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Ammo prices today and tomorrow...

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    Ammo prices today and tomorrow...

    I chuckle at the occasional comments about ammo pricing, only because the belief is common that the LGS is the problem.

    Here's a look at two solicitations I received today. One earlier call was for a container load, 13 pallets, someplace around a half million dollars in outlay.. to buy ammo for prices similar to these at a single pallet.

    In this one, you'll notice that if I only lay out $54,000, I can own imported .223 at the bargain price of only .70 each. Plus some 10,000 rounds of .308 for the bargain price of 85-cents.

    At a very low margin of markup, that would still equate to .85 per round at retail, with us breaking even after sale expenses and not keeping a single penny of profit.

    This ammo crisis does not look like it's going to break anytime soon.


    ammo pallets.png
    LI Ammo, 2 Larkfield Rd. East Northport, (closed Sundays during Covid Apocalypse)

    #2
    Holy F! That's wholesale pricing??? You should've stockpiled lumber to fund ammo purchases.

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      #3
      Maybe they'll cut off a few thousand to only deliver it to the curb?

      I feel so sad that it has come to this. I agree that it will be a VERY long while until we see even double-priced ammo again.

      Comment


        #4
        Originally posted by LI Ammo View Post
        I chuckle at the occasional comments about ammo pricing, only because the belief is common that the LGS is the problem.

        Here's a look at two solicitations I received today. One earlier call was for a container load, 13 pallets, someplace around a half million dollars in outlay.. to buy ammo for prices similar to these at a single pallet.

        In this one, you'll notice that if I only lay out $54,000, I can own imported .223 at the bargain price of only .70 each. Plus some 10,000 rounds of .308 for the bargain price of 85-cents.

        At a very low margin of markup, that would still equate to .85 per round at retail, with us breaking even after sale expenses and not keeping a single penny of profit.

        This ammo crisis does not look like it's going to break anytime soon.


        ammo pallets.png
        Only 54k for the pallet???? Chump change

        Comment


          #5
          Not so long ago. 2018 a drum (14,000 rds) of 5.56 @ $0.29 cpr. $4000 seems like a genuine bargain now.

          0004FFBC-1B38-499E-9A06-2BAF97CCF3AF.png

          Comment


            #6
            Originally posted by SemiAutoFetish View Post

            Only 54k for the pallet???? Chump change
            Actually $56,380, I was sloppy with the estimate.

            LI Ammo, 2 Larkfield Rd. East Northport, (closed Sundays during Covid Apocalypse)

            Comment


              #7
              So, who is making the profit on ammo 3X its pre-Covid retail pricing?

              I doubt that Remington, Winchester, etc., have jacked up the wholesale price by a factor of three.

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                #8
                Originally posted by LI Ammo View Post

                Actually $56,380, I was sloppy with the estimate.

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                  #9
                  I think there's more behind this then price gouging. The second amendment guarantees the right to keep and bear arms but mentions nothing about the right to feed them. The genie is long time out of the bottle when it comes to all the firearms we Americans possess and thus I think some anti said..."Hey ! Wait a minute! We can just starve off the ammo and WaLa !!! Guns are just paperweights then!". Probably not true but it sure seems like it's heading that direction .

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                    #10
                    We were gonna buy the .223 back in Jan. You had to buy 2 pallets min. Pay for 1 up front and the 2nd around now when it was going to ship. Did seem like it was worth the risk.
                    Pat ------> NRA Endowment Member

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                      #11
                      How much would the ammo cost without the expensive wood pallet??

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                        #12
                        I participated in a Zoom call with the management of Ammo Incorporated yesterday. When it was my turn, I asked about the current price of ammo, with retail prices being up 300%, how much of that increase are they capturing vs distributors and retail stores. I also asked him to use a specific caliber as an example. They said that they have just been following the industry in regards to average price increases. Pre-covid they would wholesale 9mm for .18-.20/rd, now its .30, but much of that increase is eaten up by higher material costs. They also expect this situation to last another 18-24 months. From their presentation, it looks like they sell direct to big box/government/distributors, I guess LGS's have to buy from distributor. They also have a current capacity of 750 million rounds per year, with a new factory under construction that will triple their output, due to come on line spring 2022. I was clearly the only enthusiast on the call and didnt want to take over, so that was the only question I asked. I am trying to schedule a follow up 1-on-1 call so I can ask more detailed questions.

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                          #13
                          There are people that are buying directly from CCI and Federal at decent but not outrageous prices. What this tells me is that the distributors are price gauging. I posted this before. If we had more access to online resellers we at least could have a shot at this but only a few sellers are shipping to NY so were screwed. Feel bad for the LGS. They seem to be caught in the middle

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                            #14
                            I just got the latest issue of GUNS magazine. In the editorial section a guy wrote a letter that basically said he's had enough of the ammo industry. Sold off his entire collection except for one rifle and reinvested everything in air guns. He's never going back. He sleeps alot better now. Sure got me thinking

                            Comment


                              #15
                              I put all my money in Dogecoin, what an idiot.
                              Giza Development: Building and Renovating Pyramids of Distinction Since 2435 BC 631-427-1691 (Beware the Sea People)

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