Supply & Demand or do you prefer Supply & COMMAND?

FNH FS2000 in .223

FNH FS2000 in .223

This is the story of a rifle that might have cost $10,000 in late December. And perhaps it would have… More important, perhaps it should have. (Keep in mind, the article below was originally posted on December 23rd.)

I showed a close friend yesterday an ad for a wonderful bullpup rifle that on Monday was still priced at $1,995 at OneSourceTactical.com. By Tuesday morning they were sold out.

They got 20 more in stock yesterday, sent out an email saying they got the last of their vendor’s supply, and immediately sold out.

The thing to note is, yesterday they priced the rifle $795 higher than three days earlier.

My friend said, “That’s not right,” and she meant that it wasn’t right that they raised their prices almost $1,000 in just four days.

Why is that not right?

Shouldn’t prices be set by supply and demand?

The only other alternative is:

  • The price is set by the government (a la the GOP/Nixon’s horrid price freeze in the ’70s) which brings about Supply and COMMAND with the government doing the commanding.

Supply and Demand Equates to: Freedom and Low Prices

When supply and demand determine price, then others seeing the high prices will want to get in the game and make money quickly and sell theirs to reap the higher profit margin. As sellers begin to do this, the price drops. As more and more hit the market the price almost always goes LOWER than it was originally.

Hoarders in times of low supplies tend to create a major incentive for suppliers to step in and take advantage of the situation. The free market works nicely.

I am thrilled that OneSourceTactical.com got 20 more rifles and sold out in one day at the higher price. If anything, this means he was still under-pricing them and could have gone much higher, thereby, indirectly encouraging even more manufacturers to ramp up production as quickly as possible.

So in my opinion, given that he sold out in 24 hours at a price hike of almost $1,000, he should have raised them by $2,000.

Better yet, they could have put those rifles out for bid in an online auction for a week. As fast and furious (pardon the expression) as gun purchasing was that week in light of the CT murders (never call them shootings) and the promise of confiscation by America the free’s government, I suspect some may have risen to $10,000 in the bidding. Certainly .223 rifles anywhere else were as scarce as Barney Frank at a Girl Scout jamboree.

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