Economics of a Drug Habit versus Habit #1

THE drug business is a Five Hundred Million Dollar business.  With the recent slide of the Philippine peso, it now has a new top line of Four Hundred and Fifty Million Dollars. 

If the dollar gets worse, you would assume the investment value is not worthy enough to risk life and freedom. Remember that most commodities internationally are dealt in dollars. 

The drug dealer probably imports much of their core raw supplies from China. They are also on the other side of a 9% loss, so it is inconceivable that to allow such crazy math to base on a business model. 

Except when there are other key indicators which are more over whelming.

 

Market Capture

First business indicator, the market capture is solid for shabu.  Its addictive properties will not let go your client. 

Unlike fast food, sometimes you want chicken other times you want burgers. When you are a client of shabu, you will always want shabu. 

PDEA estimates there are already over 4.5 million drug users.Drug Lords need more customers?

They just give some out for free and another million or generation are hooked.  

 

Second Business Indicator

A second business indicator can be found in last year’s report by then PDEA Director General Isidro S. Lapeña who states “The current street price of shabu in the local market continues its rapid rise and now ranges from P1,200 to P25,000 per gram, the highest since 2002 following the government’s intensified anti-drug campaign. 

This shows an increase of 127.27 percent as compared to its previous price of P1,200 to P11,000 per gram fromJanuary to June 2016.” 

The price has doubled within two fiscal quarters! Although precarious, you now have enough money to buy off more local government judges and still make 50% or more profit. 

 

Economic Market Plan

You have the backing of 4.5 million motivated drug users that might literally kill anyone for you and your product. 

Now that is an economic market plan. Except for one part which almost ruin everything. Death will always knock on a drug dealer’s door.  

Could be a rival, a supplier, a government official covering his tracks, a dirty cop covering his trail, a death squad, a vigilante, a brother of a victim, or just a simple robbery because the dealer has nice things. 

The possibilities of who is knocking at a dealer’s door to kill are longer than the line of cars causing traffic on EDSA at 0800.

 

Closer Facts

I have a side note which will reveal my bias. A bias that might lose me friends but in the end, my facts are closer to my heart than any I read in the newspapers. 

A pair of junkies killed one of my favorite aunties. I will never forget her. 

She worked in Chicago until she could retire and then moved to the Philippines. 

She was the type of aunt that would cook and then cut my food. Even until the embarrassing age of 21. 

She was an intense hugger and was always happy to see me. The story I was told was she asked two young men in my small town of Calapan to mend her wall. 

She asked them to come in and take a drink of water for breaks. These men saw what she brought back from the states. 

They returned that night and viciously stabbed her to death. Apparently, the scene was as intense as a horror movie. 

 

Crappy Press

This happened in a sleepy town with a different president. With ALL the death reported about President Du30’s drug war and the crappy press it is receiving, I do understand the international concern. 

Why the US Government, the EU, the American Civil Liberties Union, The Yellow Party, Obama, Politicians locally and around the world are just hammering the civil rights war cry. 

None of them, not one, ever gave a public outcry to the victims of the drug trade including my aunt. 

There are corrupt cops and politicians in everyone of those countries, clean up your own houses first before pretending your country knows the answer.

 

Seven Habits of Successful People

I was sent a message today from my Manila golf coach. It stated, “Remember the Seven Habits of Successful People (by S. Covey) and you will always be a winner.”

I am bad at golf, but I am glad he considers my career a better story. The first habit of Covey is “stop reacting and start solving.” 

Reacting is NOT an action, but solving a problem is. This habit can also be seen in what Project Leaders like me call Agile or Try-Storming. 

Brain Storming is not an action and not a successful habit. Agile and Try-Storming are actions EVEN when you don’t have all the pieces in place. 

Constant tuning and tweaking supports the action but you try to solve the problem regardless of missing pieces. 

Issues can be like “Cops protect the mayors who are the King Pins” which can then be followed by “weeding them out” while you'restopping drug dealers. 

“Mayors and their family are the Mafia Drug Don’s and are untouchable.” 

Then place all of them under arrest with their lower henchmen. “These drug dealers have rights.” Sadly, so did my aunt. Please protect everyone like her.

I pray for our President of action. I pray for him since he now has many enemies. 

I pray for the Philippines to transform closer to a Singapore and not Afghanistan where war lords and politicians control the export of 90% of the world’s heroin. 

I pray that the President’s Habit #1 beats the current drug habits of the Philippines. I pray we reach a land of peace, if not today then soon.

 

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