(Scalpers ....What is wrong with re-selling iPhones ?

[Col Ronson]

The 5s, at 16 GB, costs Apple less than $200 to make, minting a staggering $450 a phone on the base model.

The cost to make the higher storage models is just marginally higher, resulting in stupendous profits of over $600 for 64 GB versions PER PHONE.

http://www.nbcnews.com/technology/iphone-5s-cost-make-199-iphone-5c-173-8C11256386

What is wrong with entrepreneurs like myself who brave the lines, the cold, the lack of sleep, and acquire and sell rare items to those who want them .. point in case the Gold iPhone 5s.

If I spend 20,000 buying phones, I should be entitled to receiving a small profit, sparing consumers the need to dash to an Apple store to buy one, and imagine the millions with no access to Apple stores or stores very far from where they live.

If they're almost impossible to find in the U.S., imagine how difficult they are to get internationally.

Free market economics and capitalism methinks. If you hate on entrepreneurial businessmen and the defamatory term "scalpers", you need to hate Apple.

THEY have no reason to charge so much for their products, it's just their greed.

My iPhone 5s stash :

Apple isn't making $450 just because the iPhone costs $200 to make. (thats component cost only) It costs money to develop the phone and pay all the engineers, it costs money to ship all the parts, it costs money to pay the workers to build the phones, it costs money to ship the phones to all the apple stores, it costs money to market the phone, etc etc.

Or did you just assume all that stuff was free and apple simply just buys $200 worth of components and tada magical iPhone builds itself in the back of apple stores.

Pretty misinformed statement if you ask me.

 

[Lammercy]

The 5s, at 16 GB, costs Apple less than $200 to make, minting a staggering $450 a phone on the base model.

The cost to make the higher storage models is just marginally higher, resulting in stupendous profits of over $600 for 64 GB versions PER PHONE.

http://www.nbcnews.com/technology/iphone-5s-cost-make-199-iphone-5c-173-8C11256386

What is wrong with entrepreneurs like myself who brave the lines, the cold, the lack of sleep, and acquire and sell rare items to those who want them .. point in case the Gold iPhone 5s.

If I spend 20,000 buying phones, I should be entitled to receiving a small profit, sparing consumers the need to dash to an Apple store to buy one, and imagine the millions with no access to Apple stores or stores very far from where they live.

If they're almost impossible to find in the U.S., imagine how difficult they are to get internationally.

Free market economics and capitalism methinks. If you hate on entrepreneurial businessmen and the defamatory term "scalpers", you need to hate Apple.

THEY have no reason to charge so much for their products, it's just their greed.

My iPhone 5s stash :

That's a pretty ugly ass wallet. I have no problem with scalpers, but the fact that you think you're a legitimate business man is pretty hilarious.

 

[Makaveliarts]

ALL business have high markups.

So if reports that the iphone 5S cost $199 to manufacture, would you say Apple is gouging the customers at $700 plus per phone??

What are scalpers doing that companies arent?

Well, wouldn't you say it's a matter of opinion at that point?


For example, if Apple was making $500 for each phone sold, would you consider that outrageous? Would the next person also?

Same with Scalpers. This is the part where the customers are supposed to decide.

 

[Applejuiced]

Apple isn't making $450 just because the iPhone costs $200 to make. (thats component cost only) It costs money to develop the phone and pay all the engineers, it costs money to ship all the parts, it costs money to pay the workers to build the phones, it costs money to ship the phones to all the apple stores, it costs money to market the phone, etc etc.

Or did you just assume all that stuff was free and apple simply just buys $200 worth of components and tada magical iPhone builds itself in the back of apple stores.

Pretty misinformed statement if you ask me.

Well said.
Its not just what the parts and components cost and all the rest is profit.
How about the software that needs to be created to run the device? Paying for marketing, advertising, shipping, employees salaries, taxes, health care on employees, real estate costs such as retail stores that pay rent and utilities, warranty work and repairs provided and many many other expenses that one cannot even begin to count.

 

[noobinator]

Lol at op calling himself a businessman when he doesn't know that r&d and overhead costs money (among many other things mentioned above).

 

[BenTrovato]

I don't see anything wrong with scalping and selling it to a public that wants it. If someone wants overpay for a product either because they wanted right away or don't want to wait in line then power to the scalper.

They already make it easy enough to order online and wait for it to arrive at your door without you having to move. I can't understand why humans wait in line to buy a telephone. People from another planet, if they are watching, must think it is one of the most ridiculous activities we participate in.

 

[Peter K.]

Bumping my own post, as it was last on 1st page:

Scalpers Suck (IMO)!

Personally, I think all middlemen are parasites. From day- & high frequency traders to event ticket scalpers to the OP are representative of all that is wrong with and in the world today. They suck value out of markets for products, which they had no part in creating.

Yes, I know they (usually) aren't breaking any laws. So what?

And please, spare me the liquidity excuse!

 

[Carlanga]

I don't care about scalpers if the item is not too limited...

I think is fair game though and if you have to do it to make money in this economy go for it. I would do it if I needed the money and had no job.

I also think is ridiculous to pay more than an extra $50 for them to do a line for you. Of course for many others that number goes into the hundreds. $ talks.

What does grid my gears is that one that has a real job has limited time to get an item that has limited stock and you guys have no job so can do lines w/out care for days. Which is why I just order online and be worry free of anything that has to do w/ middleman. I don't appreciate middleman's of todays, if the services they provide were as good as they were in the old days then things would be different and I might appreciate the middleman more.

 

[calaverasgrande]

What is wrong with entrepreneurs like myself

this word, I do not think it means what you think it means.

----------

wait, did you spend $20,000 on 21 iphones?
You might not break even on this one.

 

[richard371]

Im curious is there any certain groups of people demography speaking that are doing this?

 

[mcdj]

I think all middlemen are parasites.

Beverage distributors
Insurance agents
Real estate brokers
Stock brokers
Head hunters
etc.

All middle men.

 

[Gav2k]

Op question seeing as everyone here is saying that they don't mind scalpers and your breaking no laws...

Do you pay tax on your profit? Honestly?

 

[12vElectronics]

I think Scalpers are the scum of the Earth.

It takes more than standing in line and buying iPhones once a year to call yourself a businessman. Real business people have successful operations running year round. Most even employ others, pay taxes, pay insurance, pay workers comp, pay bills etc etc and still come out with a profit.

Go get a real job.

 

[iF34R]

I don't have a problem with someone reselling things, even with a markup over the retail price.

I did it with the PS3 when it was launched. Sorta. Bought several, and put them on ebay.. starting at .01 . All of them sold for double + what I paid for 'em.

If I had the money to do it with the iPhone, I would.

 

[mcdj]

Apple isn't making $450 just because the iPhone costs $200 to make. (thats component cost only) It costs money to develop the phone and pay all the engineers, it costs money to ship all the parts, it costs money to pay the workers to build the phones, it costs money to ship the phones to all the apple stores, it costs money to market the phone, etc etc.

Or did you just assume all that stuff was free and apple simply just buys $200 worth of components and tada magical iPhone builds itself in the back of apple stores.

Pretty misinformed statement if you ask me.

Not disagreeing with you, but they've paid the developers, the engineers, the shipping, the factories, the marketing, the store real estate, and all the employees...and they still have nearly 100 billion in cash, most of it squirreled away off shore, tax free (and they will likely never pay tax on it).

Their profit margins are high, period. Of course, that has zero to do with some random dude's scalping being ok or not ok (silly point OP). But let's not pretend Apple isn't greedy. They may not regularly raise prices in traditional obvious ways, like charging more for an iPhone, but they don't lower them either, despite the costs of things like flash memory falling every year. They tweak Apple care per-incident prices. They split USB chargers and cables into 2 separate items, and charge more for the 2 separately than they used to as a package...to the tune of millions of extra dollars in sales. They charge old school high prices for online storage. They give less free replacements than they used to. They litigate at an unprecedented rate.

They're a business, and they're in it to win it. But the more money they make, the more they grab, and the tighter they hold the purse strings. That's the very definition of greed.

 

[troyhouse]

The 5s, at 16 GB, costs Apple less than $200 to make, minting a staggering $450 a phone on the base model.

The cost to make the higher storage models is just marginally higher, resulting in stupendous profits of over $600 for 64 GB versions PER PHONE.

http://www.nbcnews.com/technology/iphone-5s-cost-make-199-iphone-5c-173-8C11256386

What is wrong with entrepreneurs like myself who brave the lines, the cold, the lack of sleep, and acquire and sell rare items to those who want them .. point in case the Gold iPhone 5s.

If I spend 20,000 buying phones, I should be entitled to receiving a small profit, sparing consumers the need to dash to an Apple store to buy one, and imagine the millions with no access to Apple stores or stores very far from where they live.

If they're almost impossible to find in the U.S., imagine how difficult they are to get internationally.

Free market economics and capitalism methinks. If you hate on entrepreneurial businessmen and the defamatory term "scalpers", you need to hate Apple.

THEY have no reason to charge so much for their products, it's just their greed.

My iPhone 5s stash :

let me ask another question, people are generally scared of selling on ebay, due to chargebacks and stuff. what tips do you give others on avoiding that, any other tips would be helpful too.

and kudos, great job, in getting all those phones.

 

[ucfgrad93]

I liken it to ticket scalping. I don't really care for it and I refuse to pay inflated prices. If you are not breaking any laws? I have no real issue with it, though.

Agreed. People can do whatever they want to with their possessions. No one is forcing anyone to pay these outrageous prices.

 

[cyks]

I liken it to ticket scalping. I don't really care for it and I refuse to pay inflated prices. If you are not breaking any laws?

And because reselling a phone is not illegal, what you are doing perfectly fine.

That being said, if the OP isn't breaking any laws then what the hell do I care?

Yes, I know they (usually) aren't breaking any laws.

I'm willing to bet that the OP (and most scalpers in general) don't have a business and aren't collecting/ paying taxes or listing their profits come tax time.

 

[MicroMacTosh]

Apple isn't making $450 just because the iPhone costs $200 to make. (thats component cost only) It costs money to develop the phone and pay all the engineers, it costs money to ship all the parts, it costs money to pay the workers to build the phones, it costs money to ship the phones to all the apple stores, it costs money to market the phone, etc etc.

Or did you just assume all that stuff was free and apple simply just buys $200 worth of components and tada magical iPhone builds itself in the back of apple stores.

Pretty misinformed statement if you ask me.

I'm sure Apple are paying their workers in China very well .., Apple outsources their production to other companies at dirt cheap prices ( Foxconn) , who in turn pay THEIR workers (slaves) less than $5 a day .


Apple also pays less tax than you and I and hide their profits overseas through structured shell companies , and sit on a hoard of cash larger then that of the federal government .

 

[BSDanalyst]

The price of the gold iPhone has been declining steadily since launch.

 

[syd430]

I'm sure Apple are paying their workers in China very well .., Apple outsources their production to other companies at dirt cheap prices ( Foxconn) , who in turn pay THEIR workers (slaves) less than $5 a day .

If you wan't to make a profit that's all well and good, but don't try and justify it with stupid crap like this. I like you how simultaneously bash Apple for paying their employees market rate in China, but happily take market rate for iPhones (currently above the retail price) in the US to arbitrage a profit. So in other words, you only like free markets when it benefits you.

Apple also pays less tax than you and I and hide their profits overseas through structured shell companies , and sit on a hoard of cash larger then that of the federal government .

LOL again. You simultaneously bash Apple for taking advantage of legal loopholes, while doing the same yourself. Funny that you would bring up tax, given that that you don't pay any with your "business" (read: simple scalping operation). Also, when you say Apple pays less in tax than us, are we talking in absolute terms or relative terms? Last time I checked, I didn't pay a couple billion dollars worth in tax and single handily build hospitals, schools and employ tens of thousands of people.

 

[Carlanga]

I'm sure Apple are paying their workers in China very well .., Apple outsources their production to other companies at dirt cheap prices ( Foxconn) , who in turn pay THEIR workers (slaves) less than $5 a day .


Apple also pays less tax than you and I and hide their profits overseas through structured shell companies , and sit on a hoard of cash larger then that of the federal government .

They get paid from $1.50-2.20 an hour (2012), they are not slaves, they are some of the best paid workers in china. But, those are not the R&D people that people in the thread are talking about

We all know apple makes a bunch of money of people buying their devices, I just don't think that people should charge 2X for the same item just because you got to it first, not illegal and more power to you for getting a bunch of suckers to pay for them. Apple charges a premium for the quality of their products/software while a scalpers is charging just as much extra to get it to you on the first day; to me that is ridiculous, but as we keep having richer people and more poor people we can see more inequality...

Also, just because a company is 'greedy' does not mean you have to become greedy to make money.

 

[MicroMacTosh]

Bumping my own post, as it was last on 1st page:

You seem quite agitated my friend .

Let's say you're a Russian oligarch who needs gold iPhones and pays whatever is asked , no questions asked , or a prince who needs 10 gold phones for his siblings and extended family .

They have the money , the desire , what's missing is someone who can deliver them the product , and I fill this economic necessity , this demand .

There is a vacuum , I fill it . Profits are overseas , I don't sell to US buyers on general as you can make so much more from people with no access to Apple products in their country

 

[emseven]

I think it is legitimate. But to call yourself an entrepreneur? I do not think so. I could swipe my AMEX for two phones at a time for a week and profit handsomely but what of a few weeks from now? That "business you started" is non-existent.

 

[dlondon]

Out of curiosity, do the people who say they don't have a problem with scalpers already have the iPhone 5s or not looking to upgrade?