I Know Where There Is Tons Of Ammo For Sale,,,But

[Guest Grout]

The whole town of Benton has been price gouging for years (notorious speedtrap)

[Randall53]

I will quit shooting as a hobby before I ever pay those prices. Guns will strictly become tools if this continues.

yep.....you and me both.

[Troutburger]

Not trying to stand up for the gougers, but wholesale prices have also been climbing steadily through all of this. While prices are increasing, profit margins at most LGS are pretty much the same. 

 

The distributors hold most popular products as allocated items.  Meaning the CSR at that distributor can pick and choose which FFL gets his premium items. 

 

So here is the tear, in order to get top consideration for the popular allocated items the FFL must buy large quantities of crap like cleaning kits, targets, and throw guns.  Items that they will either sit on forever or sale at little to no profit. In order to run a successful business they must charge enough on the selling items to cover the losses on the crap items, and still maintain a profit.

 

So if you stumble upon a shop with a large quantity of premium ammo and products, you can rest assured they have many thousands of dollars invested in crap they may never move at a profit.  

 

My point being not all of this problem is just local greed.  Its a flawed and very stressed distribution system as well. 

[Randall53]

lWell, I don't know if all that's true our not, but I'm not going to fund his purchase of extras if I have to pay $100 for a box of ammo other stores sell for $20. I bought a brick the other day from Cabellas for $29 shipped to my door. personally, I hope they lose their butts.

[runco]

Not trying to stand up for the gougers, but wholesale prices have also been climbing steadily through all of this. While prices are increasing, profit margins at most LGS are pretty much the same. 

I don't buy into this theory too much.

 

Most wholesalers and I mean most, have long term supply contracts with manufacturers to protect pricing, so likely the wholesale market from manufacturing to the wholesaler, the wholesale pricing has likely not changed in recent months.  Allocation due to capacity has creeped in, but pricing hikes have not.  Now on the otherhand, if the local gun store does not have supply contract agreements between themselves and the wholesalers, then I would agree, but I would believe these local gun stores that have been around for some time, they likely have long term supply agreements too with the wholesellers (or should have) to protect against runs like this. If the theory was true that wholesale prices have gone up, we the consumer should not see much price difference between one local gun shop to the next, but since we do, then something is not right either at the retailer or the wholesell level. In any event, if I was the retailer, I would defend my pricing business model by blaming the wholeseller, and I must pass this increase on to the consumer.

[spikehunter]

I would love nothing more than to see Benton's go out of business. There are plenty of helpful lgs out there. I think catering to the uninformed is bad business especially in the long run.

[Troutburger]

Not asking anybody to believe it, lol.  Read for yourself. I'd be happy to forward the letter anyone's email. 

They increased prices on all current orders that were placed on backorder.

 

Boulder City 02-26-2013.

To all our esteemed Customers:

As all of you know the trend for 2013 has been so far very hectic; the

unprecedented current demand, for which our gratitude goes to you, esteemed

customers, is thus obliging us to go many extra miles in order to attempt to fulfill

the orders.

The amount of investments, the increased lead cost and the decline of the US

Dollar against the Euro area ( where we source the majority of our components ),

thus forcing us to take a price increase effective for all orders delivered starting

March 1st.

As customary with Fiocchi Ammunition we have tried to maintain this price

increase as manageable as possible for our customers ; we do not have fixed

percentages per product family but we worked on an item by item base.

We will adjourn all Orders and Back Orders in our system, with your approval, in

order to reflect to the new March 1st. prices.

We will send you adjourned price lists as soon as available that will specify in

detail the price increase per item.

Best Regards,

Carlo Nelson Fiocchi

V.P. Sales & Mkt.

Fiocchi of

[runco]

Those price increase letters work on non-supply agreement or non-contractural situations.  Also, those letters don't work to well when the intendend audience simply says no and pushes back. 

[dlm37015]

i stopped buying from one of my wholesalers for that very reason .they are in tn as well it has hurt a little in this current mess but i will get over it.i hope the other dealers will remember how css has been to their realers

[dlm37015]

Those price increase letters work on non-supply agreement or non-contractural situations.  Also, those letters don't work to well when the intendend audience simply says no and pushes back. 

no that is not how it works in all the contract buys i have ever been in there is an out for the wholesaler.you are more than welcome to spend a day or 2 with me to see how it works

[runco]

no that is not how it works in all the contract buys i have ever been in there is an out for the wholesaler.you are more than welcome to spend a day or 2 with me to see how it works

I may take you up on that invitation.  I have been in profesional purchasing over 20 years (large industrial scale), and I am quite frankly tired of the industry I am in.  Love to take what I have learned in that industry and apply it to another industry.  I do love purchasing! 

 

There is a difference in between spot contract buys and weekly re-occuring contract purchases. Have you ever tried long term supply agreements? It works in my industry quite well, can work in others. But I also work in an industry where we expect the manufacturer to provide 1-3% price down each year. If they don't we go somewhere else?  How would you like to have that in your industry?

 

I think understand your business model, you likely buy in very large one time buys, but on an infrequent basis, and based upon product availabilty, am I right? I assume you may go weeks without buying something, then suddenly you buy in very large, and I mean very large one time buys? You likely pick up your goods yourself due to the nature of your product, and it saves you lot on freight costs (just your time, fuel, and maintenance). Your business model is different from what I am referring too, it likely has lower overhead when compared to brick and mortars, coupled with your own markup receipe, and your terrific customer service, is why you are very successful.  In my statements in this thread, I am referring to brick and motars that buy from the same wholeseller each week or every other week, they are consistent on their purchase pattern. They likely have an agreement or should have an agreement, i.e. we promise to buy 100% of X from wholeseller Y for a period of 3 years, in return they have a firm price of Y for that period of time. Both the seller and buyer have some level risk, but both have a firm commitment or partnership with one another. Of course there are other fine print and performance issues, but it does work, both parties have a comfort level. 

Edited March 28, 2013 by Runco

[bikertrash2001]

If you guys would rather have 22lr shipped than go all the way to Benton, CTD has Armscor bricks for $149.

 

http://www.cheaperthandirt.com/product/AMM-0552

 

That's only .30 a round!

[dlm37015]

I may take you up on that invitation.  I have been in profesional purchasing over 20 years (large industrial scale), and I am quite frankly tired of the industry I am in.  Love to take what I have learned in that industry and apply it to another industry.  I do love purchasing! 

 

There is a difference in between spot contract buys and weekly re-occuring contract purchases. Have you ever tried long term supply agreements? It works in my industry quite well, can work in others. But I also work in an industry where we expect the manufacturer to provide 1-3% price down each year. If they don't we go somewhere else?  How would you like to have that in your industry?

 

I think understand your business model, you likely buy in very large one time buys, but on an infrequent basis, and based upon product availabilty, am I right? I assume you may go weeks without buying something, then suddenly you buy in very large, and I mean very large one time buys? You likely pick up your goods yourself due to the nature of your product, and it saves you lot on freight costs (just your time, fuel, and maintenance). Your business model is different from what I am referring too, it likely has lower overhead when compared to brick and mortars, coupled with your own markup receipe, and your terrific customer service, is why you are very successful.  In my statements in this thread, I am referring to brick and motars that buy from the same wholeseller each week or every other week, they are consistent on their purchase pattern. They likely have an agreement or should have an agreement, i.e. we promise to buy 100% of X from wholeseller Y for a period of 3 years, in return they have a firm price of Y for that period of time. Both the seller and buyer have some level risk, but both have a firm commitment or partnership with one another. Of course there are other fine print and performance issues, but it does work, both parties have a comfort level. 

no in most cases i try to buy for a year at a time to be delivered every 2 weeks.case in point i was at a dealer show in feb i ordered 2.8 millon dollars worth of supplies got 1 shipment then the price went up about 15 per cent an everything i had already ordered  i had a contract to buy if i had not i wouldnt be getting anything.my powder supplier had a price in crese every month this year. as far as over head i spend about 2500-3500 for tables at gunshows each monthplus a warehouse plus 3 trucks and trailers insurance alone is 1300 plus per month brick and morter store is much cheaper but i see more people in a month as a store sees in a year.you buying plan is nice i i wish it could happen but this industry is a little strange .yes i still go to buying shows not the shot show but the nwsg dealers show winchersters show serveral through the year

i have to pick up most of my powder as trucking companys cannot haul smokeless powder for small arms after 2014 ammo will be haz mat as well de to new dot classfication.like i said you aqre more than welcome to hang out with me for a week or so

Edited March 28, 2013 by dlm37015

[runco]

I may just do that.  I love to learn, maybe it will help me prepare my own business plan.  I do plan to get back in the business (someday).  I truly miss being in the gun business.  When you can combine a hobby with a little income, it makes for fun, alot of fun. 

[dlm37015]

trouble is mine started as a hobby .its now too big for me to take care of .i would sell it .it was fun till the goverment stuck their claws into everything

never thought i would have a laptop 3 cell phones and an i pad . i am retired i would rather go fishing i wish my daughter would step up and take over

[leftyk82]

trouble is mine started as a hobby .its now too big for me to take care of .i would sell it .it was fun till the goverment stuck their claws into everything
never thought i would have a laptop 3 cell phones and an i pad . i am retired i would rather go fishing i wish my daughter would step up and take over

Well we certainly are thankful for you and Sam! Y'all do a terrific job in these crazy times

[Wingshooter]

My guess is Benton Shooters does not want to sell all their ammo. If they priced it reasonably, their shelves would soon be empty. If they price it through the roof, then their shelves stay stocked full of ammo. They can advertise that they have all this ammo in stock in order to get customers to travel to their store. Once there, the customer doesn't buy the overpriced ammo but might buy a few other items since they are already there. The only problem with my theory is EVERYTHING in the store is high dollar.

Im not making excuses for them, but that's my best guess.

[Patton]

My guess is Benton Shooters does not want to sell all their ammo. If they priced it reasonably, their shelves would soon be empty. If they price it through the roof, then their shelves stay stocked full of ammo. They can advertise that they have all this ammo in stock in order to get customers to travel to their store. Once there, the customer doesn't buy the overpriced ammo but might buy a few other items since they are already there. The only problem with my theory is EVERYTHING in the store is high dollar.

Im not making excuses for them, but that's my best guess.

Maybe, but what where they doing in 2011 with all their overpriced stuff?

Seriously I think they just want to be able to say they have it, just like you said.

[ddavis6161]

Sounds like ole Brad is trying to get rich at benton shooters.

[Guest CZ2075]

The ammo prices and reloading components are priced very high no doubt. Their ammo has always been higher priced than most. However I recently purchased a rifle from them. No one in my area had one available, and Benton's had one on the shelf for $6 more than the lgs. I guess the item I wanted wasn't one of the current must haves, so the price wasn't really inflated. I hate to hear all the bad stories, as I have always had a good experience there. But I am only in there 3 or 4 times a year.