MountainGoat
Well-Known Member
But ammo was dropping until the latest panic...So, as your man on the inside of the ammo industry, I have to tell you we are raising pricing A LOT.
With all of this in mind, I think you might be surprised to learn that many of us in the industry are seeing prices where they SHOULD BE! And what I mean is that over the past couple of years, the wholesale price of ammo has increased significantly. It's been across the board - the raw materials have gone up, the shipping has gone up, labor rates have gone up ridiculously, and the manufacturers are charging us an arm and a leg. So while you were paying more for ammo a month ago, you weren't really paying a "fair" retail value for your already seemingly overpriced ammo. I hate to say "fair," but read on!
- First, if we undercut our competitors, our competitors will buy up our inventory, sell it to you, and put us out of business. Everyone fears this, so no one wants to be bargain-priced.
- The cost is going up! We need to sell the ammo we bought yesterday at a margin that will allow us to buy ammo at tomorrow's cost.
- Supply is going down as the demand is going up. The manufacturers are telling us that commercial production is being throttled/stopped to ramp up for government contracts.
- We need to stop the hemorrhaging! We are selling ammo faster than we can restock it, and we don't know when we will be able to restock. If we sell out of our complete inventory or don't have any inventory to list, it's terrible for the company on soooooooo many levels. So, prices are raised a little more to slow the burn rate.
Ammunition retailers have been "in a race to the bottom" to stay competitive. Two weeks ago, the margin was so low on ammo that we covered credit card fees and shipping costs. We saw decent revenue but ZERO profit. And people were still complaining they weren't seeing 2018 pricing. A lot of retailers of ammunition were making zero to negative profit on ammunition.
The current situation has been bad. At first, we saw revenue and PROFIT jump through the roof, but it quickly set in that today's profit will cover tomorrow's wholesale pricing from the manufacturer if they have any ammo to sell us.
Okay - flame away.?? I feel like you're my peeps, so I can take it!
Even primers have been dipping.
I see how .223/5.56 is up, I heard about lake city. But 9mm and 22 was almost down to precovid levels.
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