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What I find crazy is if I was running a company and had a machine that produced 1000 widgets an hour and I was already running it 24/7 and demand was WAY beyond what I could produce I would bring another machine online, and another, and another.
Maybe but...
How long will the demand last? Will you make enough to pay for the equipment? Will the demand still be there once the equipment is built, installed and running properly?
All big risks that could close your business.
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Even if you knew the demand was temporary?Originally Posted by RCCrawler
What HBAR said is exactly what's happening, that is the reason for "rationing". We had a number of people who wanted to buy all we had, then got shitty when they were told they couldn't. I actually almost got into a fight at Walmart last Sunday. Stopped by there to check their ammo, saw some Tula 45, got my 3 boxes, then another guy stepped up and started taking all of the boxes out of the case, the employee told him "3 box limit". Guy got shitty, it continued, I blew a gasket backing up the Walmart employee. Guy actually asked me if I wanted to step outside before employee called security. Said just about everything to this guy that I wish I could say sometimes from behind the counter when I am at work. It was cathartic.
It has been over a year now...
+1
So it's early 2013 and instead of widgets you're building AR receivers and/or rifles and there's this tremendous demand and you can't keep up. So you go out and invest MILLIONS OF DOLLARS in new equipment, people to operate the equipment and assemble the rifles, you've probably had to build or otherwise acquire additional space to place the equipment and people, your supply chain of parts and other necessities has grown, etc.
Now it's Nov/Dec 2013 and some retailers are offering Colt 6920 rifles for $895. Now in addition to MILLIONS OF DOLLARS of new equipment that's sitting idle you've got all the inventory of rifles you can't sell and parts you don't need to build rifles you can't sell in the additional manufacturing space you no longer need and you've had to lay off numerous workers who're now collecting unemployment.
There are many reasons why companies don't follow your line of thinking. It just isn't that easy.
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I totally understand there are many other factors in play, but it's been long over a year since .22lr has been hard to get. I'm not totally sure what is all involved with producing .22 ammo, but I'd think adding another production line would be a wise choice.
Which is why those in the business are doing what they can to maintain a moderate supply. Not knowing the logistics of the mfg raw materials. it would be foolish to say , buy more machinery to make more, so i can have it. I doubt most, if not all mfg have the actual space, power, let alone skilled employees to "just buy another machine"
Last edited by Great-Kazoo; 12-18-2013 at 14:11.
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