Ruger Forum

Why the ammo manufacturers want the shortage to end.

This is a discussion on Why the ammo manufacturers want the shortage to end. within the Ammo Dump forums, part of the Firearm Forum category; If a person has $200 to spend on ammo and spends all of that money on a thousand rounds of 22's the manufaucture has only ...


Go Back   Ruger Forum > Firearm Forum > Ammo Dump

Reply
 
LinkBack Thread Tools Display Modes

Old March 23rd, 2013, 10:38 AM   #1
Former Hoadpiler
 
303lithgow's Avatar
 
Join Date: Mar 2010
Location: Washington State
Posts: 28,428
303lithgow will become famous soon enough303lithgow will become famous soon enough
Why the ammo manufacturers want the shortage to end.

If a person has $200 to spend on ammo and spends all of that money on a thousand rounds of 22's the manufaucture has only "sold" one thousand rounds at wholesale regardless of what the retail price is. But if that same $200 could buy two thousand rounds then the manufacturer has "sold" twice and much and made twice the profit.

The manufacuturers know only a few people will up their spending to $400 and only for a short period so in the long run high prices on ammo will lesson demand. These manufacturers want to be selling as much ammo in two years as they are today. So the only way for the manufacturers to have long term business is to flood the market with ammo.

So how do they flood the market when they can easily sell everything they are producing? They withhold shipments til all the warehouses are filled and able to fill every retail shelf constantly for a month. Full ammo shelves for a month will end the run on ammo.



303lithgow is online now  
Advertisements
Old March 23rd, 2013, 11:30 AM   #2
 
Join Date: Dec 2012
Location: NJ
Posts: 633
Geek is on a distinguished road
Quote:
Originally Posted by 303lithgow View Post
If a person has $200 to spend on ammo and spends all of that money on a thousand rounds of 22's the manufaucture has only "sold" one thousand rounds at wholesale regardless of what the retail price is. But if that same $200 could buy two thousand rounds then the manufacturer has "sold" twice and much and made twice the profit.

The manufacuturers know only a few people will up their spending to $400 and only for a short period so in the long run high prices on ammo will lesson demand. These manufacturers want to be selling as much ammo in two years as they are today. So the only way for the manufacturers to have long term business is to flood the market with ammo.

So how do they flood the market when they can easily sell everything they are producing? They withhold shipments til all the warehouses are filled and able to fill every retail shelf constantly for a month. Full ammo shelves for a month will end the run on ammo.
Do you have any evidence of this actually taking place? Other than conspiracy theorists on gun forums, I have seen nothing to suggest ammo is being withheld from the market.
Geek is offline  
Old March 23rd, 2013, 11:30 AM   #3
 
Join Date: Dec 2012
Location: Nevada
Posts: 698
hoss702 is on a distinguished road
That plus they have to raise their prices to cover the increase in overtime and equipment maintenance and repair as due to the increased production. And while newbies will pay the higher costs for now the manufacturers know we will not.

But its hard waiting till this panic buying is over... putz here in Vegas has 9mm fmj ball for $0.55 a round @ 100 round minimum listed on armslist. Joker, I hope he chokes on it... but it does make me think a little.... I could easily sell off about half of my stock(older) and just restock later when prices and availability come back. And make some money while still keeping enough ammunition to shoot.
hoss702 is offline  
Old March 23rd, 2013, 11:56 AM   #4
Former Hoadpiler
 
303lithgow's Avatar
 
Join Date: Mar 2010
Location: Washington State
Posts: 28,428
303lithgow will become famous soon enough303lithgow will become famous soon enough
Quote:
Originally Posted by Geek View Post
Do you have any evidence of this actually taking place? Other than conspiracy theorists on gun forums, I have seen nothing to suggest ammo is being withheld from the market.
The manufacturers are working 24/7 yet the shelves are bare. That in itself proves nothing as it could be because of a dozen other reasons yet it does suggest withholding ammo is a possibility. My biggest reason in thinking this is it is a comom way to end a run on a product. And it is how the shortage in 2009 ended.

How many people here remember that shortage? What are your experiences in 2008 and 2009?
303lithgow is online now  
Reply

  Ruger Forum > Firearm Forum > Ammo Dump



Search tags for this page
.22 ammo shortage end
,
22 shortage ending
,
end of 22 ammo shortage
,
when is ammo shortage going to end
,
when is the 22 ammo shortage going to end
,

when is the ammo shortage going to end 2013

,
when will .22 shortage end
,

when will 22 ammo shortage end

,

when will ammo shortage end

,
when will the .22 shortage end
,

when will the 22 ammo shortage end

,
when will this ammo shortage bullshit end
Click on a term to search for related topics.

Thread Tools
Display Modes


Similar Ruger Forum Discussions
Thread Thread Starter Forum Replies Last Post
So far what I got during ammo shortage Tiger Ruger Ammo Dump 15 February 27th, 2013 04:27 PM
Ammo shortage affecting manufacturers? bearcatter Ammo Dump 5 February 6th, 2013 12:12 PM
.380 ammo shortage RugerGP100 Ammo Dump 34 March 23rd, 2010 01:03 PM

Top Gun Sites Top Sites List  
Powered by vBulletin 3.8.7
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.6.1
Copyright © 2006 - 2014 Ruger Forum. All rights reserved.
Ruger Forum is a Ruger Firearms enthusiast's forum, but it is in no way affiliated with, nor does it represent Sturm Ruger & Company Inc. of Southport, CT.