Yes, it looks like ammo is starting to make a resurgence. We appear to have hit the level of inventory where common calibers in popular loads readily available from most retailers again, albeit at elevated prices. Speaking of elevated prices: price gouging isn’t real.
Category: Category 2
Share this post
On the “price gouging” segment of the show, you started out giving some reasonable explanations for the “whys” of the situation we’re in, but you were wrong when stating that price gouging doesn’t exist because of the economic principle of Supply and Demand. Supply and Demand has always been the economic principle behind making price gouging possible. The statement “Even the guys selling for $2/round, it’s not really price gouging if people are willing to pay that price” is patently false. Jacking up prices because supply is actually (or artificially) limited is literally the textbook definition of price gouging. It is a consequence of supply and demand, rather than being offset or mitigated by supply and demand. It works because “If you want it, you will pay whatever I ask.” So starting the process by finding out what people will pay and setting your price to that, finding equilibrium as you say, is how price gouging works. I’m not stating that’s what happened in the ammo market (or lumber), but your “this is why price gouging didn’t happen/doesn’t really exist” is absolutely wrong.
I would like to hear more about the supply chain issue itself, personally, and where the inability to keep up with demand is happening. As a whole we’ve been buying ammo at WAY reduced volumes for at least a year and a half with ranges closed and job insecurities affecting many in addition to ammo prices.
I agree with you, Dude! I understand if ammo prices are higher, maybe even double cost. I am glad to see cost slowly lowering. However, we are commonly seeing a 400% increase in prices, and that sure seems like gouging to me!!!
Remember that suppliers had to buy at higher prices too and that inventory, if it hasn’t moved, can’t just be sold at a loss out of hand. If you see someone charging a $1/rd for 115gr 9mm right now, screw that and don’t buy. But don’t assume they got it at $.19/rd and are running a 300-500% markup. Odds are that they aren’t. That doesn’t mean nobody gouged, Gunbroker and other quick flip sites will always have that going on in high demand items. What we’re saying is that ‘Bob’s Gun and Tackle’ probably didn’t want to mark that box of Winchester white box at $44.99 but that’s his margin (or even less of one than in the good days) for what he paid to stock it.
Go all the way up the supply chain manufacturers of casings, primers, powder, and bullets were closed. People were buying frantically because of the administrations info leaks that they were going to try to make firearms and ammo hard to get! The pandemic real or fabricated caused more panic all causing a shortage. Those that had acquired ammo and were willing to sell wanted a premium for it right or wrong. If you bought ammo you have no one to blame but yourself. I didn’t!