Frost
Well-Known Fanatic
You guys have the right idea.
Express your opinion with your wallet.
Express your opinion with your wallet.
Question of the Day: Forgive CTD?
- Thread starter bigfutz
- Start date
mark_b
Well-Known Fanatic
There are way too many other companies that did the right thing during the recent panic - MIdway USA, Brownells, Buds Gun Shop just too name a few, of which there are many more. The prices remained roughly the same, and sold what they had. They did not double or triple prices and gouge customers.
armaborealis
Well-Known Fanatic
- Joined
- Dec 27, 2011
- Messages
- 575
I don't have a problem with CTD's "gouging." Welcome to the free market people, seriously. Their prices are high right now but at least people who REALLY need something can get something other than out of stock messages or rationing.
I do have a problem with their support for Toomey-Manchin-Schumer gun control.
I do have a problem with their support for Toomey-Manchin-Schumer gun control.
11B3XCIB
Well-Known Fanatic
armaborealis said:
There is a difference in free market pricing and price gouging. CTD even said their astronomical prices were an attempt at "inventory control". Most retailers are limiting quantities, rather than keeping prices falsely inflated. I understand how price fluctuations keep things available, like hotel rooms during a disaster (one family being able to afford only 1 room versus 2, therefore allowing another family to rent the room that would have otherwise been taken). There IS such a thing as falsely estimating or appraising market conditions, which is what CTD has done, and is still doing, $50 PMags (all other retailers have them at $13-16.95) and $99 Colt 30 round magazines. All other ammo retailers (PSA for a benchmark) is selling 5.56 around 60-70 cents per round and still falling. CTD is still at $1.33 for 5.56 NATO: http://www.cheaperthandirt.com/product/AMM2230
Remember that gas station in Oklahoma that raised gas to $5 a gallon right after the 9/11 attacks? Yeah. CTD is THAT GUY. And shooters aren't going to forget it.
bigfutz
Well-Known Fanatic
And look at gas prices now. CTD and the like artificially contribute to inflated prices. I assume they are selling SOME $99 mags. No one is advertising $6 mags anymore. So even those who aren't gouging have somewhat higher prices too. Unfortunately the increase in demand is entirely fear-driven: 1) buy while you still can or 2) buy to turn a profit on Armslist or at the GS.
armaborealis
Well-Known Fanatic
- Joined
- Dec 27, 2011
- Messages
- 575
11B3XCIB said:
There is a supply (too little) and demand( too much) imbalance.
There are only three ways to deal with that:
1) Scarcity. First come first serve and then its sold out. This tends to benefit people who have lots of time to wait or some sort of special insider information as to when supplies are available.
2) Rationing. This is like the gas station that keeps prices the same but only lets you get two gallons (or two PMAGS). This benefits people who can "game" the system with multiple family members/friends ordering, or an ability to go back and max the ration every day.
3) Prices. This is what GunBroker and CTD are doing. This benefits people with money.
I take it you would prefer to go to a gas station where they limit you to two gallons of gas at $4/gallon post-hurricane. But what if someone needs ten gallons of gas, and they're willing to pay to get it?
Indeed, "gouging" means rising prices, which means rising profit margins, which means greater incentives for existing players to increase capacity or new ones to enter the market. If the profit margin on an AR mag is $0.50, would you be tempted to get a CNC mill or other tooling and make mags? Probably not. Neither is MAGPUL. But if the profit margin is $10/mag then existing manufacturers are more likely to consider adding capacity, and new guys may find it worth their while to enter the market and provide competition, which leads to more supply for everyone. Indeed I have seen some foreign mag manufacturers get into the US market that I had not previously seen; apparently it wasn't worth their time & trouble at $10/mag but it is at $15-25/mag--which increases the supply, which is good for everyone.
In your hurricane example, "gouging" for, say, plywood and roofing services after a storm inspires out-of-area laborers to travel to the disaster site with tools, materials, and work crews which ultimately makes life better for everyone. When Florida passed anti-gouging laws, out-of-state workers stopped coming to help out after disasters -- it wasn't worth their while anymore. No gouging means the suppliers will likely stay the same, and supply stays limited, and everyone suffers longer (but suffers equally!).
I would be irritated if there was not a functional marketplace. For example, if all the mag and ammo manufacturers and their distributers had a secret cartel to fix prices at inflated high rates. I don't see any evidence of that though, outside some very niche milsurp importation markets (and those are more vagaries of imports -- you get a conex of oddball calibers when you get a boat in...). Just looking around the internet shows there is a very functional marketplace with competetive pricing and different rationing schemes in effect.
I'm not paying CTD's prices, personally. But if someone no-kidding needs a dozen PMAGs and 1000 rounds of 5.56, they can at least get them from CTD. For example, I have a coworker just getting into ARs who felt a need for a stack of PMAGs ASAP and he paid gunbroker premium prices because time is worth more to him than money. There are limited resources and only so many ways to carve up the pie.
My bigger issue is with CTD's endorsement of the Toomey-Manchin-Schumer gun control deal.
bigfutz
Well-Known Fanatic
Press Release: Cheaper Than Dirt! Recruits 7,600 New NRA Members
http://www.nraila.org/news-issues/news- ... mbers.aspx
http://www.nraila.org/news-issues/news- ... mbers.aspx
