Can someone explain the economics of the 5.7x28 round?

[LifeInPa]

I have done some research on why the 5.7 round cost so much money and I haven't really found a solid answer. Generally speaking it seems the 5.7 round is very comparable to the 5.56/.223 round in a lot of ways. My research has found the 5.7 round is very similar in design and the manufacturing process is also similar, so it can be made in the same factories as the .223 round. In fact I will go as far as saying the 5.7 round seems to be a scaled down .223 round, it just looks like it:



So considering those facts why does 5.7 ammo still cost so much money? The round is smaller and requires less material than 5.56/.223 and the manufacturing process is very similar so one would think it would cost a lot less to make than it does. I know it's still not as widespread as 5.56/.223 ammo but a lot of agencies and civilians are buying firearms chambered in this round so one would think the price should be dropping as it's no longer an exotic round like it used to be. I really want to like this round since companies like Masterpiece Arms is making firearms chambered in this round at a very reasonable price and I love PDW rounds that can pierce armor like the Tokarev round but something tells me companies that are manufacturing this round are taking advantage. So if we can have a peaceful discussion on the subject that would be great. Thanks for your time.

[DucatiRon]

Simply put, first only 2 guns were ever manufactured to use that round and since then a few have been adapted. Those to guns were supposed to be sold to the military. That didn't happen. There is only one major manufacture for the ammo that I currently know of. I do know of a lot of smaller manufactures. Since only limited market the price goes up. Kinda like 10mm.

Don't get me wrong I would love for the price to come down but it is comparable really to good quality 223 ammo. I have since started to roll my own with a 36 grain Dogtown USA hollowpoint. Fact of the matter is there still is not a big enough market.

[.45Kimber1911]

It would require the manufacturer to dedicate machinery and manpower to produce something that is not in as high of demand as the .223/5.56 round. Producing inventory and having it sit around on the warehouse shelf is not going to gain anyone any profits. It the .223/5.56 rounds go out the door as soon as they are produced, then there is little money wasted for storing the inventory. If a manufacturer has to switch tooling dies and recalibrate any machinery for a limited production run, then that cuts into profits they could be making elsewhere with a product with a higher demand. Consequently, there is a premium that gets passed on to the end user for the extra lost income and overhead to produce a specialty item. Simple economics.

[LifeInPa]

Simply put, first only 2 guns were ever manufactured to use that round and since then a few have been adapted. Those to guns were supposed to be sold to the military. That didn't happen. There is only one manufacture for the ammo that I currently know of. Since only limited market the price goes up. Kinda like 10mm.

Don't get me wrong I would love for the price to come down but it is comparable really to good quality 223 ammo. I have since started to roll my own with a 36 grain Dogtown USA hollowpoint. Fact I the matter is there still is not a big enough market.

It seems like a lot of special forces, law enforcement agencies and civilians own/operate 5.7 firearms. As for the manufactures I have to ask why more companies aren't making this round? Maybe in another 5-10 years the price of the ammo will come down enough for me to consider this, I wouldn't consider such firearms in the next 2-3 years just because the ammo is ridiculously overpriced.

It would require the manufacturer to dedicate machinery and manpower to produce something that is not in as high of demand as the .223/5.56 round. Producing inventory and having it sit around on the warehouse shelf is not going to gain anyone any profits. It the .223/5.56 rounds go out the door as soon as they are produced, then there is little money wasted for storing the inventory. If a manufacturer has to switch tooling dies and recalibrate any machinery for a limited production run, then that cuts into profits they could be making elsewhere with a product with a higher demand. Consequently, there is a premium that gets passed on to the end user for the extra lost income and overhead to produce a specialty item. Simple economics.

I figured the demand for 5.7 ammo was greater than that, it seems like the round is exploding in popularity.

[JasonK007]

edited--was asleep during reply

[West Chester]

Simple explanation... because they can. Supply and Demand.

[LifeInPa]

I haven't done any math yet but was thinking about building an AR-57 or AR-10. After watching an episode of "Deadliest Warrior" when they look at the difference between the two calibers, the 5.7 seemed to destroy the 308. I'll have to look at the actual real world ballistics testing first of course. I just know that the 5.7 is becoming more popular and hopefully will eventually come down in price.

I like to see the price come down by half, hopefully we will see that in the coming years.

[Ten*K]

There is currently one major manufacturer, which means no direct competition. Budget wise, the Fiocchi blue tipped ammo can be had for 17-19 bucks per 50, if you get it on sale. It's cheaper to shoot than my .45, by a smidge (talking American ball ammo). The higher power rounds from Elite Ammunition are more costly, but they are a smaller vendor, produce several specialized rounds, and are more powerful.

[39flathead]

A box of 5.7 runs about $21 per 50, a box of 50 .223 is about $18 unless you are buying in bulk and/or surplus. I have seen case deals on 5.7 that brings the price down to under $20 per box.

Even the Federal 5.56 going around on strippers is about $11 per 30 making it about $17 per 50.

Where is the big economic difference? I see a couple of bucks difference for a cartridge that is not widely used as compared to a round that militaries and civilians round the world fire every day.

I always see where guys are saying the 5.7 is so expensive, but how?

It costs more to shoot a .357 or .44 mag than a 5.7 and they have been around for years and every manufacturer out there makes ammo for .357 and .44.

I see what you are saying about the dimensions being smaller and thus requiring less material but I still don't think it is expensive when compared to many other calibers.

[Pete D.]

The 5.7X28 cartridge, at $21 or less per 50, is comparable to the cost of other high performance cartridges.
As to production methods, it may be a small thing, but one invisible aspect of production is that the 5.7 case has a coating. The 5.7 system operates using a delayed blowback. The coating on the case is what effects the delay.
The point about that being that there is at least one significant difference in production.
Pete