Thread: LGS Ripoff!
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Old March 17, 2013, 08:01 PM   #46
shuler13
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Join Date: December 15, 2011
Location: Austin
Posts: 156
LGS Ripoff!

It makes some logical connections but also makes some assumptions that are not consistent for every situation.

I'll start with the storm - insulin - refrigerator thing. Insulin is fine out of a refrigerator for a month. But people often get a three month supply at a time, so we can move on. Power outages don't last long, maybe a couple of weeks in extreme cases.

Comparing a generator shortage in a power outage is different than an ammo shortage. Power is a utility. Shooting by and large is a hobby. There is a difference between supplying a utility and supplying equipment for a hobby. Knowing that the run on firearms plus a politically induced panic has strained ammo supply, the opportunists are now buying available supply and reselling. It's not like a natural event has lead to a shortage of brass. People created this demand. The suppliers will adjust and prices will go down as shelves are reapplied. Until then this is immoral gouging. This is taking advantage of people that don't know better or other people's panic. You still have what the video pointed out as a system where the only people that get supplied at a fair price are those that get there first at stores that aren't raising prices. And if those that got there first used the product, I would be fine. But it's not. Its advantageous people reselling for a profit. This is removing supply where people that would use it typically look and then increase the cost for their own gain.

And the storm scenario relies on a regional differential where other regions would bring in more supply bringing prices down. This shortage isn't regional. It's national.

A better solution (if it were possible) would limit purchases for those that use until production catches up. Combined with strict punishment for the individual gougers and resellers.

As a business, I understand the need for inventory and if a store is only getting a fraction of their replenishment, then a modest increase in price to keep the lights on and pay employees is expected. If your store needs to sell 100 boxes of ammo a day to pay the staff, and you only get 25 boxes a day in, then I would see why a store might need to increase profit margins on what they do have to sell. Keep in mind, these are the same stores whose sales skyrocketed in November and December. A little foresight would have put some money away to keep things going while re-supply was going to slow.

Economic theory is just that. The real world doesn't always work in a vacuum. Theory works for the moment. You have to see the long term picture. Customers have a memory and they don't like getting doinked. When they needed something most and you charged them triple or more ($250 for a brick of 22) they'll keep that in mind. A store that does that will force their customer base to look elsewhere as if B&M gun stores didn't have enough problems keeping customers as is.

A store gouging is doing it wrong. They are taking advantage and it is immoral. I don't care what that video says. Limit the sales if you need to. A short term premium if you need to. But don't take advantage. And to those of you individual entrepreneurs standing in line at Walmart when the truck comes in then heading to the gunshow and earn a ridiculous profit are just wrong.

The better solution for people is to help each other out while times are lean and return the favor when we are flush with supplies in a few months. That's what should have happened in the video. The guy should have been able to find a person that had a generator and asked for a favor "please refrigerate my sick kids meds".
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