Armsmeggeddon: Panic buying, price gouging and the Market

[justinvan]

from my ag commodity trading lessons-

High prices cure high prices.

I hope like heck you are wrong on this one... even though I am affraid you are not. I am really diiging this $400 cash rent we are getting now.

[Holland&Holland]

While this is all true, lets also keep in mind that we are talking about a business that relies heavily on repeat business. So if you are a small local shop keeper who is taking advantage of the current market conditions right now (and do not get me wrong I am not saying you should or should not) but do not complain later when you are going out of business because everyone is buying their product at the Walmart.

What is good for the goose is good for the gander. It all comes around in the end.

[yuppiejr]

I hold no grudge if a local business charges a higher price for an item right now knowing their supply of product is questionable and their staying in business requires moving to a higher markup to make up for low volume... smaller shops don't have the buying power or distribution chain advantages of internet or big B&M retailers that are still working their pre-panic priced inventory through the channels. "Hate the game, not the player" applies here...

Honestly anyone who had the ability to purchase semi auto rifles/high capacity magazines in late summer-fall should have known it was buy time, prices were low and only going one direction - the election results were predictable and in the aftermath of the CO shooting the climate for ban legislation was heating up. If someone missed the boat and is now sitting without something they need and has to pay a higher price the blame lies only one place and it's not with the local guys selling in this market...

[LarryP]

If they want to buy it, Let them come

[CraigJS]

I believe it's called the free market system, supply and demand, capitalism. Buy or don't buy it's your choice.
Panic buying is a real bad way to buy anything...

[TooTech]

Firearms are a discretionary purchase. It's not like you're raising the price of food and water and the necessities of life during an emergency situation.

[jdege]

Firearms are a discretionary purchase. It's not like you're raising the price of food and water and the necessities of life during an emergency situation.

Raising the price of food and water and the necessities of life during an emergency situation serves to minimize hording.

Sellers who do not will quickly be bought out by those who are buying more than their immediate need, leaving nothing for those who show up later.

Charging what the market will bear is the only moral action.

[Mn01r6]

Charging what the market will bear is the only moral action.

I agree that rationing will just allow those that don't need the item to resell it for a profit, and deprive the original seller of the capital they may need to restock their shelves.

However, sellers that choose to engage in rationing and keep prices low tend to develop loyal customers that will reward them with extra patronage after the shortage has passed.

I believe the only moral action is the action chosen by each merchant in his own best interest, as he judges it to be, without government interference.

(Let's remember that threatened government interference is what is creating the increased demand right now!)