How long have you been in business or when was it started? When demand goes to zero (temporarily), Supply (inventory) will start to stack up.Recently we had the pleasure of interviewing Mike and Marc, the owners of to hear about their journey in creating a one stop shop for finding the best prices for in stock ammunition across many retailers. I fear that may not happen, due to factors other than supply & demand of ammo.We shall see. We are in bad times, and I sure hope you are right that ammo prices go back to where they were a few years ago. General Mills, for example, is raising their prices 20% across the board mext month.20 percent! Do you think they will lower them 20% in a year or two, if the ecomony improves? I don't. Again, I understand these shortages come and go, but in my lifetime, I have never seen inflation like we are seeing right now.(Generally, not talking about ammo) When the prices of everyday goods, not gun related stuff, go up, they usually do not come back down to where they were. So if you could find 9mm for $10/box all day long a few years ago, will it come back to $10, or are we looking at $12 or more. I have assumed all along in this shortage that ammo prices would come back down.but now that the prices of everything else are going up, I wonder if they will come all the way back to where they were pre-pandemic. It's not like gas or food (non-durable goods) where the demand is steady. And, ammo is a durable (while expendable) good. HOWEVER, the demand for ammo fluctuates WILDLY. Of course, every time, they were wrong and the laws of Economics worked as they always do. "This time it's different." The same exact arguments every time. But those folks were SURE that the laws of Economics (Supply & Demand) no longer applied. last time and the time before, I saw the same lamentations on these forums, "Prices are up and will STAY up." No they won't. And that's what will happen in the next panic / frenzy. And that's what happened last time and the time before. That's exactly how it will happen, because that's how the laws of Economics work. At this point, they may even "normalize" a bit higher than the previous "normal" due to inflation related to material and labor costs. So now demand goes back up a little, and prices come up a little and stabilize (at "normal" prices). And, that's when prices drop (even below what they were pre-panic / frenzy) and guys like us start to buy again. They need to incentivize the unloading of this inventory. It takes up real estate, which costs money. Again, they cannot afford to sit on growing stacks of inventory. Their overhead CONTINUES with the costs of storing inventory. Their overhead does not end at the cost of materials, labor, and wholesale purchases.
Eventually, THEY start to panic and MUST unload this inventory.įor manufacturers of ammo, distributors, and retailers. Manufacturers, distributors, and retailers can't sit on inventory forever, and they don't like seeing it stack up, because the longer that goes on, the more it COSTS them. When demand goes to zero (temporarily), Supply (inventory) will start to stack up. The panic is still going right now, but the intensity is dropping. And the hobbyists are still "good to go" and can still wait. The increase in demand will soon fall off a cliff. That demand is already abating (now down to 200% and decreasing steadily). But, the bulk of the inflation, which went to 500% for ammo, was due to the HUGE spike in demand. We can wait out the spiraling inflation (due to a spike in demand). We can go to the range regularly for a few years and not run out of ammo. In fact, the serious hobbyists / enthusiasts (like me and many of us) haven't bought a gun or ammo in at least 2 years. Some will even later regret the purchases and dump (sell) them back into the market (adding to Supply). They stick them in the closet, where they'll remain for years. They won't be going to the range regularly and expending their ammo. Once they've got the guns and ammo they "need". These same folks are NOT hobbyists or enthusiasts. I mean "mostly peaceful protests." Afraid of the gov't. These are panic buyers who "need" a gun because they're afraid. It's not like gas or food (non-durable goods) where the demand is steady.Ī huge part of the increased demand is from first-time gun buyers.
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