The main point I think I'm trying to make is that one company now owns all the primer makers in the country except one, Winchester.
I had not personally realized that until now. Maybe I was asleep.
I also not see that the "inflation" on pricing here on primers is not just cost driven but structural and by market power.
Think about a world in which Standard oil was never broken up, and there was only one gasoline supplier for the whole nation.......would that be desirable or have consequences? What would gas prices today be?
Maybe electric cars would have been invented in the 50's?
Do you want whole industries and suppliers to be able to "own" or corner the whole market? Is that acceptable and good for either the nation or capitalism as a economic system? Why did Vista buy Federal, Reminington, and CCI? Was is just a good business deal or was there an element of owning or corning the whole market? Do we have freely competitive market that is well functioning for primers? I'd say we are on the verge of "not so much" there. We either at this point need more new entrants, which capitalism will encourage if the price gets too high, or we need imports from outside the U.S. like Ginex. It will probably be both, but it will require a response from the market to make the prices go to an equilibrium that is lower and sustainable for all concerned. The market needs to self regulate itself. But what will happen if Vista now buys Winchester? There is danger here. I think someone needs to send up a flare and call attention to this at this point. I am glad to raise the issue.
Do I think Vista Outdoors motives are pure as sunshine in all this? Nope, I think they are smart, and aggressive, and they want to make a lot of money, and there is a certain greed factor here because they can and have done this very much on purpose with no regulatory oversight or
intervention that I can see. Maybe I am just unaware of it? Maybe someone said, no don't let them buy CCI because that is a bridge too far, but did that happen......don't think so, but maybe I just don't know.
Am I complaining about it? Yes, because I don't want just one gasoline station called Standard Oil owning all the oil and gasoline stations in America. I don't think that's "American"..... or the American way or even fair. Unbridled capitalism is not a great thing. Capitalism needs some spongy guardrails to keep it on the tracks. Teddy Roosevelt saw that.
Now, if Vista would own Federal, Remington, CCI, and only price primers at $65 per thousand, I might think that's more acceptable and fair from an inflation perspective. But, they have the big stick, they have the market power, and they can charge what they will at this point.
But, I have a feeling, that BR2's at $179 are not going to stick.
I have a feeling primer prices are about peaked, and will at some point be turning down due to more new entrants and imports. And maybe Vista will think about their own social responsibility to their customers, and do they want customers long term who can afford their products?
If I can't buy Federal primers, or Remington primers at a reasonable price why would I want to buy Federal or Remington Ammo?
It gets to be about as ridiculous as 215 Bergers at some point. Its cheaper to buy the finished ammo and take it apart to get the 215 Bergers than to pay $300 a box for a box of bullets.
At some price, we may be buying finished ammo and decapping the primers? Pouring out the RL-26, and salvaging the Berger 215's?
Things go too far sometimes, and companies need to steer a course that is fair and sustainable and remember the customers are stakeholders too.
