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Powder , primers and bullits shortage
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<blockquote data-quote="Tbugman" data-source="post: 2691232" data-attributes="member: 114743"><p>We should get used to this. As many have noted, supply/demand will set the price. The problem is that many of you are assuming that the manufacturers are wanting to work at 100% capacity and crank out as many primers as possible. Really? Why would they do that? As an example: If I own ABC primer company, and I now have 2/3rds the staff I used to (can't find people to work at reasonable wages), but the demand is sky high, well that allows me to charge my dealers higher prices for the in-demand product. In turn, the dealers mark up their price. Of course the dealers have the same issues, lack of workers, so fewer employees to stock shelves and provide customer service. At this point you may be thinking "OK, but I've heard all this before". So now allow yourself to follow the money trail.</p><p>If I am ABC primer company, or XYZ dealer, and I have less employees, with less product available, some of my costs are reduced (less overhead due to paying less employees and holding less stock on hand). But my margins are now HUGE compared to what they used to be. So less overhead and bigger margins leads to . . . you guessed it, <strong>big profits!!</strong></p><p>So now I ask you, where is my incentive (whether I'm the manufacturer or the dealer) to go back to "normal", with more employees, higher overhead costs, more warehouse costs, and lower margins due to higher (normal) supply? The answer is, there is NO incentive to go back to that scenario. Call it the <strong>Economy of Scarcity</strong> (trademarked . . . just kidding). Perhaps this is what Orkan is referring to above when he says capitalism. BTW, this scenario applies to many other products now, not just powder/primers. How about automobiles? Tried to get a vehicle with specific options package lately? Gotta order it, wait 6-8 weeks (if lucky), and then you will pay full sticker price, plus dealer markup because . . . they can. If you want it, your gonna pay through the nose. If you don't, the next guy will. </p><p>Have you noticed that, anecdotally, it seems like the guys that post here saying that they are able to find lots of powders and primers almost always live in very lightly populated rural areas? I live in the Phoenix metro area and when going around to LGS' in my area, there is nothing I want/need on the shelves. Lots of pistol powder and primers, but no magnum powder or large magnum primers. Employees just roll their eyes and chuckle when I ask if they have any. Like I'm asking for their availability of rainbow unicorns. If any of you live in or around metro Phoenix and know of where I can get said product, please let me know. I'll thank you in advance!!</p><p>End of minor rant.</p></blockquote><p></p>
[QUOTE="Tbugman, post: 2691232, member: 114743"] We should get used to this. As many have noted, supply/demand will set the price. The problem is that many of you are assuming that the manufacturers are wanting to work at 100% capacity and crank out as many primers as possible. Really? Why would they do that? As an example: If I own ABC primer company, and I now have 2/3rds the staff I used to (can't find people to work at reasonable wages), but the demand is sky high, well that allows me to charge my dealers higher prices for the in-demand product. In turn, the dealers mark up their price. Of course the dealers have the same issues, lack of workers, so fewer employees to stock shelves and provide customer service. At this point you may be thinking "OK, but I've heard all this before". So now allow yourself to follow the money trail. If I am ABC primer company, or XYZ dealer, and I have less employees, with less product available, some of my costs are reduced (less overhead due to paying less employees and holding less stock on hand). But my margins are now HUGE compared to what they used to be. So less overhead and bigger margins leads to . . . you guessed it, [B]big profits!![/B] So now I ask you, where is my incentive (whether I'm the manufacturer or the dealer) to go back to "normal", with more employees, higher overhead costs, more warehouse costs, and lower margins due to higher (normal) supply? The answer is, there is NO incentive to go back to that scenario. Call it the [B]Economy of Scarcity[/B] (trademarked . . . just kidding). Perhaps this is what Orkan is referring to above when he says capitalism. BTW, this scenario applies to many other products now, not just powder/primers. How about automobiles? Tried to get a vehicle with specific options package lately? Gotta order it, wait 6-8 weeks (if lucky), and then you will pay full sticker price, plus dealer markup because . . . they can. If you want it, your gonna pay through the nose. If you don't, the next guy will. Have you noticed that, anecdotally, it seems like the guys that post here saying that they are able to find lots of powders and primers almost always live in very lightly populated rural areas? I live in the Phoenix metro area and when going around to LGS' in my area, there is nothing I want/need on the shelves. Lots of pistol powder and primers, but no magnum powder or large magnum primers. Employees just roll their eyes and chuckle when I ask if they have any. Like I'm asking for their availability of rainbow unicorns. If any of you live in or around metro Phoenix and know of where I can get said product, please let me know. I'll thank you in advance!! End of minor rant. [/QUOTE]
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