Originally Posted by mountainman13
It's essentially for the same reason the bigger shops still tend to have ammo. They buy large quantities. Walmart buys super large quantities. You have to look at Walmart like a government contract. They go to Remington and buy 40 years worth of ammo at a very low cost. If during that 40 year's the price skyrockets tough titties for the ammo manufacturer. What are they going to do, cancel the contract and pay the money back?
Would you drop a 40 year contract while you can't even produce enough product? Bad business.
Besides 90% of what Walmart is selling has been sitting in a warehouse. The price increase has no effect on them. They can sell low and out sell everyone else at a profit.
MM is making a valid point here gentlemen.
I've performed a lot of construction contracts for Wal Mart... so I know how there vendor relationships work.
If your going to work for them... It's going to be on there terms... and yes, your going to sign a contract for a pre-determined cost regardless of the length of the delivery schedule OR quantity... and if you don't like it, tough! There buying power is so huge, there is always another guy waiting and willing to sign there contract.
Once signed, good luck getting out of it. Your now in a binding contract with a company who can afford more Lawyers that the US Government and is not afraid to use them.
I'm quite certain that everyround of ammo Wal Mart receives this week, will be at the same cost they were paying for it, "pre Newtown".