The Law of Supply and Demand
Where is the balance of power between buyers and sellers?
Prices can fluctuate according to how many goods or services are available and how many people are bidding on them. Those roses cost more on valentine’s day, don’t they?
As a seller, best to be selling in a seller’s market (More buyers than sellers) . As a buyer, better to be buying with little competition (Buyer’s market). Whether building a business, buying real estate, stocks, or buying consumer items, utilize and apply the knowledge of this principle to make your fortune.
It is well known among sophisticated real estate investors that Motivated Sellers will make you rich. Motivated sellers want or need to sell more than you need to buy.
Acquiring an asset temporarily out of favor and therefore undervalued is one of the best ways to get wealthy.
As a business owner, buy umbrellas when the sun is shining and sell them when it’s raining. When the buyer demands, you supply.
Apply This Concept
Understanding supply and demand factors based on business cycles is an art as well as a science. The more proprietary and unique your product or service, the more value you should be able to create. That being said, however, you will still need to operate within the overall market forces of supply and demand. First to market is often successful. Second to market, with improvements of the original version, can also be wildly successful. It has been said to earn a living, sell people what they need. To get wealthy, sell them what they want. Business people tend to supply people what they want. True entrepreneurs guess where the demand is going to be and get there first.Most players skate to where the puck is; I skate to where the puck is going to be. - Wayne Gretzky
Laws of Wealth
