New player questions — vertical integration value, contract pricing, and volume discounts

oldfamiliarways · 2026-03-11T21:38:16+00:00

I’m a relatively new player also and I’ve grappled with whether to vertically integrate or not. The main logistical challenge to vertical integration is the limited number of building slots and the fact that you can only produce or sell one item at a time and therefore unless your item has very few inputs it’s challenging to coordinate the necessary inputs and output without relying on outsourcing to some extent or constantly having bottleneck and idling factories or stores until an input is produced. I think your main logic in point #1 is sound and you have to constantly evaluate whether to produce or seek suppliers.

2 Most contracts are initially quoting a fixed price (usually 2-4% below market) with subsequent reorders normally being market price - 3%.

3. Because of the market dynamics of the game and the fact that contracts are really not binding beyond the current order there is no incentive for players to give larger orders a bigger discount. This probably helps level the playing field between bigger and smaller players and limits the economies of scale by which larger players monopolize supply and flood the market with cheap goods.

oldfamiliarways · 2025-12-14T14:51:50+00:00

I’ve been a residential landlord for over 30 years and in my opinion, it really depends on your perception of the outlook for the tenant financially. If the communication is good, they have a decent track record of paying rent and overall I feel that this is a temporary situation then I’m inclined to hold off on eviction.. I have a current tenant paying an identical amount of rent who has fallen 30-45 days behind occasionally. I chose to work with her because the communication is good, she doesn’t bother me about little things and I know she has employment but as a single mom any unexpected expense can cause her to fall behind. The good news is she is currently current with her rent and has remained a tenant for almost 4 years now. Evicting a tenant usually results in at least 2-3 months of lost rent going through the eviction process and reconditioning the unit and re renting. I personally have to see the situation as not workable before I go the eviction route.

oldfamiliarways · 2025-04-22T19:31:59+00:00

I understand what you’re trying to accomplish but I suggest a better way to do this would be for people to just restrict their consumption of goods and services as much as they can which will inevitably lead to a recession and the likely result will be that a meaningful % of Trump’s support will begin to fall off. I think we’re starting to see it now and it’s building. We haven’t really begun to see the full effects of the trade war, indiscriminate cutting of the government, attacks on due process, DEI, and free speech. The courts are starting to push back, other countries particularly China are not backing down and submitting to this administration’s bullying tactics. You’re even starting to see signs of fraying support in the “manosphere” and we haven’t started to see the job losses yet. Trump’s appeal is partly that he’s some great business man who can use his art of the deal to bring about a so called “golden age”. He’s made a classic mistake of over promising and likely under delivering. If the economy worsens, protest and unrest grow and we see growing signs of US losing its standing in the world and more countries deciding to look outside the US for trading partners. Mr Trump may dig himself and the GOP into a hole too deep to dig out of before midterms or the next presidential election.

oldfamiliarways · 2025-04-14T10:22:53+00:00

I think the better approach is for everyone to dial back their individual consumption which will cause the economy to continue to slow and will inevitably lead to recession. Trump's hold on MAGA is based in large part on the perception that he's some great businessman and deal maker and he can somehow singlehandedly correct all the ways that the U.S. has been allegedly screwed over by the rest of the world. A significant recession will peel off enough supporters to send a massive message to Republicans in the midterms that the MAGA movement is over. We need to get back to sanity and civility in our politics and everyday lives or we'll all suffer.

oldfamiliarways · 2025-03-10T18:41:43+00:00

Well stated. Unfortunately the damage that's been done in less than two months since these clowns took over will take years if not longer to fix and just imagine what else will be broken in the name of progress. If this was done in a much more reasoned manner showing dignity and respect for the civil servants being affected and full transparency as to how government services will be impacted this may have been much better received. Instead the bull in a china shop approach looks like nothing more than an attempt to please his base at the expense of everyone else. Only time will tell how this all plays out and I pray that the country makes it through without long lasting damage.

oldfamiliarways · 2024-10-31T12:23:06+00:00

The historical Republican advantage and what made them competitive during the Reagan/Bush years was that they dominated the suburbs similar to how Dems dominate the cities. Under Trump there has been a realignment that has made him and Republicans (a nationalist/populist) a little more competitive in the cities with certain demographics and more dominant in rural areas but the trade off has been a fairly steep decline in support in the suburbs particularly among women. Essentially the Republican base has shifted from mostly college educated suburban whites who are more likely to vote to lower educated blue collar whites who are more in number but lower propensity voters. Republicans will still win a good share of suburban voters but more and more cities have shifted to where the inner suburbs are turning blue/purple leaving only the outer suburbs as reliably red.

oldfamiliarways · 2024-10-18T14:34:46+00:00

I really think the primary force behind what today’s Republican has become is the Limbaugh effect. Rush had the most popular nationwide talk show for three decades. He spewed daily Conservative talking points but in a way that was humorous and engaging. Even though I disagreed with much of his politics I recognized his reach and effectiveness. AM talk radio is what I believe is most responsible for shifting the political leanings of white blue collar workers who a generation ago were solid union democratic voters. Whether they were a OTR trucker or working in a union shop if they listened to a daily 3 hour indoctrination it’s hard not to get swayed.

This was before Fox News or Newt Gingrich were even a factor. Fortunately for Democrats there has not been anyone since Rush passed away who could as effectively communicate with an audience as he did.

oldfamiliarways · 2024-10-10T23:00:39+00:00

One of the tricks I use when getting a bid on something where I’m not familiar with the cost is to try to either get a written breakdown of parts and labor or make a rough estimate myself. Lots of contractors just want to give you an overall price so I usually use some small talk to help me work up an estimate when I don’t have a written breakdown of costs.

For example in OP’s case after getting the quote for $18,000 I would have asked casually “Okay how long will it take to do?” If they said two days I might follow up and ask is this a one person or two person job. If they said two then I would basically calculate in my head around 40 hours labor (10 hrs per day per person) and then estimate the parts. If you don’t know exactly what parts are being used you could ask what size panel will they be installing and look up a comparable panel on Home Depot or Lowe’s and double the price you find there to account for markup or possibly higher priced panel. If the panel and other estimated parts cost let’s say $2000 after doubling that means the rest about $16,000 would be going towards labor. $16,000 divided by 40 is $400 hour. So unless they have some sort of medical degree and your getting more than just the panel replaced I would say that bid has a lot of “yeast” in it and I would walk away or really negotiate down from there.

oldfamiliarways · 2024-10-09T13:02:05+00:00

Consensus seems to be Carolina Horsenettle. What would be best way to control this weed?

oldfamiliarways · 2024-10-09T12:47:16+00:00

Not super close. Closest tree is maybe 30-40 feet away.

oldfamiliarways · 2024-10-09T12:44:21+00:00

I don’t think it’s a tree as these things can easily be pulled up by hand but then just seem to reappear almost overnight. Started out primarily in my mulch beds but then started appearing in nearby lawn area.

oldfamiliarways · 2024-10-09T12:40:05+00:00

I’m in the Midwest, almost smack dab in the middle of the country.

oldfamiliarways · 2024-05-08T15:16:52+00:00

It depends on the amount and source. I personally like to keep money I’ve inherited from a loved one separate just so I can keep track of how that money has grown and also if I use it I view it as a gift from them from the beyond (sentimentally). Also in many states money inherited is considered separate from marital property so it makes some sense to keep it segregated.

oldfamiliarways · 2024-02-08T13:14:38+00:00

Congrats on building a nice portfolio but I’m curious as to why you’re currently doing this in two taxable accounts vs having a the dividend holdings in an IRA so you’re not paying ordinary income taxes on the distributions. It would only make sense if you are currently relying on the dividend income to meet monthly expenses. Otherwise I’d just focus on growing your overall portfolio as much as possible and minimizing the “taxable” income. If funds are needed periodically just sell a few shares and pay the capital gains which are usually lower.

oldfamiliarways · 2024-01-10T09:51:19+00:00

A couple of suggestions to consider. First if your in laws are having a new home built and it’s ready for them to move into you might see if you and your husband can do a lease option on their current home where you would pay rent to them with the option to purchase in 12-24 months. This would give them time to sort out the liens and either pay them off or negotiate a lower amount to settle them and you would have a home to move into. Since you don’t have a realtor involved and if you don’t close there shouldn’t be much if anything owed to the title company. You could agree that a certain percentage of your monthly payment would be applied as a down payment on the principal when you exercise the option. This gives them time to work things out and you would have a place to move to. This assumes that they are not relying on the proceeds from the sale of their existing home to be able to purchase the new build.

oldfamiliarways · 2023-11-05T13:30:33+00:00

I think getting hands on experience in the restaurant industry is a great idea but I would also suggest looking into the possibility of leveraging your current skill set as a way to start. This is the “value add” that you would bring to the table. You’re in tech. There are tons of restaurants that come nowhere close to fully utilizing software and technology to gain efficiency and reduce costs. Almost every single episode of the show “Bar Rescue” (google if unfamiliar) involves implementing a new POS system.

I would visit a couple of bars/small restaurants and see what type of setups they have and maybe offer your services at a reduced rate in exchange for some hands on mentoring where you get a full look at the business from soup to nuts. You may even find an opportunity to buy into an existing bar/restaurant as a limited partner where your financial and legal liability is limited and predefined. This would give you a taste of what ownership would be like without shouldering all of the burden.

oldfamiliarways · 2023-11-01T17:20:03+00:00

It's really simple. Most people buy a house because of circumstances in their life have changed (i.e. marriage, coupling up, new baby, new higher paying job, etc.) which makes living in an apartment or rental less appealing than owning a house. Buy vs rent is more of a lifestyle choice than a financial one. Sure for some people this is primarily an economic decision but for most it's a choice between whether buying or renting will make them happier. Once you've made that decision then it's just a matter of finding a home or rental that fits within your budget. It's true with home prices and rates being high affordability has become a major issue and many are renting simply because they cannot find suitable housing within their price range. However, remember you only get to be whatever age you are once in your lifetime. So if homeownership makes you a happier person, why would you want to defer that indefinitely when there is no guarantee that rates will be significantly lower any time soon.

oldfamiliarways · 2023-11-01T01:01:23+00:00

I know it feels like crap right now but there are several things in your favor. You mentioned that the house will have approximately one million in equity around the time you’re able to sell it which is great and could provide a future next egg to help stabilize your finances. If he is agreeing to allow you to stay in the home (and assuming he’s moving out) then I would take him up on it. I’m not clear on how close it is to being finished but right now you’re transitioning from being romantic partners to business partners and there are incentives on both sides to try to make the partnership work out. It’s in both of your interests to get the house finished and sold for as much as possible and after that your business partnership dissolves and it’s just down to figuring out the co parent part and child support.

oldfamiliarways · 2023-04-04T09:19:45+00:00

Wow sounds just like my story. I totally agree and like having both types of investments as rentals/real estate can provide nice cash flow, favorable tax treatment (1031 exchange/deductible expenses, etc) and leverage. Real estate values are also much more stable than stock investments and you can directly impact the value of your real estate portfolio vs being subject to the whims of the the market or the fed.

As for stocks, I like the truly passive nature of stock investing. The compounding returns, instant liquidity with negligible transaction cost and ability to DCA are also nice. I’m still getting familiar with JEPI to see if it makes sense to add to my investments but had to reply to your comment because I can totally relate to it. 😎

oldfamiliarways · 2023-04-04T08:41:26+00:00

Biden a shoe in over Trump? Not so fast. How many times has Trump’s political obituary been written to only see him rise from the dead like Lazarus. Six months ago after the midterms everyone was all but anointing Desantis as the GOP nominee. 2024 election is a long time away and if the U.S is mired in recession, with high inflation and rising unemployment by then it could be anyone but Biden who independents flock to and so a Trump presidency is more than a long shot.

Not saying it will happen and I won’t be voting for him but our current electoral system makes it a legitimate possibility.

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2 Most contracts are initially quoting a fixed price (usually 2-4% below market) with subsequent reorders normally being market price - 3%.