Thread: LGS Ripoff!
View Single Post
Old March 18, 2013, 08:11 AM   #55
shuler13
Senior Member
 
Join Date: December 15, 2011
Location: Austin
Posts: 156
LGS Ripoff!

Quote:
Originally Posted by Sport45 View Post
shuler13, I went back and read every one of your posts in this thread and I still can't tell for sure which side of the fence you are on. One minute you say it's "immoral" and the next you say "A short term premium if you need to" is okay.


You also propose strict punishment for resellers. You aren't much in favor of individual freedoms, eh? What's next, will you be telling us we don't "need" to buy more than X rounds a month?

You are starting to sound like the folk trying to say we don't "need" more than 10 round capacity magazines and the like.

As was mentioned above, it's the buyers, not the sellers who determine market price. Morals have nothing to do with this, it's business. And no, not everyone who sells guns and ammunition is a gun enthusiast. Not even the ones who own the gun stores. To be successful in business you have to take care of the business first.
I'll try to clarify, but I don't expect you to agree. I think there is a difference increasing the price and what I would consider immoral gouging. For example, I'm going to venture a guess that a 525 round box of 22lr pre panic ran about $15-20. I assume (which always gets me into trouble) is anywhere from 10-30% over cost. The retailer makes $1-5 per box. Lets assume this retailer on average sells 100 boxes a month. Enter the shortage and the retailer only gets in 50 per month and he has buyers who want to purchase 300 at the old price. I understand the retailer has fixed costs that need to be recouped on less inventory so he has to raise the price. This I understand so I would expect, during a shortage that the business has some decisions to make.

1)He could revisit freshman economics and adjust price so the number of buyers = supply. No shortage, no surplus. Priced way up, Costs are the same and profits increase. Many customers in the store saying *** and posting on boards complaining
2) he could increase the price enough to cover the loss in supply to cover his operating costs (say from $20/box to $25/box) until supply returns and not limit purchase limits. Prices up a little Costs are the same, profits are usual, one person buys up inventory and a shop of customer coming in every day cussing the lack of inventory and heading to the boards to bitch
3) he could increase the price enough to cover the loss in supply to cover his operating costs (say from $20/box to $25/box) until supply returns and instill temporary purchase limits. 100rds of practice ammo for up to three calibers a month. Costs are the same, profits are usual, many partially satisfied customers with ammo and fewer people on the boards griping about being screwed or a lack of ammo.

The first seems wrong. The person who benefits in the owner who profits a great deal without any increase in costs to them.

As for resellers, I don't like the idea of a person surfing walmarts after the trucks arrive collecting ammo, thereby removing inventory from people wanting to purchase for use that are too busy working to wait around, exacerbating the shortage, for their own personal gain. I'm seeing $20 boxes of 100 count federal 9mm being listed for 3-5 times what they paid for it.

That is different than the guy who has 5000 rounds sitting at the house who is willing to sell at a high price. This person didn't make the panic worse. He's bringing an option to the table.

And no, I'm not for magazine limits, that's not the issue being discussed. I am for individual freedoms, but I really dislike the vulture mentality. If you provide a service, get paid an honest wage. Ammo hawking gougers are not performing a service, they are selfish people making the problem worse.

"Morals have nothing to do with this, it's business."
You know what class was taught right after economics I and II? Business ethics. Morals and business are not exclusive. Morals should be involved in every business decision you make. Take care of your business. Earn a profit. But keep in mind, a business should be a long term venture and if you want customers to come back, treat them well especially in the lean times. Be honest. Be fair. If your costs go up and you have to raise the costs, share that. If your supply drops and profits take a hit, explain that's why the price went up. Assure them that when things go back to normal, so will your prices. People will understand, and they'll come back time and again.
shuler13 is offline  
 
Page generated in 0.03139 seconds with 8 queries