Lower ammo prices?

[Laufen]

Eventually this might make way for lower ammo prices. How far out do ammo manufacturers buy contracts of copper? How much higher priced stuff is still in the pipeline? Does it even matter, or is it like the airline industry and oil, simply charge what consumers will pay regardless of input costs?

I dunno, thoughts?

http://www.reuters.com/article/2015/09/22/us-markets-stocks-idUSKCN0RM18020150922

 

[Bypass]

They will probably keep charging the same inflated prices regardless.

 

[freedom]

Commodity costs matter, but I doubt it makes much difference in the final price. Pre-Sandy hook ammo prices were pretty low but scrap copper was going for well over $3/lb. Margins might increase but the supply/demand curve still rules.

 

[Laufen]

They will probably keep charging the same inflated prices regardless.

Prices seem pretty good right now for the most part, don't they? 9mm for $10/50, 50BMG, $2 a round, 45acp $14/50

 

[Laufen]

Commodity costs matter, but I doubt it makes much difference in the final price. Pre-Sandy hook ammo prices were pretty low but scrap copper was going for well over $3/lb. Margins might increase but the supply/demand curve still rules.

Yeah, that's how airlines operate but I'd guess that ammo manufacturers are a bit more in line with commodity prices.

 

[Bypass]

Prices seem pretty good right now for the most part, don't they? 9mm for $10/50, 50BMG, $2 a round, 45acp $14/50

I wasn't aware the prices had dropped that much. I am sitting on a stash and haven't purchased any ammo in a while.

 

[freedom]

Prices seem pretty good right now for the most part, don't they? 9mm for $10/50, 50BMG, $2 a round, 45acp $14/50

We seem to have a lot more competition than we did just a few years ago. All the options we have from quality, large scale reloaders is helping to lower the prices.

 

[Laufen]

I wasn't aware the prices had dropped that much. I am sitting on a stash and haven't purchased any ammo in a while.

Yeah me too, but I'm always looking. I've bought a little 5.56 from PSA. $6/20 polymer tipped Federal loads. I thought that was a great deal. All of the 9mm I have I paid about 6-7 dollars/50 for, but that was quite a few years back.

 

[freedom]

Yeah, that's how airlines operate but I'd guess that ammo manufacturers are a bit more in line with commodity prices.

I can make a quality 55gr cartridge for about 15¢ if I buy some dirty brass. Hornady bullets can be had for less than 7¢ shipped and at least two companies are making a profit.

 

[Laufen]

I can make a quality 55gr cartridge for about 15¢ if I buy some dirty brass. Hornady bullets can be had for less than 7¢ shipped and at least two companies are making a profit.

Also, good point on all of the large scale non-industry giant reloaders. One thing they provide that's often overlooked is supply security. They obviously couldn't compensate for the big 3-5 manufacturers, but they do provide a supplement to the civilian ammo pipeline.

 

[great dane]

Commodity costs matter, but I doubt it makes much difference in the final price. Pre-Sandy hook ammo prices were pretty low but scrap copper was going for well over $3/lb. Margins might increase but the supply/demand curve still rules.

Agree

 

[George P. Burdell]

The cost of Ammo has much more to do with the cost of labor, overhead, and shipping than it does with copper or other commodities. For example if copper cost $2 a pound the amount of copper in a 124 grain 9mm fmj costs about $0.00714 (assuming about 25 grains of copper - there are 7000 grains in a lb). If the price of copper falls by 50 percent the company is only saving around one third of one cent on production. Something smaller, like a .555 fmj, would realize even less savings due to smaller amounts of copper and lead.

There likely will be more savings elsewhere with fuel and energy costs low so hopefully we do see a decrease in price.

 

[Dinky Dau]

The cost of Ammo has much more to do with the cost of labor, overhead, and shipping than it does with copper or other commodities. For example if copper cost $2 a pound the amount of copper in a 124 grain 9mm fmj costs about $0.00714 (assuming about 25 grains of copper - there are 7000 grains in a lb). If the price of copper falls by 50 percent the company is only saving around one third of one cent on production. Something smaller, like a .555 fmj, would realize even less savings due to smaller amounts of copper and lead.

There likely will be more savings elsewhere with fuel and energy costs low so hopefully we do see a decrease in price.

I respect your opinion, but with the mass production and all the automation, Manual labor, I don't think is the factor.. Material cost and over head to me, would be the factor deciding cost.

 

[George P. Burdell]

I respect your opinion, but with the mass production and all the automation, Manual labor, I don't think is the factor.. Material cost and over head to me, would be the factor deciding cost.

Well I don't think the material cost is much more than a couple cents per round. The rest of the cost is coming from somewhere. It's not just profit. Manufacturing facilities do not run themselves. you can call it overhead I guess.

 

[Dinky Dau]

I do a lot of reloading, shell casings, tumbler, media, re sizing, Powder, primers, projectiles, power, there are a lot of cost involved besides labor. Packaging, shipping, labor yes, but so many other factors, that are outside of the manufacturers control.

 

[George P. Burdell]

I do a lot of reloading, shell casings, tumbler, media, re sizing, Powder, primers, projectiles, power, there are a lot of cost involved besides labor. Packaging, shipping, labor yes, but so many other factors, that are outside of the manufacturers control.

I get that there are other factors. My point is that the material costs going down will not have much of an impact on the overall price. Reloading is not at all like manufacturing. When reloading, the materials cost a lot more because you are just putting things together. The manufacturer takes very inexpensive raw materials and makes something usable.