When I read this I see a a niche, super premium hardware company that managed to acquire tens of thousands of customers by word of mouth. Not only that, their customers are all in-effect self employed or small businesses with huge average revenue per employee. They manage global supply chains, intense competition, all while taking on and managing huge legal/compliance risk. How is is that supposedly "dumb," criminals…
You got it. As always, it's the gross margins. Cocaine has higher gross margins than most prescription drugs, which in and of themselves are almost pure margin -- nevermind that, the market demand for it is broad and deep globally. Cartel operators aren't dumb. On the contrary, they show much of the unsavory, warlord like aspects of doing many kinds of business where there are zero-sum dynamics like this -- they just don't even try and hide it.