Console scalper says we should think about the young people making a good living from...

amghwk

Posts: 1,186   +1,110
I've said it before and I'll say it again. This trend is not because of the scalpers but due to the show-off (read stupid) impulse-driven customers. If customers stop buying overpriced stuff, these scalpers trend will cease to exist.
 

cliffordcooley

Posts: 13,141   +6,438
It's quite the opposite. Just go to Ebay or other such website. You can pick whatever card you want. If not for scalpers you would never be able to do it - who would sell it to you then? You would have to wait a long time not only for the card to be produced but for the demand to be met. They do not compound anything. High prices are just reflecting high demand and low supply. That's all.
That is not the same as scalpers artificially inflating prices. That only holds true if companies raise their own prices. And to be honest that is what needs to happen. Companies need to raise their prices to combat scalping. It needs to be known that scalping will not be tolerated. Scalpers need to know that scalping will not only raise prices for their buyers but them as well.
 

Austinturner

Posts: 351   +452
@techspot you just advertised his scalping technology company, you literally just gave him a platform for him to get attention, get his company name out there and promote how people are making “a month’s salary in a few days” by using his services.

Thinly veiled as a “oh wow, look what this guy said”

If you don’t want to promote the scalping practice that your readers mostly hate and you complain about, don’t give the guy a platform or at least remove the promotional parts of his message like his company name.
 

BuckarooBonzai

Posts: 97   +65
So why is his face blurred out if he thinks otherwise? If he thinks that scalpers should be respected then they will need to be regulated like any other business especially when he compares it to the stock market. And what happens when scalpers sell stolen goods?
 

Michael7

Posts: 95   +91
They also can't afford to sell at below the cost they purchased them. So you have a glut of unsold inventory at still inflated prices.

And I again note: GPU shortages have *never* been a thing, so the whole argument of "we're actually creating supply" is total BS.
Again, GPU shortages we experience right now are because of the record high ETH valuation. I doubt there are many PC players buying at over 2x suggested prices. So if you want to blame someone, blame the ETH miners and COVID caused disruptions in the manufacture lines.
 

yeeeeman

Posts: 470   +426
Parents of the last 30 years should be happy. This is the result of their "I will give you everything" education. There young people wanna have everything and do nothing. Cause scalping is just middle men money which means that you don't do anything, you just pass the merchandise from a point to the other and asking for a fee. Another very interesting thing is that he is in "tune" with his moral side. Sure, probably his moral side is torn to pieces, hence that is why he can be in tune with his moral and do this stuff. In any case, education is the key. Parents have made a HUGE mistake in the last years giving their kids everything without teaching them that stuff is earned through actual work, not through scams and doing shady businesses. Sure, no one denies the fact that you can make a lot of money via shady businesses. A lot of current day businesses are like that, but it doesn't mean that is a good thing or those people are superior. No, in the end, we all have to lose from that.
 
Oh, I have something to say alright.

Classic Psychopathic excuses. I'm the victim everyone. I'm actually sort of a hero. By coming after me, You're the real bad-guy.

Meanwhile this person is manipulating and leeching off the market while providing Zero value, and honestly has no idea why it's creating such a fuss.

This is why you can't have a 100% free market, people. This is why there will always be the need for some minimal.. actually many.. checks and balances against this type of behaviour and countless scams. There's enough people always out there who just don't care, or worse are clever people but mentally incapable of understanding what words like "ethics" or "cheating" or "unfair" actually mean. It takes very few people like this to have a huge negative impact.

They will latch on to any unguarded opportunity to exploit - not participate, Exploit - bleed it bone-dry it they can and leave nothing behind for you. If this person could buy a unit for 1$ and charge you $5000, he would, and he wouldn't feel the slightest bit guilty about it.
 

Goamist

Posts: 51   +87
As pointed out above, the scalpers are just middlemen that don't add value to society.
I still don't see why this practice is not outlawed - the fact that the consoles are a luxury and not a necessity does not keep the practice within the confines of the law any more than if the same practice would have water or fresh vegetables as object.
And this guy's phrase, that the people that are not picking up the same practice as them are lazy is simply idi0tic - what would become of society if no one would actually work anymore and everyone would be a scalper?
But there might be a positive outcome from all of this - those that can't afford a console at the current prices can enjoy other activities, hopefully some sports outside or spending more time with their families. I know, it's wishful thinking, but I'm an optimist.
 

Ohnooze

Posts: 212   +435
It's quite the opposite. Just go to Ebay or other such website. You can pick whatever card you want. If not for scalpers you would never be able to do it - who would sell it to you then? You would have to wait a long time not only for the card to be produced but for the demand to be met. They do not compound anything. High prices are just reflecting high demand and low supply. That's all.
This is just not true and you hurt your own argument by pointing at Ebay. Sure demand may be high and you might not be able to find a card exactly when it's convenient but if scalpers were not buying so many cards there would be a lot more available. And yeah because scalpers are buying all the cards you can find them on Ebay but they are also double the price. Also because they are buying the limited supply that do come out people are really forced to pay more if they HAVE to get a new card. Acting as if scalpers are doing us all a favor is just ridiculous.
 

waclark

Posts: 347   +236
I actually don't disagree. I can truly see both the side of the scalper who is really just adhering to otherwise well accepted hustler culture and people wanting to buy consoles are usually also trying to access one of the only forms of entertainment available to them and being priced out.

It's actually not hard to see how both the low level scalper and the single unit consumers (As in strictly personal use ones) are really both being pinned against each other artificially when the real issue is a neoliberal capitalist society that tells us that

1) It's ok to do anything you want on the free market, price is what someone is willing to pay no matter how much and greed is a good value and aspirational

2) There should be no concerns about community building and mutual aid and the only thing that matters is individualism and personal responsibility.

So we as a society accept both 1) and 2) as essential core moral values and very widely protected legal rights, then we are basically saying we're ok with the creation of a scalper market and with people on either side of the equation developing an adversary stance.

SNIP

No, I disagree entirely. Your strawman fails because 1 and 2 are not true. You cannot do "anything" you want in a free market. Buying up inventory and hoarding it until you can get a higher price is not a free market. A free market assumes a fair and reasonable access to goods and services. Scalping is not a fair and reasonable access to products.

Greed is not a valued component of a free market. Don't confuse making money with greed. They are not the same thing. Is it greedy to want to make a profit from your day-to-day job? No, it's called earning a living. If Sony wanted to be "greedy" they would just jack up the cost of the consoles like scalpers. If there's any greed here, it's the scalpers . They are inserting themselves between the manufacturer and the consumer and making money with no added value.

I don't see where community building or "mutual aid" (whatever that means) is the responsibility of any business. That said, most successful businesses I know of are very involved in their communities and do, in fact, pump money and services back into their communities on a regular basis. They understand that being a visible and participating member of the community is good for business, so it's a win-win. The community gets support it needs and the business builds some goodwill with the community in the process.

Sony/Microsoft are not the real issue here. Even if you knew that Sony allocated 1M units to Target, 1M to WalMart and 1M to Best Buy how would that change the fact that some scalper walked in and bought all 20 consoles off the shelf and is now holding people hostage by charging an exorbitant price? Sony and MS don't benefit when these negative perceptions prevail. They are seen as the bad guys because they aren't doing anything to prevent the scalping. And, if people are put off by the scalping they are likely to search out alternative products. If I can't get my Xbox, maybe I'll just get a Switch instead.

Scalping is not a good thing, no matter what this article is trying to say.
 

wiyosaya

Posts: 7,693   +6,620
What do you think somebody with an MBA learns that's fundamentally different, like right at the core principles of it? 99% of it becomes just about the formalities: proper accounting which is done to have proper and easier tax payment, most of the organizational skills are really only there to deal with the much larger scope of the business and the practices that are outright illegal are usually taught just to avoid them or to make sure a legal team (A.K.A. 'compliance officers') is in place to make sure the business is run legally but cuts it as close to the limit and letter of the law as possible while still being able to basically bribe, take shortcuts, cheat on taxes, etc. But on a legal way.

The same basic skills are the same as a small time scalper: try everything you can to get in with a better deal than most people, always remember what's your margin, make sure you can handle the expected ROI or find ways to improve it, make sure you do your market research to know all of the above in advance as best as possible.

These are all skills that are not different at all: you just need the paper that says "mba" on it and the socioeconomical status and/or background to make sure you can qualify for a business loan or investors that would take on your pitch. Everything else most entrepreneurs either learn along the way or delegate to employees eventually.
No MBA would ever consider the profit margins of these scalpers as sustainable. As to them trying to find legal ways around tax laws, I fault the tax laws, not the MBA's, but I don't think the comparison is apt.

This guy suggests we feel happy for him because he's supplying demand? That statement is laughable with people out there scraping their money together and then not being able to afford a console because some scalper got to it before them, and decided to resell it at a much higher price.

This whole situation reminds me of the Tulip Mania of the 1630s. History has a tendency to repeat itself, and in this case, I think it's highly likely that what happened to the Tulip Market will happen here, and in part, the crash will have been fostered by the scalpers.
 

Dimitriid

Posts: 2,201   +4,233
No MBA would ever consider the profit margins of these scalpers as sustainable. As to them trying to find legal ways around tax laws, I fault the tax laws, not the MBA's, but I don't think the comparison is apt.

Well they're not sustainable for a business model any larger than theirs. It is not great but they've got basically 0 overhead. Still the point is that these are observations that they could (And imho do) learn within the 'Hustle' of consumer commodities. At the very least they could probably move on to sneakers or if they've saved enough their first second hand cars which are on a serious uptick right now due to the same chip shortages for new cars.

As for 'faulting the tax laws' I won't go too off topic but I'll just say that those weren't written for the benefit of the State and the people overall, those were written by industry lobbyists. Yes, sometimes quite literally: we've seen cases of legislation that's written by private parties and passed on to the legislators almost fully unchanged and otherwise, the mere fact that lobbying is permitted and encouraged means there's not enough separation and that's why modern tax loop holes exists and tax legislation is incredibly complex.

This guy suggests we feel happy for him because he's supplying demand? That statement is laughable with people out there scraping their money together and then not being able to afford a console because some scalper got to it before them, and decided to resell it at a much higher price.

This whole situation reminds me of the Tulip Mania of the 1630s. History has a tendency to repeat itself, and in this case, I think it's highly likely that what happened to the Tulip Market will happen here, and in part, the crash will have been fostered by the scalpers.

He is suggesting that the scalpers are actually usually struggling, working class or young adults that otherwise would have close to no career opportunities anyway not unlike most of the people that usually bother to comment on the scalping prices because they can't afford it.

It seems pretty clear to me that he's just applying all of the lessons the capitalist system taught him: "I struggle too, I'm just a young kid and alternatives for me would be go flip burgers and maybe free intership or veeeery few hours on entry level positions that can't even pay for rent or food.

All people who don't take advantage of the console scarcity are fools not to turn this into an opportunity to make something out of yourselves"


See the disconnect is that he thinks everybody can elevate themselves out of a difficult situation by just hustling and that there's no limit to how many consoles can be sold at ridiculous prices to what he perceives as rich kids. That's the divide: rich people can pay 1,500 or even 15,000 or a PS5 so why should I take 3 jobs and work myself into an early grave if I can just hustle consoles around and then keep moving to low level opportunistic resale markets?

That's what Capitalism teaches everybody: Pull yourself up by your bootstraps, put in the work to get results, don't waste time waiting for things to improve go make something for YOU and dont let anyone get in the way.

These are all the same lessons propaganda has been peddling down for decades, except is usually a Will Smith movie of him sleeping in public bathrooms trying to have a Wall St job or whatever but the core principles: hard work and determination and a belief that you're utterly alone in the world and must come out the other end without help are all the same whenever you sell drugs, you scalp consoles, you start flipping used cars, you get a loan and actually distribute "legit" goods etc. The principles don't change, only the perception as a society of where we draw the line saying "This is illegal, this is ok" and that line? If you haven't guessed has been drawn by the people who already don't need to work a day on their lives and were born into generational wealth created by literal slaves their families used to own.
 
Most of these new age scalpers are rich already while a normal scalper could only afford 4 or 3 units at a time these new rich guys can buy 20-50 and scalp in bulk topo high don't buy just wait to make their investments deflate let them take a loss
 

MasterMace

Posts: 218   +172
It's bullcrap, simply for the fact that it's not a long term goal to work for. Where's the retirement plan? Where's the health coverage? Is this something sustainable into your 50's or 60's? Trying to say this is some sort of legitimate business you're going to be accumulating long term wealth on and even possibly raising a family on is absolute crap.

You're just setting people up for failure with "get rich quick" schemes.

bold of you to assume they/we'll survive the climate wars
 

MasterMace

Posts: 218   +172
The guy interviewed is like the villain in a Christmas movie justifying why his buying your all the products in every nearby town isn't grifting, but instead is a wise capitalist business decision.
 

Bamda

Posts: 347   +171
Remember what Spock said, “Logic clearly dictates that the needs of the many outweigh the needs of the few.”
 

Michael7

Posts: 95   +91
This is just not true and you hurt your own argument by pointing at Ebay. Sure demand may be high and you might not be able to find a card exactly when it's convenient but if scalpers were not buying so many cards there would be a lot more available. And yeah because scalpers are buying all the cards you can find them on Ebay but they are also double the price. Also because they are buying the limited supply that do come out people are really forced to pay more if they HAVE to get a new card. Acting as if scalpers are doing us all a favor is just ridiculous.
How did I hurt my argument? And how exactly there would be more cards available without scalpers? Without scalpers there would be no place to buy a GPU from, no matter of how much you would be willing to spend. The demand from scalpers as compared to a demand from PC owners and Ethereum miners is negligible and only temporary because they don't want to hold onto the cards. So no, scalpers are not buying all the cards. They are bough in bulk by Ethereum miners. What is ridiculous is the price inflation but it is not created by the scalpers.
 

bexwhitt

Posts: 590   +305
It's bullcrap, simply for the fact that it's not a long term goal to work for. Where's the retirement plan? Where's the health coverage? Is this something sustainable into your 50's or 60's? Trying to say this is some sort of legitimate business you're going to be accumulating long term wealth on and even possibly raising a family on is absolute crap.

You're just setting people up for failure with "get rich quick" schemes.
you don't need health coverage in the UK as it's a civilised country that provide it
 
Won't someone think of how hard it is for someone to get by in India the next time you're the target of a ransomware attack? Stop being so selfish people!