Current price changes.......

[Andyshowfan]

I want to start out by stating, I believe in a free market, capitalism and everyone making money, it's the American way, but for the life of me I can not understand all this "price gouging". I just seen "russian" 7.62x39 ( I can only assume is Tulammo or wolf) and as the ad stated, silver bear HP on armslist, all for the low-low price of $1.00 per round. 30rd AR mags that would normally be 15-20 bucks now $35-$75. I really do understand the demand is high right now and the supply is low, but come on do you really need to increase the prices by over 100%? Of course this is not written to change anything, just me getting it off my chest so I don't scream it in the streets.  :rant:

 

 

PS: This is in no way directed to anyone of my fellow TGO'ers

[TNcitizen22]

There are a lot of people who within the next few days are going to feel REALLY stupid.  Perhaps I am being too optimistic, but I feel the panic was for nothing.

[Andyshowfan]

There are a lot of people who within the next few days are going to feel REALLY stupid.  Perhaps I am being too optimistic, but I feel the panic was for nothing.

I have that same optimism, so I hope I don't feel really stupid for waiting to make purchases :) 

[RobertNashville]

I sincerely hope that the panic buying stops pretty quickly and when it does, you'll see prices settle to where they really should be.

 

I don't like it when businesses raise prices by large percentages just because they believe people will pay it but we always need to remember that there are two sides to the free market; the buyer and the seller - if buyers are willing to pay the inflated prices then they can; I chose not to and will continue to not do so.

 

Now, if supply remains very strained and prices very high I may not have a choice but I'm not going to rush out and buy anything right now.

[GlockSpock]

Equilibrium.

 

Equilibrium is where the supply meets the demand. The point in which these two meet is the market price. Anything below the market price and you have a shortage. If, magically speaking, right now 7.62x39mm rounds were going for 25 cents a round, there would be a huge shortage. You wouldn't be able to find it anywhere, at all. That's assuming that 25 cents was as high as they could possibly sale. 

 

Personally, I like knowing that I can buy something (even at a higher rate) due to the market adjusting, vs not being able to buy something because I literally cannot find it. I don't know what people are actually paying for 7.62x39mm ammo, but if they are paying for it at $1 per round, all that would happen if it were currently going for 25 cents a round is people would buy four times as much. It would disappear 400% quicker. If they are paying $1 per round, it is based upon the fact that the supply cannot keep up with the demand. The demand for II Amendment related stuff over the last month has skyrocketed. The only things that can bring price back down are two possible things:

 

Supply catches up with demand.

Demand falls.

 

Both of those are based upon what the speculation of legislation is.

 

If the suppliers feel a ban is coming, do you think they wish to invest capital in expanding production lines? If demand feels a ban is coming, that means they have to purchase everything they want now. 

 

If the suppliers don't feel a ban is coming, do you think they will invest capital in expanding production lines in order to meet the current demand? Perhaps. It depends on how much capital they need to invest vs expected return. If demand feels a ban isn't coming, do you think they will pay inflated prices?

 

Also, I offer this bid of supposed wisdom. People keep complaining about inflated prices. Well, I've also heard the following logic promoted around here, "Don't sale anything that you would regret selling if a ban were to pass". In other words, even if you could sale your AR-15 for $3000 that you only paid $1000 for, is it really worth it if a ban comes within this year? Over the next decade, would you rather have your AR-15 or an extra $3000? 

 

I take that logic and ask the other side of the same coin. If you do not have an AR-15, and you know you want one, is $3000 worth the security in knowing that you have one that you can own today? What if legislative talks this week go haywire and not in our favor? Then AR-15 prices will jump even more. $5000? $10,000? It all depends on demand and supply. If you do not have an AR-15, and want one, and you knew 100% that a ban would pass within a few months, what would you pay? Would you rather have that AR-15 over the next 10 years, or the $3,000, $5,000, or $10,000 that it costs to purchase it. That is called opportunity cost. 

 

There are those that say a ban won't pass. Many people said that in '94. Hell. Remember, supposedly the Hughes Amendment didn't pass. Try paying the taxes on a newly manufactured machine gun as a citizen and see how that goes for you. Look at healthcare. How much of the country was and is against it? Guess what we have now. Tell me the ban won't pass. I hope you are right. But what if you are wrong? One, five, ten years from now, are you going to be spiteful at how much "price gouging" went on in 2013, or are you going to be spiteful that you didn't buy a few more magazines and possibly a gun or two and some ammo? If a ban passes, I doubt it will be the first. 

 

I don't agree with the accepted concept of "price gouging". In order to believe in price gouging, I claim that you must first believe that the seller has an obligation to sell you something. If you own a gas station and a national crisis such as 9/11 happens, who says you have to sale your gas in the first place? What if you wish to keep the tanks full so that you know you have a steady supply for yourself for a while? You might say to yourself, "I am keeping this gas, but if someone wants to pay me $100 a gallon, I'll sell them how ever much they want". A few people might take you up on that, and you might make a huge return on a percentage of your initial investment. But if the price is capped (price ceiling), look what happens. People buy a lot of it and then it is all gone! 

 

Some will disagree with me. I know. Some will agree. I have a very strong belief in the free market system. 

 

Equilibrium 

(It's also a really great movie)

[Hershmeister]

Excellent post.

High prices in a shortage situation ensure that the available supply is there for the person most in need ( assuming they have the $$ I'd course)

Keeping prices low just encourages hoarding as the market "knows" there is High demand and low supply. Thereby moving the supply from the retail channel to the secondary market at the higher price it should have been at in the first place

[tnhawk]

I usually buy more ammo and reloading supplies than I shoot each month.  When the prices are high I shoot less and spend time reloading.

[Guest 6.8 AR]

There are a lot of people who within the next few days are going to feel REALLY stupid.  Perhaps I am being too optimistic, but I feel the panic was for nothing.

It may be longer than a few days, but it will end. Panics reset the level each time we have them. Sometimes they

stay, but most of the time they settle back down. The liberals have laid out their cards on this issue, it's amazing

the panic even comes up, but the timing of recent events added to it this time. Watch the economy get dragged

into this, also, but at a later time. There will be a settling down in between.

 

If Herr Fuhrer goes the Executive Order route, there will be another panic, and it will settle down, also. He will only

accomplish turning over the Senate to the Republicans on that one. Somehow or another I'm thinking his narcissicistic

brain has been reminded of that. Of course the country will suffer even more with his economic policy. He is playing

the ends against the middle.

[1morethan8]

The worth of anything..

Is only what someone is willing to pay...

Not a penny less... or penny more!

[Dustbuster]

I always keep in mind the simple fact that elected officials always tend to react to whats in their face,not whats on the horizon.I dont think well see an EO pop in a law that would create mass revolt.Planning for the worst and praying for the best is one way of dealing with our present "cough" administration.I concur w the equilibrium concept.makes complete sense.On another note,maybe the prices are simply high because the sellers know they can get away with it.supply and demand.I am surprised magpul and a few other mfgs weren't ready for a big rush.....There was word a few months back that there was going to be a shortage of 40 sw ammo,primers pistols and the like due to a huge order placed by DHS. I saw that shortage creep in slightly but never thought the spectrum of shops would be cleared of all of their black rifles,and ammo...at prices no one could imagine.Within 2 weeks.

There was no benefit to those getting massacred in CT....only profit for the select few. I wonder what'll end up at this 1st quarters gun shows...and how the pricing will be... 

[Hershmeister]

I strongly suspect this panic buying will continue. Right now I'm just beginning to hear the news on the radio and regular non-gun enthusiasts are just being exposed to this. Once the retailers begin to be resupplied there will be additional buying due to pent up demand from folks who don't buy at the current prices - this in turn will continue to keep retailers stocked out of many items until the market demand is satisfied. Political and media rhetoric will determine how long this goes on but i for one think it's going to be a long rocky ride

[jhc77]

[quote name="1morethan8" post="874772" timestamp="1357151051"]The worth of anything.. Is only what someone is willing to pay... Not a penny less... or penny more![/quote] Got bored and started looking for magazines. Found a winner. 1, 33 round, Glock, for a bargain price of...$200.

[superduty]

I agree with Hershmeister.

[dlm37015]

i spoke with my atk rep today. he seems to think the panic will continue for several months

[Oh Shoot]

There are a lot of people who within the next few days are going to feel REALLY stupid.

 

Well, it's well past the "next few days".

 

- OS

[Electric B]

What's going on right now is fools parting with their money.

 

To me price gouging is when a person or company is taking advantage of a situation when people are suffering to make a profit. Like selling generators for double the normal price to a town that has just had a natural disaster.

 

 

Nobody is suffering right now because they do not have a  AR's, pmags and ammo. Most of the items that are selling are a hobby at best.

 

You cant price gouge a hobby.