Ammo Manufacturers - The HuntingPA.com Outdoor Community

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post #1 of 24 (permalink) Old 07-27-2013, 10:37 AM Thread Starter
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Ammo Manufacturers

I was speaking to my local gun shop owner concerning status of ammo. A flyer he received, the ammo companies are increasing output of high end premium ammo so there will be less standard ammo this hunting season. Its all about profit margin and 22 rimfire is low profit margin for one.There just as much to blame, they make enough to fill orders no more.
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post #2 of 24 (permalink) Old 07-27-2013, 11:08 AM
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Re: Ammo Manufacturers

Seems to be a shortage of aluminum arrows these days. People move on; companies move on.
And with no profit margin, companies do move on.

When I was very young there was a shortage of eggs. Even eggs can be in short supply.
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post #3 of 24 (permalink) Old 07-27-2013, 11:29 AM
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Re: Ammo Manufacturers

Quote:
Originally Posted by Chuckski
Its all about profit margin and 22 rimfire is low profit margin for one.There just as much to blame, they make enough to fill orders no more.
Do you happen to own a business?

If you do, are you concerned about profit margin, and your company making money?

I doubt that they are intentionally slowing production, on an overall basis. They only have a set amount of tooling and capacity, and choose to use that to produce what is going to make them the most money. Can't blame them one bit for that.

As much as we don't like it on a personal, it's-all-about-me level, should you really expect a company to sacrifice profit to keep YOU happy, with low priced, lower end ammo?

Pretty nave and self-centered point of view.
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post #4 of 24 (permalink) Old 07-27-2013, 11:52 AM
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Re: Ammo Manufacturers

Actually, I can think of a number of successful businesses that are in existence because their philosophy is 'low profit, high volume'. The most well known of them is Walmart.

.
What an obamination this has turned out to be!!!
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post #5 of 24 (permalink) Old 07-27-2013, 12:47 PM
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Re: Ammo Manufacturers

More to the point; I would think that since the popularity of the .22 is probably far beyond that of any other round, that volume would overcome cost of manufacturing for this particular ammo.

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post #6 of 24 (permalink) Old 07-27-2013, 12:52 PM
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Re: Ammo Manufacturers

Quote:
Originally Posted by DIYASUB
Actually, I can think of a number of successful businesses that are in existence because their philosophy is 'low profit, high volume'. The most well known of them is Walmart.
If you want to buy ammo imported from China, I guess you've found your spot.

But let's compare a little more accurately.... what does Wal-Mart actually MANUFACTURE?

How much capital do they have invested in tooling, that needs to show a positive return?

They are a reseller, not a manufacturer of anything. Big difference.

And how broad is their array of goods to cover the high volume, a little bit of everything concept, versus an ammo manufacturer?
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post #7 of 24 (permalink) Old 07-27-2013, 12:54 PM
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Re: Ammo Manufacturers

Quote:
Originally Posted by jimsdad
...I would think ...
Maybe you can get a job with the ammo manufacturers, once they see your impressive resume and hands-on knowledge of their business.

Just wondering... what is the profit margin on 22 LR? How about standard 30-06? Premium 30-06?

How does that compare to volume?

Where's your break even point?
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post #8 of 24 (permalink) Old 07-27-2013, 03:19 PM
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Re: Ammo Manufacturers

not sure what you mean by low profit margin on 22 ammo. I would think that $40-$60 for 500 rounds of 22s is a little high. I think the margin for 30-06 is probably lower then the 22s. just my opinion.
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post #9 of 24 (permalink) Old 07-27-2013, 03:21 PM
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Re: Ammo Manufacturers

Very Popular ammo usually means lots of competition to lower prices, ie very little profit. The guy that plunks down $60 a box of 20 for Weatherby or other somewhat exotic ammo pays the costs and payroll. 22 ammo is sold as a loss leader to get people in the door to hopefully buy other higher profit items.
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post #10 of 24 (permalink) Old 07-27-2013, 07:36 PM
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Re: Ammo Manufacturers

Cold Bore, with emphasis on the Bore part. Maybe you can get a dose of wise guy remover and apply it to your know it all replies.

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