photography moi extraordinare
Art is one of the valuables that does not adhere to the supply and demand principle.
I mean, someone creates art, shills it in an exhibition, or most likely posts it on the internet, and then irrationally charges $2 million for it: no income potential, no guarantee of resale value, no productive value that solves any real-world problems, except a sentimental appeal to aesthetics.
I might be a skeptic, a philistine, or someone who is too broke to appreciate beauty, but art is not something I would be willing to invest in, unless it is a limited online NFT with a large marketplace of potential buyers.
But, again, it demonstrates that without demand, it is difficult to set a price. Scarcity and FOMO determine price, which is why currency notes that are supposed to be real money with exchangeable value rarely hold value in a post-apocalyptic setting.
What has value is what people desire. Although emotions, sentiments, and attachments can drive demand, I do not believe sentiment alone should be enough to determine the value of something.
Look at this...
I saw someone on Whatsapp post a picture of a baby lion and say they knew someone who was willing to sell it for more than $18,000.
I was surprised because lions cannot be eaten, and even if they could, this one is only three or four months old.
Now, you could argue that they can be put in zoos and used for income, but I doubt anyone would visit a zoo just to pay to see a three-month-old lion.
Even if you believe that lions are rare animals and that this rarity should drive their resale value, Nigeria is not a place where a regular person would purchase a lion.
Now, if this were Dubai or the Middle East, where the wealthy keep wild cats as pets, this person would have been in business.
Most inexperienced business people overestimates the value of their commodity
Now I want to believe they have overvalued their lions, and I doubt anyone will buy it. Initially, no one wants to keep a potentially dangerous pet that will require feeding but will not return any investment.
Now the only choice this person has is to shill their baby Lions to zoos in Nigeria, but even at that price, no zoo will be willing to pay $18k for a lion that they'll still need to nurture to adulthood before it can print income.
I believe that this is how businesses fail. People fail to identify who their target audience is. They value their products based on sentiments rather than their actual value, especially if the product or commodity has no unique value.
I wanted to respond to the person who posted this lion cub, but I believe they will eventually learn that if their cub is still on the market for a year and no one is buying it, they will either reduce the price or keep it.
Rarity is not demand.
Many rare items are not valuable, while others are rare but valuable. For example, consider a 1950 Chevrolet versus a 1950 painting or artwork.
The former can be used in movies, video shots, and as a store of value. It generates rental income, can be used for comfort, and will return your investment when you decide to sell.
I can not say this about a 1950 painting. Aside from the antique market, artwork is essentially useless and has no real-world value. I do not care if Leonardo Davinci created the painting; I am not taking it over a 1950 Chevrolet.
A rare commodity with no real value is limited. You can not easily cash in on them. You will have to wait for a specialized industry, and because demand is limited, the buyer may ultimately determine how much you sell.
A pig is actually worth more than the baby cub. Pigs are not uncommon, but their variety of consumption is astounding. Having one pig is likely to be far less rare than having a lion, but a person with the former can dictate how much they want to sell their pig because demand is normal, whereas the latter cannot.
Being universally valuable is how you get to set your own selling price.
Using rarity as a measure of value is a terrible phenomenon that some business people frequently employ.
Another reason some people fail in business is a lack of understanding of the principles of demand and supply, as well as the distinction between wants and needs, possibly in a post-apocalyptic era.
Rarity may come in handy because rare things will eventually become valuable because they are likely one-of-a-kind and can only be obtained by those who truly control resources.
Interested in some more of my works
Is it Easy To Make Money?
Nigeria: A Unique Business Market & Industry
Virtual Bank Apps In Nigeria: An Experience Of Gamification
How To Find The Next "BIG" Meme Coin
Personal Finance: Achieving Intentional "Saving" Goals
Playing The Survival Game: Human Nature In Introspection
"Un-PAYING" The Debt You Owe
Interested in some more of my works
Is it Easy To Make Money?
Nigeria: A Unique Business Market & Industry
Virtual Bank Apps In Nigeria: An Experience Of Gamification
How To Find The Next "BIG" Meme Coin
Personal Finance: Achieving Intentional "Saving" Goals
Playing The Survival Game: Human Nature In Introspection
"Un-PAYING" The Debt You Owe
