If your premise is correct, then expect the price of ammo to stay where it is (like gas). Why do ammo suppliers need to sell 22LR at 5c a round when people will pay 20c?
It's a sad state of affairs when Walmart (of all the companies) are actually the ones who are being fair to the average gun owner (by limiting sales so that ammo reaches a wider customer base), and aren't adding 50% on their prices, whereas many companies in the gun trade seem to think that taking advantage of their customers is order of the day.
Our walmart just went up 15% on what little ammo they have.
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The manufactures are gonna get us along w the retailer for about 25% increase when all this settles down...if there is a glut you will see more sales is all. What is gonna hurt more is FL sales tax added to every online sale.
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I know it's been talking about before, but I can see a lot of suppliers and local gun stores taking the same stance that the gasoline industry has. We're willing to pay the premium price for reloading components, so now the standard price on a box of primers will be $40 and up. It's a good thing I have more than my gun addition to keep my busy - but still......... I'm already paying $5-$7 more per pound for the same powders I bought a few months ago. yes, it is what it is. But I sure don't have to like it.....
Wolf primers work great and are reasonably priced. There will be companies who meet the demand for affordable products. The brand snobs may take it on the chin however. Kind of like those who will pay 20 cents more per gallon for exxon gas with nasa space age formulated techron that will make their car run faster and last longer.
When people decide they have enough ammo or don't think it's worth the $1 a round, demand will decrease, sales will decrease, stock will rise, prices will fall. Just like 2009, steel cased 223 shot up to 340 or more per case(ammoman.com). It took some time but it came back down to 240 a case. Flash forward to 6 months ago and you could get it for as low as $210 shipped (aimsurplus.com). Demand was (relatively) low.
Most (not all) items increase in price as time goes on. It's ridiculous to think that bullets/components are going to be as cheap now as they were ten years ago. The bullets and gas is a poor comparison. I don't need bullets to get to work everyday and there are far more people that use gas in their daily lives.
It's been said so many times before this... If you don't like the price.... well, you know how that goes. You do have some power in setting pricing. If enough people aren't buying because the price is high, they've got to come down or go out of business.
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It's a false market because outside influences are changing the dynamic of supply and demand, and the worst outside influence at that - politicians.
There will always be fluctuations on price because the cost of the raw materials changes, as does the cost of production. No one is suggesting that the cost of components won't increase over time as there is a basic inflationary pressure on the cost of practically everything.
However, the market today is false one because demand is being driven by an external influence other than market forces. It is further driven by speculators who are trying to corner the market in supplies.
The comparison between fuel and ammo is actually very valid. There is no reason that gas should be as expensive as it is, it's high price is manipulated by various political factors (eg the middle east), and speculators. There is absolutely no reason that we should be buying gas at $3.50 at the moment, likewise, there is no reason that anyone should be selling 555 for $89, other than pure greed.
Last edited by tinman; 02-11-2013 at 09:47 PM.
I think "false market" applies like this: the manufactures costs were the same a week before and a week after Sandy Point. and when the politicians started to blow the "if it just saves one life" Bull crap. Then demand increased but ammo manufacturing cost are the same. Anything that is a "Hot Item" be it a Iphone, a sports car or ammo will be sold at a "premium" by wholesalers, retailers and secondhand markets.
Firearms manufactures that rely on other firms for parts also took a hit as demand rose for uppers, lowers, mags and so one.
It will get better.