Just Another Ammo Conspiracy Theory

wapitiaddict

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I hopped on gunbroker yesterday out of frustration about the lack of ammo in every LGS store near me.....

Here is one of my observations: a lot of the listings are selling large quantity lots of ammo, many with pictures of box/cases full of ammo. The thing is that retail buyers at gun shops, aka me and you, have a limitation of usually one to two boxes. So who is getting their hands on cases full ammo? The answer, wholesalers and retail shops.

I think they've seen these "run on ammo" shortages in years past and are now deciding to cash in on the craze by posting ammo on gunbroker and such rather than sell it in their stores or ship it to retailers. Really, how much more work is it to ship a couple of cases to thousands of retail shops, or sell a case to thousands of individuals on gunbroker? Especially at the super high prices that suckers or desperate people are shelling out on gunbroker. It's not too hard to convert your process, or a portion of your process, when you can go from 10% margins to 150% margins.

Anyhow, I wouldn't be surprised.....

Others think that it's store employees that get first dibs and are buying it before customers can.....I dont think gunshops would allow their employees to do that because then the employees would be making money at the expense of the employers....I think it is the gunshops or the wholesalers themselves.

Of course not all gunshops or wholesalers are doing this....but it doesnt take a much before it starts to affect the supply chain.
 
I could see smaller gunshops doing that, but certainly none of the big-name ones. I would still have to believe that small shops are not receiving any more ammunition from the manufacturers than they would under normal conditions. So, while they are capitalizing on the surge in demand right now, I don't think that the majority of retailers are doing this.

I was at Sportsmans Warehouse yesterday in Riverdale, UT to pick up a rifle that I purchased from them online. When I got to the gun department there were about 25 people standing in what I thought was a line for the gun counter. So, I got in line. About 30 minutes later an employee walks out from the back room with a shopping cart about half full with ammunition and reloading items. No powder, no primers. All of a sudden there was no line at the gun counter! Every single one of those people went straight to that cart and nearly picked it clean. I walked to the gun counter like there was no one in the store feeling like a fool. Then, after everyone had picked up what they wanted, nearly all of them proceeded back to the gun counter where I was getting checked out and asked the employee if there was any more in the back, when the next shipment was coming in, what time would they bring it out, etc. The guy must have answered the same **** questions 1000 times that day.

Anyways, it's all just getting picked clean as soon as it hits the floor at stores that are still doing business as usual. But I wouldn't be surprised if, as you said, some of the retailers are selling on GB and local classifieds to raise their profit margins. Can you blame them? Supply and demand drive prices. Perhaps people should not have started panic buying, and things would be normal. I know that I can only AFFORD to buy reasonable amounts of ammunition and components at once, but I know people who have purchased pallets of ammunition at one time in the past because they can afford it.

Either way, I'm not looking forward to the next few years...
 
There is a LGS near me that has an area of their store sectioned off for what they have listed online. They have a decent stock and prices on what they have for customers in store on the shelves but if what you are looking for is in that other section and you can see it they will sell it to you but for the price they have it listed online. Saw a guy ask about 9mm ammo that was empty on the shelf but was clearly sitting in sight in the other section, they said they would sell it to him but for what it was listed for online and not the shelf price for in store customers, their online price is significantly higher. All I can say is noted and when things eventually settle out they won't be on my list of local businesses I'll support.
 
There is a LGS near me that has an area of their store sectioned off for what they have listed online. They have a decent stock and prices on what they have for customers in store on the shelves but if what you are looking for is in that other section and you can see it they will sell it to you but for the price they have it listed online. Saw a guy ask about 9mm ammo that was empty on the shelf but was clearly sitting in sight in the other section, they said they would sell it to him but for what it was listed for online and not the shelf price for in store customers, their online price is significantly higher. All I can say is noted and when things eventually settle out they won't be on my list of local businesses I'll support.
I have no idea how small your LGS is, or if it's a bigger one, but it's hard to blame the small guys for wanting to try making a bigger profit. It certainly would be disheartening to see the product sitting on the other side of the tape and be told to go pay the higher price. It's at least nice to see people in our LRH community taking care of each other in the classifieds (for the most part) and not trying to screw one another. I like to think that all Pro 2A folks would be like that, but unfortunately it isn't that way. I honestly believe that a lot of people are out for themselves in every aspect of life. That's neither here nor there, and I won't put anyone down for being that way. I've known people on both ends of the spectrum and I know who I surround myself with and do my best to emulate.....
 
It could be the ammo companies themselves. This is EXACTLY what Ticketmaster does for high demand concerts. They release some tickets to fans while holding back many more for the secondary scalper market that they also control, making a pile of cash in the process.
 
I can tell you that the smaller guys are not getting much ammo. All the hot ticket items are allocated at the wholesalers. What this means is that the salesman have a certain amount allocated to them and they divvy it out to their FFL customers, usually starting at the buyers that spend the most. I've had an FFL for over 10 years and I have not been able to purchase any ammo for over 6 months. Well, technically I could get some oddball calibers most do not want. Right now I can buy 505 Gibs, 307 Win, 458 Lott, 416 Rem.
 
Just two weeks ago, stopped by a great good sized privately owned sporting goods store but half of it is firearms related products. I walked in, and at the checkout there were 8 or 9 deep and the store was crowded. One guy had two Lb's of power and after talking to him for a min. or two I asked if they had any primers. He told me don't waste my time to walk that far back unless you need something else. (this is going somewhere)
I walked out and said hey to a stranger and told him no primers, he asked me if I needed some. I told him that I lived 60+ miles from here and just stopped by like I have for years now. Told me no problem when you do get some just leave them here or pay the clerk with my name on it. Told him that he would have to wait until the prices are stable and he laughed and I told him many thanks but no thanks, but anyway, that is how close We are in the shooting world!!!! PS never asked what there tail was on the shortage to busy!
 
I have no idea how small your LGS is, or if it's a bigger one, but it's hard to blame the small guys for wanting to try making a bigger profit.
I'm torn on this. On one hand I agree. It's hard for mom and pops to make it. On the other hand, if they don't put their customers first then they could lose a lot of longterm business.

For example, there are two smaller lgs near me. One I know always marks their prices competitively and it's almost a guarantee that they'll have the best price. They also have the best customer service. It's my first stop everytime I need ammo and or reloading supplies. They get my business 90% of the time. The other lgs always marks their prices on the higher end. Their customer service is ok, but not great. They only get my business when I can't find what I want at the first place.
 
I'm torn on this. On one hand I agree. It's hard for mom and pops to make it. On the other hand, if they don't put their customers first then they could lose a lot of longterm business.

For example, there are two smaller lgs near me. One I know always marks their prices competitively and it's almost a guarantee that they'll have the best price. They also have the best customer service. It's my first stop everytime I need ammo and or reloading supplies. They get my business 90% of the time. The other lgs always marks their prices on the higher end. Their customer service is ok, but not great. They only get my business when I can't find what I want at the first place.
I know where you are coming from and I agree. This store is good at all aspects but like any other you still have to price, but when you drive out of your way you had better know what is there.
 
It all sounds like it's gone to **** there. I haven't brought ammo in Australia for a while but I expect we will experience a shortage in time as the US supply us.

I was surprised to find that Australia is one of the leading producers of both lead and copper. I would not be surprised to see an Aussie manufacturer spring up from this mess.
 
We have had them. Still have 2 I know of one is Woodleigh who provide some projectiles to American ammunition manufacturers for big bore ammo.
Outer Edge are another.
We used to have Taipan I think, there could be others I can't name as I think there are cast projectiles made here.

I believe Winchester made rimfire and shotshells in Australia at Geelong in Victoria but closed that down taking the plant back to the US.

We do have a Thales company named Australian Defence Industries (ADI) they produce rifles for the Military I think theybare a Steyr design but ADI produce powders with some supplied to Hogdon packaged as Varget, Trailboss and others.

The rifle Plant is at Lithgow and Lithgow rifle manufacturing has been revived. They offered ,22rf rifles in the 50s or 60s. They have been producing a Lithgow centrefire rifle now for a few years. With a medium profile barrel and a large action adopting different chambering a it's not light but it's quite good and marketed as a Crossover somewhere between sporter and varmint profile to crossover in target work for a versatile rifle

We have raw material resources but a lot of manufacturing has gone offshore and there is a lot of foreign investment in Australian companies but we do not have a vehicle manufacturer
 
I stopped at a newly opened LGS very nice people and the ammo subject came up. He stated to me that he could get 9's & 40's from a distributor but had to buy 100,000 rounds @ $75,000. I didn't ever ask if he bought them 2/5/21
 
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