5.56 @ Ammoman

[jrfly3006 42]

 

 

The system never works great. It just works a LOT worse when rationing and price controls come into play. Anyone who think that economics is smooth and clean and simple is wrong. Anyone who thinks that it would better if only there was some sort of market intervention should look how well that worked under communism.

 

Remember you are already talking about of the most regulated markets on earth. There are over 20000 laws relating to firearms and ammo. What you are seeing is a market heavily constrained by regulation and under threats of more regulation thrashing around trying to do what markets do which is balance supply and demand via prices.

I agree completely with your last paragraph... Seems like the only thing that would calm it down would be govt outright stating we're not gonna ban anything which we all know won't happen... Lets hope cooler heads prevail here...I'm sure the anti gunners are loving some of these shortages..

[HODGIE 3]

Ugh! Mods just lock this. To many Internet tuff guys here that just can't seem to have a sensible debate, without throwing in a wise ass jab. We are all suppose to be friends here but some people just want to degrade others with wise comments. Really? So much for a sound community.

 

What are you 7 years old?

Your the one who keeps making this personal with comments like this.

Once again if you feel "threatened" by a comment or opinion then you need to tuff it up a bit.

 

 

Grow up.

[HODGIE 3]

Sorry double post.

[HODGIE 3]

2. Yes the seller has to charge more sometimes...how much well that's a gray area... basic economic theory shows that a business, in order to remain successful should be dynamic enough to absorb supply fluctuation...I.e. don't have all your eggs in one basket...the ones that didn't will remain long after this nonsense blows over

 

Think about this statement for a minute, name more then 1 or 2 local shops in NJ that have moved into a dynamic outside firearm related products? I can only think of 1 off the top of my head and thats Dicks since it's a sporting good shop and I would guss that firarms and ammo sales most likely generate a very small portion of their over all profits. You can arguee shops with ranges and yes they will generate some cash from the range but if they have no ammo to sell or have to sell what they can get at a higher price then less people are going to come out to shoot.

 

For a normal brick and morter shop that sells current semi auto firearms and accessories it's a loose/loose situation here. Ammo is scarce and going up in price, semi auto rifles in almost any caliber are not easy to restock. So if a shope typically stocks 12 evil black rifles a month and needs to sell at least 6 at the pre scare price and now they can only stock 3 if they are lucky due to manufacturing back up's but they need the profit margin of selling 6 whats going to happen here? See where Im going with this.

 

It's no different then the way a subway or Quiznos chain, they need to sell a specific amout of 6" and 12" subs in any given week. There is a % taken off each individual sub that has to go back to the parent company, a % that keeps the doors opened, a % that pays the employees and a % that pays the owner. If they dont meet the sandwitch selling quota its a loss and they close. I have seen it and done it before just not with sandwitches.

[rightisright 3]

Do the public schools no longer teach basic economics?

[jrfly3006 42]

Do the public schools no longer teach basic economics?

They sure did..thats why were a few $ short of a Greece type financial meltdown..great isnt it? Cant afford it..just borrow and pass the buck down the line..still cant pay.no problem..declare bankruptcy and let the judge wipe it out and then write if off../rant off/

[NJCK 5]

I'm still sticking to my guns on this though. My local shop and other places I CHOOSE to shop at didn't bring their prices up do to the fear buying.

My local shop that I buy ammo from is still 7.99 a box when they have it. Wonder where he gets it from that he can AFFORD not to charge so much for it? I got the same 5.56 greenies from Palmetto last week for 80$ for 200 rounds. Wonder where they get their ammo from that they can also afford not to charge a 1$ a round? Sorry but when some places still have the prices that existed 3 months ago, and other places are making 300% mark up, it may not be price gouging, however I'm sure there is a term for it.

 

Sorry Josh, you are missing a fundamental aspect. I'm not getting into the entire back and forth here, but I would like to address this quoted portion specifically. For the record, I did have many courses in economics, and your're missing a fundamental of retail, which I can also speak directly to in having had my own side businesses. You have totally bypassed preordering of inventory and how that factors in. Having contractual agreement to deliver a certain quantity of product at a set price with a wholesale distributor. When this is done, retailers can maintain pricing for some duration to span market fluctuation. HOWEVER, a good retailer is thinking ahead towards what his next quantity of product will cost him because he wants to maintain stock, and that can force an adjustment of price with existing stock even though is was bought at an earlier, reduced price. Now even more interesting is our current situation in the firearms market where there are limited firearms available and dwindling ammunition in all calibers. How do the guys at the end, the retail stores, survive if they cannot get product to sell? They have to pay for the real estate, the utilities, and their employees! Thus, you see a cost increase in attempts to span the divide from when there is minimal product available to when product returns, and a wish and a prayer that it does! Iit might be a prayer for businesses that are nothing but firearms.

 

Now, you've chosen to use Eric (Ammoman) as your "gouging example." Do you realize that Ammoman is a wholesale distributor as well as a retailer? Have you seen the size of his warehouse? The number of employees he has? The manufacturers have little to no ammunition for him to acquire and re-sell at either wholesale or retail basis, and his inventory is gone. Ammo is all that he does. By the arguments posed, the expectation is for him to maintain prices pre-demand-like-never-before-seen-in-the-industry and that will force him to lay off his employees and close his business even more quickly. Conversely, you then Cite Palmetto, a very large retailer with both internet and store front sales who are also more diverse and sell multiple products so their concerns for cash flow are a little different. As soon as they sell out of their supply that's locked in at a delivered price from their supplier, they will increase it (if they can get any at all), but it's more gradual because they're still making margin in other sales. Though they've increased pricing too on much of whatever AR items they can lay hands on. They will simply get pinched later by this rush market with dwindling supply, but they will get pinched.