How can they do this?

[hometheaterman]

So I was in a local gun shop the other day. This gun shop is usually known for really high prices, but has a great selection. Anyway, in the middle of the floor I see a few cases of Federal Champion .40 S&W ammo. To no surprise it's the red box that they sell at Walmart. Even had the WM in the product code. It's no surprise that gun shops are buying ammo at Walmart to try and resell it. Now what got me wondering, is when I've seen this done in the past the ammo has been marked up. This shop had a price tag on it saying "sale" and $12.99. This ammo is $14.47 at the closest Walmart and $13.97 at a Walmart about an hour away. So my question is how the heck can they sell the same ammo Walmart is selling, yet sell it for cheaper?

 

[Sam Cade]

Its a loss leader.

http://en.wikipedia.org/wiki/Loss_leader

 

[Equestrian]

There Simply selling at low or no margin in hopes that it wont be the only thing you walk out with. even at the lower price they still probaly dont loose much if any. margins on some products are 5o% ++

 

[Oyeboten]

If you get a good deal on a High Jacked Truck Load..?

 

[FatPants]

That ammo is $9.47 at my WM, so maybe they are actually getting it cheaper, and making a couple bucks on each box?

 

[hso]

We pay $10 at Wallyworld here.

 

[Centaur 1]

Maybe the guys wife works at Walmart and he gets an employee discount. I've been buying Federal 9mm ammo for $9 a box using my wifes discount.

 

[hometheaterman]

You guys sure it's $9.47? I've heard of the 9mm for $9.47, but never the .40 S&W ammo that this is. The 9mm is $9.97 here, but the 40S&W like I said is $14.47 at most Walmarts, and $13.97 at one about an hour away.

 

[FatPants]

Whoops, I thought you said 9mm. I think the .40 is right around $11/box here, but I dont shoot .40, so I'm not really up on the prices.