Honored Advisor
Posts: 15,197
Registered: ‎05-13-2010

The Question.

A guy said that he was in a conference of 15 big shot farmers and they got talking about rent, he posed this question that cuts to the meat of where farming is:  "If the farm next door came up for rent and you KNEW that you would lose money, would you still rent it?"  ..He was the only one that said "No" the other 14 would rent that farm knowing that they would lose money.  There may be other bussinesses out that have that same business model, I just don`t know what they are.  If Walmart loses money on Ivory soap, they drop Ivory soap, if General Motors loses money on their Hummer line, they drop the Hummers. Now in farming since 1987, you were rewarded renting or buying things that you KNEW you were going to lose money on, in the last 5 years you were rewarded handsomely for buying and renting things that you KNEW you were going to lose money on.  So through evolution(survival of the fittest) 14 out of 15 farmers will knowingly make decisions that they will lose money on because the "zoo keeper" drops a banana when they hit that buzzer.  It`s psychology, kind of like the guy that dates the prettiest girl in school even though he KNOWS that she will cheat on him and use him for his money. I`m not saying there`s anything wrong with all this, we can`t change it, it`s human nature, like Richard Brock`s "greed, fear, exuberance, relief" marketing chart.  The young guy starting out farming `caveat emptor` you are bidding against 14 businessmen out of 15 that will have no problem bidding at a level that they know they will lose money at.  Just something to chew on, on a rainy night.

Subject Author Kudos Posted
This is a popular topic with new unread messages 0 ‎04-29-2012 09:45 PM
0 ‎05-12-2012 11:41 AM
0 ‎05-12-2012 10:19 PM
0 ‎05-12-2012 06:55 PM
0 ‎05-12-2012 07:51 PM
0 ‎05-12-2012 12:09 PM
0 ‎05-12-2012 12:08 PM
0 ‎05-05-2012 09:39 PM
0 ‎05-06-2012 11:45 AM
0 ‎05-09-2012 12:48 PM
0 ‎05-06-2012 04:40 PM
0 ‎05-06-2012 10:35 AM
0 ‎05-06-2012 04:41 PM
0 ‎04-30-2012 08:50 AM
0 ‎05-06-2012 04:45 PM
0 ‎04-30-2012 08:10 AM
0 ‎04-30-2012 08:35 AM
0 ‎05-01-2012 08:51 AM
0 ‎05-01-2012 11:03 AM
0 ‎05-01-2012 02:31 PM
0 ‎05-03-2012 11:03 PM