How Do I Calculate the Cost-Effectiveness of Buying Bulk Ammo?

As a regular shooter, I make a trip to the range monthly, using approximately 200-400 rounds of ammunition each time. For simplicity, let's say I use 250 rounds in each visit, as that amounts to a quarter of a case, making the math straightforward.

The cost of buying ammunition in individual boxes can add up quickly. For instance, a 50-round box of basic 9mm practice ammo often costs around $25. If I go to the range four times a month, that means I typically use a case (500 rounds) and the corresponding cost can be roughly $500.

However, buying in bulk can significantly reduce this cost. In a recent instance, I purchased two cases (1000 rounds) of 115gr Blazer brass ammo from Midway on sale for $269 per case, with free shipping. This resulted in a total cost of $538, which is essentially a half-price deal with the second case practically for free.

Understanding the Keystoning in Retail

Keystoning, a practice commonly found in retail, involves buying products at a certain price and marking them up to nearly double the initial cost. This strategy includes covering your overhead expenses and profit margin, which is fundamental for any business to stay viable. In the scenario above, the $93 I saved would be the equivalent of the typical markup if I were to buy this ammo from a retailer.

Advantages of Buying Bulk Ammo

Beyond the obvious financial benefits, buying bulk ammo offers several other advantages:

Consistency: Purchasing the same brand and lot number of ammunition ensures consistency in performance and reliability. Reserve: Having a large reserve of ammo can come in handy in case of supply shortages or other disruptions. Convenience: Buying in bulk means less frequent trips to the store or range, saving you time and possibly money on transportation.

By buying in bulk, you can simplify your purchasing process and ensure you have the ammunition you need without incurring high costs or dealing with supply chain issues.

Conclusion: In summary, buying bulk ammo is a cost-effective and practical choice for regular shooters who frequently purchase ammunition. By understanding the dynamics of retail pricing and the benefits of large-scale purchasing, you can make informed decisions that lead to better financial outcomes and a more streamlined ammunition purchasing process.