What do dealers usually pay for Federal Power Shok ammo?

[hometheaterman]

So Walmart seems to sell the Federal Power Shok ammo in most calibers for $13.97. It's like $11.97 or something similar in 30-30. They don't always have it in stock but when they do it seems like a great price. It seems like every once in a while I will see this stuff for $19.99 at a local gun store but a lot of them seem to be either $21.99 for it or $23.99.
Cabela's is the second cheapest place I've seen it for $18.99 for main calibers and $15.99 for 30-30 but then you have to pay shipping. I'm not sure it's the cheapest online price but most seem to be in that area.

Does anyone not find it crazy that gun shops are selling this stuff for $22-24 a box when Walmart is selling it for $14? Then gun shops often complain about how people don't support local businesses and shop at Walmart. I wonder why. If it was $16 instead of $14 I might consider getting it at the gunshop but I'm not going to pay $8-10 more a box just to support a gun shop. I'm not even going to pay $19 a box when I can get it for $14.

What do gun shops actually get this stuff for? I've heard some gun shops say they pay as much for ammo as Walmart sells it for. Do they actually pay more than $14 a box for it? Or is it all just markup for them?

The Winchester soft points don't seem to be this much of a difference. They are $18 at Walmart and they are like $20 at Bass Pro and similar. This is more what I'd expect and decent. I don't expect everywhere to have Walmart prices but at $8-10 a box higher that's a lot more.

Some of the 9mm WWB at a local shop was $42.99 and it's $22 at Walmart. That's another example of why people don't buy from the shops.

It seems like instead of small shops complaining about people shopping at Walmart instead of with them they should lower their prices to bring in customers. Or do they really pay a lot for the ammo so can't sell it cheap?

 

[desidog]

I know what you mean; the other day i was looking for scope rings. The local store had low warne QD's for 90 bucks....while midway had the same item for 50. (+5 S&H)

For five or even ten bucks i'd satisfy the immediate-gratification urge, and have a range report for you, but as it is i'm waiting for the UPS guy.

 

[cat_IT_guy]

Very interesting question. I have heard, though I cant vouch for it credibility, that WalMart is so big and has so much buying power that it can pretty much name its own price. If that is the case, in addition to the fact that they probably buy in serious bulk and then distribute as needed, I suppose it could be the case.

I would love to hear from a dealer or someone in the know on this.

 

[hometheaterman]

Yep me too. If they paid $18 a box for the stuff the obviously couldn't sell it for that. However, if they paid $10 a box it's no reason in my mind to need to mark it up that much. That's why I really wonder what they actually pay.

 

[Uncle Mike]

Walmart is able to buy it at a lesser cost than the common retail dealer can.

Walmart buys it by the train load directly from the manufacturer whereas the retail firearms dealer buys it from a distributor.

So ol' wally world is cutting out the middle man, and getting a better price on the product. Buy from them, when all the little guys are out of business, then what are you going to do when you come a crying your poppin' stick done gone and broke...you gonna take it back to wally world for the clueless highschool dropout to fix....yeah you are!

 

[lopezni]

the other thing about it is walmart doesn't have to make money off of the ammo sale. They know that once you are in the store you will probably see other things you want or need. That is why they do not care about staying well stocked or having a good selection in their ammo section.

So ol' wally world is cutting out the middle man, and getting a better price on the product. Buy from them, when all the little guys are out of business, then what are you going to do when you come a crying your poppin' stick done gone and broke...you gonna take it back to wally world for the clueless highschool dropout to fix....yeah you are!

Hell yeah, I listen to people whine and complain all the time, when really it is their fault that ammo is so hard to get and costs so much, and so many of the rifles out now are junk because the manufacturers know most people are looking to get the cheapest gun they can just to say they have one.

 

[kingmt]

Walmart does name there price, buy in bulk, & cut out the middle man but a lot of gun shops have huge markups also. If it is something small & cheap like $10 then a $10 dollar mark up is cool. If I can't make that much then it isn't worth my time. Say it cost me 30 cents then I would sell it for a dollar. You have to check the market price including Walmart if you have to compete with them & adjust your margins.

If you buy smart you should still be able to make money matching Walmarts prices. If you can't then you need another reason for someone to buy from you. Know your product, make your costumer feel valuable, & offer great service. You can also get business by having great stock.

That box of shells that cost $20 at Walmart should be close to the same price at the gun shop.
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I had to add this story:
Last year I was in a gun shop that had 50 count Federal .22's (Eagle) for $15 a box. These things should sell for $2 $2.50 at most.

I don't fell sorry for these people when they put there self out of business.

 

[Expertowgunner]

i work at a gun and pawn shop and the reason why gun shops are pricier most of the time is simply the distributors like rsr, william shooters, lipseys, etc. are ripping off the gun shop owners. i see it everyday when my boss is making a order for 9mm ammo or such and its almost 4 dollars cheap at wal-mart than HIS cost. I think gun shops as we know will be extinct in the next 10 years and thats not due to legal reasons. Places like buds gun shop or ammoman .com are selling stuff at stupid prices online and as more and more people are starting to see this the poor folks who have to be slaves to their distributors are getting ripped. this does not apply for those folks who price gouge as the instance on 22 ammo or 380 ammo but more importantly is us the shooters and gun entusiasts who allow ourselves to get ripped. i saw dumb@$$es that payed up to 35-40 for a box of 380 ammo (which is a horrible defense caliber btw) just so they could arm themselves or their wives (who are not active shooters anyway and cant shoot the already not newbie friendly small 380s). some gun shop owners and a lot of gun owners brought it on by the obama scare and guess what too bad. I have to deal with guys who want to sell their 1,500 "dpms" ar-15s that they bought and expect to get at least a 1000 for it when i can order one new now for 770 (still sucks in my opinion as we have to sell them for at least 850 to make it worth our while and you can get them cheaper online.

 

[Uncle Mike]

and so many of the rifles out now are junk because the manufacturers know most people are looking to get the cheapest gun they can just to say they have one.

Lopenzi, you hit the nail right on the head, hell, you drove it through the board!

I've been preaching this for years now.... most folks that come in the shop anymore wouldn't know a blued barrel from a krylon painted barrel.

 

[hometheaterman]

I agree with that about the quality going down as everyone wants something cheap. I'd rather pay and get quality. However, if it's the same product I'm not going to pay a ton more for it. If it was a better quality version that would be a different story.

As for the gun shops going out of business and then having no one to work on guns that doesn't really bother me. Most of the gun shops I've been to don't seem to have a very good gunsmith anyway. Not saying none do just not the ones I've dealt with. Not someone I'd want doing something major. It seems to be best in a lot of cases to just send the gun back into the factory. That also seems to be what a lot of gun shops want you to do now anyway. The better gunsmiths I know have a shop doing gunsmithing anyway not working at the local gun stores.

I don't want the local shops to go out of business and I'd support them if it wasn't much more but I'm not going to pay a ton more.

Actually the closest shop to me is the worst I've been to. I've gotten worse service there than at Wal Mart and they seem to have very high prices to boot.

 

[Maverick223]

Actually the closest shop to me is the worst I've been to. I've gotten worse service there than at Wal Mart and they seem to have very high prices to boot.

Keep looking, there are a several shops like that in my neighborhood, but I did a little traveling and shopping at a few different ones and found two nice shops; one that I am very loyal to. I don't always buy there, but I will always shop there first, and don't mind paying a slight premium to purchase from someone that I know, trust, and like to support. The largest shop in town (that must operate solely on advertising), I avoid like the plague, I will place an order from China before buying there. They have horrible service, dastardly staff, horrific pricing; and most of all a general condescending attitude, which I refuse to tolerate. My advice is to avoid the large stores (unless they have a good reputation) and hit up the smaller neighborhood shops, FME that is where you will typically find a gem.

 

[lopezni]

the distributors like rsr, william shooters, lipseys, etc. are ripping off the gun shop owners.

Yes on RSR, but I deal with Williams Shooter and I am very happy with their prices and their customer service. We have set markups on everything and don't go by availability, demand, or whatever the market is doing to affect prices. Often when I quote a price on a gun for a customer, their jaw drops and their eyes light up.

 

[Uncle Mike]

We have set markups on everything and don't go by availability, demand, or whatever the market is doing to affect prices. Often when I quote a price on a gun for a customer, their jaw drops and their eyes light up.

We where talking of this the other day, it is funny how some folks will not buy if the price seems too LOW! I guess they think your pulling a fast one on them, or your offering remand or seconds...now this pertains to firearms more so than ammunition, but non the less, it happens.

 

[Maverick223]

...it is funny how some folks will not buy if the price seems too LOW!

I have had plenty of problems making a decision whether or not to buy (or generally what to buy first), but a price too low has certainly never stopped me. Some folks just ain't right.

 

[HGUNHNTR]

We typically made 14-18% on "economy" ammo, and 18-25% on premium ammo. This is a pretty broad statement, some was more, some was less but thats pretty close on the ammo you are talking about.

 

[Maverick223]

HGUNHNTR, are you in Switzerland? If so that is really bad that you have to school us Yanks (or Rebels in my case) about English (sig. line)...not good. :banghead:

 

[Hatterasguy]

Walmart is probably buying it cheaper than the mom and pop gunstore can.

Also Federal is probably selling a cheaper ammo to Walmart. Usualy Walmart will go to a company like Federal (or any company for that matter) and say we want to buy XX number of your product at XX price. Usualy the price is so low the manufacture has trouble meeting it. In that case Walmart will go into their business to help them meet it. Dell does the same thing, but Walmart is far more destructive. Where as Dell is going to effeciant quality, Walmart is going for the rock bottom price. Everything else be damned.

So for example say Federal produces a round for $.25 cents and sells it to a distrbuter for $.35, and than mom and pop mark it up to $.60.

Walmart will come to Federal and say I want to buy that round for $.25 cents and I'll buy enough that it will be 40% of your production. Federal will agree than go in and change that round so they can make money at $.25 cents. Either through production changes or making a cheaper product. Maybe they use a thinner brass and cheaper primers to save half a cent. Maybe they will move production over seas and get rid of their more expensive American labor, maybe they will cut employee benifits. Either way costs are cut, usualy its the workers who end up screwed, as well as the consumers who get a crap product. Than its packaged up and Walmart sells them for $.26 cents. Joe six pack walks in and buys it, happy that ammo is so cheap. He has to watch his dollars now because his good job at Federal just got sent to some guy in China making a dollar a day.

This is a super simple example and hardly scratch's the surface, I could write papers on this subject. (I have, many) I know a lot about Walmart and I refuse to do business with them because their business practices suck.

 

[Maverick223]

Where as Dell is going to [efficient] quality...

You must be referring to a Dell other than the computer manufacturer.

 

[52grain]

We where talking of this the other day, it is funny how some folks will not buy if the price seems too LOW!

If it sounds too good to be true, it probably is.

Look at the warnings on some of the higher end optics manufacturers about counterfeits.

 

[HGUNHNTR]

HGUNHNTR, are you in Switzerland? If so that is really bad that you have to school us Yanks (or Rebels in my case) about English (sig. line)...not good

I used to be, thanks for reminding me to make that change!

 

[Maverick223]

I used to be, thanks for reminding me to make that change!

NP, welcome to the south.