Price gouging vs supply and demand...

[nfitton]

Remember during the Clinton years when a Glock high cap was $70 used? Colt ar mags $50+? I hear a lot of people complaining about price gouging... Some of it is ridiculous. I had people coming to my store from out of state to buy my ar's and mags this week. I never raised my prices. On Wed I still had ar's under $800. Now, hovever, I can't get anything. I have a line on some new gi ar mags for $17. I can get some pmags for $20. Even though this is more than what I was selling them for a week before, I am buying 100 of each to sell in my store. Am I gouging when I sell them for $25?

This is classic supply and demand. Right now things are going crazy and let's be honest no one knows what is really going to happen and when. The guys selling their mags for $50+, yeah they are gouging. But when you see your local guys who just got mags in and the price is higher, take a breath before you get pissed. There isn't a distributor out there right now with high cap mags or tactical rifles. Same with a lot of ammo. Any stock coming in over the next few weeks, more than likely isn't from traditional sources. I went from buying from manufacturers and distributors to having to search the secondary market for product. That means I am paying retail and above just to have merchandise. Most other stores are having to do the same thing.

Use your head and buy smart. Don't panic. Don't get caught up in everything right now. Our entire way of life may be about to change but that doesn't mean we have to loose our minds... My suggestion, look for good buys on primers and lowers. These are still available at reasonable prices, but that is about to change...

Sorry if this post was a little jumbled, but the kids are wanting dinner. Which brings me to a good point. No matter what happens, remember what is important and what they can't take away... Keep your faith and family close and make the best of what you have...

 

[Pig-Pen]

Re: Price gouging vs supply and demand...

The market will correct itself when people who paid out the ass for stuff unload it for less than they paid. Panic buys will turn into opportunities to buy cheap if you are patient. The guy who bought a case of mags and 12 stripped lowers will probably experience buyer's remorse before any legislation takes effect. I have a stripped lower in the safe that I practically stole from a guy in 2008.

However, I don't plan on buying with the intent of re-selling so it's a moot point with me.

 

[EddieNFL]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">I am buying 100 of each to sell in my store. Am I gouging when I sell them for $25? </div></div>

Pretty low markup unless you moving a lot of product...or make it up elsewhere.

 

[Bradu]

Re: Price gouging vs supply and demand...

I don't believe in gouging but I am considering selling off a couple ar's to get into some custom bolt guns after seeing some of the ridiculous prices they are bringing.

 

[Adam B]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Bradu</div><div class="ubbcode-body">I don't believe in gouging but I am considering selling off a couple ar's to get into some custom bolt guns after seeing some of the ridiculous prices they are bringing.</div></div>

+1000000000

 

[Bradu]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Adam B</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Bradu</div><div class="ubbcode-body">I don't believe in gouging but I am considering selling off a couple ar's to get into some custom bolt guns after seeing some of the ridiculous prices they are bringing.</div></div>

+1000000000</div></div>

I bet a Noveske 6.8 would bring good money.

 

[Long_Action]

Re: Price gouging vs supply and demand...

Tell me about it.... I keep looking at my hk mr762 and hk USC..... Should I put the pair on gunbroker or....... Oh wait I'm not a Dick & I don't gouge.

 

[pawprint2]

Re: Price gouging vs supply and demand...

I've read the string, and I've changed my mind, profiteering is a great thing! I've seen people "bitch" when the price of gas has gone WAY up, almost overnight. But hey, if you don't like it get into the gas business these guys have to make payroll etc, and if they have a chance to make a huge profit, that's their good luck-remember the oil wells could stop tomorrow, then what would they eat on?
The Same thing has happend with all kinds of goods over the years, people complain, but in the end profiteering is the right and correct thing to do! I just wonder why the "old" and well thought of businesses, as is Brownells, doesn't see the light, and start sticking it to their customers? These guys must not know what they are doing! I hope they read these strings (they run some good ads on this board)and get with the program, hate to see them miss out on this chance.

 

[maccrazy2]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Long_Action</div><div class="ubbcode-body">Tell me about it.... I keep looking at my hk mr762 and hk USC..... Should I put the pair on gunbroker or....... Oh wait I'm not a Dick & I don't gouge. </div></div>
I dont see how it is gouging if it is sold in an auction. It is a price set by the current market. I agree prices are not what I would pay right now but if others are willing why not sell? As the end user I do not see why you would have an issue selling something for a good price. I do not agree with suppliers jacking up their prices. There is a msrp for a reason.

 

[herro_prease]

Re: Price gouging vs supply and demand...

It's not gouging. Realistically, it's market value. People are freaking the fuck out - there is nothing wrong with selling something to someone else at an agreed-upon price. If you think that price is too much, don't buy it (duh)...

 

[athhud]

Re: Price gouging vs supply and demand...

I just can't wait until rent is due in January and tax time comes around! The used market (where the majority of my purchases come from) is going to be a field day!

 

[krw]

Re: Price gouging vs supply and demand...

I would like to trade Pmags, HK Maritime, and factory Colt 30rd mags at MSRP for a mid 80's HK93 NIB with about 20-25rd mags at MSRP. Anybody want to trade? It ain't gouging, it is a free market economy.

 

[cadjak]

Re: Price gouging vs supply and demand...

In 1989 I had a collection of FAL rifles. Everything from Amnesty G listed guns to commercial Browning imports to Aussie Semi heavy barrels. The most I had paid for any of them was about $700 (for the G listed gun). Then Patrick Purdy shot up a schoolyard in Stockton and things went pretty crazy. The prices of FALs never came back down, even after every garage gunsmith started nailing together surplussed parts. I'm watching myself as a go through arguing with myself about letting my last two FALs go. Interesting movie.

 

[Guest]

Re: Price gouging vs supply and demand...

This has been going on sense the late 60's, Ask anyone that tried to buy a AR15 during the Riots in Chicago, or near by? Ammo was not to be had either, as if an when you found your cal you paid the price, and never looked back. Uncle taught me well before those events, don't wait for the fight to gather your stores.

Do you wait until the fire starts in your kitchen to have items on hand to put it out,...sounds like many have, the, I'll wait until it happens logic.
Good luck surviving life and coming times with that brain fart.

 

[Roadwild17]

Re: Price gouging vs supply and demand...

Well mean even if you got your mags for $8 and then sold them for $25 this go around, Who knows what your next shipment is going to cost? Is free-market if I'm caught up in the frenzy and willing to pay for why should you not profit?

 

[herro_prease]

Re: Price gouging vs supply and demand...

Damn. Can you believe how much these pmag wrappers are going for? what a rip-off - you used to be able to get these for much cheaper!

http://www.falfiles.com/forums/showthread.php?t=342643

 

[endpoint]

Re: Price gouging vs supply and demand...

I don't believe in gouging. Nobody is forcing the sale. If you buy it voluntarily you must feel that the price you paid is worth less than the item you wanted. It may not be the price you wanted to pay, but if you bought it you agreed to it.

Higher prices bring more competitors into the market which eventually brings the prices back down again. Maybe we'll see some more companies making ammo and magazines. Maybe some people who have had some of this stuff collecting dust in the back of their safe will sell it to somebody else who will use it.

 

[ToddM]

Re: Price gouging vs supply and demand...

Everyone want's a free market, until it costs them more money....

The way I see it, retailers can sell whatever they want for any price, no one forces you to buy mags, and you don't need them to survive. Once supply catches up, if there isn't a ban, then prices will fall back down, the only ones responsible for jacked up prices are those people hording and buying out of fear right now. Had they stocked up over the last few years there would still be plenty of supply, no fear buying, and prices would be the same, shelves would still be stocked. The unprepared will always be caught with their pants down, and unfortunately the average guy suffers for it as well, it took well over a year for the last scare to return to normal I'd bet this one is no different and that's *IF* there isn't a ban.

That said I won't patronize businesses that use this as a excuse to jack up their prices way up to earn quick profits. I see it as well within their rights to do, but I won't give them my business either because I don't appreciate the practice (and they probably won't miss my business either).

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ToddM</div><div class="ubbcode-body">Everyone want's a free market, until it costs them more money....

The way I see it, retailers can sell whatever they want for any price, no one forces you to buy mags, and you don't need them to survive. Once supply catches up, if there isn't a ban, then prices will fall back down, the only ones responsible for jacked up prices are those people hording and buying out of fear right now. Had they stocked up over the last few years there would still be plenty of supply, no fear buying, and prices would be the same, shelves would still be stocked. The unprepared will always be caught with their pants down, and unfortunately the average guy suffers for it as well, it took well over a year for the last scare to return to normal I'd bet this one is no different and that's *IF* there isn't a ban.

That said I won't patronize businesses that use this as a excuse to jack up their prices way up to earn quick profits. I see it as well within their rights to do, but I won't give them my business either because I don't appreciate the practice (and they probably won't miss my business either).

</div></div>

Right on, same here. They aren't doing anything wrong, and not buying at inflated rates is anyone's prerogative. Given time, hopefully the fact that pretty much every supply in the country has been literally dumped into the buyers' hands pushes the demand (and therefore price) back to reasonable levels.

 

[wakeboarder4402]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: athhud</div><div class="ubbcode-body">I just can't wait until rent is due in January and tax time comes around! The used market (where the majority of my purchases come from) is going to be a field day!

</div></div>

^^Hopefully this!

 

[onedayer]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: herro prease</div><div class="ubbcode-body">It's not gouging. Realistically, it's market value. People are freaking the fuck out - there is nothing wrong with selling something to someone else at an agreed-upon price. If you think that price is too much, don't buy it (duh)... </div></div>

Alright.. if this "isn't gouging" then may I ask you to provide an example of what is???? Please!

 

[sniper32]

Re: Price gouging vs supply and demand...

if one wants to see price gouging,go to cheaper than dirts online sales page.
AR mags 4 sale at $99.99 each

 

[ToddM]

Re: Price gouging vs supply and demand...

yeah CTD seems to be the poster child for capitalizing on others unpreparedness right now. You can bet there are tons of smaller shops that tucked things away in the back room the day the shooting happened and have been sitting on it giddy as a kid trying to sleep on the night before Christmas.

CTD are selling beta mags for $500, and they sold OUT at that price over 50 of them.

If people are stupid enough or unprepared enough to have to pay that for them then I guess to those customers the price is worth it. (it might be worth it to more people too if a ban goes through, and I think they will hammer something similar to the 94' ban through now with mods but that's a different thread.

Frankly the only thing I believe should have some price regulation are necessities of life, water, clothing, insurance, food, gas, fuel, electricity, etc. everything else is a luxury people choose to pay for.

Of course I won't give CTD or any other store doing it a dime of my money and haven't for years, but lets face it for as long as I can remember CTD was obviously a pretty shady company, these times just bring it out more.

 

[Ultraman550]

Re: Price gouging vs supply and demand...

I'm excited to start buying again from all the douche bags who went out and bought 20 or 30 mags, 5 AR's etc... at inflated prices and realize they need to recoup some of the money they lost. The first place will be here when members are crying like little bitches that they need help from their "fellow Hide members" because they panicked and bought more than they could afford and are sorry about jacking up prices.

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: onedayer</div><div class="ubbcode-body">Alright.. if this "isn't gouging" then may I ask you to provide an example of what is???? Please!</div></div>

I don't know...and don't really care. Free market principle is quite simple, without digging into detail - the demand vs. the supply for a product or service dictates the price.

The price equates to nothing more than what things are worth to people. If a crap stag AR is not worth $2000 to you, don't buy it, it's that simple. Obviously the market is such that many people right now would rather have the stag than the 2k. Are those buyers who would rather have the stag than their money in the wrong?

Are you saying then that the sellers' behavior is wrong? Or that someone should come in and force them to change their behavior?

 

[lawofsavage]

Re: Price gouging vs supply and demand...

I think an important point that many are missing is that classic economic theory assumes rational actors and a lot of the behavior in the market place is irrational especially right now.

 

[Teggy1]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: herro prease</div><div class="ubbcode-body">

Are you saying then that the sellers' behavior is wrong? Or that someone should come in and force them to change their behavior? </div></div>

Apparently yes. Thus the problem with what people "think" is capitalism. We haven't had "free markets" for quite some time, for one, because of those that bitch about prices in instances like this.

Like said above in other posts, situations like this is what creates the margins for a startup to come to the market.

Those that can't see past the end of their noses, for their current wants, and what they deem "fair", are the ones lobbying for fixed (fair) prices, keeping new challengers out of the market, giving established companies a quasi monopoly.

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Teggy1</div><div class="ubbcode-body">Those that can't see past the end of their noses, for their current wants, and what they deem "fair", are the ones lobbying for fixed (fair) prices, keeping new challengers out of the market, giving established companies a quasi monopoly.</div></div>

Bingo. Having the government regulate business is a foundation of fascism.

 

[herro_prease]

Re: Price gouging vs supply and demand...

But, back to what I said earlier about price dictating value, the reason why people are freaking out is because they fear that if they do not purchase now, they may not be able to later - which is a fantastic incentive to buy. It drives the supply to nothing and the demand through the roof - so accordingly, prices rise, and rise a large amount.

That might not seem fair to you now - but your views might change if they're right, and a year from now all these crap stag ARs become pre-ban crap stag ARs. Think they'll be cheaper then? Will people be "gouging" to sell them at $4000 if no one can buy them new anymore?

 

[High Binder]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Ultraman550</div><div class="ubbcode-body">I'm excited to start buying again from all the douche bags who went out and bought 20 or 30 mags, 5 AR's etc... at inflated prices and realize they need to recoup some of the money they lost. The first place will be here when members are crying like little bitches that they need help from their "fellow Hide members" because they panicked and bought more than they could afford and are sorry about jacking up prices. </div></div>

Cool story but in my many years I've never seen a person who buys for the sake of stocking up, turn around and sell it, if anything they just keep buying.

.

 

[swage]

Re: Price gouging vs supply and demand...

<span style="font-weight: bold"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: nfitton</div><div class="ubbcode-body">Remember during the Clinton years when a Glock high cap was $70 used? </span> Colt ar mags $50+? I hear a lot of people complaining about price gouging... Some of it is ridiculous. I had people coming to my store from out of state to buy my ar's and mags this week. I never raised my prices. On Wed I still had ar's under $800. Now, hovever, I can't get anything. I have a line on some new gi ar mags for $17. I can get some pmags for $20. Even though this is more than what I was selling them for a week before, I am buying 100 of each to sell in my store. Am I gouging when I sell them for $25?

This is classic supply and demand. Right now things are going crazy and let's be honest no one knows what is really going to happen and when. The guys selling their mags for $50+, yeah they are gouging. But when you see your local guys who just got mags in and the price is higher, take a breath before you get pissed. There isn't a distributor out there right now with high cap mags or tactical rifles. Same with a lot of ammo. Any stock coming in over the next few weeks, more than likely isn't from traditional sources. I went from buying from manufacturers and distributors to having to search the secondary market for product. That means I am paying retail and above just to have merchandise. Most other stores are having to do the same thing.

Use your head and buy smart. Don't panic. Don't get caught up in everything right now. Our entire way of life may be about to change but that doesn't mean we have to loose our minds... My suggestion, look for good buys on primers and lowers. These are still available at reasonable prices, but that is about to change...

Sorry if this post was a little jumbled, but the kids are wanting dinner. Which brings me to a good point. No matter what happens, remember what is important and what they can't take away... Keep your faith and family close and make the best of what you have... </div></div>

The difference between now and then is that an AWB had been passed. High Cap mags were no longer being produced and sold for civilians to purchase. High capacity mags are still legal to manufacture and produce. It's price gouging....plain and simple. Magpul is still manufacturing Pmags for civilians to purchase and no new legislation has passed. It took 5 years for the last AWB to pass. Based on past experience who thinks it would pass any quicker this time? It's a Republican majority in the House. It could get bogged down in committee for years. Politicians remember what happened to them the last time they passed such legislation. Many lost their bid for re-election.

 

[Guest]

Re: Price gouging vs supply and demand...

The prices, are about to go way up again.
When it all goes to shit, would you rather be holding a tangible item, or a wheel barrel of cash, that will only buy one loaf of bread. Even if you can find someone that will take your worth less paper?
Many are waiting to Pick theirs up from the street, a plan I must admit, that holds merit to a point,... but then again those weapons could be,... bait?

 

[insight3b]

Re: Price gouging vs supply and demand...

The people who are going to be the most angry when the new ban passes is those who are left by the way-side because they were too self important to pay fair market value for goods.

 

[Jethro21]

Re: Price gouging vs supply and demand...

Others may not agree with me, but when I think of gouging I think of businesses charging outrageous and unrealistic prices for things people need- food, water etc. I find that unscrupulous and wrong. I wouldn't even put gas as something that can be gouged as it isn't necessary for life (maybe excluding heating fuel).

Guns, ammo and accessories are not necessities. People should be able to ask whatever they want for these items. Personally I am regretting selling several ak's a few years ago, now would be the time to cash in on that $250 investment!

 

[eleaf]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Alright.. if this "isn't gouging" then may I ask you to provide an example of what is???? Please!</div></div>

Every government service ever.

There is no such thing as price gouging in a free market system. It's simply two (or more) parties agreeing to an exchange. If the price is too high, no one will buy it and it will either come down, or not get sold.

Price gouging is what people claim is happening when the market price is higher than <span style="font-style: italic">they</span> are willing to pay. It simply means <span style="font-style: italic">I</span> think the price is too high.

 

[eleaf]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Long_Action</div><div class="ubbcode-body">Tell me about it.... I keep looking at my hk mr762 and hk USC..... Should I put the pair on gunbroker or....... Oh wait I'm not a Dick & I don't gouge. </div></div>

Except that selling them on an auction site would make you neither a dick nor a "gouger."

 

[eleaf]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Frankly the only thing I believe should have some price regulation are necessities of life, water, clothing, insurance, food, gas, fuel, electricity, etc. everything else is a luxury people choose to pay for.</div></div>

Wrong.

Economics doesn't change just because someone might "need" something. Price fixing is always wrong and CREATES shortages, jacking up the cost and making a scarce item even more scarce.

 

[bricktop]

Re: Price gouging vs supply and demand...

If it really was a free market, we wouldn't be worried about some bureaucrats terminating availability of products. It is supply and demand though ...

 

[pawprint2]

Re: Price gouging vs supply and demand...

As I stated before, I agree with all those that feel "price gouging" is okay, because it is part of the FREE market, that is how it works, on paper. Maybe some of the experts on here can help me out, are weapons and magazines made in China still allowed to be imported into the US? If not, I'm very sure we don't have a 'free' market, but rather, a manipulated market. I may be wrong, however; I believe if the Chinese were allowed to export for sale into the USA weapons, ammo, magazines etc (I know they make a lot of the scopes and rings sold here)the price of these goods would drop like a hammer.
Again Price Gouging is great,you've got me on your side, as it is only the Free Market setting the price. I'm just concerned that my position may be "iffeee", if we don't have a free market. Any real experts out there?

 

[Az Desert]

Re: Price gouging vs supply and demand...

i think it's price gouging.. Stores sale ar15 for $699 and walmart sales COLT $1,099.00 and that happen yestarday 12.28.12 of course in couple hours they were sold.. and then people posted them online (phoenix.backpage) for $1500- $2000 and some of them are asing for dpms $2500 ) and PMAGS for $50 each )) When stores sales them for same prices then i don't think it's price gouging.. but when stores sale them for $699 dpms and $walmart $1,099.00 a COLT .. and they ask DOUBLE of that online.. that's fkin gouging

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pawprint2</div><div class="ubbcode-body">As I stated before, I agree with all those that feel "price gouging" is okay, because it is part of the FREE market, that is how it works, on paper. Maybe some of the experts on here can help me out, are weapons and magazines made in China still allowed to be imported into the US? If not, I'm very sure we don't have a 'free' market, but rather, a manipulated market. I may be wrong, however; I believe if the Chinese were allowed to export for sale into the USA weapons, ammo, magazines etc (I know they make a lot of the scopes and rings sold here)the price of these goods would drop like a hammer.
Again Price Gouging is great,you've got me on your side, as it is only the Free Market setting the price. I'm just concerned that my position may be "iffeee", if we don't have a free market. Any real experts out there?
</div></div>

I don't even think the people in charge could be considered "real experts". That being said, it doesn't take an expert to see that the markets are manipulated quite a bit.

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: AZdesert</div><div class="ubbcode-body">i think it's price gouging.. Stores sale ar15 for $699 and walmart sales COLT $1,099.00 and that happen yestarday 12.28.12 of course in couple hours they were sold.. and then people posted them online (phoenix.backpage) for $1500- $2000 and some of them are asing for dpms $2500 ) and PMAGS for $50 each )) When stores sales them for same prices then i don't think it's price gouging.. but when stores sale them for $699 dpms and $walmart $1,099.00 a COLT .. and they ask DOUBLE of that online.. that's fkin gouging</div></div>

What are you saying? That you think someone should step in and regulate the prices on these things?

 

[Veer_G]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: herro prease</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: AZdesert</div><div class="ubbcode-body">i think it's price gouging.. Stores sale ar15 for $699 and walmart sales COLT $1,099.00 and that happen yestarday 12.28.12 of course in couple hours they were sold.. and then people posted them online (phoenix.backpage) for $1500- $2000 and some of them are asing for dpms $2500 ) and PMAGS for $50 each )) When stores sales them for same prices then i don't think it's price gouging.. but when stores sale them for $699 dpms and $walmart $1,099.00 a COLT .. and they ask DOUBLE of that online.. that's fkin gouging</div></div>

What are you saying? That you think someone should step in and <span style="font-weight: bold">regulate</span> the prices on these things? </div></div>

Well, somebody needs some Ex-Lax, and it ain't the buyers, and it ain't the sellers.

Maybe it's the Regulators?

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Veer_G</div><div class="ubbcode-body">Well, somebody needs some Ex-Lax, and it ain't the buyers, and it ain't the sellers.

Maybe it's the Regulators?</div></div>

heh. i'd be in favor of a bill that gave these guys a hell of a lot more vacation.

 

[eleaf]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: CASDB</div><div class="ubbcode-body">

Hotel prices sky high or supermarkets inflating prices on bottled water and canned goods after a natural disaster. That's price gouging.

</div></div>

No. It isn't.

It's simple supply and demand.

 

[bassani]

Re: Price gouging vs supply and demand...

why can hotels charge higher amount for the same room in busy holiday seasons?

supply and demand

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: CASDB</div><div class="ubbcode-body">The market hasn't been free since the first law was passed to protect so-and-so, or to bail out these select people. "Too big to fail" ring a bell?</div></div>

Perhaps. But if it wasn't for .gov, the demand for these things wouldn't be so high, resulting in the supply being so low, resulting in the price being so high.

There is no regulation on AR-15 pricing. Their market value was driven up solely due to basic economic factors. Anyone who chooses to sell anything below market value right now is a fool.

Some of this stuff's pricing is going up because of increased costs - there are shops running around the clock, which instantly results in higher costs to operate and pay employees overtime and double-time. Should those manufacturers sell to you at the regular cost, and not make their profit margins due to increased costs, all because someone might not think it's fair?

 

[herro_prease]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: CASDB</div><div class="ubbcode-body">I agree with you herro. I believe my last post has missed its mark. My intention was to explain what price gouging is, not say I support what's going on.</div></div>

mea culpa - I misunderstood.

 

[cadjak]

Re: Price gouging vs supply and demand...

Price gouging is a little like eye gouging. If it's your eye, you don't like it and it pisses you off. It feels like a dirty move. The person doing the eye gouging, has what they consider to be a valid reason for doing it. The two are never going to agree on what was "right".

 

[pawprint2]

Re: Price gouging vs supply and demand...

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: herro prease</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: CASDB</div><div class="ubbcode-body">The market hasn't been free since the first law was passed to protect so-and-so, or to bail out these select people. "Too big to fail" ring a bell?</div></div>

Perhaps. But if it wasn't for .gov, the demand for these things wouldn't be so high, resulting in the supply being so low, resulting in the price being so high.

There is no regulation on AR-15 pricing. Their market value was driven up solely due to basic economic factors. Anyone who chooses to sell anything below market value right now is a fool.

Some of this stuff's pricing is going up because of increased costs - there are shops running around the clock, which instantly results in higher costs to operate and pay employees overtime and double-time. Should those manufacturers sell to you at the regular cost, and not make their profit margins due to increased costs, all because someone might not think it's fair? </div></div>

Wow! This is an eye-ooopener!! I have never heard that if a business gets so busy, they must run extra shifts that their profit margins get smaller. I have always thought the fixed costs per hour would decrease, but you are telling me, if a business must increase production, add shifts "running around the clock" that they actually make less money per piece, even if they are charging more money. This must me the "New Economics", something that must now be- being taught in school-I know millions of kids are taking "Ritalin" and like drugs, but I never thought it would change the basic way a business was able to make a profit. The more profitable business runs slower-one shift, doesn't have a line around the block to buy their good, and isn't able to charge "very high prices" for their goods. The less profitable business, runs around the clock, can't keep up with demand, even if the price of the goods increased %100 or more, they still make less money. This is news to me, but thanks for helping us understand how this works.