Face it, weed is bad for you. It makes you forget things and...
What was I just talking about?
Anyway, obviously if there is a national glut of weed and prices are dropping than there is more supply than demand. Too many suppliers competing is pushing the price down. Eventually profits will be so low that the less efficient suppliers will do something else for a living and the more efficient ones will start making an average profit margin again.
By average profit margin I mean approximately what other business make with comparable time and resource inputs. When any particular industry is making unusually high profits it attracts other competitors into the business and that drives down profit margins to an average level. I found this out personally in the 90s when a business partner and myself made a ton of money over about a 2.5 year period brokering telecommunications services. I thought it would never end. Then a shitload of competition started doing the same thing and they passed us by and left us in their dust like a fucking freight train.
Current Events » in reply to Demand is down as well.
That's a good thing
The whole thread (33 posts)
- Whatever the market will bear
- Interesting, considering public demand for it is dropping...
- Price equilibrium.
- You're ignoring elasticity of demand. n/t
- De Beers
- You start off your post with a contradiction. The first two sentences.
- Price equilibrium.
- Interesting, considering public demand for it is dropping...