The fish in the box (Part 1)
A Real Estate trick we are always ready to pretend that we don't know…
Part 1
(to read part 2, click here)
One day Ion had 50 Euro available. He was hungry and went to the market. There he chose a nice fish, a dorada (let us assume). He shot photos of it, measured its weight and size and then put it in a box.
He went back to his home, but he did not eat it. He watched the news and heard that "too many people seem to be interested in eating Dorada fishes and prices increased since the morning". This is why he remained hungry and waited to see what will happen.
In 3 days Tudor knocked at his door: "Ion, I saw you few days ago. You went to the market and bought a fish, a Dorada. You measured it and put it in the box. I want to buy it". "I don't want to sell it, I want to eat it". "You bought it with 50 Euro. Is 75 a fair price for you in order to sell it?" "No, I want {C}100 Euro". "Ok, take it". So, Tudor bought the dorada fish, together with the photos, the measurements etc. He took the box and left…
Few days later, Mihai approached Tudor. "I know you have a fish, a dorada. Would you sell it for 125 Euro?" "You must be joking, I just bought it". "How much do you want?" "150 Euro". "Ok, take it". So Mihai bought the fish, the box and the other "proofs"…
Next week Andrei called Mihai. "Hello Mihai, someone told me that you have a dorada. How much you sell it for?" "200 Euro". "Isn't too much?" "This is my price, take it or leave it". He took it… so Andrei became the new owner of the fish, the box etc…
One more week passed and Andrei met Cristi for a coffee. "You know… I bought a super dorada… I have the box also, measurements… look at the photos here…" "I don't eat fishes"… "Yes, but it is super anyway. You can see it by yourself"… "I know nothing about fishes"… "It is not difficult, it is simple. You buy and you resell it. You saw how high the Dorada price has risen? It will always rise like this". "You think so?" "I am sure, plus a very important friend of mine told me so". "Then I want to buy your dorada, how much you sell it for?" "300 Euro" "Isn't it too much? Now the price is less". "It is, but I give you the chance to have the dorada from now and to organize your sale easier". "Ok". In 2 days Cristi was the owner of a fish in a box…
Almost a month passed and Cristi carefully waited. When he saw the prices climbing even more, he asked around for a client. He ended up in the office of Matei. Matei had just opened an office and he was practising a new occupation: "Extra Super Special Consulting – Brokerage of dorada fishes"… there were already 20 of them over the last few weeks and there were opening 5 more per day (because some newspapers had an article presenting the profits of one "Extra Super Special Consultant – Broker of dorada fishes" and everyone else hurried up to catch the momentum for easy money). Matei found a client for Cristi and Cornel was the new buyer. He paid 400 Euro, receiving also a market report by Matei, which described why the price of dorada fish will further increase.
But Matei did not remain idle. Knowing a dorada fish owner, he took advantage of this opportunity… So he started promoting articles in the media, giving interviews and predicting that the price of dorada "will double, at least". New clients appeared and Matei convinced Cornel to sell the Dorada fish to Irinel, who paid 550 Euro, just 3 weeks after Cornel had bought the fish…
Irinel was very well connected. So it was not difficult for him to organize some "analyses" in televisions, where "experts" explained why "Dorada fish is the future of our country, maybe of our civilization as well". Then he informed some friends that he has a dorada and "he might consider selling, only for a good price". In less than a month, he sold to Viorel, who bought it for 725 Euro.
Tomorrow: The rest of the story and the important lessons for all of us…