- Tue Mar 09, 2021 4:13 am
#375133
@matt - Market inflation is real here. I'm even talking hobbyists avoid selling off rare natural hybrids of Sarr and Nep. I even know a certain guy on Instagram who sells helis, neps, and cephs for way elevated prices - like 3x. Here's his basic business model:
- About 30% of his revenue comes from eBay auctions. People get impulsive here, especially with buy now, pay later things like paypal financing. Plants worth 100 can go north of 450 on eBay auctions.
- About 20% of his revenue comes from new customers. Since CP's are currently a big thing right now in the houseplant community, selling $20 helis and cephs is a good way to make quick cash. The only thing is these plants are probably 3 months old at most. I 100% expect about half of them sold to be dead in the next year.
- The other 50% is a phenomenon I've named "metered selling", like when golf tee-times or airplane flights change prices dynamically to get the most profit, and meter the amount of reservations. He sells plants only at highs, and several of each plant. Since some of these are rarer clones in the US, he can drive up the price by 500% just by pumping and dumping these plants. Then, once the plants are devalued due to more circulation in the market, he waits until demand is high and supply is low, and dumps his investment. This is possibly irritating to me since I think if the market is small enough, he can hurt other growers trying to sell for a little extra cash after he dumps.
Anyways, that's my scooop.
- About 30% of his revenue comes from eBay auctions. People get impulsive here, especially with buy now, pay later things like paypal financing. Plants worth 100 can go north of 450 on eBay auctions.
- About 20% of his revenue comes from new customers. Since CP's are currently a big thing right now in the houseplant community, selling $20 helis and cephs is a good way to make quick cash. The only thing is these plants are probably 3 months old at most. I 100% expect about half of them sold to be dead in the next year.
- The other 50% is a phenomenon I've named "metered selling", like when golf tee-times or airplane flights change prices dynamically to get the most profit, and meter the amount of reservations. He sells plants only at highs, and several of each plant. Since some of these are rarer clones in the US, he can drive up the price by 500% just by pumping and dumping these plants. Then, once the plants are devalued due to more circulation in the market, he waits until demand is high and supply is low, and dumps his investment. This is possibly irritating to me since I think if the market is small enough, he can hurt other growers trying to sell for a little extra cash after he dumps.
Anyways, that's my scooop.