Are wholesale prices up or are we being shafted

[Dahak]

Something that I am not seeing mentioned in these type of discussions is the idea of overhead for the LGS. If it costs $500/day for rent, payroll, insurance, utilities, etc, and the LGS can sell 100 boxes of ammo a day (completely made up numbers, but you get the idea), they only need a $5 mark up plus profit on each box. Now in the time of shortages, they have only 1 box a day to sell, overhead is the same, so that single box has to sell for a $500 markup just for the LGS to not lose money.

This is why the big box stores are able to hold steady on prices even with spotty ammo availability because they are spreading the costs over apparel, fishing, and all the other departments. The LGS has sold all their guns and all their ammo, so every little bit that trickles in has to carry more and more of the overhead in order for the LGS to keep the doors open. Fortunately I have enough stockpiled so that I don't have to buy at the current LGS pricing, but I don't begrudge the LGS at all for charging all the market will bear because they have to get cash flowing somehow.

Now the big online folks like Midway, well they have the product diversity, so I am thinking they are just profiteering on ammo right now, but I would have to see how much the short supply stuff (ammo and guns) are of their total sales volume have a real opinion about them.

 

[pete950]

I go to the local police supply store, being retired LE they still sell to retires like were still on the Job.
Last week winchster 50 rd boxes 147 gr 9mm T series JHP $19.50
Limit 100 rds per day.
Use to be able to get cases at a time till one idiot decided to buy cases and sell at the gun show at 3 times what he paid and fot caught.
All prices of all the ammo is in line
9mm FMJ 12.99
38 FMJ 18.99
And so on.

 

[JJEH]

...have wholesale prices gone up so much that dealers are now forced to sell at these prices?

I have 5 main distributors and several dealer direct accounts. Some prices did go up indeed, some didn't. The main squeeze comes from retailers and, of course, private sellers.

I recommend to hold on to what you have and buy what you can afford if you really need it. I have zero clue when production numbers will be back to pre covid times and neither do the distributors.

But a lot of states have opened up so we have to think positive and that common sense will prevail.

 

[K-22]

The Shaft Is Out

I was on a popular online gun dealers site and noticed they were selling Blazer Brass 9mm for $50 a box (50 round box). This is a brand I'm used to buying locally for $9 on sale and $11 at full price. So this has me wondering now, have wholesale prices gone up so much that dealers are now forced to sell at these prices?

The shaft is out, and it would appear that many are bending over, backing up, and allowing insertion.
Gotta have it, gotta have it now!
BOHICA!
Best,
Gary

 

[TIMETRIPPER]

Anyone care to trade their ammo for some toilet paper?

John