Yea real big profit margin I see,
https://www.ebay.com/itm/Apple-iPho...160993&hash=item23914c6543:g:XfoAAOSwW6BZ80Hp
https://www.ebay.com/itm/Apple-iPho...160993&hash=item23914c6543:g:XfoAAOSwW6BZ80Hp
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iPhone X Models Flooding Craigslist and eBay Amid Six Week Shipping Estimates
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So if a phone is worth $2000 dollars in the secondary market (let’s assume this is an easy sale and guaranteed value) ... that’s means that’s what the phone is worth in the free market, in turn how much you’re paying for the phone. You buying it at MSRP means you’re getting a discount on free market price.
The moment you have the unopened iPhone in your hands - you have $2000 in your hands. Not the price you paid.
Imagine - if someone gave you $2000 would you still use that money and buy the iPhone?
Whenever someone says, "I love my (phone/car/new shoes)!" I am aways tempted to ask, "so, do they love you back?"
I realize this is a figure of speech, and it's normal to desire new stuff, but it always seems odd to me when inanimate things are turned into objects of affection. We can control those impulses somewhat at least once we realize that they really are things, and can't return our affection.
So you're hoping someone will take their hard earned money, purchase an iPhone X, list in on Craigslist or EBay for less than they paid to only teach those who paid market value a lesson?
Or, you "hope" people post up iPhone Xs for less than MSRP but only to make the other ads look expensive?
You should really follow through with your thought before you post it because it makes zero sense and would not effect prices whatsoever except punish the seller who's taking a loss to teach the "greedy" a lesson.
Idk where you live, but I paid $1207 after taxes. No Apple care. This is a $1200 phone. People also forget that eBay takes a 10% cut, PayPal takes a 3% cut. So selling for $1500, really only gets you about $50-$100 (depending on your original taxes) in profit. It’s not exactly the crazy markup it sounds like.
It's not exclusive to Apple. Samsung always sold out on their Galaxy pre-orders, even in developing countries.
1. This sort of items have become status symbol on release day. Same thing as limited edition sneakers, watches, etc.
2. Scalpers taking advantage of no. 1.
Half of this price is subsidy for outrageous buildings, malls, parks, Town Squares, headphone companies, radio DJ's, rappers, sophisticated doorlocks, self(non-)driving cars and then, stockpiling of 50% pure excess cash (before or after tax, it hardly matters)
I'm through with it. That iPhone X, with all its compromises, is worth $600 max. and I may pick it up secondhand (preferably at someone's unpretentious, private home) somewhere, sometime.
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Looks like they made a few hundred dollars and haven't even put out their own money yet. So, yes it's a very good profit margin. The only overhead was a bit of time posting the auction and the EBay fees. I bet it breakdown to about $400/hr labor rate they're making. Now if they could do that 8 hours a day, 5 days a week. Or, like me, I hire people to make me money 11 hours a day, 7 days a week. And I'm home or doing other things MOST of that time. Someday you might figure it out.
It's only a problem for Apple, if they get a load of unsold phones returned to them that have to go to refurb. Seeing the low selling margins so far, I think this will happen.
For people observing the high prices on eBay:
a)Most will not sell at that price and will have to come down. Your selling price will be determined by a number of factors:
1)length of time near the top of the first page, which is affected by the number of other sellers. I'm not sure if eBay is legally required to place your item near the top of the first page for X number of seconds per day based on how many other sellers there are. I have never been able to track this or cared much. You may never reach the first page.
2)If you can't reach the first page, you will have to sell based on the lowest price criterion and cater to buyers searching for below-market prices.
b)For those that sell, most buyers will not pay, since Best Offer and auctions don't have the ability to require immediate payment and that feature is hidden in the new seller template for Buy It Now. A small percentage of sellers will fall victim to sending their phones before receiving payments. Even honest buyers usually won't pay if they receive their phones before sending the PayPal payments.
c)Sellers not subscribed to the 24.95/month store have to pay a 9% final value fee or 6% if they are subscribed. PayPal will also take 2.2%-2.8% based on monthly sales volume or up to 4.4% plus a small currency conversion fee if your buyer pays using a foreign PayPal account or foreign credit card. Your total fees will be 8-13%.
d)For those that have paid full price, you most likely will end up paying eBay and PayPal for the privilege to sell your phones. For those that used their parents' accounts or don't understand how credit works, you also get the satisfaction of believing you turned an amazing profit.
e)Scam the scammer. If you have received a fraudulent payment and can still print a shipping label, go ahead and do so. If you don't have a printer, take a picture of your shipping label and tracking number, and upload that tracking number to eBay. Send an item, but don't send the new phone. Send your old phone, a box of tissues(no liquids, perishables, flammables, batteries, etc.), or anything you don't want--try to be creative. This is mail fraud, so tread lightly. If you haven't received notification that the buyer is fraudulent from eBay or PayPal, you will have to look at the address to see if it looks fishy. Mail forwarding boxes(google the address) are often scams. You should compare that with their feedback to see if they are an active eBay buyer. If you have misidentified an honest person as a scammer, you lose the sale payment but still have the phone and have minimized your losses if you decide to return the phone to your carrier. You may also be suspended by eBay and PayPal for the deception.
f)You can also try craigslist and risk being robbed at gunpoint, so if your price is high and the buyer sounds fishy, be cautious.
g)Next year, try to sell your phone before Apple's media day when they announce the phone. You will most likely get the maximum profit at this point if you're allowed to do so. I saw someone getting $1800-$2k per phone who sold the day after the event when there were only a handful of listings up on eBay.
h)Enjoy the phone yourself. You may never own a more expensive phone again adjusting for inflation.
a)Most will not sell at that price and will have to come down. Your selling price will be determined by a number of factors:
1)length of time near the top of the first page, which is affected by the number of other sellers. I'm not sure if eBay is legally required to place your item near the top of the first page for X number of seconds per day based on how many other sellers there are. I have never been able to track this or cared much. You may never reach the first page.
2)If you can't reach the first page, you will have to sell based on the lowest price criterion and cater to buyers searching for below-market prices.
b)For those that sell, most buyers will not pay, since Best Offer and auctions don't have the ability to require immediate payment and that feature is hidden in the new seller template for Buy It Now. A small percentage of sellers will fall victim to sending their phones before receiving payments. Even honest buyers usually won't pay if they receive their phones before sending the PayPal payments.
c)Sellers not subscribed to the 24.95/month store have to pay a 9% final value fee or 6% if they are subscribed. PayPal will also take 2.2%-2.8% based on monthly sales volume or up to 4.4% plus a small currency conversion fee if your buyer pays using a foreign PayPal account or foreign credit card. Your total fees will be 8-13%.
d)For those that have paid full price, you most likely will end up paying eBay and PayPal for the privilege to sell your phones. For those that used their parents' accounts or don't understand how credit works, you also get the satisfaction of believing you turned an amazing profit.
e)Scam the scammer. If you have received a fraudulent payment and can still print a shipping label, go ahead and do so. If you don't have a printer, take a picture of your shipping label and tracking number, and upload that tracking number to eBay. Send an item, but don't send the new phone. Send your old phone, a box of tissues(no liquids, perishables, flammables, batteries, etc.), or anything you don't want--try to be creative. This is mail fraud, so tread lightly. If you haven't received notification that the buyer is fraudulent from eBay or PayPal, you will have to look at the address to see if it looks fishy. Mail forwarding boxes(google the address) are often scams. You should compare that with their feedback to see if they are an active eBay buyer. If you have misidentified an honest person as a scammer, you lose the sale payment but still have the phone and have minimized your losses if you decide to return the phone to your carrier. You may also be suspended by eBay and PayPal for the deception.
f)You can also try craigslist and risk being robbed at gunpoint, so if your price is high and the buyer sounds fishy, be cautious.
g)Next year, try to sell your phone before Apple's media day when they announce the phone. You will most likely get the maximum profit at this point if you're allowed to do so. I saw someone getting $1800-$2k per phone who sold the day after the event when there were only a handful of listings up on eBay.
h)Enjoy the phone yourself. You may never own a more expensive phone again adjusting for inflation.
Wow, lots of toxic negativity in this thread! "makes me sick", "hate", "sad", "scumbags", "crazy", "insane", "pathetic". Sounds like a massive case of projecting people's own dysfunctions and inadequacies on those with more disposable income and business sense. The average commenter's amygdala is so overloaded with shock that he feels the need to lash out at those who they think should refrain from pursuing what they want, and perhaps hand it to people who are too passive and collectivist to compete like everyone else. I think supplies will even out in a few months and while a handful of people may make a $1000 off of their purchase this week, the supply of people selling phones will lower the resale prices to no more than a few hundred $ above retail.
Very well put. So many people have a hard time understanding that concept. I have 2 phones coming on the 3rd. If the re-sale values hit a point were value exceeds $250 amount paid, after fee's, I simply am not willing to pay that premium for this phone, and will just re-buy when stock increases.
I think all this hype is Apple BS and not that many people are willing to pay $1000 let alone more to upgrade. These scalpers aren't going to make ****. The smartphone market is saturated and planned obsolescence it the only means for profits anymore. It actually has been for a while.
What if you simply don't want to wait to own something because you are used to getting what you want? Why does everyone always try to attach other people's spending habits to a personality flaw or a social issue? You know, doing this probably makes you the one with the issue.
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Seems odd to you, therefore there must be a problem that someone else should work to control? Not how it works.
And you might just get robbed walking out from an apple store.
Or get struck by lightning or something.
The world is such a dangerous place.
"Scalpers" carries such a negative connotation. If someone can't wait a few months for a new model iPhone then why is it wrong for them to have the opportunity to buy one immediately at a markup?
Some people will pay exorbitant prices for status-signaling devices. Like what kind of fool pays $20K or more for a Vertu phone? Only a special kind of fool would buy such a ridiculous product.
Likewise, who would want an early production iPhone X? As a new model with bleeding edge tech the probability of manufacturing bugs is high, and even if the device is perfect then iOS 11 probably won't be solid on an X until at least 11.2, so why not just wait a few months to buy one? It makes no sense to me.
I wouldn't call early X adopters fools but they're making a serious purchase decision in an emotional state of mind. Wait until cool reason takes hold and ask yourself why you can't wait a few months.
On the other hand, if you're wealthy then what's an extra couple grand? Go for it! I'm happy to fulfill your needs.
Some people will pay exorbitant prices for status-signaling devices. Like what kind of fool pays $20K or more for a Vertu phone? Only a special kind of fool would buy such a ridiculous product.
Likewise, who would want an early production iPhone X? As a new model with bleeding edge tech the probability of manufacturing bugs is high, and even if the device is perfect then iOS 11 probably won't be solid on an X until at least 11.2, so why not just wait a few months to buy one? It makes no sense to me.
I wouldn't call early X adopters fools but they're making a serious purchase decision in an emotional state of mind. Wait until cool reason takes hold and ask yourself why you can't wait a few months.
On the other hand, if you're wealthy then what's an extra couple grand? Go for it! I'm happy to fulfill your needs.
You of course are entitled to do as you like and I am entitled to make a judgement about materialism and misplaced emotions. Sorry if it makes you defensive but that's how it works.
True. In this case the market has spoken and clearly no one cares about your judging them.
Well said. I'd only add that I completely understand when a tool becomes an object of affection. A favorite knife, or camera, or computer used for production either professionally or as a hobby. Any well-used tool becomes an extension of one's self, which is why you never eff with a man's motorcycle. This affection for a tool only develops with usage so it's not what's going on with the iPhone X fever.
If I was rich enough to pay that, I would have just hired a team to secure one for me at midnight instead of giving money to schmbag scalpers.
Sure, I get that entirely. In this particular case, the buyers are making this connection to something they haven't even seen yet. Doesn't make more sense, but rather less.