Ammo Price Gouging Needs To Stop!

[sherrick13]

It wasn't a "mispricing". The retailers selling the ammo had it priced where they wanted it priced based on their wholesale cost and other business related costs...the total amount of the cost of those goods...and what it would cost them to replace the ammo once sold. They set the price based on a profit margin they can live with. The margin is the percentage of the selling price that is profit.

A "mispricing" would be if it cost them $10 to put an item on the shelf and someone mistakenly marked it for sale at $1.

I agree. People are free to price under market. But expect resellers , not end users, to buy your product.

Forget ammo. This is true with any in demand product. Imagine you had 100 PS5s. You price them at $500 in a widely available platform. I would bet you would sell out in an hour. I also bet less than half would be end users buying them.

MSRP is not always market price.

 

[OK Corgi Rancher]

I believe in the principles of a free market.

I don't believe we actually have a free market system...even though we like to think we do. There is far too much gov't regulation and interference. Not all of it is necessarily bad, btw.

 

[emapples]

I agree. People are free to price under market. But expect resellers , not end users, to buy your product.

Forget ammo. This is true with any in demand product. Imagine you had 100 PS5s. You price them at $500 in a widely available platform. I would bet you would sell out in an hour. I also bet less than half would be end users buying them.

MSRP is not always market price.

MSRP is actually not market price at always. MSRP is exactly what it says it is the manufactures suggested retail price. Market Price is largely based on supply / demand dynamics and nothing else. It’s like the latest model corvette, every year they have relatively few to sell and if demand is strong they sell for way over the MSRP on the sticker.

 

[sherrick13]

MSRP is actually not market price at always. MSRP is exactly what it says it is the manufactures suggested retail price. Market Price is largely based on supply / demand dynamics and nothing else. It’s like the latest model corvette, every year they have relatively few to sell and if demand is strong they sell for way over the MSRP on the sticker.

I should have written "MSRP or marked retailer price" is not neseccaraliy the market price.


Consumers set the market price, not sellers.

 

[perfor8]

Sounds to me like you're making some pretty pained arguments to validate why selling ammo at a profit is OK when you do it, but not OK if someone else does it, with everything being the same except for the timing of the purchase and subsequent reselling of the ammo.

That's the ever present desire to exert and impose one's own WILL and POWER manifested as CONTROL over others, from which all anti free-market arguments stem. It's the scourge of the earth. It's the "fallen" condition of man. One wants power over how others act. It's humanity's Kryptonite.

The only cure is, by the grace of God, the ability to train one's mind to truth, reason, and logic. There isn't much of that in public schools today.

 

[perfor8]

Im a wannabe options trader so I am familiar with the concept. Thanks for the fresh perspective buddy, I feel like I have misjudged.

That took guts, and reason, and the willingness to think for oneself.

 

[zghorner]

It wasn't a "mispricing". The retailers selling the ammo had it priced where they wanted it priced based on their wholesale cost and other business related costs...the total amount of the cost of those goods...and what it would cost them to replace the ammo once sold. They set the price based on a profit margin they can live with. The margin is the percentage of the selling price that is profit.

A "mispricing" would be if it cost them $10 to put an item on the shelf and someone mistakenly marked it for sale at $1.

"mispricing" as I used it was more from the financial market definition.

If academy is selling 9mm for 25cpr but the current bid in the broader marketplace is 50cpr...what you have is an asking price which is below the bid price...basically an inverse bid-ask spread. When this happens the opportunity for arbitrage is presented where the middle man sees a mismatch in price between two different markets (in this example the retail market and the secondary market), and can essentially make immediate and guaranteed (risk free) profits off if the "trade".

 

[crapsguy]

Some people ask this when they are trying to buy a gun off armslist. I always tell them ammo is sold separately.

pre-covid I almost always got ammo with guns I bought - and I was getting it all at a discount - that time is coming back - like it or not

 

[zghorner]

pre-covid I almost always got ammo with guns I bought - and I was getting it all at a discount - that time is coming back - like it or not

not for AKs lol...

 

[VarmintHunter59]

There are two types of people in this world. The prepared and the ones who cry "price gouging."