Why are ammo prices so high?

Discussion in 'Ammunition & Reloading' started by LandMonster, Apr 27, 2012.

  1. LandMonster

    LandMonster New Member

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    I started shooting a lot about 8 years ago. I shoot shotguns, handguns and rifles. The cost of ammunition has gone up roughly 65% since then. It's gone up so much that I need to reload to afford this sport.

    I have a degree in economics but it's not my field today. I am trying to wrap my head around this question of supply and demand. Hers are a few scenarios I came up with.

    1) People are shooting more than ever. Two wars. Manufacture can't keep up with demand. Prices go up.

    2) The price of raw materials, fuel to transport them and cost of manufacture have gone up. Prices go up.

    3) Industry decides that they make more money making less product. Prices go up. Manufacture prices stay the same. Profit!

    The problem with 3, withholding supply, is that another upstart should step in.

    So... What is it
     
  2. Riverg420

    Riverg420 New Member

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    supply and demand also it being a election year has alot to do withit right now
     

  3. LandMonster

    LandMonster New Member

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    This transcends elections. Prices were climbing before Bush's second term and rose through his second. They only slightly rose with Obama.

    Yes supply and demand is at work here but in what capacity?
     
    Last edited: Apr 27, 2012
  4. CHLChris

    CHLChris New Member

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    Shooting is becoming MUCH more popular. Perceived scarcity is encouraging hoarding. Thus, demand has increased by a much greater amount than even ownership has increased.

    I think the more guns in the country, the better, so I do not begrudge the rising prices. If you take gold as an example, the higher the price, the more people want something. People are buying and shooting guns today that never would have before.

    My father-in-law, for example, buys a box or two of ammo for each gun. I, on the other hand, buy a thousand rounds or two for each gun. I just think there are more and more of my kind than his these days. Prices will necessarily increase.
     
  5. RufusTFirefly

    RufusTFirefly New Member

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    For some ammunition, I would bet that the elevated price of copper these days has something to do with it also...
     
  6. sputnik1988

    sputnik1988 Active Member

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    It doesn't help that the government is printing more money, causing inflation. A dollar isn't worth a dollar anymore.
     
  7. JWagner

    JWagner New Member

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    It is not just ammo. The above stated reasons pretty much cover it: raw materials, transportation and printing money have done the job on all kinds of prices.
     
  8. jpattersonnh

    jpattersonnh Active Member

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    The Dollar has not been worth a dollar since Nixon. You are 100% about inflation. Wait till you see food prices this summer.
     
  9. JTJ

    JTJ Well-Known Member Supporter

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    I remember when gas was under 25 cents a gallon and they pumped it, cleaned your windshield and checked your oil. My first house cost $10,700. The payment was $85 a month including taxes and insurance which was what I was paying for an apartment. I was making about $6 an hour as an apprentice. 1966....
     
  10. res45

    res45 New Member

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    1 & 2 pretty much covers it. Some ammo is only produced on a season basis and some caliber are imported from overseas and not made in the USA. Nothing is cheaper than it was just a few year ago.

    Somethings may not have gone up percentage wise as much as others have but everything is more costly. Companies that mfg. ammo buy the raw materials months ahead so it takes awhile for those higher price to reach the market. Cost of transporting products from point A to B have also gone up especially those raw material that are imported from overseas.

    China is sucking up about 28% of all the available copper on the current market,Europe 25% and the US 14% while the demand is high production for the four leading open mine copper producers has dropped 12% mainly due to lower quality ore.

    The cost of Copper alone has risen dramatically over the past couple year and the forecast is that 60% of the open Copper mines will be depleted by 2020 forcing the search for underground mines and driving the price up higher.

    I cut my cost by buying powder and primer in bulk,casting my own bullets for both rifles and handguns and shooting more low velocity and midrange loads which also make my brass last much longer in some case as long as 20+ reloads.
     
  11. 1hole

    1hole New Member

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    "So... What is it"

    All of the above, plus more, perhaps especially greed along the chain; meaning it's not a single issue problem. And considering the cost of production operations and satisfying government regulators opposed to new companies of any sort delay and increase costs that an old style capitalist reaction to excessive profiteering allowed.

    Today's govie regulators are indeed jerks to established businesses but they also virutally assure established manufactoring companies that no competitors can possibly arise - didn't you get that in your college economics classes?
     
    Last edited: Apr 29, 2012
  12. CHLChris

    CHLChris New Member

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    This really cheeses me off.

    Profit is good. Profit means there is an incentive to make products that I like, that I want, and that will make my life easier and more productive. Profit makes everything else works. Any business that does not try relentlessly to increase profits will eventually fail, making everyone lose their jobs. Serving the customer well brings profit.

    If you believe the "profit motive" is evil, then you, my friend, are a marxist. You may just not realize it yet.
     
  13. rifleman1

    rifleman1 New Member

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    those danm ceo's trying to make there bonuses biggeer again.....DANG THEM TO HECK!!!
     
  14. 1hole

    1hole New Member

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    "If you believe the "profit motive" is evil, then you, my friend, are a marxist. You may just not realize it yet. "

    You presume far too much but don't realize it yet; let me help. Please re-read my post and note that I didn't say (nor do I consider) the profit motive to be evil.

    I do have the intelligence to recognise that some dealers will grasp any opportunity to stick it to their customers so it may be they who eventually go belly up rather than those dealers who do deal with their clientel fairly and accept a fair profit margin. But, bottom line, it's up to the customer to say if a dealer's asking too much for his products, no one will force us to buy anything against our will. (Well, no one but our 'liberal' politicians but ... THEY ARE MARXIST so far as central planning and control of the 'little people/workers' who are expected to quietly submit to their idea of a benevolent govenment's carefully planned utopia mandates or go straight to jail - just to be 'fair' you know.)
     
  15. LandMonster

    LandMonster New Member

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    Soooo it's the government's fault that brass is expensive and demand for shooting related products as risen? Missed the class that would lead me to that conclusion.

    I also missed when they scrapped the idea that a fair day's work deserves a fair day's wage and when they redefined success in business as when you wring every last penny out of your customer.

    I agree that copper has become more expensive because after I graduated college I became a builder and I buy a lot of copper products. The price of pure copper pipe and wire have not kept pace with the price bullets. Not by a long shot. And brass and lead are lesser metals.

    More people may have ran out and bought guns after the last election but it does not mean that they can afford to shoot them. Times are tough and shooting is more expensive than ever. If you are telling me that shooting is more popular than ever don't tell me in the next breath that it's the government's fault. It not and it's ludicrous.

    What if you woke up tomorrow and went to your paint supply store or your paper supply store and they told you that the cost of paper or paint just went up 50%. And all the other stores more or less did the same. You could not do a damn thing about it because they got you.

    Now what if the gas companies did the same thing, citing the rising cost of exploration. Then they report record profits quarter after quarter. Do you feel got yet? You should.

    I think that manufacturers of bullets probably keep prices artificially high because they make more money that way. People have not reached the pain threshold yet. They will continue to buy bullets at whatever price because in some way, shape or form they need to.

    They got you.
     
  16. locutus

    locutus Well-Known Member Supporter

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    This has nothing to do with corporate/CEO greed, and very little to do with inflation.

    It's supply and demand.

    China and India are developing at a frightening rate, and buying up all of the copper, tin, steel, lead and other resources that anyone will sell them.

    This is also partly responsible for the huge increases in oil and coal prices. Even the Russians are having trouble manufacturing enough ammo to train their army due to cost of steel for cases.

    As long as the "super boom" in development is going on in the world's two most populous countries, natural resource prices will remain high.
     
  17. sct1886

    sct1886 New Member

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    Visit BlackGunammo.com They currently carry 5.56mm and 9mm. 7.62x51 is in production. My buddy works there and it is top shelf ammo. M193 ball is $160 per 500 rounds. My brothers 75yd target is below. This was mostly rapid fire.
    [​IMG]
     
    Last edited: May 11, 2012