Ammo Shortages & Hoarding

[minnesotatv]

One of the guys from the club talked with a rep from ATK/Federal last week.
He said: Federal is running all production lines virtually 24/7 trying to keep up
and falling behind of orders.

20% of Federal sales goes to Goverment. 80% is civilian market. The reason
for the shortages we're seeing - hoarding by all of us.

Most ammo manufacturers are aware of the substantial profits distributors
and dealers are making these days. If it keeps up you can bet the ammo
makers will be raising prices. By hoarding, and driving up prices like has
been happening, if it continues we will CAUSE prices for ammo in the future
to go higher.

So, think about your purchases and the prices you're paying. Do you really
need it now??

[yuppiejr]

Yes, please quit buying/hoarding so I can actually find ammo to buy/hoarde when I make the shopping rounds and quit burning gas just to be disapointed... it's killing my carbon footprint guilt.

One could also make the argument that buying now, even at inflated prices, is a hedge against variables like future ammo taxes or purchase limitations, etc... Assuming no strange legislative factors in availability, demand will eventually either flatten or even taper off as the market is saturated and I expect supply, particularly of popular calibers like 22, 9mm and .223 will increase once production catches up (and likely lead to a reduction in cost to "normal" levels again).

[photogpat]

Standard law of supply and demand -- increased demand in the face of limited supply causes prices to increase. Ammo manufacturers are still filling orders placed up to 1 year ago, at prices negotiated at that time. The profit taking is ALL in the hands of the retailers/distributors at this point. As has been stated previously - ammo manufacturers are not likely to increase capacity in the short term to satisfy a "bubble", they'll run as much as they can out the door without laying out major capitol expenses...consequently, prices will remain higher until demand eases.

I'm no economist, but the current market has essentially setup a secondary distribution network based on forums (like this one) and Armslist. Once guys quit buying everything Fleet Farm sets out in an hour, and turning it around on Armslist -- retail prices/supply will normalize.

NORMAL:
Ammo Maker $ --> Distributor $+$ --> Retailer $+$+$ --> Consumer (pays $$$)

CURRENTLY:
Ammo Maker $ --> Distributor $+$ --> Retailer $+$+$ --> 2nd Retailer $+$+$+$ --> Consumer (pays $$$$)

[ranger]

Standard law of supply and demand -- increased demand in the face of limited supply causes prices to increase. Ammo manufacturers are still filling orders placed up to 1 year ago, at prices negotiated at that time. The profit taking is ALL in the hands of the retailers/distributors at this point. As has been stated previously - ammo manufacturers are not likely to increase capacity in the short term to satisfy a "bubble", they'll run as much as they can out the door without laying out major capitol expenses...consequently, prices will remain higher until demand eases.

I'm no economist, but the current market has essentially setup a secondary distribution network based on forums (like this one) and Armslist. Once guys quit buying everything Fleet Farm sets out in an hour, and turning it around on Armslist -- retail prices/supply will normalize.

NORMAL:
Ammo Maker $ --> Distributor $+$ --> Retailer $+$+$ --> Consumer (pays $$$)

CURRENTLY:
Ammo Maker $ --> Distributor $+$ --> Retailer $+$+$ --> 2nd Retailer $+$+$+$ --> Consumer (pays $$$$)

+1

Lookie here.
http://www.gunbroker.com/Auction/ViewIt ... =329769870

[BlackSabot]

Cabela's in Rogers looks like a ghost town. Only 1 aisle for ammo (non shotgun) and the shelves are almost bare.
H&H in Maple Lake doesn't have much available either.
22 ammo is rare as hens teeth in these parts.

-BS

[MXGreg]

Last week I got bored and figured out how much I could make if I sold my pistol/rifle ammo. I would have recieved a 261% return on my investment! Of course I wouldn't have any ammo then.

[BigDog58]

My supplier of 9 mm FMJ sells 500 115 gr normally for $75. He said he put some on Gunbroker at his normal price as reserve and people bid them up to $120 + Shipping. He isn't putting any more because he reloads too and said he will Not contribute to driving prices up. That and great Customer Service (Best I've EVER had) are why I purchase from him.

[grousemaster]

My supplier of 9 mm FMJ sells 500 115 gr normally for $75. He said he put some on Gunbroker at his normal price as reserve and people bid them up to $120 + Shipping. He isn't putting any more because he reloads too and said he will Not contribute to driving prices up. That and great Customer Service (Best I've EVER had) are why I purchase from him.

Good business sense?

[NMRMN]

-

[BigDog58]

His company is Reloading Den in TN. The owner is Greg. He doesn't have a website yet but not only does he sell supplies but is a reloader himself.

PM me for his email and direct phone number. The only reason I don't post it openly is to prevent him from getting hit with spam. He's a small company near Franklin, TN and gives the Absolute Best Customer Service I have Ever Received. He sells Zero Full Metal Jacket Bullets at what I consider very reasonable prices.

BD

[yang]

My supplier of 9 mm FMJ sells 500 115 gr normally for $75. He said he put some on Gunbroker at his normal price as reserve and people bid them up to $120 + Shipping. He isn't putting any more because he reloads too and said he will Not contribute to driving prices up. That and great Customer Service (Best I've EVER had) are why I purchase from him.

so who's your supplier?

x2. Thats a pretty damn good deal.

[rugersol]

My supplier of 9 mm FMJ sells 500 115 gr normally for $75 ... said he will Not contribute to driving prices up

so who's your supplier?

x2. Thats a pretty damn good deal.

http://czcustom.com/1000xzero115g9mmfmj.aspx ($57/500 ... x2 ... includes shipping)

I'm sure he's a fantastic guy! ... jest sayin'

[BigDog58]

I'm sure he's a fantastic guy! ... jest sayin' [/quote]


Directly from Zero Website "Out of Stock" Just Saying. It doesn't matter how cheap they advertise, if they don't have them available.

He sells them for $15 per 100.

BD

[rugersol]

Directly from Zero Website "Out of Stock" Just Saying. It doesn't matter how cheap they advertise, if they don't have them available.

He sells them for $15 per 100.

I was simply comparing his "normal" price! ... hardly a bargain!

These days, if he's got 'em in-stock, ya ... maybe not too horrible! ... fer a "panic" price!

[LePetomane]

Buy what you want. It's your money.