Started By
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re: Raise the price of ammo
Posted on 3/29/14 at 11:06 pm to RATeamWannabe
Posted on 3/29/14 at 11:06 pm to RATeamWannabe
quote:
What the frick is artificial about .22lr being cheap? It costs next to nothing to make
You are forgetting about demand, which is being fueled by lack of ammo at Walmart, which is the result of people scalping the shelves at low prices.
Posted on 3/29/14 at 11:17 pm to CajunAlum Tiger Fan
quote:
Cant believe this thread is still going and how many think these stores are selling at market prices when there is enough margin left for a reseller to profit.
Exactly. If it were priced appropriately by the retailer, there would be no profitable secondary market.
Posted on 3/29/14 at 11:22 pm to weagle99
So the solution is to jack up the price until barely anyone can afford it? Seems logical because they are soooo likely to drop the prices back to tolerable levels once supply catches up
Have you ever bought gasoline? It was something like $0.79/gal when I started driving. Now, people get excited about $3.25/gal(12 years later). People will get used to the higher prices and keep buying. Then, prices will increase again. Simple as that.
If I was making or a dominant player in the bullet sales industry, I'd get in touch with everyone else and do exactly that. Be thankful that places like Walmart and Academy are keeping prices "artificially low"
Have you ever bought gasoline? It was something like $0.79/gal when I started driving. Now, people get excited about $3.25/gal(12 years later). People will get used to the higher prices and keep buying. Then, prices will increase again. Simple as that.
If I was making or a dominant player in the bullet sales industry, I'd get in touch with everyone else and do exactly that. Be thankful that places like Walmart and Academy are keeping prices "artificially low"
Posted on 3/29/14 at 11:24 pm to Hammertime
It was worth clicking through this thread just for the awesome gifs. 
Posted on 3/29/14 at 11:36 pm to Hammertime
quote:
So the solution is to jack up the price until barely anyone can afford it?
Who advocated that?
Posted on 3/30/14 at 7:18 am to Hammertime
quote:
So the solution is to jack up the price until barely anyone can afford it?
The solution is to let the price rise to reflect current demand. That way people who are completely out of ammo are able to find it for sale after those who are buying out of habit or casual want decide not to pay the higher price.
I will use myself as an example. I don't really need any .22LR at the moment, but if I happen to come across some at a 'low' price I will buy a brick or 3. I don't really care if the next guy gets any or not (and honestly, most everyone is the same way). If the price were higher to reflect market conditions I would pass up the bricks because I don't have a pressing need and the next guy who shows up behind me with zero rounds has a chance to decide if he wants to pay the higher price and get some ammo.
quote:
Have you ever bought gasoline?
Apples and oranges. BTW, in a time of gasoline shortage (like before or after a storm) the price should also rise to reflect demand so that more people have access. There should be no laws against 'price gouging.'
quote:
Be thankful that places like Walmart and Academy are keeping prices "artificially low"
Both of those stores have other motivations to keep prices lower instead of some altruism for shooters. The lower prices are exactly why .22 gets cleaned off the shelf and people who really 'need' the rounds can't find them.
Posted on 3/30/14 at 7:41 am to weagle99
Many retailers know if they raise to neckbeard prices many customers will remember and shop elsewhere in the future when the supply is way high. The shooting community is a unforgeting bunch.
Posted on 3/30/14 at 9:44 am to weagle99
quote:
If the price were higher to reflect market conditions I would pass up the bricks because I don't have a pressing need and the next guy who shows up behind me with zero rounds has a chance to decide if he wants to pay the higher price and get some ammo.
The "secondary market" already provides for this exact mechanism. People are just pissed because they aren't willing to put forth the same effort as someone else and have lost the convenience of big box shopping. It's not so much an issue of capitalism and economics as it is laziness and entitlement. .22lr is a nonessential good and as such is not constrained to normal economic practices (which is why the gas example doesnt won either).
And btw buying from a retailer is already buying from a "secondary market".
Posted on 3/30/14 at 9:53 am to H.M. Murdock
quote:Yep...most of the forums I follow have shunned the retailers who took advantage of the price hikes
Many retailers know if they raise to neckbeard prices many customers will remember and shop elsewhere in the future when the supply is way high. The shooting community is a unforgeting bunch.
Posted on 3/30/14 at 10:16 am to TigerTatorTots
the retail price of .22lr has risen in direct correlation to the increase in cost of manufacturing, maybe a little more due to demand...if CCI makes an extra 1/2 cpr due to demand, they are making billions more per year...any increase in the wholesale price is a profit increase for the retailer as they work off of margins...that 1/2 cpr equates to a price increase of $2.50 on a brick of 500 which is a profit increase of just over 80 cents based on a 30% margin(it could be much higher) on that brick at the possible millions of bricks sold by Cabela's or Academy etc...The manufacturers and "true" retailers know this, and know where the breaking point would be that the consumer will know they are being "had" so they are the only price increases we should see as a consumer of a non essential good is when the cost of manufacturing goes up due to raw material price increases or labor increases etc...
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