Friday Flight - Comfy Cash, Resale Resurgence, & Abandoning The Internet #765
Dec 22, 2023
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In this podcast, the hosts discuss a range of interesting topics including a famous fried chicken dish from Atlanta, the importance of prioritizing non-financial aspects in life, the risks of buying a franchise, exploring geographic arbitrage, and movie reviews and boarding school memories.
The resale market is expected to double in size by 2027, addressing clothing waste and offering cost-effective options for consumers.
CVS's shift to a cost-plus pricing model aims to increase transparency, but its impact on affordability remains uncertain.
Deep dives
Reselling Market to Double by 2027
According to a report from ThreadUp, the resale market is expected to double in size by 2027, growing at three times the pace of the global apparel market. This growth is significant because it addresses the problem of clothing waste. Currently, 57% of discarded clothes end up in landfills. The rise of online platforms has made it easier for consumers to buy and sell used items, providing an eco-friendly and cost-effective solution. Consumers are encouraged to explore the resale market for both buying and selling, as it not only helps reduce waste but also allows individuals to save money on clothing purchases.
Major Pharmacies Shift Pricing Model
CVS has announced plans to move to a cost-plus pricing model, similar to what companies like GoodRx and Cost Plus Drugs offer. This change aims to increase transparency and provide consumers with a clearer understanding of drug prices. However, it is still uncertain how this shift will impact pricing and whether it will result in more affordable prescription drugs compared to alternative options. Consumers are advised to compare prices using platforms like GoodRx before deciding where to have their prescriptions filled.
Arbitrage Advantage in Hiring Tutors
Hiring tutors from countries with lower labor costs can provide significant cost savings. An example given was hiring a math tutor from Pakistan for $4 per hour, compared to the average going rate of $24 per hour. This approach allows individuals to access quality tutoring while saving money. Platforms like Oceans XYZ facilitate hiring support staff from other countries at a fraction of the cost. While virtual tutoring may not suit everyone's needs, it is worth considering as a way to make education more affordable.
Cautionary Tale for Boutique Fitness Franchisees
Boutique fitness franchises have been found to disproportionately harm individuals who invest in them, with many franchisees losing six-figure sums. The business models of some of these franchises resemble multi-level marketing schemes, where the focus is on selling franchises rather than ensuring the success of individual owners. The article highlights the importance of thoroughly evaluating franchise opportunities and being cautious when considering investments in the fitness industry.
Time for a Friday Flight- our little sampling of the week’s financial news and what it means for your personal finances. There are a lot of headlines out there, but we boil them down to specific takeaways that will allow you to kick off the weekend informed and help you to get ahead with your money. In this episode we explain some relevant and helpful stories like: Home Grown Comfy Chicken, leaning into divergent spending, asking for rent concessions, boarding house startup, comfy cash, abandoning the internet, boutique fitness bankruptcies, resale resurgence, affordable prescription drugs, & geographic arbitrage for kids!
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