Recently I've seen a lot of sentiment in this forum against bulk buyers, and I feel like people aren't fully aware of some of the fundamentals of economics that cause bulk buying, and what it actually is. This is meant to be a purely helpful, informative post.Imagine you open a shop — in the real world. In fact, you're a Korean apple butter salesman. The current going rate for a jar of apple butter is ₩10, but you've found a source that can get you the apple butter for ₩2 per jar, and you decide to sell it for ₩4. That's great! 100% profit margins and you're way undercutting the competition. You let the clerk do his job, and you leave the shop to go do whatever apple butter salesmen in Korea do in their down time. You come back an hour later — the shop is empty. Completely empty. You wonder what happened to, uh, your entire inventory so you ask the clerk what happened:"Well, when people saw your prices, they decided to buy a ton — after all, you don't see deals like this every day. Also, some of them realized they could sell the apple butter to the vendor next door for 6 won and ended up buying out the shop."Suddenly, the error of your ways becomes clear. You aren't mad (or at least you shouldn't be, you still made a handsome profit) but you realize you could've done better. Looking back at the younger, less wise you of a few hours ago you realize you had three choices, and you took the worst of them. What were the other two choices?Well, first you could’ve simply sold the apple butter for a higher price. If what you wanted was a steady income stream without having to constantly restock you could have simply sold the apple butter for ₩9 or 8. That would have still undercut the competition, leave room for further decreases if competitors lower their prices, let in a steady stream of income, and vastly increase the profit per jar, to over 300%. After all, when normal customers need some apple butter, they don’t much care if the cheapest shop is cheaper by 3 or 4 or 5 won, just that it’s the cheapest.Alternatively you realize that you could’ve sold to your competitors, and remove the middleman of your customers. You could have been the one selling the apple butter for ₩6 to the other vendors, and not only would you make ₩4 per jar, you wouldn’t need to hire a clerk or rent a storefront. No need for nearly as much advertising and small orders. It would’ve made more money and been simpler.Once you get in your next order of apple butter, you decide to set the price to a more reasonable ₩8. If you were less wise you might’ve gotten angry, sold the apple butter for the same price, and maybe even banned the people who bulk bought from entering your shop again. Your profits would’ve been down, your customer base shrunken, and in all likelihood you’d still run out of stock. Luckily, you were wise enough to realize that the problem wasn’t the customers who “bought too much” but simply that your price was too low compared to the going rate.Also yeah I know that that 10 won is like two cents USD. Add a few zeroes after the prices in your imagination if that makes you happy. This is all based on actual econ principles BTW.