Ammo 2000

Shooting Industry, Jan, 2000 by Roy Huntington

HOT SALES ARE EXPECTED TO CONTINUE FOR THE AMMUNITION MARKET

The past year proved to be another banner one for the ammunition industry. While driven partly by on-going fears of pending firearms bans and the related reaction by buyers to "stock-up," the impressive sales were primarily driven by Y2K concerns.

The predictions of massive unrest at the beginning of 2000 prompted gunowners to stock-up on ammunition. Many manufacturers worked around the clock to meet the demand. Virtually all major ammunition makers were back-ordered on .223, .308, 9mm, .45 ACP and .40 "ball" ammunition, especially during the last months of 1999.

One ammunition source told Shooting Industry that even the government was "stocking-up," which contributed to the scarcity of ball ammunition on dealer's shelves during November and December.

Will this glut of ammunition sitting on the garage shelves' of gun owners affect the industry in 2000? Yes -- and no -- according to the experts.

Will It Continue?

Tens of thousands of people who normally would not have bought ammunition in any quantity did so in 1999. Now, that ammunition may be sold off at gun shows and to friends, effectively "robbing" business from local retailers for a short while. Much of that ammunition might simply remain on garage shelves quietly awaiting the next "disaster."

Will you sell cases of ball ammunition in the early months of 2000? Probably not. Will the sales of premium, personal-defense, hunting and specialty ammunition continue unabated? Industry experts say yes.

So, while there will be a dip in sales in early 2000, experts predict another "hot" year of ammunition sales.

Ammo Trends 2000

A lot of small ammunition companies have entered the business in the past few years. From lightweight, high-velocity personal-defense ammunition with exotic bullet designs, to heavy-weight, cast-lead hunting loads for black powder rifles, these "boutique" makers cater to niche markets, often selling directly to the end-user. Of course, there also seems to be a steady stream of these small companies leaving the market. The ability of the small makers to cater to the needs of a limited number of buyers has been noticed by the major manufacturers and many of them have crossed over into this unusual market.

One has only to examine the selections available from Winchester, Federal, Remington, Black Hills and others to see that anything -- from ancient, long-forgotten cowboy loads and lead-bulleted, heavy-hunting ammunition to ultra-high performance loads -- are available over the counter these days.

Another trend in the industry is the combining of technology by two or more players in the ammunition game to create a product that, alone, neither could manage. Barnes and Federal, for instance, offer an astounding line of performance hunting ammunition. Winchester and Nosler now offer a superlative line of hunting ammunition that brings Nosler's expertise in bullet making to the table. Look to PMC and Sierra for a combination that delivers knock-out blows in the varmint market. While the smaller custom loaders have made it a routine to use bullets from the big makers, this trend by the "big three" is new and growing.

Factory ammunition can answer any need your customer might have -- either real or imagined. Savvy dealers are preparing for another year of healthy ammunition sales.

Hands-On Sales

Waco Williams, owner of Mission Armory in San Diego, Calif., has been quoted before in Shooting Industry for good reason. His small retail store in an industrial area of San Diego does a surprising amount of business in "specialty" ammunition. Williams and his staff make good use of their limited display space, offering walk-in clients a wide cross-section of surplus, premium, personal defense, lead-bulleted and archaic loads.

"I don't have the shelf space behind the counter to stock what I'd like to," said Williams. "A simple matter of necessity made me put the ammo on tables on the sales floor, keeping it within reach of our customers. Almost immediately, I noticed ammo sales increasing as customers noticed the wide range of inventory, odd calibers and unusual case-lots available. They reached right out for it!"

Waco continues to offer this cross-section "at hand" for his customers but warns dealers to be prepared for some opened and torn boxes as customers rummage through the displays on the tables.

"I confess, I don't understand why a customer will open a box of ammo, look at a round inside, then replace the now opened box and take a new one from just below it, leaving the torn one. I swear, it's made me prematurely gray," he laughs. "I generally offer the torn boxes at a discount. But the payoff is worth the occasional missing end flap!"

What's Out There

These are the good old days for ammunition buyers -- both retail and wholesale. The ball ammunition industry is usually a price-point affair, with all the major players competing for shelf space with their own version of a "white label" brand. Luckily, the hunting, premium and specialty lines don't seem to suffer from that same malaise. While a dealer has to offer a discount line of basic plinking and target ammunition, the real money is in selling premium ammunition, especially to the non-reloader, hunter and personal-defense buyer.