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  • Ingomike

    Top Hand
    Rating - 100%
    6   0   0
    May 26, 2018
    31,565
    113
    North Central
    Well in the interest of avoiding experiencing of the wrath of the churchmouse I hereby concede that you are right that all ammo prices are determined by nothing but extremely fair economic processes and all ammo retailers are the nobility, no, the saints of all merchandisers and they place the good of the customers ahead of all else and would never ever do anything that was not in the absolute best interests of their fellow man... and the Easter Bunny.

    I have plenty of ammo myself so I'll fade to black in here.

    Glad you came over. LOL

    Hopefully there will be someplace to sell you replacement ammo, when you need it, that wasn't badmouthed out of business...
     

    marvin02

    Don't Panic
    Site Supporter
    Rating - 100%
    59   0   0
    Jun 20, 2019
    5,421
    77
    Calumet Twp.
    Glad you came over. LOL

    Hopefully there will be someplace to sell you replacement ammo, when you need it, that wasn't badmouthed out of business...

    Isn't also part of the free market that places may go out of business due to practices that alienate the target market? So, maybe they will be missed and maybe they won't, but suppliers closing due to market pressures are a part of a free market, even if the pressure that closes them is customer dissatisfaction over their policies.

    Just as the suppliers are free to sell at prices they set and make as much or as little profit as they want consumers are free to complain and take their business elsewhere. I see you telling consumers to stop complaining or they'll run the suppliers out of business as no different than the consumer complaining about business practices they don't like. Both are free to take the actions they are taking and do not need anyone's permission.

    You and others in the thread have made very good arguments and explained supply and demand economics quite well. But the freedom that suppliers have exists alongside the freedom of the consumers to vote with their money and with reviews. Both groups have the right to exercise their freedom and the pressures will determine the market.
     

    KJQ6945

    Grandmaster
    Site Supporter
    Rating - 100%
    4   0   0
    Aug 5, 2012
    37,690
    149
    Texas
    Still a very emotional thread, which baffles me. Let’s try to keep this logical.

    How about we look at it from the other side.
    Imagine you are a small gun store. All the guns you have are on the sales floor, as is most of the ammo. You get your stock from the distributor companies, like Accusport, RSR, etc. They are your supply chain, your warehouse, so to speak. You are not big enough to have a real warehouse, or deal directly with the manufacturers. As you sell guns, you order more to keep your shelves stocked. It’s a constant process that takes place everyday in most gun stores across the country. You purchase wholesale, add say, 10%, then sell for retail. Rinse and repeat, business as usual.

    Now, let’s throw in a panic situation. Suddenly, people are lined up at opening time, and they are buying everything in the store. Every other gun store has the same issue. You call your distributors, and they tell you their prices have doubled, and everything is on back order. What do you do? Honest question.

    The short sighted here on INGO will flame you if you raise prices, because you are price gouging or profiteering. If you don’t immediately raise your prices, you will be out of all inventory inside of a week, and you’ll have to close your shop. Your suppliers already told you most everything is on back order, and prices have doubled. Your $100K inventory, will cost you $200K to restock. Being moral isn’t cheap. You’ll be flamed on INGO because your shop isn’t open. You’ll be flamed on INGO because you laid off ten employees.


    So, to all the posters in here, that still believe in price gouging, profiteering, and every other disparaging title that has been used in here. Tell me about your moral, ethical business model. How long have you been in business?
     

    Ingomike

    Top Hand
    Rating - 100%
    6   0   0
    May 26, 2018
    31,565
    113
    North Central
    Isn't also part of the free market that places may go out of business due to practices that alienate the target market? So, maybe they will be missed and maybe they won't, but suppliers closing due to market pressures are a part of a free market, even if the pressure that closes them is customer dissatisfaction over their policies.

    Just as the suppliers are free to sell at prices they set and make as much or as little profit as they want consumers are free to complain and take their business elsewhere. I see you telling consumers to stop complaining or they'll run the suppliers out of business as no different than the consumer complaining about business practices they don't like. Both are free to take the actions they are taking and do not need anyone's permission.

    You and others in the thread have made very good arguments and explained supply and demand economics quite well. But the freedom that suppliers have exists alongside the freedom of the consumers to vote with their money and with reviews. Both groups have the right to exercise their freedom and the pressures will determine the market.

    I find agreement in most everything in this post. If a retailer is a liar, or even just offers bad service the customer is well within their rights to spread the word a offer negative reviews. It is the irrational, emotional response to attack retailers just because they protect their inventory in trying times that is flat wrong and damaging to the 2A industry and 2A supporters alike.

    We market types are trying to help those that are using their freedom to pressure the market to understand that those pressures are being misapplied and worsening the very conditions they deplore. This is not about limiting buyers ability to have opinions of and make reviews of retailers, but rather to create understanding that one type of criticism, the raising of prices in emergency situations, is not unethical, of questionable character, greedy, or gouging...
     

    Ingomike

    Top Hand
    Rating - 100%
    6   0   0
    May 26, 2018
    31,565
    113
    North Central
    Still a very emotional thread, which baffles me. Let’s try to keep this logical.

    How about we look at it from the other side.
    Imagine you are a small gun store. All the guns you have are on the sales floor, as is most of the ammo. You get your stock from the distributor companies, like Accusport, RSR, etc. They are your supply chain, your warehouse, so to speak. You are not big enough to have a real warehouse, or deal directly with the manufacturers. As you sell guns, you order more to keep your shelves stocked. It’s a constant process that takes place everyday in most gun stores across the country. You purchase wholesale, add say, 10%, then sell for retail. Rinse and repeat, business as usual.

    Now, let’s throw in a panic situation. Suddenly, people are lined up at opening time, and they are buying everything in the store. Every other gun store has the same issue. You call your distributors, and they tell you their prices have doubled, and everything is on back order. What do you do? Honest question.

    The short sighted here on INGO will flame you if you raise prices, because you are price gouging or profiteering. If you don’t immediately raise your prices, you will be out of all inventory inside of a week, and you’ll have to close your shop. Your suppliers already told you most everything is on back order, and prices have doubled. Your $100K inventory, will cost you $200K to restock. Being moral isn’t cheap. You’ll be flamed on INGO because your shop isn’t open. You’ll be flamed on INGO because you laid off ten employees.


    So, to all the posters in here, that still believe in price gouging, profiteering, and every other disparaging title that has been used in here. Tell me about your moral, ethical business model. How long have you been in business?

    I had mostly considered this from the supply demand side without delving very deep into retailers side of this.

    So this greedy gouging retailer that makes a living selling ammo has a thousand cases on hand that he makes $50 a case selling 500 cases a month, running the business on $25,000 a month. Then there is a panic surge, the shelves are bare in 2 weeks, yep, he just brought in $50,000 in two weeks but he is out of business. Then he can only get 100 cases a month and has to run the business on $5000. How long can he keep the business afloat like that? His regular customers dry up, he doesn't have what they need...

    The same retailer alternatively boosts the price at the outset of the panic to make $200 a case, a 3X profit increase, greedy, gouging bastard, he slowly sells his inventory bringing in $200,000 that he regularly supplements with the additional 100 cases a month and he can scrape by on $20,000 a month, just $5000 less than he was running on before the panic. He still has regular customers that get the ammo they need and together the retailer and customer reminisce over the good old days when ammo was cheap. His 3X price increase barely saves his business but the shooter still has a place to get ammo.

    I"m sure someone will say "well he can raise the price once he sells out" but then he loses the cushion that keeps him going. This is highly simplistic and does not account for any distributor or manufacturers increases that get folded in. The reality is once the panic buying changes the market the market is changed.

    So stop pressuring business to go against the laws of economics because of emotional stress in ways that hurt us all far more than perceived gouging.
     

    Mongo59

    Master
    Rating - 100%
    15   0   0
    Jul 30, 2018
    4,599
    113
    Purgatory
    The other thread has almost 50 replies but no takers, so, I'll give a bucket of Golden Bullets to anyone if they play nice.

    If that doesn't offset the greed in the world then the rest is up to you...
     

    KJQ6945

    Grandmaster
    Site Supporter
    Rating - 100%
    4   0   0
    Aug 5, 2012
    37,690
    149
    Texas
    The other thread has almost 50 replies but no takers, so, I'll give a bucket of Golden Bullets to anyone if they play nice.

    If that doesn't offset the greed in the world then the rest is up to you...

    I won’t take your bullets, but I’ll help you shoot them. Bring your old Winchesters too, we will see whose 1873 keyholes better. :D
     

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