i'll put it to you like this, i bought 1,000 rds, 124 gr, S&B for under $250 at my gun store, 2 weeks ago, when i went to pick up my new gun.. the fiocchi 115 gr, non-hollow point for 1,000 for $250 (SG Ammo)I see SG ammo has not been taking orders, but lucky gunner and few others have ammo but prices are a bit high. Gouging or supply and demand
In a free market there is no such thing as price gouging.
Theoretically, this is true. However, it applies only if buyers (and sellers) have complete knowledge of the market, and are not forced to buy/sell under artificial constraints. If people are panic buying ammunition because of fear of a pandemic and its social consequences, they are not acting rationally. They are likely to pay prices that are out of line with supply and demand. Sellers that take advantage of that can be fairly labeled "price gougers.""Gouging" is supply and demand. If there was a cheaper supply, you'd buy there instead.
Theoretically, this is true. However, it applies only if buyers (and sellers) have complete knowledge of the market, and are not forced to buy/sell under artificial constraints. If people are panic buying ammunition because of fear of a pandemic and its social consequences, they are not acting rationally. They are likely to pay prices that are out of line with supply and demand. Sellers that take advantage of that can be fairly labeled "price gougers."
Theoretically, this is true. However, it applies only if buyers (and sellers) have complete knowledge of the market, and are not forced to buy/sell under artificial constraints. If people are panic buying ammunition because of fear of a pandemic and its social consequences, they are not acting rationally. They are likely to pay prices that are out of line with supply and demand. Sellers that take advantage of that can be fairly labeled "price gougers."
All completely irrelevant. Demand is exactly that, demand.. . . knowledge of the market, . . . panic buying. . . fear of a pandemic and its social consequences,
Price gouging is mostly concerned with precipitous price raises in view of emergencies such as water and food after a hurricane. I'm from Florida and you see a lot of arrests after a storm for just this sort of thing. There are hotline numbers to call to notify authorities. There are laws against it so I don't think you can say there's no such thing.There is no such thing as "price gouging"; the idea is based on a fundamental misunderstanding of pricing.
Under normal circumstances, this is quite true.If you raise your price per widget above what the demand will support, your competitors will take your market share, and you will lose money. Unless you can send Vinnie over to close your competitor (or use regulation to the same effect), you can't actually sell widgets above the price that the demand will support. No one will buy them.
Supply and demand pricing is based on the concept of a item being supplied and demand based on simple desire for that item. Not so much a life and death need in dire times.It's impossible to contrast "price gouging" vs "supply and demand pricing"; if you understand the second, the first vanishes into a illogical misunderstanding.
However, if the vendor is smart, keeping prices at the same level is something that customers might remember after the storm has passed and things return to normal.ETA: No doubt the response will be lots of emotional whinging; that's irrelevant. A vendor maximizes profit by selling at the vertex in the price-demand curve; when demand rises the vertex rises, and the vendor has no responsibility to maintain pricing just because you wish he would.
In fact, the vendor has an obligation to his shareholders to maximize profit; if you disagree, you should invest in the inventory and start your own charity.
Theoretically, this is true. However, it applies only if buyers (and sellers) have complete knowledge of the market, and are not forced to buy/sell under artificial constraints. If people are panic buying ammunition because of fear of a pandemic and its social consequences, they are not acting rationally. They are likely to pay prices that are out of line with supply and demand. Sellers that take advantage of that can be fairly labeled "price gougers."
No they cannot; they offer their goods at a certain asking price. If the buyer fails to do their due diligence, that is NOT the issue or problem of the seller. When two parties WILLINGLY exchange things in a mutual fashion - money, services, goods or whatever, there is NO gouging.Theoretically, this is true. However, it applies only if buyers (and sellers) have complete knowledge of the market, and are not forced to buy/sell under artificial constraints. If people are panic buying ammunition because of fear of a pandemic and its social consequences, they are not acting rationally. They are likely to pay prices that are out of line with supply and demand. Sellers that take advantage of that can be fairly labeled "price gougers."
Price gouging is mostly concerned with precipitous price raises in view of emergencies such as water and food after a hurricane. I'm from Florida and you see a lot of arrests after a storm for just this sort of thing. There are hotline numbers to call to notify authorities. There are laws against it so I don't think you can say there's no such thing.
But there is a major difference between lowest price and lowest total cost of ownership; sometimes the cheapest item costs more in the long runThe point is that these laws are arbitrary. All they punish is a situation where something costs more than someone else thinks it should EVEN WHEN THEY CAN'T FIND IT CHEAPER. That situation always exists in EVERY market - as a consumer I always want everything cheaper, and always buy it from the cheapest/best service place I can find (assuming equivalent goods). So such laws simply punish people for something that occurs all the time.
Sure I'm just talking about interchangeable goods. Ammo and TP don't tend to incur many costs after purchaseBut there is a major difference between lowest price and lowest total cost of ownership; sometimes the cheapest item costs more in the long run
True, but inventory carrying costs need to be factored in as well.....(did this stuff for 30 years)Sure I'm just talking about interchangeable goods. Ammo and TP don't tend to incur many costs after purchase
The classic definition of "fair market value" is "the price at which the property would change hands between a willing buyer and a willing seller, both having complete knowledge of the relevant facts and neither being under any compulsion to buy or sell." In a sudden pandemic, everybody lacks knowledge of the extent and course of the disease. And the resultant panic is a form of psychological compulsion. Under these conditions, it's impossible to establish a "fair" price point, and the normal laws of supply and demand don't apply. Anybody selling at a price substantially higher than the prevailing price ante could reasonably be presumed to be price gouging.Where I agree that there are conditions where gouging can happen due to a non-free-market where the buyer is not free to buy elsewhere, I have to disagree with your premise here. Assuming it is a free market than nothing the buyer does though ignorance, panic, or irrational behavior can makes the seller a gouger. This assumes the seller is not actively causing the buyer's ignorant, panicked, or irrational behavior.