AMMUNITION COST? Who reaps the windfall profit?

My question is who is profiting the most from the sale of ammo?


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I get emails everyday with 9mm for sale. My most recent one is from Palmetto State 2 hours ago - 200 rounds for $150 and no quantity restrictions. If they have no overhead why are they selling for more than the big box stores and LGS? Where does the extra $20+ per box go?
What do you mean no overhead? PSA has several brick and mortar storefronts. Retailers have to price for their anticipated next purchase. As we have seen recently from several videos, Federal/Remington (Vista) announced a 15% increase on their products, on top of other recent increases.

If you guys think these folks are getting super rich, go ahead and open your own small store selling guns and ammo and make a fortune..................
 
Bottom line. Dunham's could have been charging 3 times and more for ammo. Just like the gun shops. But, they Do Not. They have held at their normal Prices. That I will remember. That is why they will be my first choice for anything firearms related.
Where does Dunams or any large retailer get their ammo? Where does the small gun shop get their ammo? No, that is not the bottom line. Have you ever owned and run a small gun shop? So tell me where do the large retailers get ammo and where does the small business get ammo?

Ron
 
What do you mean no overhead? PSA has several brick and mortar storefronts. Retailers have to price for their anticipated next purchase. As we have seen recently from several videos, Federal/Remington (Vista) announced a 15% increase on their products, on top of other recent increases.

If you guys think these folks are getting super rich, go ahead and open your own small store selling guns and ammo and make a fortune..................
They simply don't get it. They have never run a small shop.

Ron
 
There are none so blind as those who will not see ;) Part of the mechanism for restoring balance in the system is what I call pain threshold pricing. If Dunham's gets a few pallets and sets the boxes on the shelf, it will all be gone in short order, and most will go to greedy folks intent on capitalizing on the distress of others. Limiting quantities helps, but then friends and family are drafted to aid and abet the greedy ones. Instead, at some point suppliers, wholesalers and retailers move the prices up to take much of the profit out of flipping, to put the brakes on demand and extinguish the flames. Then, we get yipping about high prices, which we interpret to mean "I should have stocked up when prices were better." It's OK, we have all had a learning experience in ammo prices, but it does no good to look for targets of opportunity when you have no ammo. :D
 
They simply don't get it. They have never run a small shop.

Ron

The question is going over your head. The question is when a box of plain 9mm FMJ sells for $40 who makes the windfall? If the small shop is buying for $35 and selling for $40, they are not making the extra $20 but somebody is.

Inflation is not the answer as the big box stores can still sell for $18.
Shipping is not the answer as all the sources using shipping at some point and the online sellers charge the customer for shipping.
Overhead is not the answer as the big box stores and local shops have more overhead than the large online sellers yet they are selling for less.

If someone can sell the box for $40 I don't care. Good for them! The question is who is making the extra $20? The only 9mm I've bought in the last year was for my sister who recently started shooting and Scheels had 100 packs for sale for under $30. At the same time the cheapest ammo online was $.75 per round. Last year I shot more than I ever have before (8,000+ rounds) and spent less on ammo and reloading supplies than anytime in the last 10 years because I already had the supplies.
 
Until you know all of the many hands in the distribution chain and who is charging what to whom, your question is unanswerable.

Correct. Guessing and giving out illogical and wrong answers doesn't help anyone.
 
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