Wednesday, December 30, 2020

Why nobody's adulterating Kratom: A case of simple economics.

The practice of tainting Kratom has not been very successful thus far in history. The only two times that I've been able to find where it's happened, people have died. I'm sure we agree that it's a pretty stupid thing to do. Killing off your customers doesn't make much economic sense. That's why adulterating Kratom doesn't happen, much like how weed never got "laced" anonymously. Let's look at the statement "because a company is financially motivated, they would adulterate Kratom without issue". Here is why nobody's doing that from an economic standpoint: 

1) Cost benefit Analysis Failure: You'd have to make a significant amount of money by selling adulterated Kratom to offset the potential liability that killing someone could be. Potential cost is way higher including fiscal suicide from a lawsuit. Potential benefit is marginal at best, as there is only so much Kratom will fetch.

2) A large market already exists for Kratom in it's natural form. By adulterating your product, you are essentially changing it, which has an entirely different demand curve. There's demand for such a product for sure, but it's not the same market as Kratom. You would essentially be giving the consumer something they don't want through deception. The consumer is most likely going to be pissed when they inevitably figure it out. You'd be better off marketing directly to those who actually want it: those who prefer an extra oomph maybe.

3) You're giving something away for nothing. Free adulterant. There are people who will pay for it. Why not just advertise that your Kratom is "enhanced" and charge more? If a company were rumored to "spike" their Kratom, I bet people would line up. There is a different market for this type of consumer. 

You might argue that Companies kill people for profit all the time. Yeah, they do it when the potential benefit outweighs the potential cost. When a Car company decides whether to recall a car or not, they look at what the cost of the recall would be and compare it to what the cost of the lawsuits from lost life will be. The benefit of savings from the cost of recall have to outweigh the potential cost of life in order for the recall to happen. Does it get more unethical than that? They're willing to let people die over money. But it makes economic sense.  Cost benefit analysis is a fundamental principle of economics, as is maximizing profit at all cost. 

The case of adulterating Kratom has nothing to do with ethics or morality. It's simple economics. A profit motivated company would almost certainly prefer to give their customer what they demand. Cost benefit analysis says a profit seeking person/company would not engage in such deceptive practices. It's the same reason why nobody's "Lacing" your weed. Stop being paranoid (At least you were high when you thought that about weed). Even the AKA released a follow up to their unfounded "Adulterated Kratom Warning". What's stopping people from messing with your Kratom? There is no law to stop them from doing it except the law of economics (Cheezy, I know, Couldn't help self). Who would take on a money losing business venture? Nobody is going to choose to lose money, are they? The probability of success from adulterating Kratom is low, plain and simple. You might be some scumbag willing to do anything for money, but I guarantee you're not going to take on a scam with such a high potential cost, low possible payout, and high probability for failure. 

You might as well rob a bank (Do they even do that anymore?) I can't seem to come up with a profile for what a kratom spiking individual would be like. Anyone? Fetishism? Psych disorder? Just a strong urge to anonymously give away drugs? 

1 comment:

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