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The substance in itself must be extremely cheap to produce. What you're paying is the mark-up at each additional step in the logistics chain; and the mark-up is
by Udik 6y ago
The substance in itself must be extremely cheap to produce. What you're paying is the mark-up at each additional step in the logistics chain; and the mark-up is huge because instead of rewarding labour it's rewarding risk. You can imagine that each intermediary might multiply the price by a factor of 5, and you can imagine how many steps there are between a container full of cocaine and the 1-gram doses sold on the street.
- celticninja 6y agoA factor of 5 seems too much. If a kg at retail is £50k, let's say £60k when cut to 80%, this would mean the dealer buying it at approx £12k per kg and that middle layer would be buying it at £2k per kg. The price rises at each level but not by the factor you suggest, it's more likely to be by a factor less than 1 for each level.