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Old 08-15-2013, 12:52 PM   #31
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I won't blame a retailer for reacting to the market.

Consider this... Demand spikes and supply is disappearing rapidly. You as the retailer decide to leave your prices the same and run out of your inventory very quickly at your regular margin. Now once you run out of the inventory you have on hand, the supply available to you may only be one quarter of what you had planned on if you can get any at all. So now your revenue has dropped to practically nothing, but your overhead expenses of running your business are still the same. You quickly run out of cash and must close your doors.

On the other hand, you decide in the face of skyrocketing demand to raise your prices and increase your margin. You are able to pull in more profit and bank the cash. You exhaust your inventory and your supply is limited so your sales drop. But you are able to weather the storm because you have the extra cash generated by raising your prices when demand spiked and you had inventory.

People are far too quick to scream "price gouging" without thinking through what the consequences will likely be to the retailer if they do not respond to dramatic shifts in the market.
I have no problem with prices going up reasonably due to restrictions in the supply chain. My issue is when a dealer is straight gouging. Like a brick of Rem .22s for $100. That is uncalled for. I could accept maybe a doubling of the normal price at a small LGS but not 5 fold. In this regard Wal-Mart has done very well with their ammo prices. They haven't had much in stock but I haven't seen more than a 10% increase in their pricing.

As for the actual guns, I can also see a raise in price but not well beyond MSRP. There are a lot of over-priced ARs out there right now that people have bought and haven't been able to feed. Those will be coming to market soon.
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Old 08-15-2013, 02:13 PM   #32
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i understand that's part of doing business if you expect to keep the doors open, but he didn't raise his prices unrealistically, which a lot of dealers did. many of these dealers we heard about here on this forum. if his distributors go up in price, he has to if he wants to keep the same profit margin.

price gouging is raising prices just because you have something people want and knowing they would pay whatever you cahrge in order to have it and then fleecing them just to make a huge profit margin.
Some businesses might've had more money stashed away before this crisis, so they could handle not raising their prices too drastically. Just a thought.

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I have no problem with prices going up reasonably due to restrictions in the supply chain. My issue is when a dealer is straight gouging. Like a brick of Rem .22s for $100. That is uncalled for. I could accept maybe a doubling of the normal price at a small LGS but not 5 fold. In this regard Wal-Mart has done very well with their ammo prices. They haven't had much in stock but I haven't seen more than a 10% increase in their pricing.

As for the actual guns, I can also see a raise in price but not well beyond MSRP. There are a lot of over-priced ARs out there right now that people have bought and haven't been able to feed. Those will be coming to market soon.
Walmart shouldn't HAVE to raise prices anymore than what they get it from their distributors for. Because ammo and gun sales are not what keep them afloat. It's not their main sales.
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Old 08-15-2013, 02:46 PM   #33
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I have no problem with prices going up reasonably due to restrictions in the supply chain. My issue is when a dealer is straight gouging. Like a brick of Rem .22s for $100. That is uncalled for. I could accept maybe a doubling of the normal price at a small LGS but not 5 fold. In this regard Wal-Mart has done very well with their ammo prices. They haven't had much in stock but I haven't seen more than a 10% increase in their pricing.

As for the actual guns, I can also see a raise in price but not well beyond MSRP. There are a lot of over-priced ARs out there right now that people have bought and haven't been able to feed. Those will be coming to market soon.
The magic of the free market is a willing seller and a willing buyer. So put yourself in the store owner's place. You have two people in front of you. One person offers you $30 for the brick of 22. The other person offers you $100 for the brick of 22. Who are you going to sell the brick to?
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Old 08-15-2013, 04:50 PM   #34
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The magic of the free market is a willing seller and a willing buyer. So put yourself in the store owner's place. You have two people in front of you. One person offers you $30 for the brick of 22. The other person offers you $100 for the brick of 22. Who are you going to sell the brick to?
Of course the guy with the $100 bill. But I'm refering to asking price and not willing buyers price. I can agree with raising the price some because you don't know when the supply will be available. CTD has lost a lot of customers over their pricing strategies. I've never bought from them but now I never will. Same as the way Dick's handled the AR thing. They've lost me forever.
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Old 08-15-2013, 11:21 PM   #35
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Originally Posted by aandabooks

Of course the guy with the $100 bill. But I'm refering to asking price and not willing buyers price. I can agree with raising the price some because you don't know when the supply will be available. CTD has lost a lot of customers over their pricing strategies. I've never bought from them but now I never will. Same as the way Dick's handled the AR thing. They've lost me forever.
CTD is the same for me. I wont even click their links in a google search.
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Old 08-16-2013, 01:49 AM   #36
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Of course the guy with the $100 bill. But I'm refering to asking price and not willing buyers price. I can agree with raising the price some because you don't know when the supply will be available. CTD has lost a lot of customers over their pricing strategies. I've never bought from them but now I never will. Same as the way Dick's handled the AR thing. They've lost me forever.
Asking price and willing buyer price are the same thing if someone pays the asking price.
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Old 08-21-2013, 04:03 AM   #37
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Well, by the grace of God no one was killed in the school shooting in Atlanta. For this I am grateful. Will this event reignite the gun control movement? Will it cause ammo shortages to revert to extremes again? What will it do to gun prices?

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