Today, let's consider the pricing philosophy in Taiwan's mining industry from a market perspective. It may seem distant, but in fact, it is not. Starting with this topic makes sense because this phenomenon is very relatable, not only to consumers themselves but also to local businesses.
With the situation in the local crystal mining industry lacking standardized production levels, international logistics becoming more convenient, the borderless nature of the internet, and changes in the sales models of upstream suppliers, coupled with increasingly savvy consumers, obtaining international minerals is no longer difficult.
As more and more people become interested in understanding minerals, information about their origins and any previously unknown knowledge becomes relatively important to consumers. I believe that all of us immersed in the mining industry share a great sense of pride and happiness in the exchange of knowledge, turning what may seem like a simple shopping behavior into a market culture.
This also signifies that the mining industry in Taiwan has its own cultural sphere and is engaged in a kind of "consumer movement." Similar to the localization and transparency of food production, the mineral industry advocates for knowledge transparency. The uniqueness of minerals, the clarity of their origin, the sufficiency of contextual knowledge, the reputation of businesses, and even the stories associated with them—all of these factors influence the price of a mineral.
With a multitude of choices and the ability to connect with upstream mining industries, wholesalers, and retailers, the consumer movement within the mineral industry is gradually emerging. It is somewhat similar to the "small farmer movement," where more and more people use the prices set by small farmers as a benchmark to determine whether consumers have expended more financial resources, thereby establishing whether the pricing by wholesalers, retailers, and businesses is reasonable.
The previous mention of "increasingly savvy consumers" and "obtaining international minerals is no longer difficult" is precisely because in present-day Taiwan, starting a business is not challenging at all. Anyone can use Instagram to manage a side business in their spare time. We can find that people selling minerals have various identities in society: office workers, students, stay-at-home parents, service industry workers, freelancers, full-time entrepreneurs selling minerals, and so on. Their identities, social status, income, lifestyle, and geographical location all influence the final pricing of minerals.
As a side business, they already have a stable source of income, which sets their "pricing mindset" apart from those who sell minerals as their full-time job. However, some sellers in the side business may have a background in market pricing and economics, but that is another matter and not included in this discussion.
For those who sell minerals as their full-time job, they have more hidden costs to consider, and they need to think from the perspective of "running a business." They invest a significant amount of time in managing their business, learning about the industry, and communicating with suppliers. They also have to purchase large quantities of inventory to obtain lower prices, deal with storage issues, and if they have a workspace, they have to consider rent, electricity bills, labor costs, and even the cost of holding inventory (the longer an item remains unsold, the higher the cost). These are additional hidden costs that continuously accumulate.
There are also collectors who sell minerals as a form of recreation. They sell their items at the original price or at a discounted price. However, they absolutely cannot be compared to professional sellers. When compared, regular consumers may perceive professional sellers as unscrupulous in comparison.
We cannot use the price of vegetables from small farmers as a benchmark for determining whether the prices at chain supermarkets are reasonable.
They are fundamentally different. We can only purchase individual crops from small farmers, whereas at supermarkets, we can find a wide variety of agricultural products, supplies, and seasonings. However, this does not mean that the pricing at supermarkets is unreasonable or that they are considered unscrupulous. It is a matter of pricing differences and market dynamics. In our daily lives, we do not apply this logic when considering bookstores, convenience stores, or department stores, but we tend to use this line of thinking when it comes to mineral sellers.
Furthermore, we cannot compare sellers who sell minerals as a side business with those who sell minerals full-time. They cannot be placed on the same scale for comparison.
In my opinion, overlooking various aspects and solely focusing on comparing prices is not favorable in the market. We often overlook the invisible factors, such as a business's positioning and hidden costs, which can influence the final selling price of minerals.
As consumers, how could we expect to obtain 1,000 pieces of Colombian quartz crystals directly from Colombia's mining industry for the price of a single piece at $100? Of course, we would purchase a single piece for $1,000 from a local seller who sourced it from the same origin. In that case, how can we accuse the seller, who purchased it for $100 and sells it for $1,000, of being unscrupulous?
Some consumers may argue that the seller only needs to sell 100 pieces (regardless of how long it takes) to break even and make a large profit afterward. I would say, yes, that's true. But why doesn't everyone enter the market and sell minerals then? It's because being able to achieve such results requires the seller's skills. They have their established customer base, the knowledge to attract new consumers, direct sourcing from mining areas, and many other advantages they have gained through their own efforts. Their pricing is justified, and they may even be able to sell at higher prices.
Thank you for reading this lengthy article. In conclusion, I would like to pose the following question: If Seller A purchases crystals from the mining area at $100 per piece (minimum order of 1,000 pieces) and Seller B purchases from the middleman at $500 per piece (minimum order of 50 pieces), and the market price is $1,000, should we accuse Seller A of being unscrupulous?
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