Why is hollow point ammo more expensive than FMJ?

[jgradyc]

I was looking at Ammo to Go. I don't usually buy bulk ammo, but I was surprised to see the difference in price. I noticed that the cheapest hollow points started around 36 to 38 cents per round, whereas the cheapest FMJ and TMJ ammo was only 18-24 cents per round. 

 

Why? 

[Garufa]

For one thing, it costs more to manufacture.

[Raoul]

The cost of holes on the spot market is way up.

[leroy]

The "...it costs more to manufacture..." answer from brother Garufa is right... Round nose bullets and non hollowpoints take less manufacturing... The "magic" flowered hollowpoints of today have a hollow nose and a folded bunch of "petals" over that nose... At the minimum, it takes 3 additional manufacturing steps to make... Cut the petals, cast the nose or stamp in the hollowpoint cavity, fold the "petals" over the nose...

 

leroy

[JAB]

Not to mention that, as hollowpoint rounds are sold for self defense, I believe they often use better/more expensive materials (nickel plated shell casings, etc.) and maybe get a little more quality control attention paid to them than FMJ which is generally intended as range/practice/plinking ammo.  I would say that this is especially true with ammo that is considered to be 'premium' self defense ammo - the stuff that routinely comes in boxes of only 20 or 25.

[Pete123]

Also, R&D costs for hollow points

[Caster]

Because people will pay it.  

[SupaRice]

This is a great question, I've thought about this before.... I'm sure it does cost more to make, but it CAN'T be commensurate with the cost difference. Unless this is more driven by demand....

 

Like "we sell 15x more FMJ, and this stuff costs 1.5x the cost of FMJ to make so we'll sell it for 5x the cost of FMJ"

 

 

It also makes you wonder why a rifle that is in .308 vs one that it's in like .338LM that there's such a cost difference. The costs in making that rifle in those two calibers has to be negligible at best (time to reset the machines for making the barrel or whatever).

 

Things that make you go "Hrmmmm"

 

[chances R]

Also more expensive powders are generally used.  Most have a flash suppressant and therefore require a few more grains as well.

[nightrunner]

Lots of reasons for the ammo.

As for .308 vs .338, you do know those take different receivers not to mention a much higher power level

[Lumber_Jack]

Demand has a lot to do with it. High volume sales are generally cheaper. People buy fewer hollow points. Therefore they have to charge more to keep margins up to continue manufacturing. Same thing with large caliber hunting rounds. Fewer sales to cover the costs associated with production.

[RED333]

Get ya one of theses.

[URL=http://s896.photobucket.com/user/redintn/media/MiHec%20mold/MiHec403_zps1d410b69.jpg.html][/URL]

To make some of theses. 40 cal HP

[URL=http://s896.photobucket.com/user/redintn/media/MiHec%20mold/bigpileboolits_zps1a970df3.jpg.html][/URL]

[URL=http://s896.photobucket.com/user/redintn/media/MiHec%20mold/401mehic-1_zps69d6879d.jpg.html][/URL]

Then do this with a 40 S&W case to make a 44 cal mag jacketed boolit.

[URL=http://s896.photobucket.com/user/redintn/media/44%20mag%20swage/step5_zps66721658.jpg.html][/URL]

Easy pesy, lemon squeeze

[RED333]

After the cost of the mold, lead and you time, PRICELESS!!!

[DaveTN]

Someone has to pay for all those attorneys fighting the hollow point bans.

Just kidding, as stated above it’s the manufacturing, materials and R&D. It’s more than just a hole in the end of the round. (Although I have seen some that was nothing more than a hole in the end of the round.)

[peejman]

This is a great question, I've thought about this before.... I'm sure it does cost more to make, but it CAN'T be commensurate with the cost difference. Unless this is more driven by demand....

 

Like "we sell 15x more FMJ, and this stuff costs 1.5x the cost of FMJ to make so we'll sell it for 5x the cost of FMJ"

 

 

It also makes you wonder why a rifle that is in .308 vs one that it's in like .338LM that there's such a cost difference. The costs in making that rifle in those two calibers has to be negligible at best (time to reset the machines for making the barrel or whatever).

 

Things that make you go "Hrmmmm"

 

 

 

 

While I'm certain the margin on defense ammo is significantly higher than plinking ammo, manufacturers also spend millions developing the details of the bullet and even more millions on the manufacturing processes to make them.  Defensive ammo isn't made on 50 year old machinery that's long since paid for.  All that gets rolled into the cost of the product. 

 

As for the .308 vs .338 cost difference.... volume.  Economies of scale.  They probably make 1000x more .308 cartridges than .338.  The .338 uses larger brass and more powder, both of which add to the cost. 

 

The machinery making .308 ammo runs 24/7/365.  It never stops unless something goes wrong.  The machinery making .338 ammo also makes .416, .444, and a whole host of other "boutique" calibers.  It stops and starts all the time, tooling has to be changed out, machines adjusted and reset for each different caliber.  All that takes lots of time (unproductive time) and people to do it, which costs money.  All that cost gets rolled into the price of the ammo.

Edited December 11, 2015 by peejman

[Preacher357]

I have found that JHP bullets for reloading are often cheaper than jacketed hardball, though.

Sent from my XT1254 using Tapatalk

[BigK]

I think everyone already covered most of the reasons. I think volume and R&D are the 2 major factors with premium SD ammo. Even cast hollow points with no bonded jacket or petals costs a little more for the precision required to make ammo your life depends on vs target ammo.

 

Right now they compete based on who can convince you their ammo is more effective. That costs more, but if demand went way up, they'd find a cheaper way to make them and they'd become less effective. See Wolf FMJ ammo quality vs Federal FMJ for how far a mfg will stoop to compete on price.

[Grunt67]

Similar situation, off topic, but, why does it cost more to leave Ethanol out of gas than put it in?

[Garufa]

Similar situation, off topic, but, why does it cost more to leave Ethanol out of gas than put it in?

 

Corn is cheaper than oil.

[Grunt67]

That's true, but % wise it doesn't add up. Only a few places have it, so they jack up the prices, at least in this area.

[RED333]

Way off topic but

gasoline contains 114,000 BTU of energy;

ethanol only has 76,100 BTU's of energy per gallon.

Less energy means less miles per gallon. In 2007 George W. Bush made it possible for gas stations to sell Gasohol (E10) without labeling the pumps; in other words, you may not know alcohol is in the gas. Ever wonder where your gas mileage went?

 

http://www.hho4free.com/gasoline_vs_ethanol.htm

[peejman]

That's true, but % wise it doesn't add up. Only a few places have it, so they jack up the prices, at least in this area.

Supply and demand. Distribution costs.