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Reloading Berger Bullets


Component costs

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Unread 02-25-2009, 09:53 AM
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Join Date: Oct 2007
Location: Mountians of SW NC, near Asheville
Posts: 1,595
Re: Component costs

"The costs of componments sky rocketed as commodity and raw materials prices rallied over the past 24 months. Since the turnaround in those markets around mid last year prices on components like bullets and brass (cases) dont' seem to have come lower at all."

None of the makers send me any notes explaining themselves but I know something about how the market works.

Retail prices are determined by three factors, the cost of production, distrubution AND the price we the people are willing to pay at the retail level. The greatest influence on the possible PROFIT is what the market will pay, meaning WE set the selling value ourselves. So long as hoarders grab everyting in sight when a delivery is received, the retails have no reason to reduce the price. When the horders are sated and quit paying, the prices WILL come down but not before.

IF Sierra is sold out for this year that price is fixed for this year and they won't be reducing their prices this year. How much WE pay depends on how badly the distributers AND the retailers wish to move Sierras.

I am reluctant to acuse the retailers of "gouging" at the current elavated prices. Consider this, IF they sold short supply items for "low" cost all it would do is encourage even more hoarding. At this point, lower prices would see components fly off the shelves even faster and it's unlikely the rest of us would benefit at all! In fact, it seems the current "high" prices are an aid to us getting anything at all!

We will simply have to wait until the hoarder mind-set is full, then normal market forces will come into play. Prices will eventually begin to slide back down towards the "normal" profit levels for producers, distrubuters and retailers. That's just the way a free market works. That is, unless our benevolent "gobbermint" comes in to save some parts and distorts the whole process, raising the costs to everyone involved.
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