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The economy is too bad to sell drugs (I grew up in a violent street gang and lives the gang life II}

  1. #1
    Iron Ree African Astronaut [my flyspeck near-blind refund]
    Octavian and haxxor are wageslave soberheads edition. Those fucking margins bruh unless you cooking youre literally working for less than minimum wage

    We analyze a unique data set detailing the financial activities of a drug-selling street gang on a monthly basis over a four-year period in the recent past. The data, originally compiled by the gang leader to aid in managing the organization, contain detailed information on both the sources of revenues (e.g. drug sales, extortion) and expenditrues (e.g. costs of drugs sold, weapons, tribute to the central gang organization, wages paid to various levels of the gang). Street-level drug dealing appears to be less lucrative than is generally though. We estimate the average wage in the organization to rise from roughly $6 per hour to $11 per hour over the time period studied. The distribution of wages, however, is extremely skewed. Gang leaders earn far more than they could in the legitimate sector, but the actual street-level dealers appear to earn less than the minimum wage throughout most of our sample, in spite of the substantial risks associated with such activities (the annual violent death rate in our sample is 0.07), There is some evidence consistent both with compensating differentials and efficiency wages. The markup on drugs suggests that the gang has substantial local market power. Gang wars appear to have an important strategic component: violence on another gang's turf shifts demand away from that area. The gang we observe responds to such attacks by pricing below marginal cost, suggesting either economic punishment for the rival gang or the presence of switching for users that makes market share maintenance valuable. We investigate a range of alternative methods for estimating the willingness of gang members to accept risks of death, all of which suggest that the implicit value that gang members place on their own lives is very low.
  2. #2
    Kingoffrogs Appendage of Stan
    You don't make any money selling drugs like weed or coke, weed is too cheap and most people don't buy more than 1 gram of blow at a time.


    If you start selling heroin or crack, you can make a couple hundred bucks an hour, after expenses it's more like 20-40$/hr, depending on demand and quantity sold. If you make 5 sales of 1 gram at 90$ in an hour (which is pretty low), you'd make 450$.

    So, let's says you pick up a key for a cool 50k. You don't cut it (dumbass), you just sell it straight.

    450/hr x 5 days a week 8 hours a day = 18k a week.

    280 sales a week, 90$/gram.

    It will take you 3 weeks to flip a key at this rate, when you do, you would have made 90k, so a profit of around 40k over 3 weeks, or around 2k a day.
  3. #3
    Iron Ree African Astronaut [my flyspeck near-blind refund]
    There's a point in the month when all the drug users run out of money and there isn't enough crime in the world to support them

    How do you make money selling drugs when 50% of your customers (male and female) try to pay you with sex.
  4. #4
    Kingoffrogs Appendage of Stan
    Originally posted by Iron Ree There's a point in the month when all the drug users run out of money and there isn't enough crime in the world to support them

    How do you make money selling drugs when 50% of your customers (male and female) try to pay you with sex.

    If you have a large enough client base and/or you sell multiple products that isn't a big deal. Sell Crack, AND acid, AND carts too. Weed and carts make decent money, and if you sell heroin and meth and crack all at the same time, sure you will probably get stabbed by a would-be customer, but you'll be selling to addicts of 3 substances instead of 1, and if you get some of your customers addicted to speedballs you're set.

    Selling to a customer that is addicted to speedballs 1.5x-2x your revenue per sale if you are selling the big 3 drugs.
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