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coffee arbitrage

PostPosted: Mon Aug 25, 2014 2:43 pm
by Merwanseth
I'm not necessarily suggesting it, but I think it is an interesting concept.


http://www.slate.com/blogs/moneybox/201 ... rices.html

Re: coffee arbitrage

PostPosted: Mon Aug 25, 2014 4:36 pm
by Morsecode
Seems plausible. Couldn't you also do the same at Costco?

:geek:

Re: coffee arbitrage

PostPosted: Mon Aug 25, 2014 5:18 pm
by NHsorter
Where do you sell this coffee? Your gonna have selling fees or some kind of overhead. That is certainly worth mentioning. Not bashing the idea really, but it was a poorly written article IMHO.

Re: coffee arbitrage

PostPosted: Tue Aug 26, 2014 12:14 am
by JadeDragon
If one was a coffee distributor, one should stock up, maybe... Maybe because most of your clients will also be stocking up since they all know the price increase is coming. Also as the article correctly notes, this is not arbitrage because you are buying and reselling later, not buying in market A and selling in market B seconds, or at least hours later.

Re: coffee arbitrage

PostPosted: Tue Aug 26, 2014 5:53 am
by 68Camaro
It's a form of bacon investing (which I noted some days ago) though perhaps on a larger scale if you are reselling. You can do coffee investing yourself on a smaller scale (presuming you drink coffee) if you buy low to stock, and drink (for yourself) high. I have a large stock - I only buy on sale, but that lets me buy the best coffees and enjoy the best all year long for the same (or slightly higher) price as average to poor coffees if I only bought on demand.

Buy low, drink high! (the corollary to buy low, eat high)

Re: coffee arbitrage

PostPosted: Tue Aug 26, 2014 9:47 am
by JadeDragon
I buy most of my food this way. Stock up with coupons or sales and always have a food (and other consumable supplies) on hand. Ever seen extreme couponing? That is my basement.

Re: coffee arbitrage

PostPosted: Tue Aug 26, 2014 3:33 pm
by Mossy
The US tax structure punishes businesses that hold onto stock. The various gov'ts have not found a way to punish end consumers who stock up for their own use.

Be wary of anti hoarding laws, if things go gunnysack.