The increase in the cost of ammunition and related components has had an impact on sales. You, of course, already know that. The increase, manufacturers report, is due to a tremendous jump in the cost of raw materials. Just how much the increases have affected the overall sales at gun shops is yet to be determined, but many dealers report that customers “are shocked when they see the prices.”

The picture, however, is not entirely bleak, as customers still seek out new products and manufacturers are accommodating, with numerous 2008 offerings that reach across the spectrum, from .22 WMR to the highest-powered hunting cartridges.

Your customers’ motivation to seek out new products will help increase profits from your ammunition aisles. However, while new products attract a lot of customers’ attention, real success in this segment of the market requires integrating new offerings with calibers that are proven sellers.

Fiocchi uses nickel-plated lead shot in its Turkey loads, giving hunters
the benefit of a denser, more consistent pattern with fewer stray pellets
and increased range and penetration.

What is the largest mover in your ammunition section? Dealers report there’s no debate: it’s .22 rimfire. Eddie Stevenson, a 10-year veteran of Remington, is a former manager of a large hunting department in a sporting goods store. He knows the power of rimfire ammunition is not just in its velocity.

“The rimfire market is huge. Varmints, tins cans and targets never go out of season,” Stevenson said. “That’s what makes the .22 rimfire so popular and that’s why you should devote plenty of shelf space to this product. Millions of rounds of .22 are sold each year, and with the higher-grade rimfire products on the market, dealers can make more profit. It’s not like selling a box of .300 Ultra Mag. ammunition, but you’ll sell 20 boxes or more of .22 ammunition, compared to one box of the big-game variety.”

Stevenson reminds dealers to check with companies and ammunition representatives for sales aids. For instance, Remington has a program featuring an oak display unit promoting 100-round rimfire packs. Promotions like this get the product in front of the customer and produce a higher volume of sales.

The growing popularity of AR15-style rifles, along with the military’s war on terror, is driving the demand for .223 ammunition. Despite the pressure on supplies, there’s still ample .223 available. 

“Because of the war, there’s been a lot of talk of low supplies and I don’t know where it is coming from,” Stevenson said. “I keep seeing reports from writers and news magazines about low supply issues and that’s just not the case. In fact, at Remington, our sporting arms don’t generally cross over to military sales.”

Stevenson says the .223 cartridge is extremely popular and a top seller for dealers.
“The caliber is popular in both bolt-action and semiautomatic rifles, and has a huge varmint hunting following,” Stevenson said.

The .22-250 also is a popular varmint and predator cartridge, along with the .204 Ruger.


Nontoxic Facelift

The largest ammunition segment of the shooting sports market is shotgun shells. An important innovation in recent history is the creation of better-performing nontoxic shotshells for waterfowl hunters and hunters regulated to nontoxic shot on public lands.
Stevenson says hunters who are not impressed with the characteristics of steel will definitely be impressed with new advances in nontoxic loads.

“With the advent of Remington’s Premier Hevi-Shot, a lot of the other manufacturers, including Winchester and Federal, have jumped on the bandwagon because the load is so superior to steel and even lead,” Stevenson said. “But despite more offerings on the market, costs have gone up, because of the cost of raw materials. Even so, we’re still seeing consumers willing to pay for the performance.”

Steel shot remains somewhat economical and some versions are actually decreasing in price. Stevenson believes high-volume shooters are not going to convert to Wingmaster HD because of the large amount of shotshells they shoot. He reminds retailers to continue stocking the steel loads for budget-minded consumers.

Hornady’s vast ammo and reloading line offers dealers
unlimited options for their customers.

There are a lot of big-game hunters in America and while they don’t burn through the ammunition like shotgun enthusiasts, you need to cater to their needs. Reliable calibers in the big-game market include the .270, .30-06 and the .300 Winchester Magnum.

One caliber Remington is currently pushing is the .300 Ultra Magnum. Remington has developed a new concept in ammunition to promote the use of this large caliber with the company’s Power Level series.

Power Level comes in three loads for the .300 Ultra Magnum. Power Level I mimics the terminal performance of a .30-06, including low recoil. Power Level II mimics the .300 Winchester Magnum, and Power Level III is the real McCoy, billed as the “flattest-shooting .30 caliber in production today.”

Remington believes the Power Level ammunition will boost sales in both the ammunition and firearm segments of the market. By introducing three levels of ammunition for one caliber, consumers won’t have to purchase multiple guns for various species, from pronghorn to moose.

“When you think of how many .30-06s are being used, you see the consumer demand,” Stevenson said. “Power Level ammunition for the .300 Ultra Mag is not just dummied-down loads. The bullets paired up with the Power Level grades are designed to perform at those velocities, expanding and penetrating for top performance. It’s a cool concept when you think of how many people shoot the .30-06 every year and think of the steadily increasing popularity of the .300 Ultra Magnum.”


Midrange Ammo

Another way to please consumers on a budget is to stock the middle-of-the-road ammunition. Winchester’s Super-X and USA brand, Federal’s Power-Shok and Eagle brands, plus the famous Remington green box featuring Core-Lokt tradition still beckon to many shooters.

Based on his years of working in retail sporting goods and his work with Remington, Stevenson knows the bulk of shooters are looking for affordable ammunition that works. He advises retailers to put the midrange ammunition in an easily available location and don’t overload the shelves.

“The more a consumer has to study and read, the greater your chance of losing a sale,” Stevenson said.

Reloading Is Still Viable

Reloading, a common practice 20 years ago, has become a skill practiced more for hobby reasons. The cost savings and accurate ammunition provided is becoming an element of the past, but this could change due to the recent cost increases of ammunition.

Stevenson doesn’t believe reloading will overtake factory ammunition sales, but interest from firearm editors and writers points to an increase in consumer interest.

“Reloading dwindled many years ago, but as ammo prices bumped up due to raw material increases, there’s been a rebound in interest,” Stevenson said. “I’ve seen an increase in requests for components so the retailer shouldn’t give up reloading shelf space just yet. We don’t know exactly where the market is going with raw material prices, and more people may want to roll their own if prices keep increasing. The interest is still there.”

For 2008, Remington has added its Premier AccuTip bullet in eight calibers to its reloading component line. The bullet is available in eight calibers, .17 through .30 caliber, 11 bullet weights and two bullet types: AccuTip and AccuTip-V.

This Feature Article is sponsored by:

Intensity Optics
www.intensityoptics.com

Kwik-Site
www.kwiksitecorp.com