Interesting Observation on Ammo Prices

[Flame Red]

I went to Wally World because I have used up the cases of shot gun shells that I bought some years ago. I went all lubed up and bent over expecting the usual outragious ammo cost now, given the double/triple of some ammo prices over the year or two.

To my recollection, a box of Winchester 12 guage shells used to cost me about $3-$4 when I last bought them. The price of what I just paid at Spral-Mart - a shocking $3.97! What a pleasant surprise! Could it be little/no price increase in the last few years

I think I will doing a lot more shotgunning - they are quite the bargain given the increased ammo costs.

 

[Red Tornado]

There are reports all over THR as well as other forums that ammo prices will be shooting upward on Sep 1. You might want to stock up now. Even if it doesn't skyrocket, it won't be going down.
RT

 

[GRB]

See my blog at http://ballseyesboomers.blogspot.com/2007/08/are-ammunition-prices-really-set-to.html , it discusses the planned price rises by at least three major manufacturers.

Some shotgun amo is going to skyrocket.

All the best,
Glenn B

 

[bigcim]

Read this then stock up
http://www.thehighroad.org/showthread.php?t=294319

 

[bigcim]

did it help

 

[zoom6zoom]

Could it be little/no price increase in the last few years

Check carefully - some of those boxes that used to be 25 rounds are now 20...

 

[davinci]

know why shotgun shells are cheaper than metallic cartridges?

supply and demand. same reason a box of 22lr is still the same price as it was 5 years ago at walmart, folks are buying and stocking up on pistol/rifle rounds because of the "price increases" taht are "posted".

We'll just see what happens with the prices on Sept 1. If things shoot up, then I'll go ahead and wear this dunce hat, but I'm going to guess that prices will go down after more folks start reloading, stop shooting as much OR get their stock up and decide that they've got enough to feel comfortable.

 

[Spreadfire Arms]

the walmarts ive been to in Austin all say that on Sept 1, the prices are to go up by 15-25% across the board.

thats why ive been stocking up, the only problem is, im not the only one. usually i go and if there is the ammo im looking for i buy it all, but sometimes i go and there's nothing there at all.

 

[Red Tornado]

supply and demand. same reason a box of 22lr is still the same price as it was 5 years ago at walmart, folks are buying and stocking up on pistol/rifle rounds because of the "price increases" that are "posted".

Increased Demand could be part of it, but the ammo supply curve can move left due to external forces that have nothing to do with Demand. i.e. rising metal prices will cause producers to produce less at a given price, thereby causing a new equilibrium price to be established that is higher and at a lower quantity demanded than the previous equilibrium point.

Sort of the exact opposite of how Supply Side Economics works.
RT

 

[john1911]

Sending those letters out was brilliant marketing.

 

[yesit'sloaded]

Maybe ammo prices are going up because of all the SHTF nuts who are buying it by the case

 

[GRB]

Sending those letters out was brilliant marketing.

Nah, I don't thinl so. The ammo manufacturers have always done this before price increases, or let me say done it most times. They keep the 8stores apprised, so they can plan ahead and so they can let their customers know about it. Now if we were all to write to ammo makers and cry and moan, who knows we may get their attention, but my guess is they increases are going to happen because poop has happened that caused the cost of business to go up. Of course there may be some price gouging added on due to greed but that my friends is capitalism.

All the best,
GB

 

[Geno]

Odd that I can buy 250 rounds of buckshot for $99.00; 500 rounds of #4 shot for $100.00, but to buy 500 rounds of .308 Win I'd have to pay around $350.00?! I can't figure it out. I will state for fact that until prices drop, I am done buying center fire rounds. I have more than enough for what I shoot. The current prices put me to mind of extortion.

 

[JKimball]

Now if we were all to write to ammo makers and cry and moan, who knows we may get their attention

Ammo makers aren't interested in what we say, but what we will pay. If they can't sell ammo at higher prices, they will get the message. If they can sell it at higher prices, likewise, they will get the message. Price isn't determined by cost, but by the value to the consumer, with competition helping to keep it lower. It seems a little suspicious to me that all these manufacturers are sending out letters saying they are increasing their prices. Sounds a lot like they are getting together and agreeing to collectively take advantage of ammo buyers. I thought that was supposed to be illegal.

 

[Bezoar]

Companies exist to make profit. People have less money these days so they need to make a way to force people to buy more at higher prices. THe result is manipulation of supply and demand.

The iphones and video game consols are classic examples. THe companies make a few million units, but claim only a small number are avalaible for sale at the date of release. THis creates an idea that since only a small number will be on the market at that time, anyone who has one will have special prestige/social power.
Thus that percieved status and perceived lack of ammo makes people buy even more at the higher prices.

And the rumors are all in three articles from the paper.

-component metal prices up, that means ammo will cost more
-ammo is in such a short supply because of companies switched to army contracts, police are having to use airsoft to conserve ammo for "emergency response"
-ammo is soooo expensive to make and in such small supply, makers have to raise the prices to keep afloat till the component metal price can lower.

and this is all after the basic component metal prices have started coming down, after the new us army contracts for iraq and afghanistan for 40,000,000 rounds of ammo.

seriously, PROVE their is a shortage.