07/05/2026
THE ECONOMICS OF CO***NE PRICING... APPLIED TO TEA
(Don't worry, there isn't a test at the end, just the opportunity to get $50 worth of tea).
If you didn't sleep your way through high school, there's a chance you might remember some basic economic theory. Like this one - as prices rise, demand falls.
In a perfect market, the price of in item is that exact point on a chart where the quantity supplied is the same as the quantity demanded. How that point changes due to changing supply and demand is called price elasticity.
Which brings me to co***ne (sometimes called Sydney Dancing Powder). The price elasticity of co***ne in Australia is about zero.
Co***ne, of course, operates in an imperfect market, because it isn't legal in Australia. That's means supply is relatively fixed (the coppers keep catching drug importers), and demand is virtually unlimited (particularly in the professions of law, real estate and gym ownership).
That means Aussies will happily pay $400 for a single gram of the stuff. I know that, because I asked a Lamborghini driver earlier today. As the chart shows, that's a lot more than the $10 Bolivians fork out to get their dancing shoes on.
Which sort of brings me to tea, particularly my favourite, Fu-Ding Silver Needle White Tea.
Like co***ne, White Needle supply is relatively fixed - it is produced in tiny quantities in a unique location. It's regarded as the world's finest white tea - as a result, demand keeps rising. Which means like Co***ne at $400/g, Silver Needle pricing is set at the highest price people are prepared to pay.
A year ago, I was buying premium grade Silver Needle for around $320/kg. I was selling $30 gram pouches of the stuff for $17.50, which might sound like a hefty margin. Take packaging, labelling and wastage into account, I was barely breaking even. Plus I drank a lot of it myself.
For my most recent order, I was quoted $440/kg (which is why Sydney tea merchants are charging $800/kg retail).
To be frank, the risk of me buying at that price, and not being able to sell it, is too great. Plus, I'd probably drink most of it myself anyway.
Which brings me to the point of all this - I'm becoming a co***ne dealer.
Just kidding. I'm changing my pricing for some high-end teas, particularly Fu-Ding Silver Needle, Longjing Dragon Well and Da Hong Pau Oolong. All have seen huge price rises in the last twelve months.
I will have stocks of all three from time to time, but in most cases, I'll be asking for firm orders before I import the product. And I'll try to keep price rises to a minimum.
If you've read this far, well done. If you share this story, I'll put you in the draw for a $50 tea voucher.
* Co***ne is illegal and I'm in no way endorsing its supply or use
* Tea is totally legal, and I'm happy to supply as much as you like
* I've used co***ne as a comparison rather than he**in. Most co***ne users are cashed-up recreational criminals. Most he**in users are addicted to the product, and will pay whatever they need to get a fix. This is why people who drink coffee are paying $7.00 for a drink that contains $1.00 worth of coffee beans...