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Liberty wrote:

RECIT wrote: Once price is up and there is more demand than ever why would they lower the price back down? They do control the supply mind you...they being manufacturers.

My economics prof told me that consumer has something to do with it. It has been a long time though maybe economics theory has changed in the past 30 years.

Then they limit the supply in order to artificially inflate the price, no?

Purplehood wrote:

Liberty wrote:

RECIT wrote: Once price is up and there is more demand than ever why would they lower the price back down? They do control the supply mind you...they being manufacturers.

My economics prof told me that consumer has something to do with it. It has been a long time though maybe economics theory has changed in the past 30 years.

Then they limit the supply in order to artificially inflate the price, no?

There are optimal points on the supply/demand curve. When demand is naturally high, prices can be raised. But you can drive yourself out of business if you try to set the price so high you can't sell enough product to cover your expenses.

Diamonds are a good example of a producer that holds back on supply. You can always get one, but there's another one just like it ready to hit the market.

Backslider wrote:

Purplehood wrote:

Liberty wrote:

RECIT wrote: Once price is up and there is more demand than ever why would they lower the price back down? They do control the supply mind you...they being manufacturers.

My economics prof told me that consumer has something to do with it. It has been a long time though maybe economics theory has changed in the past 30 years.

Then they limit the supply in order to artificially inflate the price, no?

There are optimal points on the supply/demand curve. When demand is naturally high, prices can be raised. But you can drive yourself out of business if you try to set the price so high you can't sell enough product to cover your expenses.

Diamonds are a good example of a producer that holds back on supply. You can always get one, but there's another one just like it ready to hit the market.

True, but I was referring to waiting and letting the market drive the price up for you, not doing it yourself (as the supplier). Of course from a buyers perspective, I waited too darn long to buy my AR.

You and me both.

Purplehood wrote:Then they limit the supply in order to artificially inflate the price, no?

That might work with ammunition or other consumables. However, firearms are durable goods and the supply of used firearms vastly outnumbers the new production. Also, there are so many Colt clone manufacturers that limiting production would require almost as much effort as limiting production of IBM clones to drive up computer prices.

Captain Matt wrote:

Purplehood wrote:Then they limit the supply in order to artificially inflate the price, no?

That might work with ammunition or other consumables. However, firearms are durable goods and the supply of used firearms vastly outnumbers the new production. Also, there are so many Colt clone manufacturers that limiting production would require almost as much effort as limiting production of IBM clones to drive up computer prices.

True, firearms are durable goods and up until recently people were happy buying them one at a time, or owning one and not needing another.

But right now its completely out of control. A member over at Calguns.net who is also a merchant over there was describing how he was receiving orders for 10-25 or more stripped AR lowers, for each order! These were going to individuals. I honestly don't think supply would even need to be limited, manufacturers right now are producing to capacity and still can't keep up.

Part of me feels like that if no legislation is introduced in the next year, one will be able to find magazines, lower receivers, and full rifles at highly discounted rates, especially if the economy continues to decline and various wives see credit card statements.

cedjunior wrote:But right now its completely out of control. A member over at Calguns.net who is also a merchant over there was describing how he was receiving orders for 10-25 or more stripped AR lowers, for each order! These were going to individuals. I honestly don't think supply would even need to be limited, manufacturers right now are producing to capacity and still can't keep up.

The NICS numbers are showing an amazing increase in sales: http://www.nssf.org/BP2/search/disp_BAK ... m#industry" onclick="window.open(this.href);return false;

People in the firearms manufacturing industry should be sending Obama fruit baskets or something.

I assume the AR itch will be filled and things will die down as far as the frenzy goes. But I think the days of sub $1000 AR's are over. The price jumped WAY up and only has to come down marginally to look appealing again. Just like gas prices they jumped WAY up and production is up more than ever but has the price EVER dropped back to where is was? Nope, close, but its on the rise as of last night again so...I think the price of AR's will stabilize but never be low again.

People don't need AR's like they need gasoline. We don't buy our AR's from Saudi's. Etc....

After the 'nuts have had their AR fill (you know who you are!), the demand will settle back down, and we'll see "normal" pricing again. You can't sustain demand like this for a product like the AR. There are just not that many people that need/want it, and even those who do will not continue to buy new AR's week after week.

As long as the ban doesn't beat us to it, the prices will settle back down.

RECIT wrote:I think the price of AR's will stabilize but never be low again.

Although I have not studied AR's that much, my Bushmaster (purchased in 2007) was less expensive than the Colt my brother-in-law purchased in 1981. When all the clones entered the market, it drove prices down quite a bit. From what I have seen, it's not the basic rifle that is expensive, it's all the do-dads manufacturers put on them.

In my opinion, AR's are similar to PC's/VCR's and other devices. My first VCR was $650 in 1983. I can get a better one now for $29 at Wal*Mart. The current surge in sales is going to encourage more people to get into the business and that will also drive prices.

I don't think we're going to see $100 AR-15s but I think those people buying a dozen lowers at a time will eventually get tired of stockpiling and prices will come back under $1000 new. If you're willing to buy used, there might be some deals around April 15.

Purplehood wrote:

Liberty wrote:

RECIT wrote: Once price is up and there is more demand than ever why would they lower the price back down? They do control the supply mind you...they being manufacturers.

My economics prof told me that consumer has something to do with it. It has been a long time though maybe economics theory has changed in the past 30 years.

Then they limit the supply in order to artificially inflate the price, no?

Who is limmiting supplies? All indications are that the scare mongers have everyone buying in record amounts. Ammo is pretty competitive It looks more likely to me that a conspiracy of consumers is more likely than a consipiracy of the gun owners than it is of the suppliers. I believed in capitalism more than I believe in conspiracy of the man.

YMMV

Liberty wrote:

Purplehood wrote:

Liberty wrote:

RECIT wrote: Once price is up and there is more demand than ever why would they lower the price back down? They do control the supply mind you...they being manufacturers.

My economics prof told me that consumer has something to do with it. It has been a long time though maybe economics theory has changed in the past 30 years.

Then they limit the supply in order to artificially inflate the price, no?

Who is limmiting supplies? All indications are that the scare mongers have everyone buying in record amounts. Ammo is pretty competitive It looks more likely to me that a conspiracy of consumers is more likely than a consipiracy of the gun owners than it is of the suppliers. I believed in capitalism more than I believe in conspiracy of the man.

YMMV

It was a response to your query, Sir. I didn't say it was happening, yet. Micro-economics is fun.

Better late than never.