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Old 08-29-2013, 12:54 AM   #4
Dalillama
 
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Join Date: Nov 2004
Default Re: The Act of Smuggling

If you want a rough formula, take the listed cost of whatever it is from UT/HT (Or whatever you figure the closest item is, or your best estimate for what the legal market value would be). EDIT: Multiplying values by (5-LC) should get you a starting point. It's not perfect, but it gives you a way to take rules and turn it into value. IRL, for instance, I have seen sources that indicate that a quantity of cocaine that costs US$.50 to make can retail for above US$50 on the street. The smuggler won't capture all of this, obviously, because the wholesalers on both ends and the dealer on the street all take a cut as well, but someone with a plane and a willingness to keep their mouth shut can turn a fair amount of cash off of it. I once had a copy of a book written by a man who claimed he had done this for some years, making upwards of US$200,000 per year in actual profit in the early 1980s, which is close to $600000 in today's money. This assumes that what's being smuggled is outright contraband; if they're tax dodgers, the profit comes from ducking the tariffs, in which case the markup will be relatively small (if it's too high, everyone will go to the legal shippers and avoid the potential hassle); an example of that would be the rampant tobacco smuggling of Colonial America, or the smaller scale illegal movement of cigarettes into New York. Arms runners can probably get an even bigger markup, since the end customer has usually got deeper pockets.

Last edited by Dalillama; 08-29-2013 at 11:36 AM.
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