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Morey's business model when it comes to trades, and why he gets them done.

Discussion in 'Houston Rockets: Game Action & Roster Moves' started by meh, Feb 21, 2013.

  1. meh

    meh Contributing Member

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    While fans may think of Morey's antics in calling everyone about everything in a negative manner: treating players like assets, other GMs won't deal with Morey because screws them, he sounds desperate, etc. But from a business standpoint it's REALLY, REALLY smart.

    Let me make a comparison to shopping. Imagine you go to a mall with 29 stores. Morey's store would be the one that has the sign "Open 24 Hours," "All prices negotiable," "All items in stock," "We have flexible pricing plans just for you." Other stores may not open all the time. They may make only certain products available. They may not want to go through the hassle of endless negotiations. In essence, they're difficult to deal with. Fans get too hung up on the "price" which does tend to be steeper with Morey than perhaps some other stores. But that's the tradeoff for availability and customer service.

    So let's look at the Thomas Robinson deal. Supposedly, the Geoff Petrie didn't call any other GMs. He was given a mandate by the Maloofs(allegedly) to cut salary, and he negotiated with Morey. Then the trade went through. Why? For the above reason. Because Morey is the guy who's always available and will negotiate an offer to fit what the other person want. In this case, cut salary. Keep in mind that GMs are people too, not robots. If they have only a short window(48 hours between mandate and actual trade) to buy something, they just go to the store that's convenient and has a good chance of selling you stuff. Did Petrie overpay for his salary dump? Most certainly. But in return Petrie got security and speed, which was important since the deadline's approaching.

    This is why Morey will always have GMs deal with him, have GMs "get fleeced" by him. Because despite his relatively high pricing, he provides the best everything else. Best service, best shopping hours, most flexible pricing plans, etc. And many times, that will trump the actual cost of the product. Just like with you an me when shopping for things we want. Do we always shop at the bargain bin? Of course not. And neither to NBA GMs.
     
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  2. jocar

    jocar Member

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    and he apparently has fast internet connection
     
  3. D-rock

    D-rock Member

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    Sweet analogy. Not sure how accurate you are but if I were Morey this is absolutely the way I would market myself.
     
  4. meh

    meh Contributing Member

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    It is the truth. Morey has from the very beginning marketed himself among GMs as the guy who will do what others won't do. He took on Jefferies contract from NY when everyone else backed off. He took Artest when everyone else was lowballing Kings due to his antics. He got a trade done with SA for Scola hours after the original trade fell apart right before the deadline.

    Morey has always done the legwork and have done them in a timely manner.
     
  5. jayhow92

    jayhow92 Member

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    Murray is a GM playa
     
  6. mazinger

    mazinger Member

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    That's how he got Harden
     
  7. Gimmmethemike

    Gimmmethemike Member

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    great analogy
     
  8. ccjj

    ccjj Contributing Member

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    I think Morey is also using trail and error strategy... He keeps bringing in young rookies with potential for cheap, develop them for a couple years, then sell high, may be until he can find a hidden star.
     
  9. Raven

    Raven Member

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    It's like flipping houses. Morey's more real estate developer than GM.

    ;)
     
  10. Rox>Mavs

    Rox>Mavs Contributing Member

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    I get your line of thinking but not sure if I agree completely with the analogy. Convenience stores work for people who are willing to trade money or value for time. Usually that relates to lower priced items. You won't see fast convenient businesses for car sales or home buying simply because the value is so high that its not something you want to rush. Basically the potential value gained or lost is worth the extra time (or should be).

    I think it has more to do with being opportunistic and constantly interfacing with customers somewhat like a door to door salesman. I say opportunistic because finding real undervalued assets in a market requires knowing the unique situations that cause problems for people that you have a solution for. I flip houses as a side business and to get the best deals you have to 1) constantly searching the market 2) have cash ready to close a deal fast 3) be creative and experienced enough to solve all your sellers problems to make it easy and hassle free (home owners willing to seller usually sell their homes for cheap because there are unique problems with their homes that most people can't or don't have the resources to solve).

    I think that's kind of what Morey does. He makes his inquiries, understands the unique stressors on the market, tries to understand what the sellers problems/desires are, is ready with various modes of currency to deal in, is creative in solving problems, and is constantly professional and respectful to make the dealing a pleasant experience.

    So maybe not like a convenience store but more like a "webuyuglyhouses" homevestors business.
     
  11. Rox>Mavs

    Rox>Mavs Contributing Member

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    Strange how coincidental our posts were
     
  12. Aleron

    Aleron Contributing Member

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    He drafts on those lines most of the time, this whole Robinson thing, I couldn't help but think it's about his plan to go after Dwight, then package Asik and Rob + extras for that disgruntled guy from Minnesota (Pekovic is going to go for a king's ransom this year, and Asik on his bargain basement price), but even if any step doesn't come to fruition, Asik and Rob aren't bad going forward, if the wolves won't sign off, Smith, etc etc
     
  13. haven

    haven Member

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    Any GM who refuses to deal with any other GM, as an absolute rule, should be fired on the spot.

    Morey is effective because he both (a) properly evaluates talent; (b) properly values that talent; and (c) is unsentimental when it comes to dealing that talent.
     
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  14. darksoul35

    darksoul35 Member

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    im feelin the dude.
     
  15. meh

    meh Contributing Member

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    My post was more about just why he gets deals done, not so much the long term planning. I think his long term planning is more flexible than that, personally.
     
  16. meh

    meh Contributing Member

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    I totally agree, although I wasn't really talking about convience stores, but more about just having a store in general. Obviously there's no perfect comparison in real life due to the nature of the NBA market(30 buyers and sellers, limited product availability, etc.)
     
  17. ejarts

    ejarts Member

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    its exactly the same as buying $2 soda in can in a vending machine when you can spend that to buy 1 liter bigger soda. you know you're getting screwed but convenience is king.
     
  18. don grahamleone

    don grahamleone Contributing Member

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    Fantastic thread. There is not much discussion here because you covered this pretty well, so don't get worried about the number of responses. Just not much to say other than, sounds like you're right.
     
  19. don grahamleone

    don grahamleone Contributing Member

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    Ah, fork it, I'll add my two cents by restating what you already said, [My Best Clyde Drexler Impersonation After Bullard Says Something Smart] Morey takes the bird in the hand is worth two in the bush routine and applies it to GMing a basketball squad.
    [/My Best Clyde Drexler Impersonation After Bullard Says Something Smart]
     
  20. jimmyv281

    jimmyv281 Member

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    [​IMG]


    "super bad"
     
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