beatledog7
Member
Retailers warn of a shortage, based on the history they have seen. Buyers agree; it's time to stock up. Suppliers/distributors note that many manufacturers are running behind at filling bulk orders...
If all this is true, one wonders why the manufacturers of ammo and components were asleep at the switch. Don't they study the markets? Or was it a shortage of raw materials? But don't the collectors and refiners of the required raw materials study the markets?
Consider these possibilities:
Levels of supply are normal; no shortage is actually looming. The industry recognizes a way to experience increased profits by withholding supply for a short time, foregoing sales revenue in one quarter to enjoy significantly higher profits on those same sales in future quarters by artificially bumping up prices for as long as consumers can be made to believe the higher price is justified due to shortages.
Inventories are fat, and retailers prefer to turn stock at full retail or even at a premium rather than at a discount. A fictional shortage, accompanied by carefully controlled release of existing stocks, creates an environment in which discounts are not needed.
I'm not saying there won't be any sort of real short-term shortage of some items; such things are part of normal cycles. But we can make shortages much worse by being afraid of them.
If all this is true, one wonders why the manufacturers of ammo and components were asleep at the switch. Don't they study the markets? Or was it a shortage of raw materials? But don't the collectors and refiners of the required raw materials study the markets?
Consider these possibilities:
Levels of supply are normal; no shortage is actually looming. The industry recognizes a way to experience increased profits by withholding supply for a short time, foregoing sales revenue in one quarter to enjoy significantly higher profits on those same sales in future quarters by artificially bumping up prices for as long as consumers can be made to believe the higher price is justified due to shortages.
Inventories are fat, and retailers prefer to turn stock at full retail or even at a premium rather than at a discount. A fictional shortage, accompanied by carefully controlled release of existing stocks, creates an environment in which discounts are not needed.
I'm not saying there won't be any sort of real short-term shortage of some items; such things are part of normal cycles. But we can make shortages much worse by being afraid of them.