View Single Post
Old April 7, 2013, 09:54 PM   #23
carguychris
Senior Member
 
Join Date: October 20, 2007
Location: Richardson, TX
Posts: 7,527
Quote:
The one thing that has me at a loss is why many of the retailers(Dunhams, Walmart, Dick's) in my area of PA are not getting regular deliveries of ammo as they have in past years. What is the cause of the irregular or stoppage of regular ammo deliveries?
There are 3 major factors at play with big-box sporting goods discounters:
  • These stores typically purchase large lots of goods at a low fixed price and make money on volume rather than on markup.
  • They don't stockpile large inventories in warehouses; they expect to buy from a supplier, promptly ship the goods to a store, put them on a shelf, and sell them quickly.
  • The corporate bosses are usually sensitive about maintaining a consumer perception that their chain offers a low, or at least competitive, price. To that end, prices and inventories are controlled by the bosses at HQ, and individual store managers generally have little or no influence over what they get and how much they can charge.
This business model works great when you can get large quantities of goods from a supplier very quickly, but it puts them at a disadvantage to smaller retailers during an acute shortage that is driving up prices- a rarity in the Western world today. Smaller retailers have more flexibility to raise and lower prices to match demand, to stockpile high-demand goods, and to accommodate rapidly rising wholesale prices by raising retail prices accordingly. This gives suppliers an incentive to sell to small retailers during a shortage, as the small retailers are more likely to acquiesce to the higher prices.
__________________
"Smokey, this is not 'Nam. This is bowling. There are rules... MARK IT ZERO!!" - Walter Sobchak

Last edited by carguychris; April 7, 2013 at 10:00 PM. Reason: minor reword...
carguychris is offline  
 
Page generated in 0.03365 seconds with 8 queries