Fudge Donuts

Fudge donuts in Fisher and Donaldson sell at 93p at moment.  Question: why not just sell them for 99p?  I'm quite sure that the majority of people that are willing to pay 93p will also pay 99p, in fact I'm also certain that no-one will stop purchasing them at this price, i.e the demand for the donuts is perfectly price inelastic between the values of 93p and 99p.  Apparently they sell between 250-300 of these in St Andrews alone each day, every day of the week.  Going with the midpoint of 275, that is 1,650 donuts a week.  Assuming a 6p price rise would increase their turnover by £100 a week or £5,200 a year which is fairly respectable.  My only theory for the obscure price they charge for them is that allows room for future gradual price rises.  As soon as the price rises above £1 then immediately people will stop buying them (hassle etc) so the priority of the management is to keep the price below £1.  As p>£1 then the demand because price elastic again.  By pricing them at 93p, there can still be 7 x 1p price rises as and when costs rise, i.e probably quite soon due to the high level on inflation.  Rising the price to £1 might be a good idea today but when the cost of ingredients rises and they are forced to rise the price £1.02 then that decision seems futile in the long run.  Not sure if this is a plausible theory or not, but just something that got my head thinking a bit yesterday on the way to my class (after I bought one).

Won the £5 rebuy last night at poker society for £200 which was good.  I remember in first year cashing in two events close to each other and buying my first iPod as a treat - one of the first video iPods.  I'm not going to buy anything with these winnings, probably just a Starbucks on the way back from class today.  I can't really remember any big hands, just won a few races with AK and 1010.  One suck out, 8 handed, everyone limped and shoved from the BB with 88 for about 7BBs.  A guy who ALWAYS limp calls with monsters clearly calls with AA.  5 on flop, nice.  I got my due karma about three hands later when my AA gets beaten by JJ which left with me like 2BBs. Somehow I luckboxed up to a decent stack with some Ax shoves and things.  Headsup was against a pretty drunk guy and was able to steal his blinds fairly easily.  

Just about to have some breakfast, shower and head to class.  We have a big Tesco order with all the party stuff coming later and have to get that ready.  Economics is really tough but am working through some tutorial questions tonight with a friend which should help hopefully.  I will try and write later.

Local Businesses

I have always been a fan and a strong supporter of local businesses be it greengrocers, butchers or post offices.  Whether it is the current economic climate or a sign of the times in terms of consumer trends, but I have noticed this year a large number of St Andrews businesses closing down.  Tomorrow the only butchers shop in town closes along with the photographers.  Prior to these closures there have been three more this academic year - a small spice shop on South Street, the amusement arcade and a woollen shop on Crails Lane.  It is a shame to see these places go as in a small town like St Andrews places such as these add to the "small town feeling".  I'm not sure of the exact circumstances regarding the closure of the butchers (probably the dominance of the ever growing Tesco) but Ian Joy photographers have cited the "current economic climate" as the reason for their closure after 62 years of operation in St As.  Running a small little shop has appealed to me for a while now but one definitely gets the feeling that with a) the internet b) consumer laziness c) global recession sigh, it is an extremely difficult task and in order to be successful you need something very special!

Yesterday was my 22nd birthday and I tried to enjoy myself.  After waking early and going to my 10 o'clock econometrics lecture I went to the pier on a birthday walk to get some sea air (slightly hungover after Wednesday but nowhere near as badly as the majority) and took a few nice photos that I've posted.  Then had a birthday trip to the post office to despatch a load of parcels followed by a takeaway Pizza Express and some birthday cake.  Had hockey in the evening (happy birthday was sung; embarassing) and a takeaway curry for dinner.  Unfortunately because of Wednesday's nights shenanigans, nobody really wanted to socialise in the evening so went for one drink (lager shandy) with some friends and an early bed.  My birthdays in St Andrews have been quite mixed - 1st year was on a Sunday so played some golf on the Balgove and had a Sunday roast in the evening, 2nd year I had an exam the day after and went for a dinner at the West Port, 3rd year (21st) went to the Old Course for dinner and some cocktails and this year not a lot!  Birthdays are generally a bit of an anticlimax - although for the first time in many years I am having a birthday party of sorts next Wednesday with a Mexican theme which should be amusing.

Term is in full swing now with many events taking place and flyposting present outside the library for various themed parties/balls and other such things.  The time is flying by with hockey dominating most of my time - if someone was to ask me whether I was making the most of my final year, the answer would have to be no simply because all I've done is play hockey which is rather tedious.  My econometrics lecturer happens to be a keen table tennis player and after a chat with him today I think we may have a game sometime which could be quite good fun.  Unfortunately econometrics isn't giving me much of a headache at the moment.  On the other hand, Economic Analysis has given me a massive headache - I sat down today and looked at our tutorial for next week for a good 2 hours and even with notes and textbook couldn't answer a question.  So with no hockey on Sunday it is going to be a case of trying to make some sense of the questions.  With a class mean last year of 12.9/20 it definitely isn't an easy course but having attended every lecture, done some reading and made good notes one would hope to be able to answer at least one question.

Most fourth year people seem to be doing job applications or having interviews at the moment which is good for them.  I have sort of taken the attitude that my degree should take priority over such things and with my degree classification being borderline that would make sense.  I am still in two minds over the Masters debate having learnt that simply doing a Masters in Economics is a silly idea because it offers no added value so the only real option would be to do a pHD.  Does this appeal to me? Yes, a lot as I have a passion for economics that has only just returned from my school days.  What would I write my dissertation on? No idea.  Where would I go? No idea.  So whilst it sounds good in principle it is a huge commitment (5 years) and a few people have commented that it is just my way of deferring entry into the job market which has some truth  - now is a terrible time to be looking to enter the job market.  I have very strong feelings about joing a big company on a graduate scheme and the only thing that offers mass appeal is being an entrepeneur but again this is a gamble...

Have attached some photos which aren't particularly nice.  Next post I'm going to talk more about entrepeneurial stuff and eBay etc.

J

22

It is my 22nd birthday tomorrow and my last one in St Andrews which is upsetting.  Went to Edinburgh today to play against the University Seconds at their home turf which makes you realise just how behind the times St As sporting facilities are and makes one wish they went to Edinburgh.  Alas.  We lost 3-2 after a 2-0 lead which was infuriating.

J

The Gatecrasher

For some time now there has been a tradition that whenever we go to the Granite City (Aberdeen) to play hockey and are victorious we order either the Beast or the Gatecrasher pizza.  Both are enormous pizzas - the Gatecrasher has 32 slices and it a rectangular two foot squared gem.  Picture attached.  It definitely makes the 90 minute drive back from Aberdeen more fun when you can't move because of the massive pizza box wedged on your head.  Good times.

Last Wednesday was the first ever "quickest downing" competition in the hockey club.  Our social convenor, Jack, organised a terrific event in our sponsor pub to find the quickest person to drink a pint.  Starting with 33 entrants, everyone did their first time and were timed on a watch.  The top 16 were then through to the first round and were seeded according to their times (range was about 13s to 4s).  From there we went 16 => 8 => 4 => 2 => 1.  It was great fun and there was a really good atmosphere.  Somehow I managed to get down to the final 4 but was pretty quite comprehensively in the semi finals.  Never mind.

The last few days have been really hectic on eBay.  I was lucky enough to shift 2000 pens at 25p per pen which has put me almost in break even territory literally overnight so thats been good.  Cereal has also been flying off the shelves and I think Ill have to order some more soon.

I had lots to write but I'm tired and stressed with a lecture, tutorial and all day trip to Edinburgh to play hockey tomorrow morning.  My battery is also going flat.

Sleepy

Just back from PokerSoc - came 11th out of 41 and a few off the money.  Pretty disappointed, played badly and should have done better but blew up in a few spots.

Weekend was dominated by hockey as usual as was this morning, Thursday was the worst hangover I have ever had and didn't leave the house all day.  Wednesday night was epic.

I am so tired but will write everything up tomorrow.

Rainy

Today was one those St Andrews days where you wake up to rain on your window and it just carries on raining for the whole day.  It is one of those days when the streets are dominated by Hunter's wellington boots, Barbour jackets with the odd American still insisting on wearing aviators and flip flops.  The only good thing to come out of such terrible weather is that no-one dared visit the small post office on Pipeland road in such conditions so there was no queue and I was in an out in record time.  Definitely worth braving the storm for.

As mentioned yesterday the weekend was dominated by hockey - away in Glasgow on Saturday (6-2 win) and then home on Sunday (6-1 win) with Monday morning training yesterday (7am, dark, windy, cold).  After Sundays hockey a few of us went down to watch the climax of the Dunhill Links which was one by Robert Karlsson in a playoff on the first hole.  It was a very nice evening weather wise and a good ending to a good tournament.  I've added a few photos from Friday's play - Tim Henman, Samuel L Jackson, Colin Montgomerie and Michael Campbell.  There are also a few photos I took on Sunday morning pottering around the east side of town including one of Castlecliffe.

Last night I played in the poker soc £5 rebuy and was lucky enough to end up chopping with the final 3 for a payout of £145 which was a nice surprise.  I thought I played fairly well and standardly (bar one hand) but also got some good hands in good spots as well as winning a couple of flips.  Hands of note:

1. Double up in first level with J9 vs K2 on 9924 board 

2. Shoved J 4 2 flop with AQ, called by KJ and Queen suckout on turn

3. AA vs Q3 and 45o for a triple up just before end of rebuy period

4. Lost AK vs A7 vs 56s and KJ vs 52o

5. Won AQs vs 1010 for a big bot near the final table

6. Donked off 50% bluffing with Ace high and called by a better Ace high

7. AJ vs 88 on JJ6 flop

9. AJ vs Q10

The chop we made wasn't the best - I got £145, a guy with 50% of the chips £180 and one other with 20% of the chips £100.  To be honest I wasn't really too bothered about the exact amount of money, blinds were massive in proportion to our stack sizes so any edge I had over the two players (which was pretty substantial as they were both very bad) was negated by the fact that all the poker was being played pre flop and I wasn't in the mood for losing a 60/40 so chopping seemed like a good plan.  My last cash in PokerSoc was in first year (2005) in the five pound rebuy too when we chopped and I took home £165.  The week before that I won the £10 freezeout for £220 and was completely hooked.  At that stage in my life I had no idea how to play poker and must had been running like God!  I remember being in awe of the fourth years with their iPods and poker fleeces and poker caps.  I didn't really play much at poker soc last year or second year (online instead) but I really enjoyed last night talking about the game and just playing in a stress free environment.  

Sales have been going well - sold 25 syringe pens so only 4,975 left to go!  Cereal has also been selling at a decent rate so reasonably happy there.  I finally decided my last option today and have gone with industrial organization.  I was sold after todays lecture where we covered a really interesting topic involving game theory and Bertrand competition to show how store policies to refund the difference if a customer finds the same elsewhere isn't beneficial to the consumer but is actually a signal to other stores to keep prices fixed with no incentive to deviate.  So that was really interesting and whilst I think it is going to be a tough module, I stayed back for environmental economics afterwards and fell asleep dreaming of Mario Kart and game theory.  This evening I tried doing a few basic problems set for us but really struggled as have forgotten a lot of basic microeconomic stuff from last year so I'm going to try and refresh up on all that.  My goal is to spend about thirty minutes every morning just doing some problems before class to wake up and get my brain thinking.  Game theory is definitely something that requires a lot of practice and wont click overnight!

The highlight of my day was popping to Fisher and Donaldson to buy a fudge donut for 93p.  They sell on average between 250 and 300 of these a day and they are the most incredible thing in the world.  I highly recommend them to anyone who hasn't had one and fancies treating themselves.  The low point of my day was going to the law fair and seeing lots of lawyers in pinstriped suits and realising that yet again I am at a complete lost for what I want to do.  

Pictures attached.  

Week 1 Review

Really tired tonight and haven't had a minute to spare all weekend really.  Played hockey yesterday and today (won both) and have been entertaining some visitors from Manchester.  Have early morning training tomorrow so its al quite hectic at the moment.  Tomorrow is busy with lectures at 10am and 2pm-6pm then possibly PokerSoc in the evening (five pound rebuy).  I have some cool photos from the weekend to put up and lots of thoughts etc but now isn't a good time.