Price gauging in whitehall

[chinaboy]

This^^^^^.

The shop owner has to maintain margins or shut down. There really is no way around that. It's business 101.

If this is the case, that the store has to pay higher prices from their dealer, than why is the price still the same at ever other store. I get it that prices are going up but every store's prices would go up at the same time. Not just one and only one store having doubled prices and the rest staying the same.

[spagluvx]

Or another take on running a small business.

A small business used to be able to purchase 1000 boxes of ammo per month at $7.00 each and then sell the ammo for $10.00. This would generate $7000 is sales and $3000 margin dollars. The margin dollars are used to take care of the overheads(1500 fixed and variable) and generate say $1500 profit prior to taxes.

Now the same small business can only purchase 500 boxes of ammo per month. If they were to to sell the boxes of ammo at the same price the said store would only generate $5000 in sales and $1500 in margin. The fixed overheads (labor, utilities...) and the variable decrease ever so slightly say to 1300. This leaves $200 profit prior to taxes.

Solution buy 500 boxes and sell for 12.00 each. This makes for $6000 in sales, less the cost of 3500, less the overheads of 1300 and $1200 of profit prior to taxes.

[WWGunslinger]

If this is the case, that the store has to pay higher prices from their dealer, than why is the price still the same at ever other store. I get it that prices are going up but every store's prices would go up at the same time. Not just one and only one store having doubled prices and the rest staying the same.

depends on buying power. i heard from a ffl dealer that there are different tiers with different prices. the more you buy the more discount you get, so no, not everyone is being charged the same price.

[chinaboy]

depends on buying power. i heard from a ffl dealer that there are different tiers with different prices. the more you buy the more discount you get, so no, not everyone is being charged the same price.

This is true with everything. But if this was the reasoning than the smaller gun shops prices should be the highest. And the smaller gun shops still have prices set to half of this store's gauged prices.

[ReconLdr]

This is true with everything. But if this was the reasoning than the smaller gun shops prices should be the highest. And the smaller gun shops still have prices set to half of this store's gauged prices.

They could be going through their inventory at different rates. Just because a store is "smaller" doesn't mean they do less business. My buddies shop does more business online via gunbroker and similar sites.

[paptini]

Agree with most here. Fact is you go into business for one reason... to make money. There are costs. If your costs are X per month and your profits are = to X, well there's no real sense in staying open. If your profits are less than X well then you definitely will not stay open. Nobody wants to go in business to break even. They need to cover costs whether they're selling 1 box of ammo or 1000 boxes. Obviously if they're selling 1000 they can sell them cheaper and arrive at the same profit margin. You are always free to shop around for the best price and buy there.