Hoarding and pricing 'the little people' out of the market,,,

[WVsig]

I buy my gas at Costco, always 10 to 15 cents per gallon cheaper that any other gas station.

There is that pesky annual membership fee however and it takes a fair amount of gas to cover that. I am a member at Sams Club. Lately, their price has been about the same as regular gas stations rather than the 10 to 15 cents difference. I notice Sam's Club pricing is about the same as other souces when prices seem to be increasing.

If you don't save the $50 you get the the entire $50 refunded to you at anytime.

Membership: We will refund your membership fee in full at any time if you are dissatisfied.

The reality is that a single large purchase can cover the cost of the membership. I have never lost $$$ on a Costco membership. Gas there is consistently $.8 to $.10 cheaper and it is Top Tier gas vs Sams Club which is Walmart swill. They also have great deals on gun containers/safes.

But we are talking about ammo not gas... or Costco memberships.

The problem is that people are still buying the 22lr at $.10 a pop. Simple economics of supply and demand tell us that if the buying public pays $.10 for something they used to pay $.03 why are they going to still charge $.03?

It is not just the people reselling it is the brick and mortar and online retailers too. If people show that they will pay $.10 it will continue to be $.10. If we as the shooting community leave it on the shelf it will come down. IMHO and even better will leave the profiteers holding $.10 ammo in a $.06 market.

 

[oneounceload]

The problem is that people are still buying the 22lr at $.10 a pop. Simple economics of supply and demand tell us that if the buying public pays $.10 for something they used to pay $.03 why are they going to still charge $.03?

If you were selling at .10, and folks were buying it at that price, and your cost is about .07, why would you sell at .03?

 

[WVsig]

If you were selling at .10, and folks were buying it at that price, and your cost is about .07, why would you sell at .03?

You are missing my point. People are complaining that you cannot find 22lr anymore for $.03. I am saying that to some degree demand has driven up the price along with inflation. I am saying that this is what some people seem to want ammo manufacturers to do. They want them to sell a product that they can get $.07 for all day long for $.03 just because they used to sell for $.03. The market moved the price up to $.10. People are buying it at $.10. There is no incentive for a manufacturer to go back to $.03 when the market pays $.10. They can sell it at $.07 and look like the good guys.

I have seen 22lr in bulk at $.05 to $.07 these days. It gets bought up pretty fast but it shows that people can produce it sell it to a reseller who then sells it to the public for $.06. When you take into consideration inflation $.06 seems like a fair price in 2015. Midway had Fiocchi 22LR for about $.07. Federal AutoMatch Target for about $.05. It sold out quickly because people are panicked.

The point I continue to try to make is that the days of $.03 22lr is over. I believe that it will become more available over time but we are not at that point yet. I keep hoping. Luckily for me I don't shoot a ton of 22lr and have been able to keep about 1000+ rounds on hand even through the worst of the drought but again I am not a high volume shooter of 22lr.

 

[12many]

The price of a product or service is often not related to the actual cost of providing the product or service. It can be more or less depending on other factors.

I have not looked at all the numbers, but when (year) was it .04 per round? Then look at lead prices, brass prices, wage costs, and shipping costs. I doubt those have gone up, but I could be wrong. I know wages and shipping have been flat or gone down over the last 5 to 6 years. Wages are starting to creep up and now energy is creeping up too.

VAgunner +1

 

[texasgun]

the Walmarts in North Dallas have Federal Aluminum cased 9mm for $9.97 / 50rds... and plenty available.

sure... 5.56 is a tad harder to find since mid February... but 5.56 was plentiful and CHEAP for more than a year before that. If someone didn't stock up while it was going for 30cents/rd and now SUDDENLY complains about the ammo being scarce... mmmmh... obviously learned nothing from all the ammo situations prior to that

 

[MagnunJoe]

The price of gas is only down momentarely. By this time next year we'll be paying over $3.50 again. The price of ammo won't come down for even for 3 months.