Inconsistencies in ammo pricing from various sources

[Martinjmpr]

If prices are consistent everywhere, you can bet someone is fixing the prices somewhere in the supply chain.

Just like gasoline pricing ?

Yes, that's why if we all make a pact to not buy ammo on Tuesday the prices will go down.

[MrPrena]

About 6mo ago, I was saying we should import more ammo to stabilized price, but some said "no way made in usa!!!"

Hell. I love made in usa too, but sure ain't gonna pay 300% increase due to supply shortage for ammo.
US ammo manufacturers just became Duopoly after acquisitions.

[20X11]

Those who didn't stock up when prices were cheap will pay the price now. Those of us that have been around for the past couple of cycles of this BS don't have to worry...we have plenty.
What????...You thought prices would be cheap forever and didn't buy enough to carry you through retirement AND Now you're whining...SHAME ON YOU!!!!

PS...what is a gun without ammo? A poorly designed CLUB.

[.455_Hunter]

Some people are missing the point of this discussion about wholesale and retail price discrepancies.

[20X11]

Wholesale vs Retail doesn't matter if everyone who bought a gun spent 2-3 times the price of the gun for ammo it would shoot. Buy a $1000 gun...spend $50 on 2 boxes of ammo...WTF are people thinking?

[beast556]

Some people are missing the point of this discussion about wholesale and retail price discrepancies.

Were not missing the point, what were saying is this happens pretty routinely. People and businesses are greedy and capitalize anytime they can. Sucks but that's the way it is especially with guns.

[MrPrena]

Some people are missing the point of this discussion about wholesale and retail price discrepancies.

Whole sale - assuming price is materials and labor is constant for now, my projection is that it will only go up in teen % due to recent M&A.

Retail- there will be 2 price as grant stated.
I believe big box store will be more elastic to the small price increase from whole sale, but they will be out of stock in short run due to high demand in ammo.

Small shops... we all know that it will be triple digit increase.

[hollohas]

Big box stores do buy much of their stock based on contracts. Sometimes those contract prices are good for a certain qty. Sometimes for a certain timeframe. Sometimes both. It stabilizes their retail price to the consumer. That's the same reason their prices don't go down much in times of decreasing prices. (Unless they work out a temporary "sale" with their vendors or decide they need to move dead inventory and reduce their margin).

Not long ago SGAmmo could beat midway, cabela's or walmart any day of the week. That's because they weren't locked into a contract price. It benefited them not to have a contract when wholesale prices were low. Their prices fluctuate.

Now wholesale prices have gone up. So retailers without contracts are subject to those increases while big box stores still get their good 'ol regular price they worked out previously. When wholesale prices go up, big box stores benefit from having the contract prices. Their prices are stable.

Many LGS don't even buy wholesale. They buy retail and mark it up. Or even slightly discounted retail from places like Primary Arms that will setup reseller accounts. Even if they buy wholesale from distributors they don't get nearly the same pricing as larger volume retailers like SGAmmo. And then there are some that will increase their retail price to make sure they profit enough to be able to buy at even higher prices next time. And others simply use the opportunity to make a higher margin. I'm sure every LGS has a different strategy.

Same thing is true of other industries as well. For example, romex wire at places like Home Depot is pretty stable. It fluctuates very little because they have huge, long term contracts. Local electrical suppliers are much more susceptible to market fluctuations in copper prices. They may use contracts, but they are smaller and shorter. Either way, when copper prices go down, they can beat the big box stores. When they go up, they can't come close.

Edit to add: at some point contract pricing runs out and needs to be renegotiated. If the contract is long enough it may outlast the high wholesale pricing and can be renegotiated at a similar price point as before. If it expires during the high demand, even big box stores may see their price go up that much. Timing is everything with contracts. (PS - the copper example effects the ammo manufacturers as well. They have contracts on copper that help stabilize their material costs for the period of the copper contract. )

[Aloha_Shooter]

Just like gasoline pricing ?

I see rather large variances (over 20%) in gasoline pricing when I use GasBuddy. Prices can be pretty consistent within a chain like Kum-and-Go but there are large variances within other chains like Chevron much less between chains or sources.

[.455_Hunter]

Were not missing the point, what were saying is this happens pretty routinely. People and businesses are greedy and capitalize anytime they can. Sucks but that's the way it is especially with guns.

And that is not the point of the discussion.