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I went to 3 different gun shops in my area this morning looking for .243 rounds. I buy from these guys all the time. Ammo prices have went way down over the last few months but these shops are still charging ultra premium prices. Are they gouging or is there some other reason? I paid $19 per box for these .243 at Walmart today. They were $50, $62 and $48 for the exact same rounds at my local shops. .223 is back down to $10 and 9mm is around $20 but they are still asking $25 and $50 for these rounds also. What’s going on??
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I was in my LGS last week, I heard him on the phone with one of his ammo suppliers, he was ranting after he hung up about how he was having to pay $90 for the 125 rd pack of the winchester valor 5.56mm ammo, that's the price I see them selling for at academy. I would assume its distributor limitations along with being stuck with stock they overpayed for during the height of the shortage. With that being said though, the local gunshops were priced higher on ammo pre-corona also, atleast in my area they were.
 

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I'll second what @Rw wrote. The big chains buy in HUGE quantities, often direct from mfg. LGS goes through a distributor and has to either pay what they want or not have stock. I've had a long conversation with our LGS about this. They got a 1/2 pallet of ammunition in but frankly their price is so high it's cheaper to order online or drive an hour to Academy, even with gas prices as they are, if the trip was already planned. I don't like undercutting the local business. They got in a relatively hard-to-find caliber recently and apologized for the price but said that they were taking much lower than their normal mark up. I bought one box but won't buy more. They have to pay staff and keep the lights on too. So it's not necessarily "gouging" it might be their survival markup of the price.
This reminds me of when I ran a chain of restaurants in Hattiesburg. We had a national promotion with 2liters of a popular soft beverage. Free 2liter with every xyz pizza. We quickly ran out, and it was WAY less expensive for us to go to the local A&P, Sunflowers, etc. and buy the 2 liters there rather than have the soft drink distributor deliver it to us! Grocery store prices were almost 1/2 of the distributor price. When asked about it the distributor just said basically "that's their price".
 

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Discussion Starter · #8 ·
I'll second what @Rw wrote. The big chains buy in HUGE quantities, often direct from mfg. LGS goes through a distributor and has to either pay what they want or not have stock. I've had a long conversation with our LGS about this. They got a 1/2 pallet of ammunition in but frankly their price is so high it's cheaper to order online or drive an hour to Academy, even with gas prices as they are, if the trip was already planned. I don't like undercutting the local business. They got in a relatively hard-to-find caliber recently and apologized for the price but said that they were taking much lower than their normal mark up. I bought one box but won't buy more. They have to pay staff and keep the lights on too. So it's not necessarily "gouging" it might be their survival markup of the price.
This reminds me of when I ran a chain of restaurants in Hattiesburg. We had a national promotion with 2liters of a popular soft beverage. Free 2liter with every xyz pizza. We quickly ran out, and it was WAY less expensive for us to go to the local A&P, Sunflowers, etc. and buy the 2 liters there rather than have the soft drink distributor deliver it to us! Grocery store prices were almost 1/2 of the distributor price. When asked about it the distributor just said basically "that's their price".
Best explanation I’ve heard so far. But… (yes, there’s a but) 2 of the locations buy ammo from locals when we have extra to spare. I was trying to help one place out and sold them 10 boxes 333 count of .22 rounds. I bought them over the last few years for around $18-$20 a box so that’s what I asked for em. Trying to help my LGS and not burn em. I went back a few weeks later looking for some .38 rounds and noticed he had the .22 boxes I sold him for $20 marked at $50. When I commented on it he said “If people are willing to spend it, I’ll sell it to em.”
But your answer is a damn good explanation for the mark up at normal shops. I understand they take a hit also from distributors.
 

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I went to 3 different gun shops in my area this morning looking for .243 rounds. I buy from these guys all the time. Ammo prices have went way down over the last few months but these shops are still charging ultra premium prices. Are they gouging or is there some other reason? I paid $19 per box for these .243 at Walmart today. They were $50, $62 and $48 for the exact same rounds at my local shops. .223 is back down to $10 and 9mm is around $20 but they are still asking $25 and $50 for these rounds also. What’s going on?? View attachment 282336 View attachment 282337
Wal-Mart employees will tell you that small gunstore and pawn shops are buying their ammo and reselling.
 

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Your local gunshop way overpaid for the ammo and is now trying to recoup their money.
Or they sent someone over to Walmart that had connections and snarfed up the Walmart ammo, then marked it up for resale in their shop... :unsure:

(Pretty much what Sodeepopkid just said before I read his post).

(You think you got problems, I had a young lady, out training her pup, mistake my cat, Oliver, for a dog on our nightly walk last night).
 

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I know that many of the LGS have actually bought ammo at retail prices just to have something on the shelves to sell with guns they had on the shelf. They may also have a mix of ammo they bought retail and some they got from a distributor. One box may gave cost them $25 and the other $15 and they are just trying to cost average the ammo. I have even talked to manufacturers that are selling ammo at higher prices simply because they had to pay so much for primers during the height of the shortage that they are waiting to deplete that stock before they drop the prices.
 

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Personally I hope that all the lgs buying at Walmart with the intention of screwing us go out of business. I know of one in Madison that was outed by an Academy employee. He told me himself. I wouldn’t give them $5 for a $20 bill if that tells you how I feel.
 

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Personally I hope that all the lgs buying at Walmart with the intention of screwing us go out of business. I know of one in Madison that was outed by an Academy employee. He told me himself. I wouldn’t give them $5 for a $20 bill if that tells you how I feel.
Madison or flowood employee? There’s an older guy still at the flowood store that was there with me who thought everyone was a dealer coming in to buy ammo to resell. Literally everyone that walked in the ammo section had a gun shop in his mind.
 

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I haven't bought ammo at a LGS, box store or gunshow in years, can always find it online cheaper even with panic prices and shipping.
 

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I went to ABC Pawn is Long Beach today and got 2 boxes of 6.5 CM for $22 each. They are FMJ BT but good for my son to get familiar with the new 6.5 Axis II i bought him. I was happy with the price.
 
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