This past month has been....illuminating. SO, prices for ammo (at least at the dealer level) are stabilizing fast and are starting to drop. BUT those bulk ammo purchases are still being snapped up by 3rd party dudes like Midway, Lipseys and Sports South etc.
That means that while i could...theoretically start selling 9mm at 30cpr again as opposed to almost 90cpr like now....i still cant because these 3rd party companies are making up the loss of revenue from Dicks and Walmart discontinuing gun sales, by adding those ammo purchases to mass bulk purchases of firearms.
Basically, i am allowed to purchase from my distributors, ammunition at near pre-COVID pricing, but in order to do that, i need to sweetheart deal purchase 50 AR's per pallet of ammo, or 100 Taurus Gwhatever#C's.
Some genius solutions told to me was that customers (you guys) should just stop buying ammo. Which is weird because when i tell them i would ALSO stop buying ammo they give me the ole confused picachu face.
For summary, if im forced to buy ammo at 70cpr and everyone stops buying ammo to "drive the price down". the price doesnt go down, because if im not selling ammo, i have no reason to buy more of it and im certainly not going to just take a massive loss just to sell ammo. Its ammo, itll last forever. Ill just leave it on the shelf at the price i can sell it to cover my cost, or keep it in the back for personal/store consumption while selling off other firearms or items at lower margin to cover the cost of the ammo investment. Its all reactionary. I need to sell ammo to buy ammo and if im not selling, im not buying. The theory is if all the LGS arent buying, the sudden loss of demand with ample supply will see the 3rd partiers dropping prices to push ammo.
Except that aint gonna happen. Because Sports South, Davidsons, and the like ARENT operating month to month like your local gunshop is. These guys have the inventory and contracts to plan purchases YEARS in advance. They have the capital to ride out any disturbance in the market. If i went 2 months without selling anything my business is ruined and im out of job. If Lipseys didnt sell small gun shops a single item all year, they be black because Bass Pro and Green top would snap up all the stock available.
just a frustrating thing ive been dealing with all month and wanted to vent over.
Rant Over.