If they aren't marking it up more than they normally do, then they weren't selling any before Obamania.... I'd laugh and turn away had he said that to me...Two cents worth....was in GM today and got the last two boxes of Blazer .380 FMJ they had at $24.95 per 50 round box. Considering there's been no .380 at all for months and that I've seen it for sale (and selling!) for over $90/50 rounds for FMJ, I considered it a deal and a very reasonable price. Was conversing with a guy behind the counter and he said - roughly - it's supply and demand. They're not marking it up any more than they normally do, but when people who usually buy a couple of boxes come in and buy a case because they don't think there's going to be any available next month....you get the idea.
I might as well add my.
First of all, as the general manager of a company that relies on sales to our customers, I would fire the two dolts from GM posting on this site for their rude, profane, insulting, offensive and illiterate postings insulting their (potential) customers. Anyone with such a bad attitude toward their own customers who is allowed to continue in that interface betrays a management that is seriously out of touch with their business. Boys, here's a life lesson for you: You still represent your employer, even while posting in an internet forum afterhours. You have caused your employer irreparable harm by your comments here. You won't last long in your current occupation, so take some advice: Change or move on.
Personally, when I got into handguns just a few months ago, I included GM in the circuit of suppliers I checked out to determine where I was going to buy my guns and supplies. It only took one visit to, yes, the Castleton store, to realize that the prices were out of line and the employees behind that gun counter seemed bothered by the fact that customers were interested in their overpriced merchandise. After the one visit, I knew I would never return regardless of availability issues. No complaints, no letter or emails, just a customer that has spent $4,000 on guns, ammo and accessories this year with zero share going to Gander. I have purchased a good deal of ammunition from the Dick's right across the street, who while not the cheapest, maintains respectable pricing. I would rather pay Dick's a couple bucks more per 50 than make 10 trips to Walmart before finding any inventory. Gander is in no way competitive with Dick's. I know this now, so I will no longer even bother to check Gander for any sporting goods purchases. You're off my list.
Now, who is benefiting from the profiteering in ammunition?
In my business, we purchase various metals direct from the mills. There is NO QUESTION that prices have fallen dramatically since last summer. Metal prices are commodities like oil and have taken the 50% haircut just like your gasoline prices. If I had a million dollars to spare, I would have bought a warehouse full of copper when it was a $1.50/lb recently down from $4.00+ last summer. Because metal stocks are plentiful and cheap and because the ammo manufacturers are turning inventory immediately, they are enjoying the lower metal prices as soon as they move down. The ammo manufacturers do not need to raise their prices. Their margins are already expanding due to lower raw material costs. Witness some of the government contracts out there like the DHS deal of April 29th with Federal for .40S&W at .24 per cartridge. This was a non-negotiated 6,000,000 cartridge purchase with 6-2 million unit options for a total potential purchase of 18,000,000 rounds. Why would Federal commit so much of their production to this relatively low margin business? Because it's a good business decision compared to selling it piecemeal to the sporting goods market. The cost picture is reaffirmed by Walmart's practice of continuing to sell Blazer 9mm at $8.97 and WWB at $19.97/100. The price spikes are not coming from the ammo manufacturers.
As to ammunition price gouging I will challenge all who have posted (both against and in defense of GM) to present direct, first hand knowledge of Gander Mountains books! If you or I have NOT seen what costs are involved in the creating the price of the end product we cannot honestly say that their prices are unfair. That does not mean that they are not significantly higher than their competitors, but just because they are higher does not instantly lead to the "price gouging" conclusion either.
As an analogy I will bring up a place I love to eat: Cracker Barrel. I have always enjoyed their food and it has become somewhat of a tradition for me to have breakfast at one anytime I am on my way to a gun show. I have also always considered their prices to be a bit higher than other breakfast food chains, but since I enjoy their food it hasn't stopped me from eating there. Now to my point: in the semester before mine one of the business classes at my local college did a study of Cracker Barrel. They found that CB averages a $.01 to $.02 profit per meal. That is it. After taking out shipping costs, insurance, property taxes, supplies, human resources costs, liability insurance, etc etc etc they pull in less than a nickel per meal. What seems high cost to me is in reality an extremely thin profit margin.
50 9mm fmj's 59.99. I'm sorry, but that is more than 2%Dude if you guys arent bitching about the price of ammo, your bitching about the availability of ammo. "Why dont you guys have any ammo instock?" I get asked that everyday. Well sir if our ammo is so over priced why dont we ever have any? Why when I put out shipments on thursdays is most of it gone thursday evening? Write all the emails and letters you want to corporate im telling you the prices have gone up from the manufacturers, there for we have to up the prices about 2% just to sell it above cost and make profit. So for that 2% we apologize! Its part of life. Deal with it and stop crying.