Caplock Ammunition Re-Sellers
The market for Caplock Ammunition is upside down. This is a phenomenon that occurs when Buyers are willing to pay more for an item than what sellers are asking (or vice versa). This is most likely occurring due to sudden demand caplock weapons due to their performance characteristics in combat.
If you are a business owner in Tradelands who specializes in ammunition, this is a market segment that uses a very traditional model for determining profitability. That’s because this item has a direct raw material cost associated with it, and therefore has a measurable cost of goods sold (COGS) which is a standard part of modern-day accounting.
Creating the item requires Iron, Copper, Saltpeter, and Coal which are all materials that come from mining. The challenge isn’t the physical act of making the ammunition, it’s having all of these items available in the required quantities to produce them in large stacks. Because Saltpeter and Coal are mutually exclusive, it means you need to conduct your mining at no less than two locations to obtain all the correct materials. That’s why ammunition is typically produced by bulk sellers, or by those with access to a supply chain vendor.
The reason for the market being upside down is because sellers most likely made their existing stock of ammunition when materials were cheaper. Because their markup on the existing stock is already high enough, there isn’t a reason to raise rates beyond their current list price since it will require them to do more work than necessary to sell it.
On the other hand, buyers who are interested in buying the ammunition aren’t able to locate sellers and are becoming increasingly desperate in their attempt to get someone to trade it. This opens an opportunity for re-sellers who are aware of the current bulk manufacturers of Caplock Ammunition to make purchases, then re-sell those to buyers who can’t find them. While profit margins won’t be as high for these re-sellers, it’s a fairly effortless method of making quick money as long as you know where your buyers and sellers are located.
