FWIW, I don't see people complaining about a certain consignment shop gouging people on price... They set the price as to what the market will bear, and if it doesn't sell, it's discounted.
Thought I Was Smooth
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Actually, I meant it.
Apparently the Chinese are more than willing to pay these prices so if we have to place blame, they should take their share.If we have to place a blame, maybe Esoterica should take their share for maintaining scarcity of their product by not producing more. Or maybe their strategy is genius.. The best market position (and opinions vary but this is mine) to be in is the one that your supply is just under demand. This strategy breeds an aftermarket of opportunity.
"Scalpers" IMO are legit. They got what others want, set the price and people GLADLY pay for it. No harm no foul.
ET's sacks are typically sold at 140-200 bucks. The guys trying to sell it for 300-400 bucks aren't moving it at all.
I do have serious issues with a few vendors who get their stock in, and then list it as "consignment" at unrealistic market prices (an 8 oz sack for 300-400 bucks) ot cool at all. But they rarely sell anyway.
I am far for "rich" but I buy from the "scalpers" who set their prices fair. And yes I'm one of those guys who will pay for blends I like that are either hard to get or discontinued. I find the best deals are on pipe forums from other members. More power to them.
As far as the terms "gouging" and "scalping?" YMMV.
ET's sacks are typically sold at 140-200 bucks. The guys trying to sell it for 300-400 bucks aren't moving it at all.
I do have serious issues with a few vendors who get their stock in, and then list it as "consignment" at unrealistic market prices (an 8 oz sack for 300-400 bucks) ot cool at all. But they rarely sell anyway.
I am far for "rich" but I buy from the "scalpers" who set their prices fair. And yes I'm one of those guys who will pay for blends I like that are either hard to get or discontinued. I find the best deals are on pipe forums from other members. More power to them.
As far as the terms "gouging" and "scalping?" YMMV.
A seller can’t decide what the right limits are. If a neighborhood sent one guy to get supplies while others were getting trees off houses and rescuing people, you have just made it impossible for this situation. You don’t like paying more in this situations. I really get that because no one does. However, it really is needed to buy time for help to arrive.
Germain's is capable of a certain amount of capacity. If demand far exceeds capacity, then prices will go up. It's not Germain's extorting the market, nor is it Arango. Once the product hits the shelves and is in the secondary market, demand drives the price.Actually, I meant it.
If we have to place a blame, maybe Esoterica should take their share for maintaining scarcity of their product by not producing more. Or maybe their strategy is genius.. The best market position (and opinions vary but this is mine) to be in is the one that your supply is just under demand. This strategy breeds an aftermarket of opportunity.
Sure they can. And after the hoarding began to set in last year they did; TP, eggs, flour, yeast, etc., a whole range of items that people decided they needed to buy a 10 year supply of.
The sad part in my opinion is that Germain or Arango or the retailers, who really is producing value does not make a penny out of the craze. Good example of a free market would be Arango set a price which will ensure demand equals supply
Even if German could triple their production it would still sell out, be hoarded, scalped and gouged."
Actually, I meant it.
Ah, I misinterpreted. I thought that you were suggesting that I was blaming the Chinese. Unfortunately for guys in China (mainland at least) there is zero opportunity to walk into a tobacco shop and purchase Esoterica. Actually, I haven't even seen a tobacco shop that sells pipe tobacco there. (I'm sure they must exist.) I certainly don't know for a fact that the aforementioned buyer is Chinese. But I wouldn't bet against it. Arbitrage is a huge industry there.
I'm of the same opinion and it seems like Germain has it figured out pretty well.
Yeah, let Germain jack up their prices and make the added profits. Shut down the middle man.
What you describe is a situation where the price needs to be increased significantly.
I would be very interested to see how the consumers would react to such an action.
They would probably not do that, because then the B&M price would go up. And B&M owners would not place orders for that product, because they know that above a certain price point their customers won't buy it. They'll buy something else instead. In retail it's all about turns and earns. And if a product isn't turning, your losing money.
Why buy a certain amount of inventory to have it sit on a shelf? I could take that money and put it in a bank and let it sit where it would earn interest. Not much, but better than nothing. Or, I could buy somebody else's product at lower price and a better margin and sell that...
You give a perfect example why free markets set the correct price.
The ExtraTesticle...
Price gouging may or may not be immoral. Morality is etherial and subjective. Regardless, price gouging is illegal in many municipalities, so marking up essentials is a crime. Thus venders limit purchases.
That said. Arbitrage isn't the same as price gouging. Other members seem very confused about the terms free market and price gouging.
And the secondary market sets it's price. A B&M store generally has a smaller customer base as opposed to an online retailer. And online retailers sell out in a matter of minutes.
Once the low hanging fruit of the online stores is gone, then the secondary market takes over.
I gave up on what is right and what is wrong long time ago. I do what I can to do right for my reasons and let others make their own rule, as long as they don't cross me. Trying to tell others what is right is like talking to a wall, specially now days.
Juris Naturalism 101 right here boys. Do what you say and don't encroach. Good Stuff!
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