What is Scalping

[jaydisc]

The word scalper seems to be refer to someone who buys as much of an item as possible as to constrain the supply in order to raise the price to satisfy the increased demand.

I think a good example of this would be someone going to Toys R Us this weekend, or to multiple TRUs and buying as many Deep Space Starscreams as possible for $40 and then selling them on eBay for $50.

Now, what if a person went to TRU and bought only 4 of the displayed 30, waited until the TRU sale was over, and sold the extra 3? Would they be a scalper?

What is they only bought 1, waited a year for the new movie to come out, and listed it for $60? What if they waited 5 years, or 10 years?

What are the dividing lines we use to define some as a "scalper"?

I think most of the scalpers I see on ebay.com.au probably started as collectors. They, like me, probably fell in love with the hunt. They probably spent many evenings browsing eBay, running around during sales, and generally immersing themselves in their hobby. Some, probably decided to see if they could capitalize on it. I mean, they're running all over the place, spending money on petrol in order to be the first to find toys. I'm also sure that many/most of their customers are happy to pay that premium because it means they can get their kid a toy at Christmas time without getting off their fat ass. In that case, doesn't it seem to be a person satisfying a market demand? Or a hobbyist just trying to capitalize on his enjoyment?

These guys would probably love to be able to buy stock from Hasbro and sell at more reasonable, competitive prices, but as well know, Hasbro only talks to big retailers. These guys probably aren't making as much margin as TRU is!

I could probably go on. I'm not necessarily condoning any of this. I'm just curious how much we've really analyzed this and what rationalizations we use for its hatred or acceptance or even our own participation or lack thereof.

What are your thoughts?

[MV75]

Scalper = Buys everything that is in demand and sells it there and then for a profit. Instant money through capitalising on pissing everyone off.

Speculator = Buys a few extras, keeps them for a while and then sells them when you can't buy them in the store anymore and mainstream demand is long gone. Big $ on providing for collectors that initially missed out, or new collectors that like the old series.
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Cheap Airsoft Guns

[Pulse]

Scalpers have only 1 mindset = Make as much money from reselling toys as is possible.

To them, There is no such thing as a little mark-up over the purchase price - Everything needs to be atleast double, if not triple what it cost them.

Scalpers must believe the people who buy these toys have wallets that are just about to explode with overflowing money so... why not take a fair bit of that money off them?

I wish all toy people would flat-out refuse to purchase massively-overpriced toys from the Scalpers out there - just so that the Scalpers would get the message.

But that ain't never gonna happen...

[jaydisc]

To them, There is no such thing as a little mark-up over the purchase price - Everything needs to be atleast double, if not triple what it cost them.

So are you saying the amount of markup is the defining characteristic? As long as the item is priced at less than double, it's not scalping?

Scalper = Buys everything that is in demand and sells it there and then for a profit. Instant money through capitalising on pissing everyone off.

Isn't this what every store does? What about the negotiation of a store exclusive?

[dirge]

I'm inclined to agree with MV75 - buys HTF or limited stuff while current, selling right away or very soon afterward at inflated prices.

[Kyle]

I think time should be an important factor. If an item has been released for a while and there're still plenty of the same item left on shelf, then I don't see buying more than one for investment to be a big problem. If you grab many of the same item during a period when other people are still after them, then yes it's scalping.

[Tetsuwan Convoy]

It would seem that the term is very objective then isn't it?

How would I class a scalper? I guess it would be someone who buys the stock off the shelf and then sells it for higher retail than what they bought it for. If they were a speculator, then the length of time would negate any Scalper tendencies I guess.

In example of the Toys R Us Sale of space starscream, I would say that buying 3 or 4 of them, waiting for the sale to end and then selling them at even normal toys r us proces would be classed as scalping, as they have made an effort to keep the toys and profit from them. Lets say that the price is a great price $29.99 for example and the stock sells out at all TRU. Then someone who genuinely wants the toy is going to miss out due to another person being opportunistic.

It all comes down to intentions in the end.

[kup]

Scalpers also try to corner the market so that they are the sole purveyor of a certain item which they know is in high demand. Therefore they can charges grotesque amounts for it.

[Golden Phoenix]

I think it is based on a couple of things: Quantity, Size of Markup and Reason.
Quantity is what I think the main factor is. If they buy 10 of the same item just to sell, especially if they ain't keeping one, then you have to put that in a negative view.
The Size of the markup also come in. If they are adding a couple of bucks onto it, maybe to cover costs or something, then it should be ok. It's not like they are doing it to make some serious profit.
The reason is another key. If they are doing it because they have seen an opportunity to make money, then it is a bad thing. If it was a collector buying a second figure, or adding some hard to get items and either keeping them for a while or selling them about the same time, then it shouldn't be frowned upon.
I know that if I were to buy a second figure to sell later it would be to help cover costs of my initial purchase. I'm strapped for cash as it is, anything helps. But it is also because I know that out there somewhere there is someone who wants this figure and I can give them a hand by selling it to them. It is also comforting to know that the figure will be probably sold to another collector and the figure wont end up like many broken ones.

[Vector Sigma 13]

I think it is based on a couple of things: Quantity, Size of Markup and Reason.
Quantity is what I think the main factor is. If they buy 10 of the same item just to sell, especially if they ain't keeping one, then you have to put that in a negative view.
The Size of the markup also come in. If they are adding a couple of bucks onto it, maybe to cover costs or something, then it should be ok. It's not like they are doing it to make some serious profit.
The reason is another key. If they are doing it because they have seen an opportunity to make money, then it is a bad thing. If it was a collector buying a second figure, or adding some hard to get items and either keeping them for a while or selling them about the same time, then it shouldn't be frowned upon.
I know that if I were to buy a second figure to sell later it would be to help cover costs of my initial purchase. I'm strapped for cash as it is, anything helps. But it is also because I know that out there somewhere there is someone who wants this figure and I can give them a hand by selling it to them. It is also comforting to know that the figure will be probably sold to another collector and the figure wont end up like many broken ones.

Couldn't have said it better myself.