Geezer’s Corner: Supply & Demand

When I was in the 7^th grade, I entered into my first business enterprise, a paper route. This enterprise lasted 2-years, but I quickly found that it wasn’t the fast track to riches. Although my customers wouldn’t/couldn’t pay the thirty-five cents a week cost of the paper, I had to pay the publisher the thirty-five cents. As I got older I became more selective in my path to riches.

In the 70′s I found a sure thing, selling used construction materials. My first big score was over a thousand yards of “almost new” carpet. I got the carpet just for pulling it up. I also tore my rotator cuff, and it wound up costing me seventy-five dollars to haul the carpet to the dump. It seems nobody wanted to buy “slightly” used carpet, no matter how good the deal. Even free.

At the turn of the century I entered into business with my daughter, and her ex-spouse. He was experienced in estimating restoration costs for fire and water damaged homes. We went into the construction business restoring homes that had been damaged by water or fire. My son-in-law was both a laborer and estimator. I had the building experience. Things started out great but new business faded fast. Our estimator had decided that he would rather stay home and play video games than sell insurance adjusters on our “excellent” restoration services.

Since then I have been cautious about entering into any new business enterprises, but almost overnight I have found a sure thing.

In case you haven’t heard, the “Hostess” baking company quit business this week and they will no longer be delivering their “twinkies” “snowballs” and “ding dongs” to the consumer. The existing supply of these delicious and world renoun baked goods will disappear quickly from the shelves.

Already the value of these wonderful items has jumped a hundred to ten thousand fold.

Not to be left out, I have invested heavily in these goods. I know their value will only continue to grow in the coming years. My plan is to limit the availability of the products I purchased and therefor protect my investment. We all know the economics of supply and demand.

One further element that makes this such a great business, is that I will not need to invest in any type of special storage facility because of the extended shelf life of these products.