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Is this an element of greed, smart business or dumb business?

Bamabuzzard

Bamabuzzard

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I bought some firewood from an old man this weekend. The guy sells firewood for real cheap ($80 for 1/2 cord red oak). The going price around here for 1/2 a cord ranges from $125-$150. He can sell the wood so cheap because it is free to him, he's retired and does the labor himself.

I pulled up at his house and asked could I get 1/2 a cord. He asked me what I was going to use the word for. I told him firewood. He then told me "Okay, but if you start coming back too soon and start buying in larger volume I'm going to quit selling it to you." I was like "Okay, I think this will last me a while." Here's why he said that. He told me he had two guys buying it from him then going up the street and selling it for $150 a cord. So he stopped selling it to them.

I didn't say anything to the old man but as I left I thought, what was the big deal as for as he was concerned? He was getting his asking price for the wood, getting return customers on a much more frequent basis and had the option to increase his price and make more money if he wanted. I got the feeling he was mad because he didn't want someone else making money off his product. Even though he made his money and had the option to increase the price. :conf3:
 
C

CullmanTide

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Bamabuzzard said:
I bought some firewood from an old man this weekend. The guy sells firewood for real cheap ($80 for 1/2 cord red oak). The going price around here for 1/2 a cord ranges from $125-$150. He can sell the wood so cheap because it is free to him, he's retired and does the labor himself.

I pulled up at his house and asked could I get 1/2 a cord. He asked me what I was going to use the word for. I told him firewood. He then told me "Okay, but if you start coming back too soon and start buying in larger volume I'm going to quit selling it to you." I was like "Okay, I think this will last me a while." Here's why he said that. He told me he had two guys buying it from him then going up the street and selling it for $150 a cord. So he stopped selling it to them.

I didn't say anything to the old man but as I left I thought, what was the big deal as for as he was concerned? He was getting his asking price for the wood, getting return customers on a much more frequent basis and had the option to increase his price and make more money if he wanted. I got the feeling he was mad because he didn't want someone else making money off his product. Even though he made his money and had the option to increase the price. :conf3:
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Being a member of the OF Club myself, Im guessing he does it as a hobby and for a chance to meet and talk with people. Possibly even to help or be of service to others and didn't appreciate being taken advantage of.
 
cbi1972

cbi1972

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Here's how I see it.

1) The man wants to sell below market value for personal reasons ("I think my price is a fair price, and I hate the idea of price gouging")
2) There are those who would exploit this man's preference for their own personal gain (Arbitrage exists as a result of market inefficiencies)
3) There's nothing morally wrong with reselling at a profit
4) There's nothing morally wrong with placing conditions on a transaction
5) There's nothing morally wrong with refusing to sell to those suspected of violating conditions of previous transactions
6) There IS something morally wrong with entering into a transaction with the intent of violating the conditions of that transaction (saying "I intend to burn this wood to heat my home" while painting a "OAK WOOD 4 SALE" sign)
7) It's less immoral to violate the conditions of a transaction if the agreement was made in good faith. ("I agreed not to resell the wood, but I ended up doing it anyway, but I'm also not looking to buy more wood to resell")

He's not a major player in the overall market for firewood, and his business model is unsustainable at large scale. He can undercut the local market, but he can never supply enough to meet demand. However, he does get to decide, within his sphere of influence, who benefits from his altruistic efforts, and he has elected to spread it among the end-users rather than concentrate it in the hands of other entrepreneurs.

I see nothing wrong with anything that anyone is doing, unless the resellers have willingly violated terms of sale.
 
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Bubbaloo

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Bamabuzzard said:
So are you suggesting it was morally wrong for the guys to resale the wood rather than use it for burning?
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If the agreement was for personal consumption only..yes it is wrong. Just as food stamps are issued for
personal consumption---selling them to others is a federal crime and both parties should be prosecuted or selling a puppy thinking its for the family and then finding out it was for a dog fighting ring. Some sick folks out there. SMH
 
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G-VilleTider

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Bubbaloo said:
If the agreement was for personal consumption only..yes it is wrong. Just as food stamps are issued for
personal consumption---selling them to others is a federal crime and both parties should be prosecuted or selling a puppy thinking its for the family and then finding out it was for a dog fighting ring. Some sick folks out there. SMH
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Yes. Yes you are.
 
Crimson1967

Crimson1967

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He should hire someone to stand next to the other guys with a sign advertising his lower prices.


Sent from my iPhone using Tapatalk
 
Jessica4Bama

Jessica4Bama

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This made me think of a post I saw on FB this past weekend. A guy acquired two Hatchimals toys, and he decided to sell one for $300 then raffle the other one off. People were giving him hell for this. I didn't see anything wrong with it.
 
MattinBama

MattinBama

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A large portion of my business is retail arbitage so I don't really have a problem with it but if someone had signs up (most just do limits) against it I just would move on to another place. I don't fault either person in this situation. I've bought cheap, then undercut the market online and then had dropshippers sell my stuff to someone else at a higher price.
 
Jon

Jon

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Jessica4Bama said:
This made me think of a post I saw on FB this past weekend. A guy acquired two Hatchimals toys, and he decided to sell one for $300 then raffle the other one off. People were giving him hell for this. I didn't see anything wrong with it.
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is this the toy this year? Never heard of these things

and I'm with you, I don't have an issue with it either
 
Bamabuzzard

Bamabuzzard

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Bubbaloo said:
If the agreement was for personal consumption only..yes it is wrong. Just as food stamps are issued for
personal consumption---selling them to others is a federal crime and both parties should be prosecuted or selling a puppy thinking its for the family and then finding out it was for a dog fighting ring. Some sick folks out there. SMH
Click to expand...
I can't be certain but I assume before the old fella figured out what these guys were doing he didn't explicitly put any restrictions on use of the wood. He didn't have any signs stating "Not for resale" or "For personal consumption only". All you see when you pull up in his yard are about 20 stacks of wood. The gentleman seemingly has a pretty decent business. The majority of the stacks on his property were marked "Sold".
 
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bama_wayne1

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I'm having the same trouble finding the NES Classic. My adult kids are clamoring for one and they sell for $69. You can buy them on ebay for almost $300
 
rolltide_21

rolltide_21

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Jessica4Bama said:
Yes. It's supposedly the hottest toy of the year. It reminds me of the craze of the Furbies.
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We got one for my son. I didnt know he wanted one nor know what they were. My mom's fiancé stood 2.5 hours in line for it. When I found the demand, my first response let's see what we can get for it. Then buy him one after Christmas. Make a few bucks. That idea was shut down quickly, haha.
 
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