Life is Grand! (7 Viewers)

[upNdown]

I see Apache has upped from $275 to $300 on the rack of $5s.

Yeah I had bought a few extra $1ks for $12 apiece when Apache first put these up for sale. It just occurred to me that it might be worth grabbing another barrel, at that price. And then I went to check it out and noticed they were up to $15 apiece.
Can’t blame him, he’ll sell them at that price. But that increase was enough to knock me back to my senses, that I don’t need an extra barrel.

 

[Mandos]

I see Apache has upped from $275 to $300 on the rack of $5s.

I wonder how much inventory he has. It would make sense to raise the price as inventory gets lower.

 

[upNdown]

It would make sense to raise the price as inventory gets lower.

Yes and no. There’s a guy who sells singles on Amazon named “my casino chips.” Regardless of his stock, he’ll only list one for sale. As soon as it sells, he relists another, at a higher price.
Example - I bought a THC Foxwoods snapper from him for $5.99 in November 2020.
I finally caved and bought the next one from him for $7.99 in May 2021.
He relisted the same chip for $14.99, which I’ve ignored for over a year.
I don’t have an MBA, so I can’t say what having unsold stock sitting for years does to your business. But as a customer I can say that I freaking hate this guy.

 

[CrazyEddie]

Perfect example of Hotelling's Rule.

https://en.wikipedia.org/wiki/Hotelling's_rule

tldr: the owner of a natural resource with a finite, limited supply (like an oil deposit, or a stash of Foxwoods snappers) has a rational incentive to raise the price as the resource gets depleted over time. The rate of increase that maximizes the value to the owner is equal to the "discount rate" which roughly speaking is the prevailing interest rate.

Using his price of $5.99 initially and then $7.99 six months later, he's using a discount rate of 66% annually, which is significantly higher than the prevailing interest rate, suggesting the seller is not a trained economist.

 

[MeridianFC]

Raising his price of $5.99 initially and then $7.99 six months later, he's using a discount rate of 66% annually, which is significantly higher than the prevailing interest rate, suggesting the seller is not a trained economist.

I come to PCF for the pron, but really stay for the comedy.

 

[CrazyEddie]

I come to PCF for the pron, but really stay for the comedy.

Me too!

 

[upNdown]

Did we ever get a glimpse of their tournament chips?

 

[ktran]

Did we ever get a glimpse of their tournament chips?

IIRC Jim said there wasn't a tournament set or he didn't acquire them.