At the Truth About Guns, Dean Weingarten highlights yet another result of replacing Barack Obama with a more gun-friendly president: it seems prices are falling and availability is rising for .22 ammunition.
Weingarten cites the following from the Lewison Tribune (Lewison, Idaho is the home of Vista Outdoors’ new .22 rimrifle plant):
Vista recently debuted a new, 37,000-square-foot, $35 million rimfire ammunition plant near the Lewiston-Nez Perce County Regional Airport, which has resulted in what company officials describe as a “very satisfying” reduction in the time needed to complete an order.
“It pays dividends when you come out of the trough,” Metz said. “We’re able to make some changes in our facilities that will enable us to participate really strongly as the market returns.”
Vista Outdoor has reduced ammunition prices to maintain market share as its customers work through stockpiles they amassed under the administration of Barack Obama – when they feared new regulation that never came to pass.
”We’re the market leader in rimfire,” Nolan said. “Brand preference in ammunition tends to be somewhat sticky. It took us a long time to gain our market share. … We are loathe to cede that during a period of challenging pricing because it’s going to be very difficult to get that back.”
As Weingarten notes, ammo manufacturers would rather not have to sell their wares so cheaply, of course, but that’s the thing liberals never seem to appreciate about the free market: it doesn’t guarantee negative or positive outcomes for businesses. They have to satisfy the desires and needs of their customers if they want to reap the greatest possible rewards.
Weingarten says a few more words about capitalism and the ammo business:
Market competition works. Aguila of Mexico saw opportunity and increased their production before Vista Outdoors did. Aguila almost doubled their production to capture some of the increasing American market.
That is reflected in the availability and price structure seen today. Aguila’s brands are at the lowest price point in the market. Vista has to reduce prices to keep market share. Federal low price brands are in direct competition with Aguila.
The lowest prices are now at 3.7 – 4 cents per round.
Prices are going to continue to fall. If you look at the prices on the old Remington box, it was purchased on sale at less than 2 cents per round. I will not be surprised if we see prices at or below 2 cents per round, at sporadic sales, before the end of President Trump’s term.
What do you think about all of this? Sound off in the comments below!