Disappointment With Longtime Local Supplier

[Cdog]

This week I went by a local ammunition/reloading supply shop that I've done business with for around 20 years.

This is no small hole in the wall operation. They have purchasing power. Two or three years back they usually beat the competition by a wide margin. I understood why they went up when product was in short supply. A lot of it was to keep people from buying only to resale. That period appears to be past us now. Supply at most retailers has been improving at a pretty good pace.

I was surprised to see their powder prices are still at plandemic levels. You know you're paying too much when in stock product at Cabela's is priced around 20% to 25% less per lb.

They're about 20 miles closer than Cabela's and I like to support independent businesses, but I'm not so well heeled that I can afford to ignore such huge price discrepancies.

I'll be the first person to say "it's their stuff, they're free to ask what ever they want." As the title states, I'm just disappointed. Unless they know something I don't continuing with the upcharge pricing seems a bit short sighted to me.

 

[silverstateS&W]

If they bought the powder from their supplier at inflated prices they are stuck with inventory on which the price has now come down.
some stores dont practice the art of buying more to average the cost down on all of it , or lessen their normal markup in order to move some so they can re-buy.
all part of the art of retail. you might ask the question of the manager/owner and see what they say.

 

[Huskerguy]

I have a friend in the business who is not a big dealer. He recently said that one of his wholesale suppliers contacted him to see if he wanted his backorders filled to which he said NO. These are orders he had made when all of this started. He did receive some SP Magnum Primers for $82 wholesale recently.

His opinion is the middle man wholesalers are the ones pushing the prices higher because they can with no restraints. Let's be honest, if you are a wholesaler and what you formerly sold for $25 and you now have to pay $45 for (prices made up by me) but there is no limit aside from what the market can bear on what you want to sell to dealers, then why wouldn't they take the opportunity to make money and jack the prices up. They can just blame the manufacturer.

Then, lets say a wholesaler (I am sure this is rare) wants to keep their prices low to dealers but the dealer sees the markup that is available and takes it. So in the end, both scenarios get the prices much higher.

It is America where, at least for now, people are free to make their own decisions.

 

[burneyr]

If they bought the powder from their supplier at inflated prices they are stuck with inventory on which the price has now come down.
some stores dont practice the art of buying more to average the cost down on all of it , or lessen their normal markup in order to move some so they can re-buy.
all part of the art of retail. you might ask the question of the manager/owner and see what they say.

This is exactly what I wanted to say-

Case in point: My local dealer has not been able to get ANY 209 primers for two years from his usual wholesale distributors. Muzzleloading season is coming up, and he had to buy 209s at retail to service his customers as his supply had dwindled to two 100 packs. They aren't priced well, but if you need a hundred to get you through a season, and can get one pack for a few bucks more without hazmat it's fair for these times we live in. They are available and on his shelves.

Similarly, in my travels I have seen .223/5.56 and 9mm stocked at better than pre pandemic levels EVERYWHERE. Winchester has introduced a rebate for .223/5.56 to help alleviate retailer supply exacerbated by high pricing. I expect with the mass amounts of available ammunition in these calibers this might be followed by the other manufacturers. Who knows?

Anyway I wouldn't hold it against the guy. I expect he made commitments to buy to guarantee his supply. If he didn't have the volume of the big box retailers he got squeezed like most of the reloading community. The danger now is he has overpriced goods that will be a slow move. I hope he survives this temporary situation and remains in business.

 

[mmb617]

At least he has inventory. The local gun store where I usually shop has been having a hard time getting powder at all. He has some stock of less popular powders but he said the last two scheduled delivery days he got no powder at all. He orders it but those orders aren't being filled.

I think a lot depends on where you live. I see some guys saying the local stores have primers on the shelves but at high prices. Around here there are none available at any price. And I don't see much in the way of powder on the shelves even at the bigger sporting goods stores.

Not too long ago there was a real shortage of guns for sale but everybody seems to have a good selection now, so hopefully powder and primers will come back at some point.

 

[SMSgt]

Don't complain too much. At least you have a store with inventory.

 

[BillBro]

Im no business savant but seems to me that the only people who can drive up prices is the consumers, the consumers who apparently are scared, new to the whole scene, have more money than sense , desperate, scared, uncertain of the future, did I mention scared?
It seems to me from what Ive seen at the very busy public range I go to that every weekend I see multiple shooters show up with some dog-gone expensive hardware, all of the latest gear and optics to go with it and literally have to ask the range officers to show them how to use it, how to sight it in, where is the safety, whete do the bullets go. Theyve been beside me at a bench talking about the 3 Dillins they just bought so they can have one set uo for their 9mm's and one for their 6.5 and one for their 22e or 308. They talk about how expensive it all is and with the same breath say oh well, what can you do except just pay, its only money. No kidding, that was one conversation I heard recently, after about 200 rounds they still werent sighted in.
Ni, I harbor no ill will or animosity towards those who have way more means available to them than I do, good for them but I think these people are just dabbling in firearms and will soon give them up, I think that it has somehow become "hip" to be a firearms owner and its pribably nothing more than a passing fad.
Where have all of these people been while we have been being stripped of our rights to a pastime and lifestyle we have enjoyed for 50 years and more. A pastime we have invested heavily in and done what we could with the means available to us to protect it. Where were these new hipster gun owners? Making money I guess. If their money came as hard as mine did they might feel differently about paying that $80 for a pound of powder or $699 for 8lb jugs, $125+ for 1k primers, something that 3 years ago cost $30 or less.

Sorry for the tangent. Just sticks in my crawl, these people. Man, I sound old.

 

[Cdog]

This isn't a neighborhood gunshop. Ammunition and loading supplies is all they do. They've been at it a long time. These are times most of us have never experienced before, so I'm guessing.

Regardless of what they paid for the product currently on their shelves, if it just sits there because people like me shop around then they'll likely be looking at those same bottles for quite some time.

Point being they can reduce their price, sell it to me, etc then replace their inventory at lower cost. If the market prices drop on a product that you can replace at a much lower cost, then sitting on product you paid too much for watching people walk away and drive to a big box store doesn't make good long term business sense to me.

Turn the inventory and keep customers and cash flow. As stated before, they may know something I don't. Lord knows that wouldn't be too difficult!

 

[Paul in Nevada]

If they are a local shop, they simply don't have the gravity of retailers like BassPro or Sportsmans. They can't place $100m orders at a time which means they aren't getting the same dealer pricing as the big guys. When things were cheap and plentiful, they could probably afford to pay more than BassPro but charge less. A narrower margin that is made up with a lower overhead and loyal customers. That strategy won't work when the big boys have back orders into the billions of dollars.

 

[smoothshooter]

If they bought the powder from their supplier at inflated prices they are stuck with inventory on which the price has now come down.
some stores dont practice the art of buying more to average the cost down on all of it , or lessen their normal markup in order to move some so they can re-buy.
all part of the art of retail. you might ask the question of the manager/owner and see what they say.

I have noticed with a lot of gun stores they will have a gun (usually used ) on the rack for years. Always wondered why after a year or so they didn't drop the price down so it would sell. Then the money could be invested in other merchandise that would move more quickly.
I have known of gun shops where a fourth of their inventory ( almost always oddball or cheaper stuff ) gathered dust for years, and the owners would not budge on price.
Wondered if it was maybe a tax deduction thing.

 

[tominboise]

I have noticed with a lot of gun stores they will have a gun (usually used ) on the rack for years. Always wondered why after a year or so they didn't drop the price down so it would sell. Then the money could be invested in other merchandise that would move more quickly.
I have known of gun shops where a fourth of their inventory ( almost always oddball or cheaper stuff ) gathered dust for years, and the owners would not budge on price.
Wondered if it was maybe a tax deduction thing.

A lot of small business owners seem to be more worried about and focusing on cash flow, as opposed to focusing on working capital costs and inventory like larger operations. They can refuse to take a loss on a sale of a gun or product where a larger operation that finances their inventory, will do what it takes to get it moved off their books. The sole proprietor wants the cash in his pocket at some point. If they sell at a loss, then that's less cash in their pocket.

 

[Just another 22 shooter]

The gun shop in Omaha I used to buy all my primers and powder and an occasional gun from has had powder off and on through the last few years. And I think they've held the line on pricing of the powder quite well. But every time I've been in there I've asked about primers and always have been told they have none and have not received any. Now I know a retail store that does the volume this store does has had to have gotten SOME primers in. I have a feeling you have to be a member of the "good ol' boys" club to have the privilege of being informed when this store gets primers.

 

[ArchAngelCD]

Yeah, I don't think I would shoot their ammo either. I'm surprised they were able to get an FFL since while pot is legal in Michigan the Federal government does not agree!