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Price Gouging at its finest... Should we start keeping a list of these companies?
- Thread starter SkyBreaker
- Start date
How do you know they are gouging - what do they pay for them currently? Damn sure can't find them anywhere cheaper and I imagine their cost has gone sky high as well.
Unobtainable for all intents and purposes. When this inventory is gone they'll have no replenishment. People don't understand how markets and businesses work.
I'm all about Free Market Capitalism.. It does suck that these are the going rates, and there really seems to be no end in sight! I really can't Imagine CCI, FEDERAL, or, WINCHESTER are charging these prices out the door to re-sellers. I know only a slim percentage is actually going to market (1-5%) & the rest to Big Name ammo manufactures who already had established relations and dealings with component producers.. So when you take in account shipping rates have increased, COVID Costs, Raw material sourcing, Extended Production Hours, Supply & Demand, Possible Inflation, and a slew of other factors it sadly seems that these may be the going rates for a ling time. Your best bet is to try and establish a list of local sources that aren't asking astronomical prices or perhaps get lucky and find someone nice enough to not ask for your first born.. As we near the election and news of biden possibly winning people that weren't panic buying or hording now seem to be. These are just a few of my thoughts and ideas..
just for the heck of it..
try and find the materials to make primers.then buy the materials in bulk,set up manufacturing,and start production.
get it up and running, figure out the supply and demand requirements and settle into a good business.
then wait for a problem,say a made up panic or "global pandemic". now watch everyone panic and demand skyrocket. as you are trying to keep up with the new demand,you start having issues with your work force. they cant,wont,or are mandated not to work. in the beginning its a pain but not bad,but now you are out of components,and you cant meet the demand.
what do you do? close down,cry,poop your pants?
no,you find a limited supply and you buy it at a higher cost.because guess what......the company's that make those components are going thru the same thing..
its not price gouging in most cases,its paying more and charging more,trying to weather the storm..
before you accuse me of defending gouging,let me put it into perspective..
i own a small motorcycle shop. i do very good work and have a loyal customer base.
when this started,my business went nuts. by late February i was a month behind(this usually happens in late June) ..people staying home and its easy to "social distance" on a bike..life was good,had everything i needed and was enjoying a pretty darn good year. i did not get or want my stimulus check,i did not need it... fast forward to June and i cant get tires,oil filters,oil,spark plugs,clutches,chains,sprockets and more.....
so what do i do? i find those parts other places and pay more for them,sometimes full retail.. a business cant thrive and keep its doors open paying retail for stuff,then selling it at retail. the math does not work..
an example...
on average a oil change at my shop runs 90 bucks.
my shop labor rate is $90 per hour. i spend about 45 min doing an oil change. i check a lot of stuff.
my cost on oil was around 5 bucks a quart. the filter is about the same. a bike uses around 3.75 to 5 quarts of oil.
so my cost in parts is on average 25 bucks. take that from $90 and you get $65. so if i sell the parts at cost i make 65 bucks for an oil change,and i still have to pay sales tax on the parts.
for 45 min work i charge $67.50. oil changes dont pay,but they are a big part of the business...
but wait,i cant get the parts i need...so now i pay up to $10 to $12 for a filter and $9 for oil.
so now i am $48 in parts,so if i charge $113 for a oil change am i gouging?
oh yea,i almost forgot...it cost $1 to $1.50 per gallon to get rid of the oil..no cruise ships on the water,a lot less need for used oil for fuel...
sorry for the long rant,but this is just a little example of whats going on behind the counter at business.
hope that helps.
i am not saying that some people are not gouging,i am just saying what you see as gouging,some call hanging on by a thread..
thanks
Bob
ps
my oil changes are still 90 bucks out the door.. but i really should go up to about $150 so i can make a profit. i dont know what the next few months will bring,but for now i will make less for my work....
try and find the materials to make primers.then buy the materials in bulk,set up manufacturing,and start production.
get it up and running, figure out the supply and demand requirements and settle into a good business.
then wait for a problem,say a made up panic or "global pandemic". now watch everyone panic and demand skyrocket. as you are trying to keep up with the new demand,you start having issues with your work force. they cant,wont,or are mandated not to work. in the beginning its a pain but not bad,but now you are out of components,and you cant meet the demand.
what do you do? close down,cry,poop your pants?
no,you find a limited supply and you buy it at a higher cost.because guess what......the company's that make those components are going thru the same thing..
its not price gouging in most cases,its paying more and charging more,trying to weather the storm..
before you accuse me of defending gouging,let me put it into perspective..
i own a small motorcycle shop. i do very good work and have a loyal customer base.
when this started,my business went nuts. by late February i was a month behind(this usually happens in late June) ..people staying home and its easy to "social distance" on a bike..life was good,had everything i needed and was enjoying a pretty darn good year. i did not get or want my stimulus check,i did not need it... fast forward to June and i cant get tires,oil filters,oil,spark plugs,clutches,chains,sprockets and more.....
so what do i do? i find those parts other places and pay more for them,sometimes full retail.. a business cant thrive and keep its doors open paying retail for stuff,then selling it at retail. the math does not work..
an example...
on average a oil change at my shop runs 90 bucks.
my shop labor rate is $90 per hour. i spend about 45 min doing an oil change. i check a lot of stuff.
my cost on oil was around 5 bucks a quart. the filter is about the same. a bike uses around 3.75 to 5 quarts of oil.
so my cost in parts is on average 25 bucks. take that from $90 and you get $65. so if i sell the parts at cost i make 65 bucks for an oil change,and i still have to pay sales tax on the parts.
for 45 min work i charge $67.50. oil changes dont pay,but they are a big part of the business...
but wait,i cant get the parts i need...so now i pay up to $10 to $12 for a filter and $9 for oil.
so now i am $48 in parts,so if i charge $113 for a oil change am i gouging?
oh yea,i almost forgot...it cost $1 to $1.50 per gallon to get rid of the oil..no cruise ships on the water,a lot less need for used oil for fuel...
sorry for the long rant,but this is just a little example of whats going on behind the counter at business.
hope that helps.
i am not saying that some people are not gouging,i am just saying what you see as gouging,some call hanging on by a thread..
thanks
Bob
ps
my oil changes are still 90 bucks out the door.. but i really should go up to about $150 so i can make a profit. i dont know what the next few months will bring,but for now i will make less for my work....
But....but....what about the brotherhood? LOL!
I'm not saying what they are doing is illegal. don't need a lesson in capitalism. I'm all for making a profit. My local source still has primers for $35 / 1000 and i still have a case or two from a few months back when i was running low and needed them.. I just see companies like this as taking advantage of fellow gun enthusiast when they cant find their components. we all know that the prices will go back down after the rush is over. Lots of companies would rather go out of stock or limit the quantity of primers you can buy.. its a business decision. If you think they paid anything close to that for the primers you are kidding yourself. If you think that any component reseller is lacking for business right now you are kidding yourself.
I for one see fellow gun guys and gals as a community and will remember companies who chose to be assholes during this time and not support them in the future. Y.
I for one see fellow gun guys and gals as a community and will remember companies who chose to be assholes during this time and not support them in the future. Y.
