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#3082611 - Sat Jul 27 2013 06:37 AM Ammo Manufacturers
Chuckski Offline
apprentice

Registered: Sun Jul 17 2011
Posts: 47
Loc: Pennsylvania
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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#3082617 - Sat Jul 27 2013 07:08 AM Re: Ammo Manufacturers [Re: Chuckski]
mus42tang Online   content
Honored

Registered: Wed Jul 25 2001
Posts: 5059
Loc: Georgia
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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#3082628 - Sat Jul 27 2013 07:29 AM Re: Ammo Manufacturers [Re: Chuckski]
Cold Bore Offline
old hand

Registered: Fri Oct 22 1999
Posts: 1073
Loc: PA
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 na´ve and self-centered point of view.

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#3082634 - Sat Jul 27 2013 07:52 AM Re: Ammo Manufacturers [Re: Cold Bore]
DIYASUB Offline

Stopped counting

Registered: Thu Jan 12 2006
Posts: 21043
Loc: NORTHERN NEW YORK STATE
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.
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What an obamination this has turned out to be!!!

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#3082654 - Sat Jul 27 2013 08:47 AM Re: Ammo Manufacturers [Re: DIYASUB]
jimsdad Offline
Honored

Registered: Sat Oct 28 2006
Posts: 7891
Loc: Chester County, PA
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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#3082657 - Sat Jul 27 2013 08:52 AM Re: Ammo Manufacturers [Re: DIYASUB]
Cold Bore Offline
old hand

Registered: Fri Oct 22 1999
Posts: 1073
Loc: PA
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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#3082660 - Sat Jul 27 2013 08:54 AM Re: Ammo Manufacturers [Re: jimsdad]
Cold Bore Offline
old hand

Registered: Fri Oct 22 1999
Posts: 1073
Loc: PA
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. whistle

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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#3082735 - Sat Jul 27 2013 11:19 AM Re: Ammo Manufacturers [Re: Chuckski]
Pa. Slim Offline
enthusiast

Registered: Sun Feb 06 2005
Posts: 578
Loc: Indiana, Co. Pa
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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#3082738 - Sat Jul 27 2013 11:21 AM Re: Ammo Manufacturers [Re: Chuckski]
zimmerstutzen Offline
The man

Registered: Fri Oct 19 2001
Posts: 9772
Loc: lancaster
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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#3082847 - Sat Jul 27 2013 03:36 PM Re: Ammo Manufacturers [Re: Cold Bore]
jimsdad Offline
Honored

Registered: Sat Oct 28 2006
Posts: 7891
Loc: Chester County, PA
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.


Edited by jimsdad (Sat Jul 27 2013 03:37 PM)
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