22LR flippers

[Arthur Dent]

And losing $6 a box because they would still be selling it just as fast.

They aren't losing anything, they just aren't getting as much. How much ammo each store gets per month probably doesn't warrant Walmart raising ammo prices to ridiculous levels at risk of alienating customers and losing those customers to other ammo outlets. Merchandise sitting on shelves costs them money, regardless what the merchandise is.

 

[M4Madness]

They aren't losing anything, they just aren't getting as much. How much ammo each store gets per month probably doesn't warrant Walmart raising ammo prices to ridiculous levels at risk of alienating customers and losing those customers to other ammo outlets. Merchandise sitting on shelves costs them money, regardless what the merchandise is.

Ammo sales are such a small part of Wal-Mart's total sales that I doubt little thought goes into pricing, other than the standard profit margin. Guys get mad when they go into a gunshop and see a brick of .22LR priced at $60, but don't realize that the gunshop is "flipper-proofing" the ammo. It's not about the shop taking advantage of customers, but rather about preventing flippers from stealing their profits.

 

[LP1]

Ammo sales are such a small part of Wal-Mart's total sales that I doubt little thought goes into pricing, other than the standard profit margin. Guys get mad when they go into a gunshop and see a brick of .22LR priced at $60, but don't realize that the gunshop is "flipper-proofing" the ammo. It's not about the shop taking advantage of customers, but rather about preventing flippers from stealing their profits.

I don't like the flippers, and I agree that retailers should temporarily raise the price until flipping runs its' course. However, I take exception to "preventing flippers from stealing their profits" - why is a gun shop entitled to those profits any more so than anyone else?

 

[WebSnyper]

Ammo sales are such a small part of Wal-Mart's total sales that I doubt little thought goes into pricing, other than the standard profit margin. Guys get mad when they go into a gunshop and see a brick of .22LR priced at $60, but don't realize that the gunshop is "flipper-proofing" the ammo. It's not about the shop taking advantage of customers, but rather about preventing flippers from stealing their profits.

I don't buy it "flipper proofing". Personally, I'd rather see the bubble burst, and that Walmart stayed with its previous pricing, so eventually those of us who were able to ride out the craziness as we stocked enough to do so, would be able to go back to buying at reasonable prices. If Walmart raises the price, I don't think we'd see them drop it back down after the insanity dies down. That would become the new standard price... look at gasoline.

I don't like the flippers, and I agree that retailers should temporarily raise the price until flipping runs its' course. However, I take exception to "preventing flippers from stealing their profits" - why is a gun shop entitled to those profits any more so than anyone else?

Exactly... its like when politicians lament that "The Govt's tax money is getting diverted"... last time I checked, it's not the Govt's tax money, it is the people's money. It's not the retailer's money, until someone purchases from them. In this case, the flipper is purchasing from the retailer, at a price the retailer is willing to sell at.


It is not like the govt is subsidizing Walmart's ammo prices and keeping them well below what market price is and therefore we are all paying to unbalance the market. In that case, there would be something to bark about. At some point, this bubble will burst. It already has with other gun related items, and it will do so here as well.

 

[M4Madness]

I don't like the flippers, and I agree that retailers should temporarily raise the price until flipping runs its' course. However, I take exception to "preventing flippers from stealing their profits" - why is a gun shop entitled to those profits any more so than anyone else?

Someone's going to be making the profits, so it may as well be the primary market. Let's say that you had a bunch of "widgets", and people were willing to pay $100 for them. Would you sell them to people for $50, knowing full well that they were going to resell them for the $100 market value? I'd hope that you would want the $50 profit yourself instead of letting a flipper have the extra $50.

 

[Arthur Dent]

Someone's going to be making the profits, so it may as well be the primary market. Let's say that you had a bunch of "widgets", and people were willing to pay $100 for them. Would you sell them to people for $50, knowing full well that they were going to resell them for the $100 market value? I'd hope that you would want the $50 profit yourself instead of letting a flipper have the extra $50.

Why is one group more entitled to profit than another?

 

[M4Madness]

Why is one group more entitled to profit than another?

Sell me an ounce of gold for $300 then. LOL!

Retailers have overhead, while a flipper does not. I'd rather give my money to a retailer so they can keep their doors open. You are free to choose as you wish.

 

[WebSnyper]

Someone's going to be making the profits, so it may as well be the primary market. Let's say that you had a bunch of "widgets", and people were willing to pay $100 for them. Would you sell them to people for $50, knowing full well that they were going to resell them for the $100 market value? I'd hope that you would want the $50 profit yourself instead of letting a flipper have the extra $50.

I don't understand this designation of the primary market. There are several levels of the supply pipeline. Walmart may deal direct with manufacturers, while an LGS may deal with a distributor or several people in the middle.

Sell me an ounce of gold for $300 then. LOL!

Retailers have overhead, while a flipper does not. I'd rather give my money to a retailer so they can keep their doors open. You are free to choose as you wish.

Flipper's cost of goods sold is higher than the retailer he is purchasing from. By definition his price will be higher, and the "flipper" is helping cover the store's overhead when he purchases from them, unless the item is sold as a "loss leader" and I quite doubt that Walmart is selling ammo at less than their cost of goods sold price.

To each their own, but I don't understand this "I'd rather pay more to the retailer, etc." argument. Personally, I'd like a sustainable supply at a price I am willing to pay. I'm not interested in buying at an inflated price, no matter who the supplier is, so I don't.

 

[M4Madness]

I'm not interested in buying at an inflated price, no matter who the supplier is, so I don't.

Same here. I've got tons of .22LR, and have no real problems finding it at Wal-Mart. I may have to wait a week or two between purchases, but other than that, it's extremely easy for me to get.

 

[Arthur Dent]

Sell me an ounce of gold for $300 then. LOL!

Retailers have overhead, while a flipper does not. I'd rather give my money to a retailer so they can keep their doors open. You are free to choose as you wish.

Even the flippers have overhead, in the form of ammo they want to sell.

 

[M4Madness]

Even the flippers have overhead, in the form of ammo they want to sell.

Yeah, but if they bought it at Wal-Mart, they always be able to at least break even. They'll never lose money on it.

What I meant in my previous post was that stores need to make a profit to pay the bills in order to remain open. If I had the choice of buying ammo from a retailer or flipper at the same price, I'd choose the store every time. But, as I said above, I'm not paying above Wal-Mart's price for ammo from anyone, unless the situation ever arises that I cannot get it in the manner that I am accustomed.