AJC Article on Weapon Sales

T

The Sound Guy

Pursuit Driver
Interesting article on gun sales in the AJC. Couple of facts that I had to chuckle at:

1) The 'covid relief" cash that the Liberals demanded be sent out was used by many to purchase their first weapons.
2) While the BLM and other riots caused many whites to purchase items, the way the news blew the Capital overrun out of proportion as a "White Supremist" riot has caused many elderly, blacks and other minorities to use this latest round of covid relief to purchase weapons.

The founder of the African American Gun Association was quoted saying that many that in the past supported gun control, have called him and said they were going to buy a gun.

Background checks have nearly doubled from 2019 to 2020 (536K to 904K) and trippled from 2010 (333K)

Whole families are going to training classes.

The AJC being a liberal hotbed, had to quote someone from the "Center for American Progress" a Liberal policy institute, and she whined about people getting more weapons as bad.

In any case, somehow I think the Libs have shot themselves in the foot (Pun Intended) if they wanted Gun Control to be popular this year.
 
I still say something or someone is slowing gun and ammunition manufacturing.

One of the beauties of the free market is that it can and will rise to most any demand, and something is keeping it from doing this.
 
Guard Dad said:
I still say something or someone is slowing gun and ammunition manufacturing.

One of the beauties of the free market is that it can and will rise to most any demand, and something is keeping it from doing this.
Click to expand...
I'll tell you what's really doing it. The gun and ammo manufacturers themselves. Although the demand for both is extremely high; those manufacturers are not increasing their production to keep up with the demand, but they are increasing prices. A friend of mine was telling me tonight that he had to pay $45 for a 50-round box of wadcutters (he's going to teach his wife to shoot.) I can remember when a box of 50 wadcutters was $15 and that wasn't long ago either. The manufacturers are making higher profit margins now than they were a year ago. If they increase their production, they increase their costs. Keeping their production levels the same to keep the available supply low while the demand is high; increases the profit margin significantly.

Think about it this way; say a box of 50 rounds cost them $9.00 to manufacture. Total costs in the box is $10.50 and they were selling them a year ago at $15 a box. The gross profit is $4.50 a box. The demand hits a level that sellers cannot keep them on the shelf long. They raise the price to $20 for the next 6 months. Costs are still the same, but the gross profit went up to $9.50 a box. The demand increases; production numbers and costs remain the same, but the price increases again and is now $30 a box. Gross profit is now $19.50.

If they increase production, they increase their operating costs. Keep in mind the cost of labor is generally the largest single expense manufacturers have. It's not uncommon for them to take out short-term loans to meet payroll. Increasing production usually means adding more production lines and new employees.

Now keep in mind increasing the number of products produce raises the available supply. When supply equals demand, prices generally level off. When supply exceeds demand; prices usually decline. Keeping the available supply lower than the demand allows them to increase the prices, which increases profits.
 
I still think the ammo makers are making and stock piling ammo waiting on Biden limit or ban it, then they sell on the black market,,, the current high profit margins are needed to pay the employees. I'm also starting to think that a major ammo loader has cornered the market on primers, which no one can find to hand load with.
 
Raising production often means factory expansion or workforce expansion... neither of which an ammo maker is going to do with a liberal congress + Liberal President.
 
I honestly think it’s mainly due to an extreme increase in demand. Supply and production just can’t keep up with the current demand. I saw a few articles stating that production is running at near full capacity but that there are no plans for near term expansion because the likelihood of another shift in the political realm which will cause demand to decrease.
 
The manufacturers see the demand as temporary, and although it has gone on longer than almost anyone imagined, they are probably right. It's kinda like when we hear a gasoline pipeline is damaged and we all won't let out tank go below 3/4. The shortage is mostly due to hoarding. I'm just as guilty as the next guy. The manufacturers see expansion as a long term solution to a short term problem, and not good business. They are working overtime, bit new facilities are a huge risk right now.
 
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