Fair Prices

[Happy2Shoot]

What are you mad about?

Seriously, what point from above do you take issue with?

You quoted my post, and got snarky, but didn't fully express what you were thinking.


I may start an LLC ammo company in 3 years, buy a couple Dillon 1100's, Mark 7 autodrives, Mr. Bullet feeders, and supplies.

Spend $10,000, make $40,000. Why not? It is not hard to make 2 MOA ammo that doesn't blow up.


Why would I send my CV? I didn't present my idea as novel.

They know what their options are. They made their choice, and I disagree.


Gov price controls? Really? Not related at all to my post. You are just being flippant.

[keystone183]

What are you mad about?

Seriously, what point from above do you take issue with?

You quoted my post, and got snarky, but didn't fully express what you were thinking.


I may start an LLC ammo company in 3 years, buy a couple Dillon 1100's, Mark 7 autodrives, Mr. Bullet feeders, and supplies.

Spend $10,000, make $40,000. Why not? It is not hard to make 2 MOA ammo that doesn't blow up.


Why would I send my CV? I didn't present my idea as novel.

They know what their options are. They made their choice, and I disagree.


Gov price controls? Really? Not related at all to my post. You are just being flippant.

Stuck in the matrix
Take the red pill
crisis

I'm not mad about anything. You seem upset at how someone else is running their business.

[montana]

Reading what people think is fair or not fair has been quite interesting to say the least, with good arguments from both sides. In one circle a man is a low life scalper, in another he is a respectable commodities trader.. Profiteering low life or virtuous entrepreneur supplying scarce goods is the real debate. What is fair completely depends on ones belief along this spectrum..Interesting discussion and opinions...

[GSPDad]

I'd like to join in on the purse swinging!

[BJ Grunion]

Fairness vs. Stupidity - Thanksgiving weekend 2020, CCI small rifle primers $50/1000. Elevated, but probably fair. Mid-April 2021, same primers $225/1000. STUPID! Yes, I understand supply and demand, and prices fluctuate based on several factors. However I don't believe that paying (or charging) 8-10 times the "regular" price for something is smart on any level.

[GSPDad]

Fairness vs. Stupidity - Thanksgiving weekend 2020, CCI small rifle primers $50/1000. Elevated, but probably fair. Mid-April 2021, same primers $225/1000. STUPID! Yes, I understand supply and demand, and prices fluctuate based on several factors. However I don't believe that paying (or charging) 8-10 times the "regular" price for something is smart on any level.

We go through this ever...single.... time there is some form of political nonsense going on and people still fail to prepare accordingly once things calm down. Then these same people complain that they "have to pay" these gougers. The thing is, they do not have too, nor should they. As I have stated multiple times, these folks that are panic buying at any price are going to be the reason why distributors will eventually make these prices the new normal.

[lazyengineer]

So this isn't my passion either way. I'm cool if MOd's want to limit gouge posters. I'm cool if they don't.

One thing about this current run semi-tolerable - or at least makes gougy-prices eye-roll-inducing more than outrageous, is this isn't limited supply. There is no cap on ATF Class 6 (ammunition manufacturing) license. The cost of raw materials to make primers is quite cheap, and quite available. We all know the margins on primers right now are insanely high; as is everything related to this. In a capitalist system, that should motivate someone to enter the market, to cash in. Rule of thumb in business is "30% margin of grace". Which is to say, if you are doing something that is generating more than 30% margin, you should expect competition to start coming out of the woodwork. You can bet this industry is WAY above 30% margin right now.

So, to me, if it's not a life-necessity, and it's not a limited item (like $6 bottled water at the Football stadium); let the market work. The fastest way to get someone manufacturing more primers, is to let people pay $0.20/primer. The fastest way to get more 6.5 Grendel ammunition manufactured, is for the going rate for that $0.50 ammo be $2.50. Because there is no limitation to actually making more. There is no limit to copper in the ground, lead/organo compounds, or nitrates. And no limit to Class 6 ATF licenses.

Frankly, if I were professionally employed in the munitions industry at all, I'd absolutely be investing - because while we are in a bubble, we're also in a step-change - and the market demand IMHO has taken a perminant increase. Doing that at even half of current margins, is a no-brainer. The market will absolutely accept a perminant 25% price increase; because that's about to happen.

The solution to this situation is not to beat on the distrubution network - that will achieve nothing. The solution is to increase production - and nothing will increase production faster than windfall profits. Which will pay off the investment quickly, and then fall to solid good profits as the market restabilizes.

That's my take. So while I agree at the cringe seeing people gouging; the more that happens, the faster it gets fixed.

Also, when it comes to "gouging", I've occasionally listed stuff for prices on the high side (not gougy, but more than I'd say it was worth a year ago). I'm not buying my new helicopter with that; I'm getting compensated for the PITA of dealing with it, and getting enough income to later replace at what I consider next years prices to likely be. Unless one is feeling alteristic, it would be foolish to sell for anything less.

[keystone183]

In other words......the cure for high prices, is high prices.... Amazing how efficient markets can be!

[LR1955]

Anything else guys?

[GSPDad]

Anything else guys?

Yes. Find me some Starline or Hornady brass.

[ritepath]

Anything else guys?

Yeah who makes the best affordable slate call.

[Bjorn]

Anything else guys?

This thread is an example of how frustrating current times are for those of us who actually enjoy shooting. Hell, shotgun shells for clays and skeet are even in such short supply some clubs can't source them. Selfishly, I wish one of you guys would get into the primer business and sell to Grendel owners first.

[LR1955]

Guess that is about it for this one.

Nothing really new from it but at least a forum to vent.

Time for it to end before things get out of hand.