[meteorite-list] Meteorite economics revisited

From: Michael Farmer <meteoriteguy_at_meteoritecentral.com>
Date: Thu Apr 22 10:32:45 2004
Message-ID: <20040303151051.26158.qmail_at_web20912.mail.yahoo.com>

Rob, I could not have said it better, in my own way
that is what I was trying to get at. I am still on the
way home, missed flights yesterday means another night
away from home.
I will be home this afternoon, please let me catch up
but I will be offering pieces for sale this afternoon.
Wait till you see the photos.
This is a simple question of economics, I buy for what
I want to, I sell for what I want to, and if the
competition does not like it, too bad for them.
Mike Farmer
Meteorite Hunter
--- "Matson, Robert" <ROBERT.D.MATSON_at_saic.com> wrote:
> Hi All,
>
> On the subject of meteorite economics, I have a
> couple comments --
> actually, more ~reminders~, since this ground has
> been covered many
> times before. I'm going to use Adam's recent e-mail
> as a talking
> point since it mentions the key issues that come up
> again and again
> on meteorites and pricing. My comments are NOT
> addressed at Adam,
> but rather at any meteorite dealer.
>
> > What this statement means is that it is not going
> to be offered
> > for sale to the public at $2.80 a gram when $5.00
> a gram was paid
> > in the field. This stunt was pulled in the past
> in order for one
> > dealer to prove a point to another without
> consideration for
> > collectors and other dealers who took a loss
> because of it.
> > This is called collateral damage, innocent people
> hurt by somebody
> > else's actions.
>
> When someone offers material at a fire-sale price, I
> fail to see how
> that hurts other sellers of the same material.
> After all, what's to
> stop those sellers from simply buying-out the
> "rogue" seller?
>
> > How could this be a good thing when most dealers
> will not even pursue
> > a new fall anymore unless it lands in their
> backyard? They will not
> > pursue new falls because there is no reward for
> doing so when somebody
> > is willing to sell below their cost in order to
> prove a point.
>
> This is a self-correcting situation, as one of two
> things is going on
> here. Either,
>
> 1) the low-ball seller eventually bankrupts himself
> with his vengeful
> altruism, or
>
> 2) he's still making a profit (even at the low-ball
> price), in which
> case the other sellers must have uncompetitive
> margins or unrealistic
> goals for return on investment.
>
> > Do you want only a single source collecting new
> falls and distributing
> > the material? Do you have any idea what kind of
> damage this could
> > cause if the single source was unreasonable?
>
> Why, yes - no damage at all. Meteorite dealers
> don't set prices --
> buyers do. Since meteorites are a non-essential
> commodity, if the
> price is too high, people simply go without.
>
> --Rob
>
>
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Received on Wed 03 Mar 2004 10:10:51 AM PST