PS5 Scalpers Having a Hard Time Selling Consoles

Lakados said:
Huge parts of the supply chain are expected to be fucked well into 2025 because in the mass production and panic buying the sudden explosion in demand exploded base component costs and those components purchased at those high prices need to be used up and gone before anybody is going to lower their prices to meet the new (pre 2019+inflation) pricing.
Based on current demand they are expecting those components to be kicking around at that pricing until 2025 or so and because there are huge stockpiles that companies already paid for when demand crashed they arent ordering more so output on those components has decreased but to maintain operation they had to then increase prices to cover their operating expenses since the economy to scale metrics changed and blah blah blah techno-economic jargon.
Basically, covid broke a lot of supply chain shit and putting it all back together is gonna take some time, the important people recognize that they have to get it done sooner than not because the market won't support these conditions for very long and there are talks of bailouts or tax breaks to speed things along but we have no say in any of that so we are all just along for the ride. YAY...
I am just lucky that I have too much GW plastic crack right now to have much time to play, and the game my friends dragged me back into is WoW and you can run that on an overclocked potato, no need to upgrade for a bit, hoping to ride it out, otherwise I may just need to find a new hobby or settle for lower settings because this shit is not going to fly for long.
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That's the narrative from the top. The reality is that people will pay what they will pay--and enough people are just stupid enough to continue to buy on credit or something else that will make someone else at the top even more money, so this whole covid issue is a profit center for many industries and companies so they don't want it to end. The chinese had the best economic year ever in covid--that should say it all.
 
Lakados said:
And to do so many are actually signing up with Amazon and having them handle warehousing and distribution because the startup costs of getting a distribution chain in place are stupidly high.
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They're not that high if you're a major brand. It's just easier to work with Amazon...for now. Once their product starts getting intermingled with the scamazon fakes, they'll pull away from amazon and just build what they should have in the first place. I will never understand why there is never enough time/money/whatever to do things right the first time, but plenty of resources to do it all over again when the first halfassed attempt fails.
 
SamirD said:
That's the narrative from the top. The reality is that people will pay what they will pay--and enough people are just stupid enough to continue to buy on credit or something else that will make someone else at the top even more money, so this whole covid issue is a profit center for many industries and companies so they don't want it to end. The chinese had the best economic year ever in covid--that should say it all.
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But if Capacitors, voltage regulators, resistors, screws, and all those little things are all now 2-3x the cost because "fuck you make it yourself if you aren't happy" then it messes everything up across the board, I know auto manufacturers and military contractors are climbing up every branch of every government they can to complain about that problem because $50 parts are now $200 parts and they have contracts in place to supply them for $100 and they are losing their shirts. Ford and Toyota are having issues because the sensors the various insurance agencies basically demand now have added like $6000 to the cost of a vehicle and they know the market will not support that weight.
 
SamirD said:
They're not that high if you're a major brand. It's just easier to work with Amazon...for now. Once their product starts getting intermingled with the scamazon fakes, they'll pull away from amazon and just build what they should have in the first place. I will never understand why there is never enough time/money/whatever to do things right the first time, but plenty of resources to do it all over again when the first halfassed attempt fails.
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Truckers are VERY hard to find right now because of lockdowns on foreign labor and fuel costs, warehousing is also very hard because Amazon, FedEx, UPS, Walmart, and Costco basically own all the good spots for them, if you try to operate your own in any large capacity you are looking at extra costs because of sub-optimal locations, easier to contract that out to somebody who already has 'prime' real estate, employees, and infrastructure to match.
 
Lakados said:
But if Capacitors, voltage regulators, resistors, screws, and all those little things are all now 2-3x the cost because "fuck you make it yourself if you aren't happy" then it messes everything up across the board, I know auto manufacturers and military contractors are climbing up every branch of every government they can to complain about that problem because $50 parts are now $200 parts and they have contracts in place to supply them for $100 and they are losing their shirts. Ford and Toyota are having issues because the sensors the various insurance agencies basically demand now have added like $6000 to the cost of a vehicle and they know the market will not support that weight.
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Yep and that's what we get for getting in bed with the chinese and letting them drive out all our industries. We used to be able to say 'no thank you' to price increases. And now the government needs to fix it? Okay, sure--pull all your factories out of mf china and rebuild what you abandoned decades ago. Then the part may still be $200, but now YOU have control of that.
 
Lakados said:
Truckers are VERY hard to find right now because of lockdowns on foreign labor and fuel costs, warehousing is also very hard because Amazon, FedEx, UPS, Walmart, and Costco basically own all the good spots for them, if you try to operate your own in any large capacity you are looking at extra costs because of sub-optimal locations, easier to contract that out to somebody who already has 'prime' real estate, employees, and infrastructure to match.
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On one hand you say it's hard because of amazon et al, and then you say it's easier because of amazon et al--you can't have it both ways. Either you have to pay the piper or you have to 'roll your own'--that's just the cost of business. And if that costs more, then that's a real cost increase. Or you just keep your same product supply and demand forces prices up, not you.
 
SPARTAN VI said:
They've been consistently in stock online and in stores for several months and even discounted several times. Who the hell is buying these from scalpers?

Even so, who are these dummy scalpers who can't simply return their merchandise? As much as we want to dunk on them, it seems like there's zero to no risk, just tied up scalper cash a little longer than they'd hope.
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The GoW bundle is $509 ATM on Amazon
 
Sycraft said:
I really wish places like eBay and Amazon would clamp down on scalping. Wouldn't be hard either to do it algorithmically: For any product that is currently being produced and sold by the manufacturer and is agency priced (meaning the manufacturer sets the retail price, you can't sell below that) you may not sell it for more than that price. If you do, they remove the listing. That way, legit 3rd parties aren't affected, you can still use their platforms to sell things at the manufacturer's specified price. However if you try to over price it, listing gets taken down.

It wouldn't solve the problem, but it would help a lot.
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That sounds like... REGULATION 😱
 
SamirD said:
On one hand you say it's hard because of amazon et al, and then you say it's easier because of amazon et al--you can't have it both ways. Either you have to pay the piper or you have to 'roll your own'--that's just the cost of business. And if that costs more, then that's a real cost increase. Or you just keep your same product supply and demand forces prices up, not you.
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I mean yeah it is just the cost of doing business, at some point a market saturates and the cost of trying to do it yourself is not feasible and then there will always be some contractor to fill the gap.
Amazon just has the benefit of being the cause and solution to the problem.

<Insert Homer Beer Meme Here>
 
sharknice said:
And meh, I don't think it's always morally wrong to scalp. There was a limited supply, and scalping made it so that the people that wanted PS5s the most (aka were willing to pay the most) got them. That's sort of a good thing.
If someone waited in line at best buy for 2 hours to buy a single PS5 then scalp it to make $100, meh I don't care. The buyer basically just paid someone to wait in line for them. The scalper was happy to make money and the buyer was happy to actually get a PS5.
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but if you remember, scalpers weren't making $100 they were making like $1000 a pop and it was only a handful scalpers doing all the scalping. not to mention you're already getting scalped by best buy, technically. and i'm sure the buyers would be happier to get it at regular price. especially during a time when a lot of people were either out of work or having cut hours / wages and had bills piling up... it didn't really make sense to go dumping $2000 on a toy for a lot of people.

and i'm sure the poor people wanted them at least as bad as the rich people that were in turn feeding scalper culture and driving prices even higher. how is that a good thing?
 
Lakados said:
I mean yeah it is just the cost of doing business, at some point a market saturates and the cost of trying to do it yourself is not feasible and then there will always be some contractor to fill the gap.
Amazon just has the benefit of being the cause and solution to the problem.

<Insert Homer Beer Meme Here>
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There is usually never a point in business where 'trying to do it yourself is not feasible' and you have to use a contractor. The only people that do this are trying to cut corners because contractors are actually paid more than employees. These are all just excuses to not build a proper company that will last and instead just get as much money as possible and get out.
 
d3athf1sh said:
but if you remember, scalpers weren't making $100 they were making like $1000 a pop and it was only a handful scalpers doing all the scalping. not to mention you're already getting scalped by best buy, technically. and i'm sure the buyers would be happier to get it at regular price. especially during a time when a lot of people were either out of work or having cut hours / wages and had bills piling up... it didn't really make sense to go dumping $2000 on a toy for a lot of people.

and i'm sure the poor people wanted them at least as bad as the rich people that were in turn feeding scalper culture and driving prices even higher. how is that a good thing?
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I doubt many people made $1000 profit. Add in shipping, selling fees, sales tax, insurance. They would have to sell at $2000. I am sure some people did. But if I recall the selling prices were closer to $900-1200.
 
d3athf1sh said:
but if you remember, scalpers weren't making $100 they were making like $1000 a pop and it was only a handful scalpers doing all the scalping. not to mention you're already getting scalped by best buy, technically. and i'm sure the buyers would be happier to get it at regular price. especially during a time when a lot of people were either out of work or having cut hours / wages and had bills piling up... it didn't really make sense to go dumping $2000 on a toy for a lot of people.

and i'm sure the poor people wanted them at least as bad as the rich people that were in turn feeding scalper culture and driving prices even higher. how is that a good thing?
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Why did you delete half my post from your quote? I already said scalpers that somehow bought many PS5s and cheated the system were scum.

"Poor people" that want to buy a scarce luxury item can wait in line just like everyone else. And many did. And some of them scalped them. Getting a PS5 at retail price wasn't a possibility for everyone that wanted one because supply did not meet demand.
 
Flogger23m said:
I doubt many people made $1000 profit. Add in shipping, selling fees, sales tax, insurance. They would have to sell at $2000. I am sure some people did. But if I recall the selling prices were closer to $900-1200.
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They weren't making a thousand dollars profit. They typically were bing sold for $1000 each at the height. Some might of gotten a little more on eBay but fees raped them.
 
sharknice said:
"Poor people" that want to buy a scarce luxury item can wait in line just like everyone else.
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that's the thing, nobody was "waiting in line" because scalpers were buying them in bulk before they hit retail

vegeta535 said:
They weren't making a thousand dollars profit. They typically were bing sold for $1000 each at the height. Some might of gotten a little more on eBay but fees raped them.
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Flogger23m said:
I doubt many people made $1000 profit. Add in shipping, selling fees, sales tax, insurance. They would have to sell at $2000. I am sure some people did. But if I recall the selling prices were closer to $900-1200.
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some did, but what about the graphics cards like 3070's and RX6800's $600 that were selling for $1700? and 3090's going for $2500 yall remember that don't you?
 
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