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

[Iphone5preorder]

Just sold an iPhone 5s 64 GB Gold to a buyer in Singapore ....

Sold for $1,700.

Profit of $780.



(Experienced eBayer here, aware of all the tricks and rules and everything sealed tight on my end, no risk- verified Paypal address, tracking, insurance, video and photo proof of package and box)

You must have discounted eBay fees. They charged me 30 plus PayPal 10 dollar charge to sell a 400 dollar item.

Your 850+ tax + eBay/PayPal fees math seems a little off. Wouldn't your profit be more like 730 ish?

 

[rockyroad55]

I don't like scalpers that sap up the stock. Why sell to a scalper in front of the line if there is a legitimate person in the back wanting a phone maybe for their kids or personal use. Scalpers come last. Legitimate people that want to use the phone personally can go first.

If you're an actual business as you call it, how about taxes?

 

[bunnicula]

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.

And not paying required taxes on income is illegal, of course.

 

[bunnicula]

Apple and all other retailers could curb the scalping.

During launch (say, a 30-day period) one may only purchase as many iPhones as the max number of upgradeable lines on their phone plan. Unlocked/full price phones no more than the 2 phone policy.

Require state-issued ID. They have systems to monitor this. If someone shows up without ID? No phone.

If someone attempts to purchase more in that first 30 days on the same account or with the same ID? They get turned away.

I realize some people will make fake IDs (illegal) and this still allows for some modest scalping.

Still, it would curb the problem.

 

[billycuth]

Apple and all other retailers could curb the scalping.

During launch (say, a 30-day period) one may only purchase as many iPhones as the max number of upgradeable lines on their phone plan. Unlocked/full price phones no more than the 2 phone policy.

Require state-issued ID. They have systems to monitor this. If someone shows up without ID? No phone.

If someone attempts to purchase more in that first 30 days on the same account or with the same ID? They get turned away.

I realize some people will make fake IDs (illegal) and this still allows for some modest scalping.

Still, it would curb the problem.

The only way apple could curb it is to raise the price themselves.

Any other method will not work.

 

[justiny]

Apple and all other retailers could curb the scalping.

Still, it would curb the problem.

Why would Apple and other retailers go to all that trouble simply to keep products out of a small percentage of the population?

And could you imagine the bitch threads in this forum if they did implement a limited sales policy like the one you just suggested?

I'm sorry, but I really don't view this as a "problem" that needs to be curbed. Retailers sell products to make money, they don't care to whom. I think a lot of people who are hating on scalpers are those who can't get iPhones right now. A month from now, no one will care.

 

[bunnicula]

The only way apple could curb it is to raise the price themselves.

Any other method will not work.

Why would higher prices stop scalpers? The people who buy from them seem to have more money than sense anyway.

----------

Why would Apple and other retailers go to all that trouble simply to keep products out of a small percentage of the population?

And could you imagine the bitch threads in this forum if they did implement a limited sales policy like the one you just suggested?

I'm sorry, but I really don't view this as a "problem" that needs to be curbed. Retailers sell products to make money, they don't care to whom. I think a lot of people who are hating on scalpers are those who can't get iPhones right now. A month from now, no one will care.

I have a 5S. I have since launch day.

Why would legitimate purchasers bitch if they could not buy more phones than they have phone lines? I mean, who needs more phones than that?

 

[alent1234]

apple needs to make their 3Q numbers for wall street which is why they let the floodgates open on scalpers.

last year you had to reserve a phone at night and pick it up the next day. going to the store without a reserved phone was futile. this year its like the iphone 4 where the online sales are waiting for weeks and the scalpers are in the stores. that year the guy in front of me was buying all the iphones he could from all the apple stores in NYC to resell

 

[billycuth]

Why would higher prices stop scalpers? The people who buy from them seem to have more money than sense anyway.

Because, the decreased profit margins wouldn't make it worth the effort.

People wouldn't pay significantly more if Apple charged $1,500-$2,000 off contract during the initial few months.

Now, for people that are buying a subsidized device, they could still scalp I guess. But it is what it is.

Apple could really help avoid this by making sure their supply is on par with demand.

 

[monaarts]

I don't think there is anything wrong with it. EVERYONE had the same opportunity to get it (whether in-store or online) and some decided not to. I set my alarm clock for 3:30am to order mine, and I will have it in hand tomorrow.

I did this for the Xbox, Xbox 360, PS2, and the PS3 when they came out and I made a ton of money. At the time I took 2-3 days off for each release so I can sit in line and I bought 4-5 of each (except the Xbox 360, I bought 10 of them). I sold them each for $400-500 more than what I purchased them for. It was a quick $2,000 in a couple days.

With that said, I did it because I was a broke college student at the time and desperately needed the money. I literally used the money from the PS3 to pay for some of my tuition the next semester. I used a credit card to purchase the products up-front and then paid the credit card off after I sold them all to avoid interest.

Good for you! I'd rather you do that than collect unemployment that you use to buy an iPhone 5s.

 

[JTausTX]

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

T
It is an electronic gadget , not a necessity . Now , say people attempt to profit from people in need , real needs , not manufactured needs , say basic staples like water , fuel , etc , that is abhorrent .

A new smartphone is no necessity , simply manufactured needs , turning wants into needs .

Reading comprehension is your friend. Then again, I guess it doesn't much in the way of brains to do what you do. Speaking of which, I hope you have another job that pays better than this one, since $780 profit on 21 phones is less than $17,000.

Do you pay taxes on your profits? I suspect you don't but am curious.

IF you think about it, scalping opportunities exist because there is a supply/demand imbalance.

Apple could take advantage of this themselves, by selling the phones for outrageous prices at the outset to control demand. But they don't do this. Scalpers do it for them and profit handsomely.

Apple doesn't do it because they are not a completely unethical company. It's unethical to scalp things because it's not how the free market is supposed to work. It's a form of control on market forces by artificially raising the prices temporarily while supply is scarce or not in line with demand.

Personally I think it's lame. You didn't make the product, you didn't develop the product and you are profiting off of others' inability to pick up their own in a store. Scalpers ADD to the shortage problem and cause the shortage problem to last longer because supply can't catch up right away.

It's a free country and you can do what you want, but if this shortage was over food/gas etc and people were scalping that like you are iphones, you can bet the government would intervene. If you want to justify yourself being a creep, go right ahead. Doesn't change my opinion of you.

The issue, as you point out, is that scalpers artificially create the supply/demand imbalance. The only way Apple could solve it is to have enough inventory on Day 1 to meet the demand, and there's no way that will happen (for one thing, it's too big a risk for their business).

I have not tried to buy a phone this go-round from Apple, but I'd be pretty pissed if I waited in line and lost out on the phone because a scalper right in front of me bought all remaining stock.

 

[monaarts]

The issue, as you point out, is that scalpers artificially create the supply/demand imbalance. The only way Apple could solve it is to have enough inventory on Day 1 to meet the demand, and there's no way that will happen (for one thing, it's too big a risk for their business).

I have not tried to buy a phone this go-round from Apple, but I'd be pretty pissed if I waited in line and lost out on the phone because a scalper right in front of me bought all remaining stock.

But people getting pissed because they "need it right now" is exactly why scalpers are able to operate. You could easily order an iPhone 5s on Apple.com and get it in 1-4 weeks but instead people choose to pay an extra $400+ because they want it NOW.

 

[Carlanga]

Where? Not out here. My friend told me the guy in front of him bought 10 phones at the Apple store launch day and 2 verizon corporate stores told me there was no limit on how many you could buy.

Your friend lied to you or that store was weird. Apple stores can only sell you 2 at a time on release and a total of 10 of the same device to try to prevent this. IDK about Verizon (but I believe you had to have a plan or create one), but AT&T stores for release day you could only buy one iPhone.

----------

Reading comprehension is your friend. Then again, I guess it doesn't much in the way of brains to do what you do. Speaking of which, I hope you have another job that pays better than this one, since $780 profit on 21 phones is less than $17,000.

Do you pay taxes on your profits? I suspect you don't but am curious.




The issue, as you point out, is that scalpers artificially create the supply/demand imbalance. The only way Apple could solve it is to have enough inventory on Day 1 to meet the demand, and there's no way that will happen (for one thing, it's too big a risk for their business).

I have not tried to buy a phone this go-round from Apple, but I'd be pretty pissed if I waited in line and lost out on the phone because a scalper right in front of me bought all remaining stock.

Apple won't do that because of their return policy. Scalpers buy more than they can sell and if they have any left they just return the items to the store for a full refund.

----------

IF you think about it, scalping opportunities exist because there is a supply/demand imbalance.

Apple could take advantage of this themselves, by selling the phones for outrageous prices at the outset to control demand. But they don't do this. Scalpers do it for them and profit handsomely.

Apple doesn't do it because they are not a completely unethical company. It's unethical to scalp things because it's not how the free market is supposed to work. It's a form of control on market forces by artificially raising the prices temporarily while supply is scarce or not in line with demand.

Personally I think it's lame. You didn't make the product, you didn't develop the product and you are profiting off of others' inability to pick up their own in a store. Scalpers ADD to the shortage problem and cause the shortage problem to last longer because supply can't catch up right away.

It's a free country and you can do what you want, but if this shortage was over food/gas etc and people were scalping that like you are iphones, you can bet the government would intervene. If you want to justify yourself being a creep, go right ahead. Doesn't change my opinion of you.

They don't do it because of their return policy; all these scalpers would just return the iPhones and create a backlog of returns that doesn't look good to the company.

 

[carfac]

no problem at all. you can lose your shirt too. you take risk, you work for it (waiting in line, etc), you should be compensated for that.

 

[asleep]

Slimeballs.

 

[Rafterman]

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

Except that in may states, scalping IS illegal. Scalpers aren't businessmen, they are bottom dwellers. Reselling products that scalpers do not make themselves at 500 percent markups is morally reprehensible and, as I said, in some states, illegal. Scalpers should try getting a real job instead of a predatory one that takes advantages of others.

And don't forget, we aren't talking about a few iPhones here being taken out of circulation for these outrageous markups. Between the organized groups and the one person operations, hundreds of thousands of iPhones are being taken out of the supply chain, screwing everyone.

 

[solarguy17]

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.

I have no problem with your "business" as long as you don't return the phone if they don't sell in 2 weeks. If they don't sell before the return period is over, you should keep the phones and eat the cost and continue to try and sell it.

 

[justiny]

Except that in may states, scalping IS illegal.

I'm curious, could you please cite a source showing where reselling an iPhone at a price that a buyer and a seller have agreed upon is illegal?

 

[fender57]

I have no problem with it myself per se, but to call yourself an entrepreneur is disingenuous IMO, you are what you say you are in this thread title, a scalper. Unless you are a legitimate business that files your sales tax information with the IRS, otherwise you are flying under the radar and are probably in violation of tax laws in your state and in this country.

 

[adam044]

You'll make less than you think. And you are no way an entrepreneur

 

[JTausTX]

I'm curious, could you please cite a source showing where reselling an iPhone at a price that a buyer and a seller have agreed upon is illegal?

Ticket scalping is illegal in many states. Reselling iPhones isn't, obviously, and even if it were the scalpers would simply sell via a state where it was legal.

 

[adam044]

Just sold an iPhone 5s 64 GB Gold to a buyer in Singapore ....

Sold for $1,700.

Profit of $780.



(Experienced eBayer here, aware of all the tricks and rules and everything sealed tight on my end, no risk- verified Paypal address, tracking, insurance, video and photo proof of package and box)

Good luck with that. Lol

 

[calaverasgrande]

To me it's like if there is only 2 loafs of bread for 2 starving families. The scalper doesn't give a damn about their fellow man and will just buy up the 2 loafs to hold the other family for ransom for every penny they can squeeze out of them.

I could forgive scalpers if they simply sold things at full retail prices (the way a real business does) but they don't. They are simply scum that look to prey on artificial scarcity and rip off whoever they can for a quick buck.

I personally have no more respect for scalpers than I do crack dealers on the streets.

I love to see the ticket scalpers outside of the local sports venue get all antsy when game time draws near and they have a handful of unsold tickets.
Serves you right!

----------

I follow a simple mantra.

An item is worth what someone is willing to pay for it.

I believe kidnappers and drug dealers follow the same logic.

 

[rockyroad55]

Why would Apple and other retailers go to all that trouble simply to keep products out of a small percentage of the population?

And could you imagine the bitch threads in this forum if they did implement a limited sales policy like the one you just suggested?

I'm sorry, but I really don't view this as a "problem" that needs to be curbed. Retailers sell products to make money, they don't care to whom. I think a lot of people who are hating on scalpers are those who can't get iPhones right now. A month from now, no one will care.

I have a 5S since launch.

 

[MJedi]

I was in line at the Apple Store and saw a scalper group buy 12 iPhones. The leader hired a bunch of 20 year old guys to stand in line and each one was to get 2 iPhones each. They got there at 7am when the mall opens its doors. I was lucky to get the one I want but the guy behind wasn't so lucky. He was very mad. I spoke to the Apple employee managing the line and she said they can't do anything about it. As long as the person is physically there, has an ID, they can get 2 iPhones. I heard the leader tell the group they are going to do this again tomorrow. It is frustrating for the people who want to get just one for their own use. I would be mad too if I couldn't get the phone because some scalper bought out all the store's stock only to sell it somewhere else.