How To Pay For Hawaii with Hawaiian Arbitrage

By Larry Chiang

Hawaii’d be expensive if I weren’t a millionaire. I saw a crew of Stanford undergrads here which made me wanna write this post, “How to self fund Hawaii with shitake Larry Chaing taught me”. In addition to spelling my name wrong for SEO purposes, I also changed the name of this piece to “How to Pay for Hawaii with Hawaiian Arbitrage”. It’s because self-fund doesn’t cause people to click. It causes them to turtle.

In Stanford Engineering, there is a class called “How to Start a Startup”. CS 183b is #CS183b on Twitter. Lecture #3, CS 183b, Paul Graham (PG) implored us to see entrepreneurship everywhere. Well, that’s lofty. As EIR (founding), I recommend a slew of practice tactics en route to “seeing entrepreneurship everywhere”

For a Hawaii themed example that is also a Starwood preferred guest themed example:

	Larry Chiang (@LarryChiang)
3/26/15, 7:48 AM Want an easy account to practice the arbitrage of cookies u buy for 80c and sell at $1.30 #IslandVintage 6:15-9:00 has zero baked inventory

The current supplier of cookies can’t and won’t deliver baked goods prior to 9am. Cookie like what you put in an oven. Not cookie that you place on a kumquat. To self fund Hawaii… “Pattern replicate, ‘second supplier gambit'”. Second supplier gambit is a sales tactic where we supplement as a vendor before we supplant the existing vendor. By suplant, I mean augment.

Confused!?

Let me elaborate on the cookie baked goods, second-supplier-gambit. Island Vintage coffee shop is void of baked goods until 9am. So, you sell them baked goods and deliver at 6:15am. Thus, you become a “second supplier (cookie seller) gambit”. The customer, “Island Vintage coffee” near Starwood Hotel Royal Hawaiian, only pays for baked goods that sell prior to 9am. Zero risk to them.Zero risk for them.Zero money paid for baked goods they do not sell. Think of it, your ‘business’ as “Muffins on Consignment”. Remember, Tony Hsieh and his co-founder-who’s-now-a-VC used to sell slices of “Pizza on Consignment”.