Why would it drop?
if they have people paying $300-400 for a case of XM193, then why should it ever drop?
Economics.
You are Company A and lets say you are producing a product and it costs you $200 to make, but you have realized that people will buy it for $400. You are living high on the hog, right?
Sure you are, until I come along and say "I am gonna get me a piece of that action." I begin producing the same product as you, except I am spending $200 to make it, and selling it to people for $300. Game over for you, unless you change your prices. Eventually, we will both be selling to Walmart for $205, who will be selling to people for $210.
But even then, lets say that I don't exist and you have no competitors. Why are you selling at $400? Have you done your market research to find out where the supply/demand curves meet for maximum profit? People will buy les s of something or more depending on the price. What if you are selling to 10% of your market at $400 but 85% of your market would be buying if you only went down to $350? You aren't selling insulin or gasoline, which have very steep demand curves, you are selling a consumable commodity, which have less steep demand curves. Simply put, the more expensive bullets are, the less people buy of them.
Supply and demand will always dictate price. If goods are very expensive right now, but suddenly supply goes up, you won't survive thinking that you can keep charging what people are "used" to paying, someone is going to undercut you.
