Armsmeggeddon: Panic buying, price gouging and the Market

[TooFewGuns]

In the days of $60 P Mags, everybody who is in to guns is aware of what is going on with the secondary firearms/ parts market. My interest is in the opinions of people on this forum. I hear a lot of upset people complaining about price gouging, but isn’t that just supply and demand? I’m in the same position as many people I know. I am mid build on an AR and I can’t afford to get the parts to finish my project. I don’t have the level of anger I see for people who are trying to get every penny they can for the parts they have in stock. It’s not like we are talking about food, water or fuel. Its guns and gun parts, no one is going to die if they do not get the parts now.
This could be because I am a staunch believer in the free market. I understand that when supply is low and demand is high that prices will be high. Isn’t it hypocritical to blame people for participating in the market if you claim to believe in those ideas?
So, here are my questions:
What is price gouging? How did you feel about free market principles? Is there a line that some people are crossing? Is it different to ask a price for certain in a classified ad vs. selling in an auction?

[JJ]

dupe: viewtopic.php?f=63&t=37148

[Heffay]

So, here are my questions:
What is price gouging? How did you feel about free market principles? Is there a line that some people are crossing? Is it different to ask a price for certain in a classified ad vs. selling in an auction?

Fair market is what happens to other people. Price gouging is what happens to me.

[jdege]

The only "fair" price is one which both buyer and seller will agree to.

If the buyer is willing, and the seller is willing, it's nobody else's damned business.

[20mm]

If the buyer is willing, and the seller is willing, it's nobody else's damned business.

Kinda like gey sex.

[grousemaster]

If the buyer is willing, and the seller is willing, it's nobody else's damned business.

Kinda like gey sex.

and euthanasia....

[20mm]

If the buyer is willing, and the seller is willing, it's nobody else's damned business.

Kinda like gey sex.

and euthanasia....

True. Although if you have regrets with one you just feel dirty. With the other you're dead.

[whiteox]

I think pricing is more complex than people think. There is a guy on Reddit who is a one man FFL.

He explained it like this:

He normally sells x number of guns ammo, acc. Etc in a given month. Under "normal" market conditions he can pretty accurately forecast what he'll be able to sell in a given month and be reasonably confident that when he sells his existing stock, he'll be able to get more right away and sell that as well. He can price his goods at a margin which is competitive but still yields enough revenue to pay his overhead and still put food on the table. In normal market conditions he can say I need to make x percent profit to survive and price goods accordingly.

When things go haywire like they are now, he can sell all his existing stock but many distributors have empty shelves so he can't get more to pay his overhead and put food on the table next month. To manage that risk he prices things as high as the market will bear.

Judging from the empty shelves I see locally, I don't think prices are too high. Remember that the LGS has to keep the lights on and pay staff next month too. Even though they had a great month for sales in December, that doesn't mean much when there's nothing left to sell next month.

If you think the price is too high, dont buy. Either somebody else will buy it or the price will fall.

[White Horseradish]

gey sex.

Man, if that's what people do to get magazines, things are worse than I thought...

[Heffay]

gey sex.

Man, if that's what people do to get magazines, things are worse than I thought...

$60 and a ZJ for a PMag now I hear is the going price.

[TooFewGuns]

I'm glad to see that there are other rational people out there. It is an over simplification to apply good/bad or right/wrong labels to market ideas. The truth is what was stated above, a transaction is between the buyer and the seller. If they are both willing then no judgement should be made.

[Consummate]

I think pricing is more complex than people think. There is a guy on Reddit who is a one man FFL.

He explained it like this:

He normally sells x number of guns ammo, acc. Etc in a given month. Under "normal" market conditions he can pretty accurately forecast what he'll be able to sell in a given month and be reasonably confident that when he sells his existing stock, he'll be able to get more right away and sell that as well. He can price his goods at a margin which is competitive but still yields enough revenue to pay his overhead and still put food on the table. In normal market conditions he can say I need to make x percent profit to survive and price goods accordingly.

When things go haywire like they are now, he can sell all his existing stock but many distributors have empty shelves so he can't get more to pay his overhead and put food on the table next month. To manage that risk he prices things as high as the market will bear.

Judging from the empty shelves I see locally, I don't think prices are too high. Remember that the LGS has to keep the lights on and pay staff next month too. Even though they had a great month for sales in December, that doesn't mean much when there's nothing left to sell next month.

If you think the price is too high, dont buy. Either somebody else will buy it or the price will fall.

This is the problem.

[45Badger]

from my ag commodity trading lessons-

High prices cure high prices.

[White Horseradish]

$60 and a ZJ for a PMag now I hear is the going price.

ZJ? Do I dare ask?

[Heffay]

$60 and a ZJ for a PMag now I hear is the going price.

ZJ? Do I dare ask?

You should watch the movie Beerfest. But essentially, yes, if you have to ask...