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Most Drug Dealers Don't Make Shit

lmno

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Feb 26, 2006
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http://www.youthcomm.org/FCYU-Features/MarchApril2006/FCYU-2006-03-16.htm

"If you look at 100 drug dealers, 99 will make less than minimum wage. One will make a lot of money. That's the reality on the streets," Venkatesh told me. "It's an illusion that people have that they're going to make a lot of money. That's only the leaders driving a fancy car."


I hear about this from time to time about most drug dealers not making much. What do you guys think? Would you say that the majority of drug dealers don't make shit?

Discuss.
 
I cant see how blow dealers make a profit let alone double thier money, im guessing all that cutting and under weighing the baggies?
 
On average, in the long run, drug dealing is less profitable than a job.

Lawyers fees, legal repercussions, drastically cut the average payment a dealer makes.

As they say, if it can't go on forever then it will stop.

All drug dealers will get busted or get fucked over in a relatively short time. It is extremely rare for any drug dealer to go on for over 10 years, a statistical anomaly in the profession and statistically insignificant.

Also, it requires an inordinate amount of work and devotion to be a drug dealer; because you don't show up at an office or have a boss per say, many people think that they are making more money on average than they really are, not taking into account how many hours they are logging. It's a full time job and requires you to be working much longer than any 9-5.

So yes, I'd agree. Drug dealing is extremely non-profitable, and the only people making money are the top dogs who are in charge of large-scale shipping operations over borders, or oversee the synthesis of raw products. Everyone else is simply a slave.

You think capitalism is bad, where CEOs make so much more than the people they hire, you have no idea how badly exploitation exists in the black market. Drug lords are committing monopoly exploitation, and give me a second I'll use economic theory to prove that drug dealing is a bad market to enter as a worker.
 
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neg_ext_consumption.gif


Q! = Optimal Quantity of drug dealers
Q^ = Current Quantity of drug dealers
MSC = Marginal Social Costs

What's important to note, is the intersection of MSC with:
MSB: Real Demand
MPB: Private Demand

This graph shows that if drug dealers had to pay up front and knew exactly if they were gonna get busted/nailed and what costs they were, they would commit to MSB. However, they don't know such things, so they commit to MPB.

The result is that there are too many drug dealers.

As the image shows, the number of drug dealers (Quantity) is too high. There is a negative externality - essentially, drug dealers don't take into account the risks of being jailed or killed in their profession. They also don't take into account the costs of going to court or altercations, even if they prove successful or innocent.

Because of this, more people enter the drug dealing game then optimal. Think of it this way: If drug dealers had to pay $100 a month for their activities to stay safe, than alot less people would deal drugs because it would be too costly.

This graph also shows that drug dealers are making money in the short term, but in the long term they do not.
 
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TheodoreRoosevelt said:
Drug dealing is extremely non-profitable, and the only people making money are the top dogs who are in charge of large-scale shipping operations over borders, or oversee the synthesis of raw products. Everyone else is simply a slave.

You sir, have obviously never been a drug dealer. SWIM made $19,000 in one month doing nothing but sitting on his ass playing video games and watching Curb Your Enthusiasm. SWIM put away an assload of cash that summer, and wouldn't call himself anything near a top dog; just a kid who wanted to save up and travel for a year.:\ Non-profitable SWIM's ass.;)

TheodoreRoosevelt said:
Because of this, more people enter the drug dealing game then optimal. Think of it this way: If drug dealers had to pay $100 a month for their activities to stay safe, than alot less people would deal drugs because it would be too costly.

What does $100 a month mean to any decently successful drug dealer? Some of my friends make that much every 20 minutes. Again, sitting on their ass--doing essentially nothing. If one lives simply, saves scrupulously, hustles hard, stays one step ahead of the LEs at all times, and doesn't get high on their own shit, drug dealing can be a super fucking profitable business to the point its a bit absurd. With all that money, you can afford all the police scanners and radar detectors with the screens on them and shit. Plus, goddamnit, it must be said--one must be SMART. You can't make one single stupid decision ever, because the consequences could be disastrous. But, if you're good at what you do, you'll be like a ghost: impossible to touch.
 
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cheez_ballz said:
I cant see how blow dealers make a profit let alone double thier money, im guessing all that cutting and under weighing the baggies?

Ermm...because the difference in price per gram when buying weight is absurd. If you don't get high on your own shit, you can easily double your money on a couple ounces of coke...that's how they make a profit. Are you shitting me? Blow is one of the most profitable things to sell. And if you cut it to shit with b12 and short on your bags, well, that's that much more blow money coming in. Alot of times, people will badly overpay for it because they are a)desperate or b)morons.
 
Venkatesh, if I remember correctly, was studying a large scale operation in which the street level dealers were, essentially, employees.
 
lmno said:
That's the reality on the streets

the money is not on the streets. it's in a private place where a wealthy sustainable customer base can swing by and shower you with it. it's all about the clientele.
 
It really varies.

What you're selling, where you're selling, what % you get, how much time you put in, etc.

For the most part, TR is right. The average dealer on the corner in any given open air market isn't doing very well.

A street corner dealer in Philly makes about $5-6 per individual dope stamp, or about $30-40 per 13 bag bundle that he sells for $110. Yes, they get 13 bag bundles for $70-$80.
Now, most prefer to sell bundles at a time, but they obviously make less money that way than selling individual stamps for ten each.

Anyway, those aren't numbers for everyone. It's not uncommon for the SC dealers to get their bundles for $90, making just about $20 when selling them in b quantities. That $90 figure is more common, btw.


It's true that if the stamp is really good, or it's a Friday/Saturday, they'll fly... But that's not everyday.

Most sell 3-5 bundles per day. More often on the lower end. And they're not out there all day, or everyday even. They take turns, cause they're not the only dealer that sells on that corner or for that crew.

Ok, so let's say they sell 3 b's in individual bags, and they got their bundle for $70. That's $180 per day. So we're talking about roughly $1,000 per week.


That's assuming the dealer isn't arrested, robbed, and that he's working at least 5 days per week. Most don't do that.


Of course the higher you get in the organization, the more you make. And the increases are crazy...
 
You can make bank selling most drugs as long as you have the clientele. If for example, you get pills for $6 each and you sell them for $20 each (easy if you know the right people), you make $1400 for every hundred sold. Where I am from it is easy to get rid of several hundred pills a month.
 
Shorting people on cocaine is not very healthy. You will get shot, if not beat up. But, hypothetically, if you bought an o for 7-800, turned that into 28 at 50 a pop or even 60, that's 1400-1680. Not bad money in a weekend's time. It sells itself, you don't have to hype it like green. But, be forewarned, if you get caught, it's hard time. Be wise, and just don't do it. get a real job. ;)
 
Coke has the highest possible profit margain on the lowest scale, from what Ive seen... in my oppinion.

Knew a guy getting 600 z's cutting them double and selling only 100$ grams...of course this required him traveling to hic town to sell to idiots, but 4800 from 600 in a matter of a day or two. And This is nothing compared to what higher ups make.

Ive seen bud and pill dealers make huge amounts too. Seems like those who are willing to travel make the most.

but 90% of the time dealers aren't making jack shit besides helping there own habits out. God bless em, its a shit job with high risks and someones gotta do it.
 
I think dealer make enough money from wat i see they chinx and like the more they move more loot. The only way ot deal is to already have a client base or get 1 quick. 1 thing i keep think is how do ppl wanna grab off u if u chinx so u lose a client or like wat 5 extra bucks.
 
Judging from context it means "shorting."

I did really well on those tests where they give you the phrase "zeip nobortZ farg" and then tell you that "farg" means "Dogshit" and then give you 20 more phrases and you have to figure out what the other words mean. ;)
 
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