YA Know --I dont buy the increase in material prices as a reason for price increase==If the cost of materials doubled it still would not add a buck to the cost of a box of ammo-- HOW much does 20 rnds of 5.56 weigh anyway ounces>???
and powder has doubled in price no shortage of material there -Primers --up big time Material cost NILL !
Me thinks the buying frenzy and Gouging are the reasons for the big costs!
Ok lets think here...
If a manufacture was selling a box of 9mm for 10$, and that was enough to cover costs and profits, then they are doing good. The 10$ box will be marked up every time it changes hands, so who knows what the final price is.
Now ammo is subject to the price of materials. Since Brass, tin, copper, lead, etc are what make up most of the cartridge, if you double the cost of the materials you are going to likely eliminate a companies profit on a 10$ box of ammo which they were previously making profit on at that price. You might even put them into the red, which means that it is costing them money to produce the item, which is bad. So they raise the price to a higher number so they can return to profit again.
It wasn't just the cost of materials going up, but the cost of everything (shipping, increases in expenses for companies, etc) that drove costs up. Now that metal is down, that would dictate ammo would drop in price(although they likely already paid for a considerable amount of material they have to recoup costs from). However that is assuming the demand for the product went down as the price went up. Well the demand has been going through the roof despite the high price. Why would a company sell a product for less when they will sell out of it at the price they have it at? That would suggest they sell for an even higher price and control their inventory/stock so they don't run into a saturated market where they can't sell their products at all.
I think the prices go to 20$ a box of 20 rounds of 9mm due to the cost of doing business (aka the cost of materials, shipping, overhead, profit, etc) and they have stayed there/risen due to demand.