coffee arbitrage

[Merwanseth]

I'm not necessarily suggesting it, but I think it is an interesting concept.


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

[Morsecode]

Seems plausible. Couldn't you also do the same at Costco?

[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.

[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.

[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)

[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.

[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.