I wonder how much a hit in volume Terry can take. Many Terry's aren't that wealthy and likely depend on the volume they've achieved. I could see taking 20-80% of Terry's volume (and likely therefore profits) making the economics less desirable and boot a lot of folks from illegal retailing. You don't have to take ALL of Terry's business, just enough to make it unpalatable.
A lot of Terrys probably only make $20-$30/hour in the end... if you drop that to $10-$15/hour, they switch to other things... like welfare. I have no idea how much a small-time eighth dealer nets.
How could private illicit operations hope to compete with massive corporate economies of scale run by PhDs and MBAs with legit labs.
We generally don't buy beer from the guy down the street's garage, we don't buy cigarettes out of the trunk of a car, and we won't be buying weed from Terry. It's not just about price, there are several reasons why LP's are going to win.
People pay gobs of money today for convenience, we live in a culture of convenience. LP's will be convenient. Terry will never be convenient (except for those that work with a Terry and have it brought to work, bravo).
|