The outrageous price markups.

[Die Judicii]

All businesses have running costs, some more so than others, but check this out,,,,,,,,,,,,,,,,,

Advert that I read today,,

Ammunition, 308 Gold Dot 168gr Speer
New,
$39 / pack
REDUCED from $73 to clear.

Now lets be realistic,,,, they would not be selling them out at a loss nor selling them at cost,,,,, so a profit would still be in the sales.
It makes the mind boggle when you think that every single item in the entire shop would likely have very similar markup %%%

Surely a lesser amount of markup % in day to day trading would equate to an increase in over the counter sales, which in turn would generate
a higher turnover rate for the business including attracting new customers ?

[wanneroo]

Retail pricing is a tricky thing and people lose their shirt in retail businesses all the time.

In the case of gun stores you have to weigh up supply in the pipeline. That's why supply side economics work so well. Covid crushed supply chains and triggered a whole chain reaction of events which we are still feeling the pressure from today. Add in government printing so much money and you have more dollars chasing less goods, which is a disaster for all of us.

If the supplies are good and plentiful, gun stores can price competitively and take lower margins because they can sell more and have more to sell. If supplies tighten and demand is still strong, prices go up.

However probably like here in the USA, the economy is slowing, money is drying up and now some stores have to move product somehow, even if they don't have adequate supply, hence for instance I am seeing here in the USA a bit of "clearance" and "Close-out" sales on individual products. These retailers don't know when the next one is coming but they have to move the product somehow and redeploy that money elsewhere. Every day a product sits on the shelf it's losing money. A retailer may chose to take a loss on some products to reinvest in others that might make money.

[Oldbloke]

It will vary of course, but retail markup is typically 100%. Profit is another story.

Some products that are high turn over at places like kmart can be much higher, perhaps 500% markup.

[womble]

We need the market to slow to stop inflation
I think prices were improving a bit but now the Jews and the Muslims are going at it again so up goes the oil again

[bladeracer]

All businesses have running costs, some more so than others, but check this out,,,,,,,,,,,,,,,,,

Advert that I read today,,

Ammunition, 308 Gold Dot 168gr Speer
New,
$39 / pack
REDUCED from $73 to clear.

Now lets be realistic,,,, they would not be selling them out at a loss nor selling them at cost,,,,, so a profit would still be in the sales.
It makes the mind boggle when you think that every single item in the entire shop would likely have very similar markup %%%

Surely a lesser amount of markup % in day to day trading would equate to an increase in over the counter sales, which in turn would generate
a higher turnover rate for the business including attracting new customers ?

I would expect there's probably 100% between their buy price and the RRP, whether the RRP is actually $73, or that is merely what they try to sell it for normally is debateable I guess. If RRP is $73 then their buy price is probably $36.50. If they were selling 100 boxes a month it'd be a bice earner, but at $3.65 a round for non-match ammo they probably sell five boxes a year, thus they want to make room on the shelf for something that does sell.

[niteowl]

I wish there was a 100% for thermal scopes etc. If we gave a 30% discount as many think we should be able to do, we would actually lose money on EVERY sale !!!!

[womble]

25 % discount seems reasonable then

[Blr243]

I thought gold dots were a description only relating to pistol bullets.

[on_one_wheel]

Supply and demand, their in it to make money and as long as its still moving the price will increase until it hits resistance.
I have been running a small business for a while now brewing, bottling an selling a popular condiment to supermarkets.
My mark up is 100%, my distributor adds 30% to 65% to my wholesale price (30% when he's running specials) the supermarkets generally work on another 30%, so basically everyone along the food chain has a little room to cut the fat when sales slow down.

Perhaps that's what's happened with the ammo, I'd bet there's more than 3 people / businesses on their supply chain taking a slice of the pie along the way.

[deye243]

I thought gold dots were a description only relating to pistol bullets.

Nope they make outstanding bonded defence rifle pills to and they are great in a 223 for hunting all sorts of beast's

[mchughcb]

In the space of a couple of years, Nosler 308 165gr Ballistic tips have gone from $50/packet of 50 to $69, $80 and now some shops are charging $84.

Primers used to be around $0.05 now you would be lucky to get them for $0.27/primer.

Exchange rate is killing it.

[niteowl]

25 % discount seems reasonable then

Not if I am expected to actually stay in business

[womble]

For you I pay full price, worth it for the service

[straightshooter]

If you think prices are outrageous now take a deep breath.
Consider these two events.
Lake City has stopped commercial supply of 223 ammunition hence a major reduction of 223 available to the public. As a consequence 223 ammunition is going up in price right when US domestic demand is rising faster than anxiety about world events.
Vista Brands have sold their ammunition manufacturing brands (CCI, Federal, Speer, Remington etc) to a Czech company CSG, owned by a 30 year old Czech billionaire. (hmmmm)
So what do you think will happen in Australia seeing as how we are at the blunt end of the supply chain?
Preppers and hoarders don't seem as crazy as they used to be.

[wanneroo]

If you think prices are outrageous now take a deep breath.
Consider these two events.
Lake City has stopped commercial supply of 223 ammunition hence a major reduction of 223 available to the public. As a consequence 223 ammunition is going up in price right when US domestic demand is rising faster than anxiety about world events.
Vista Brands have sold their ammunition manufacturing brands (CCI, Federal, Speer, Remington etc) to a Czech company CSG, owned by a 30 year old Czech billionaire. (hmmmm)
So what do you think will happen in Australia seeing as how we are at the blunt end of the supply chain?
Preppers and hoarders don't seem as crazy as they used to be.

I'm going to be doing a Youtube video on how to get out of the whole circus of riding the wave of all these "panics".

At the same time the stuff you mention is going on, companies like Sig Sauer are getting in the primer business and expanding their ammo business. Palmetto State is turning into a big player and has their own ammo company now.

Not sure how this whole Czech thing is going to play out. But I know a lot of people hated Vista so who knows.

[deye243]

If you think prices are outrageous now take a deep breath.
Consider these two events.
Lake City has stopped commercial supply of 223 ammunition hence a major reduction of 223 available to the public. As a consequence 223 ammunition is going up in price right when US domestic demand is rising faster than anxiety about world events.
Vista Brands have sold their ammunition manufacturing brands (CCI, Federal, Speer, Remington etc) to a Czech company CSG, owned by a 30 year old Czech billionaire. (hmmmm)
So what do you think will happen in Australia seeing as how we are at the blunt end of the supply chain?
Preppers and hoarders don't seem as crazy as they used to be.

Haha yep I have enough to see me out and my son has enough for 15 to 20 years because he listened to me 15 years ago .