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Old 04-03-2013, 06:55 PM   #31
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Ive gotta side with SS215 on this one. Walmart is one the largest buyers of ammunition in the world, if not the largest. That carries a lot of weight in price negotiations with ammunition companies. That being said, there is NO WAY that the suppliers for CTD said, lets raise prices by 300%. If CTD had any sense they would say eff that and bail. Did they see a small price increase? Probably. But they are price gauging, plain and simple. I wish them zero luck in their future endeavors, and no mercy upon their souls.

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Old 04-03-2013, 06:55 PM   #32
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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.

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Old 04-03-2013, 06:57 PM   #33
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Quote:
Originally Posted by mountainman13 View Post
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.
Many companies are price gouging, but many are also getting gouged by the manufacturers and distributors. I've seen it first hand.
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Old 04-03-2013, 07:09 PM   #34
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Interesting....so your angle is that WalMArt has already made a massive contract purchase for this ammo at a locked in price.....so the ammo spike doesnt affect WalMart?

While thats reasonable to believe, with EVERY ounce of my being I believe that $69/box is more than 50% retail markup. No way can 9mm target ammo have a wholesale price of $34/box or more.

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Old 04-03-2013, 07:21 PM   #35
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Interesting....so your angle is that WalMArt has already made a massive contract purchase for this ammo at a locked in price.....so the ammo spike doesnt affect WalMart?

While thats reasonable to believe, with EVERY ounce of my being I believe that $69/box is more than 50% retail markup. No way can 9mm target ammo have a wholesale price of $34/box or more.
I'm not saying companies aren't gouging. Just explaining why Walmart is so much cheaper. I can tell you for a fact at my store we couldn't get 9mm for what Walmart was selling it for.
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Old 04-03-2013, 07:26 PM   #36
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I understand, and you are right I was making 2 separate statements there. Well, if thats the case then as much as I hate Wal-Mart.....kudos to them for such massive bulk purchases ahead of time....distributed over years. That being said...they have the ability to change ANY price they want so I guess the point is moot.

I see it like this: Wal-Mart could EASILY jack up their prices to $25/box and most people would still be happy to pay it. But they dont. Then you have a medium size business like CTD who charges 5x the pre-Sandy Hook prices.....and MAYBE they get a few purchases here and there.

My thread was dedicated to the ****ty business practices of CTD. Their retail markup is disgusting, and I hope they pay for this after the smoke clears

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Old 04-03-2013, 08:26 PM   #37
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How come WalMart continues selling boxes of the EXACT 9mm boxes for an retail cost of just $18.99 per box? In theory they are getting their bulk ammo from the same source. What justifies the $45 difference in cost?!?!

What say you to that?
I've not seen ammo on walmart shelves for months. The fact that the price sticker still says the same thing as before means nothing.

And to the argument that maybe they already have a lot of ammo or that maybe they have some contract is possible. It's also possible that Walmart has made an executive decision to use the profit they make on all their other products to paper over the difference in the price of ammo in order to undercut everyone else. It wouldn't be the only product they do this with.

Also, as a matter of fact, the size 7 font was not bold.
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Old 04-03-2013, 08:38 PM   #38
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Quote:
Originally Posted by mountainman13 View Post
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".

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Old 04-03-2013, 08:52 PM   #39
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I won't buy ammo from them now. Although their pricing was decent before all this BS. I only wish I had a Walmart near me where I could check daily and purchase at normal pricing web available. Buy alas, no Walmart in New Heresy sells ammo.

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Old 04-03-2013, 09:10 PM   #40
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Quote:
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.
Does wall mart really have that kind of contract that seems like a long time.
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