Ammunition: Who is making the $? Who is price gouging?

[M4Fundi]

I would like to know who is setting these prices. Are the manufacturers or distributors or retailers setting these prices and gouging us all? When all the LGS prices went way up and most online stores prices went way up, here in TX at Academy Sports the prices stayed the same or with a minimal price increase for months (have not checked lately), so that would lead me to believe that the prices gouging is happening at our beloved retailers and not by the manufacturers and distributors. I have also been told that it is the retailers doing the $ gouging by an industry insider (that I cannot verify his reliability). Does anyone know who is responsible for these prices?

[Uni-Vibe]

Conservativism 101: in a free market, the buyers determine prices.

[FromMyColdDeadHand]

The manufacturers should be, with the idea that those profits would go to expanding capacity, or as least drawing in new competitors because of the chance for profits. I understand there is a cycle, and by the time capacity increased the demand would reduce and prices drop- along with potential legislation hitting demand or liability. I’d still want to see capital and profits accumulate at the bottlenecks. Distribution isn’t the problem, manufacturing is. Where exactly- raw materials, components or assembly- I don’t know.

[Brasilnuts]

The manufacturers should be, with the idea that those profits would go to expanding capacity, or as least drawing in new competitors because of the chance for profits. I understand there is a cycle, and by the time capacity increased the demand would reduce and prices drop- along with potential legislation hitting demand or liability.

When was Sandy Hook, 2013? It’s been difficult to find .22 ever since that occurred and what you stated above seemed to be the only answer for it. Well, that was 8 years ago, I’m guessing it would have paid off for Federal etc. to purchase more machinery and hire people to operate it.

I remember being in Africa and listening to a BBC radio program about the skyrocketing price of rice. The reporter went through every step of the process down to the farmer, no one admitted making any more money.

[GH41]

I don't think the term "price gouging" should apply to what we are seeing with ammunition prices. It's all about supply vs demand and it's not just about ammunition prices. I was quoted $50 each for a 10 foot 6X6 treated post last week. That is 3 times what they cost 2 years ago.

[Uni-Vibe]

22 has not been scarce since 2013.
We've been awash in 22LR since recovering from Sandy Hook. Places like Target Sports USA sold cases cheap with free shipping. That's how I have >30,000 rounds stashed.

[PracticalRifleman]

When prices of raw materials increase, fuel, decreased labor supply while overhead maintains or even increases, across the board price increases happen. The profit margins do not change just because price is increased.


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[Arik]

This again?!?! The demand is so high manufacturers can't keep up! Some retailers are willing to break even or maybe loose a little bit on ammo sales as long as it brings people in. However, at this point everyone's prices are high because there's lack of product, lack of raw materials, shipment issues, ...etc...

What did Federal CEO say? They sold more hunting ammo this year than in the last 99 years. And that's just hunting ammo! Everything they make goes right out the door.

Didn't Yani say he talked to a overseas manufacturer who said they have several years backlog on ammo orders

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[M4Fundi]

While I have just read the usual trite answers here. Duh! The raw materials have not increased that much. Just because there is "temporarily" greater demand you do not "have to" raise the price especially in a panic that will harm the consumers. The business strategy to triple prices because there is greater demand (for a VERY temporary demand spike) with the strategy to reinvest profits as to increase manufacturing capability is a great way to going out of business. People are NOT going to be spending all of their spare cash on ammo forever, so that would be a fools errand. I believe this IS PRICE GOUGING! The local big box sporting goods store here Academy is keeping their ammo at the original price points and they are not doing that to get people to come in and buy tennis racquets and running shorts it is just their policy and VERY patriotic and ethical policy. I just think we should be finding out who is price gouging and letting them know we will remember them and be rewarding those who did not. IMHO... YMMV.

[M4Fundi]

Academy 9mm prices averaging around 33 cents per round and as low as 20 cents per round
https://www.academy.com/shop/browse/...229mm+Luger%22

and

Midway 9mm prices averaging over 70 cents per round (for crap training ammo)

https://www.midwayusa.com/ammunition...D1%26Ntt%3D9mm

How come Academy can keep their prices close to normal? Hmmmm....