The_Next_Generation
Member
Hey everyone,
I did not want to hijack another thread so I am making this one. It seems that a lot of my shooting compadres (both on and off the internet) are confused as to what is causing the shortage of ammunition, specifically the .22lr stuff. Is it hoarders? Is it the government? No and no.
The reason we are experiencing the shortage under current conditions (read: at the current production rate) is because vendors are not charging high enough prices for their goods with respect to current demand. Plain and simple.
For example, my local mom-and-pop LGS periodically gets 22 ammo in. Because they want to maintain a reputation for being good-hearted people, they haven't changed any prices. What this means is that when they DO get 22 ammo in, it sells extremely fast (obviously). If they were to hike-up the prices from $19 per brick to $50 or $60, only a handful of people would buy it. This would leave many bricks on the shelf. Eventually, a stock would build up as more ammo comes in but doesn't get sold. The LGS would then stop ordering so much ammo, so frequently.
If all shops did this, then the supply would catch up and the prices would come down *slightly* as shops would need to sell at least some ammo at a slightly lower (maybe $40 per brick) to maintain profits. The problem is that the market demand for 22 ammo is extremely high, and will be for some time. If production does not increase, and prices are not raised, there will *always* be a shortage. That is a basic economic fact. The only way to combat this shortage without a rapid increase in supply-rates is to raise prices.
Prices will continue to be high until either A) the market demand falls because people stop panic-buying or B) production increases to match demand.
Note: I searched for threads that said what I have said, but it seems nobody has taken the liberty to do so yet.
Let me know if you think there are any flaws in my logic,
- TNG
I did not want to hijack another thread so I am making this one. It seems that a lot of my shooting compadres (both on and off the internet) are confused as to what is causing the shortage of ammunition, specifically the .22lr stuff. Is it hoarders? Is it the government? No and no.
The reason we are experiencing the shortage under current conditions (read: at the current production rate) is because vendors are not charging high enough prices for their goods with respect to current demand. Plain and simple.
For example, my local mom-and-pop LGS periodically gets 22 ammo in. Because they want to maintain a reputation for being good-hearted people, they haven't changed any prices. What this means is that when they DO get 22 ammo in, it sells extremely fast (obviously). If they were to hike-up the prices from $19 per brick to $50 or $60, only a handful of people would buy it. This would leave many bricks on the shelf. Eventually, a stock would build up as more ammo comes in but doesn't get sold. The LGS would then stop ordering so much ammo, so frequently.
If all shops did this, then the supply would catch up and the prices would come down *slightly* as shops would need to sell at least some ammo at a slightly lower (maybe $40 per brick) to maintain profits. The problem is that the market demand for 22 ammo is extremely high, and will be for some time. If production does not increase, and prices are not raised, there will *always* be a shortage. That is a basic economic fact. The only way to combat this shortage without a rapid increase in supply-rates is to raise prices.
Prices will continue to be high until either A) the market demand falls because people stop panic-buying or B) production increases to match demand.
Note: I searched for threads that said what I have said, but it seems nobody has taken the liberty to do so yet.
Let me know if you think there are any flaws in my logic,
- TNG