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WSJ Writes a Puff Piece Praising a PS5 & XSX Scalper

Hulk_Smash

Banned
Blame those desperate enough to buy from him at such a mark-up.

I can't knock the hustle.

i-aint-even-mad.jpg
This is the only proper reply. People are volunteering their money to him. They’re fucking morons with zero self-control or patience.

Buyers have the right to buy how much they want. Retailers have the right to limit those purchases however they want.
 
D

Deleted member 471617

Unconfirmed Member
I suppose if you look at it from his initial investment of $5k, he's made that back 22 times in profit.
Yeah, I guess but overall, that just seems like a total and complete waste of time.
 

dcll

Banned
My 17 yo son has been a Nike shoe reseller for several years, he even went to Dallas to a damn sneaker convention. He buys and sells consoles and all kinds of crap, he has been hustling since he was probably 12. I know he has sold several ps5's., he has a bot but I don't know anything about the specifics
 
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RareJordan

Member
He's smart. I pre-ordered my PS5 in September too. I actually could have gotten several if I wanted, from different retailers. I only wanted one for personal use. There is profit to be made, but there is also quite a bit of risk involved with selling expensive items online, or in person. He's simply selling items at market value. If people stop buying, the value will drop. If I wanted to sell my PS5 today, would I sell it for MSRP out of the kindness of my heart? No, I'd sell it for the going rate.
 

Kilau

Gold Member
Yeah, I guess but overall, that just seems like a total and complete waste of time.
It’s not the greatest return overall but it’s solid and even great considering his age. I’m not talking about the actions just the raw numbers.

As others have point out though, he may be in for a tax surprise especially given he lives in New Jersey. Parents too.
 

Chiggs

Member
You just know this topic of scalping is headed to Federal Courts...not that it's worth the time or effort.
 
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StreetsofBeige

Gold Member
Good on him for making money off idiots buying game systems for double the price. Looks like rolled a starting amount into $1.7 million sales. His profit margin was only about 6%.

Don't blame him. He's not hoarding essential stuff like medicine or food. It's video game systems. If you wait it out, guys like him get burned holding the bag. I waited for Costco to sell it in March and got one. You could had waited too.

Dont forget, movie theatre, stadiums, golf courses etc... all rip you off charging insane money for food and beer. And most people buy it.
 

StreetsofBeige

Gold Member
He's spent $1.6 Million to make $110,000 in profit.
His revenue is $1.7M. His cost to buy all that stuff is unknown, as well as all the money he spent on shipping. The money he spent hiring buddies cant be that much. But if it adds up to $1.6M cost to make $110k, looks worth it to me.

Most of the stuff he has on him can probably be returned and get his money back.

Who knows what the avg sell price of each system, but let's say he sold each one for an avg price of $800, that means all did for $110k profit is mess around with 2000 consoles.
 
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lordrand11

Member
There are so many things I would like to say, but will say this scaping out of any product should be illegal so that way scums like this kid won't get rich. Because of kids like him is why we are short out of some products. Sorry but that is how I feel about it.
Like AMC you hodl your money until the time is right.
 

Kilau

Gold Member
His revenue is $1.7M. His cost to buy all that stuff is unknown, as well as all the money he spent on shipping. The money he spent hiring buddies cant be that much. But if it adds up to $1.6M cost to make $110k, looks worth it to me.

Most of the stuff he has on him can probably be returned and get his money back.

Who knows what the avg sell price of each system, but let's say he sold each one for an avg price of $800, that means all did for $110k profit is mess around with 2000 consoles.
Article says revenue is $1.7M, profit is $110k. So in this case we subtract profit from revenue to get the expenses of $1.6M

We don't actually know if that profit is gross or net. We assume net but who knows if he has kept all expenses tracked. Plus i've already said that when based on his initial investment of $5k, it's a great return. Strictly talking numbers.
 

StreetsofBeige

Gold Member
There are so many things I would like to say, but will say this scaping out of any product should be illegal so that way scums like this kid won't get rich. Because of kids like him is why we are short out of some products. Sorry but that is how I feel about it.
But that's life. People sell stuff for what they want. Only way to get around it is if government gets involved and scours every reseller limiting what they can sell something for.

I'm surprised people goes nuts over video game scalper prices. Just wait it out. I did and got one for regular price in March. Ok, I missed out doing it launch day because I was too lazy to pre-order in the summer, but I still got one just checking websites every day. And one morning it popped up with supply.

If anyone really wants to go against capitalism, they should be focusing their attention on home prices. Which every homeowner will max out sales hoping to make a million dollars off something they bought 10 years ago for $300,000, which originally was bought by someone 30 years ago for $150,000, which was built by a home builder for $50,000.

Yet nobody cares that homes are scarce, there's bidding wars, and homes are the most costly thing anyone will buy. Everyone just goes with the flow and the seller can sell it for whatever they want.

Homes are the ultimate in capitalism. People sell to the highest bidder (assuming other conditions and dating are good). Nobody cares if someone else who can only afford a lower bid is desperate for a family home and the highest bidder is just an investor looking to flip. Highest bidder wins and there's zero articles about sellers being greedy.
 
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In order for him to profit from this he needs to get these consoles at retail prices which means he managed to originally get the consoles via methods available to absolutely everyone. So what you should be asking yourself is why and how he has managed to get all these consoles but you couldn't even get one. A lot of it comes down to desire but people don't want to admit that.

Maybe because a 16 year old doesn't have any responsibilities, isn't busy raising a family or works a 50 hour week? Some of us don't have the time to spend all day, every day shopping for out of stock electronics.
 

StreetsofBeige

Gold Member
People hurling abuse at this kid should take a look at themselves.

In order for him to profit from this he needs to get these consoles at retail prices which means he managed to originally get the consoles via methods available to absolutely everyone. So what you should be asking yourself is why and how he has managed to get all these consoles but you couldn't even get one. A lot of it comes down to desire but people don't want to admit that.

It's supply and demand, don't blame him but blame the people willing to pay the prices he's selling them on for. If not for them he's not buying these consoles to flip them.

And obligatory:


I was late getting a next gen system since I didn't bother pre-ordering. So got one in March randomly checking sites every morning. Amazon, Best Buy, Walmart, Costco. Costco hit.

I don't think getting a next gen system was that hard as long as you pre-ordered. Every person I game with (including a family member) who has a PS5 or Series X, got one day one because they pre-ordered. And if it wasnt day one, it sure seemed like it. None of them said.... "I had to wait for 3 months backorder" or anything like that. They all seemed to have it in Nov or Dec already.

Are there any pre-order gamers who still dont have one because they are on back order for half a year????
 
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Bluecondor

Member
My 17 yo son has been a Nike shoe reseller for several years, he even went to Dallas to a damn sneaker convention. He buys and sells consoles and all kinds of crap, he has been hustling since he was probably 12. I know he has sold several ps5's., he has a bot but I don't know anything about the specifics
I admire what your son is doing far more than the kid in the WSJ article. Your kid sounds like he is completely on his own and hustling , which I can definitely imagine will make him great to work with, especially when he is around others who are also entrepreneurial and willing to get out there and hustle.

Just from the details in the WSJ story, it really does sound like the kid in the WSJ story is being bankrolled by his rich Dad. And, just reading this story, I can't help but wonder if the rich Dad has a friend or friend of a friend at the WSJ who is doing the Dad a solid by writing this up in a story that makes the kid sound like the next Elon Musk.

And, I'm not knocking the kid in the WSJ story or saying that he doesn't work hard. I just think it's inspiring to hear about a kid who is self-made.
 

Neo_Geo

Banned
Nothing to see here, just your average everyday cunt extorting people.

I used to do this with Amiibos back in the day, buying hard to get ones and reselling on eBay for 4-8x the price. I was definitely a fucking asshole cunt then, as is this fuckface now. :)
 
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Bluecondor

Member
But that's life. People sell stuff for what they want. Only way to get around it is if government gets involved and scours every reseller limiting what they can sell something for.

I'm surprised people goes nuts over video game scalper prices. Just wait it out. I did and got one for regular price in March. Ok, I missed out doing it launch day because I was too lazy to pre-order in the summer, but I still got one just checking websites every day. And one morning it popped up with supply.

If anyone really wants to go against capitalism, they should be focusing their attention on home prices. Which every homeowner will max out sales hoping to make a million dollars off something they bought 10 years ago for $300,000, which originally was bought by someone 30 years ago for $150,000, which was built by a home builder for $50,000.

Yet nobody cares that homes are scarce, there's bidding wars, and homes are the most costly thing anyone will buy. Everyone just goes with the flow and the seller can sell it for whatever they want.

Homes are the ultimate in capitalism. People sell to the highest bidder (assuming other conditions and dating are good). Nobody cares if someone else who can only afford a lower bid is desperate for a family home and the highest bidder is just an investor looking to flip. Highest bidder wins and there's zero articles about sellers being greedy.
I know what you're saying. I feel the same way when I think about friends of mine who sold their parents' house right before the neighborhood really took off. They sold their parents house for around $75,000, and then 3 or 4 years later, the buyer flipped the house for about $350,000 - despite minimal investment in upgrading the house or property.

That said, I think the thing that makes real estate different is that there is a real risk when buying a house. For example, another friend of mine bought a $400,000 house in California right before the housing crash in 2008. She ended up selling it in 2015 for around $225,000, which meant that she was still $175,000 underwater - and with no equity to put into a new house. She hasn't owned a house since, and now just rents and is still paying off the $175,000.

The kid in the WSJ article simply isn't taking on that type of risk when he buys a PS5. For the forseeable future, he should be able to make $150--$200 per PS5. And, when prices do start falling as demand decreases or supply increases, he will likely be able to tell well in advance that he should get out of flipping PS5s.
 

kyussman

Member
They shouldn't allow people to pre-order ten consoles....they are going to sell out regardless,so a limit of something like two per customer should be standard with all big retailers.
 

Allandor

Member

Loss of reality is strong within him.

People are not dying because they can't buy a videogame console. This comparison is really ridiculous.

Just don't buy overpriced stuff and those people won't offer overpriced consoles. But as there are enough people who buy those there will be people who sell those. This is called capitalism. You can't just pick the advantages without having the disadvantages of this system.

They shouldn't allow people to pre-order ten consoles....they are going to sell out regardless,so a limit of something like two per customer should be standard with all big retailers.
For the retailer this does not really matter. The retailer sells to who ever will pay. Yes there might be limitations but those scalpers always find a way to get more consoles. E.g. order in many shops, oder with different names, ....
The only way to really stop this madness is to not buy overpriced stuff.
 
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FunkMiller

Gold Member
Well, if he was clever enough to preorder as soon as they went live (like me, and other super genius levels humans did) then those who didn’t can’t really complain, eh?

…mind you, what’s not clever is doing an article for a mainstream newspaper, tipping off the tax authorities, who are going to come knocking 🤣
 
Maybe because a 16 year old doesn't have any responsibilities, isn't busy raising a family or works a 50 hour week? Some of us don't have the time to spend all day, every day shopping for out of stock electronics.

You've literally just needed your phone and discord since they've been released. That's it. If you don't have an XSX or PS5 by now, then you didn't really want one in the first place. Blame the botters, blame your lack of time management, blame your job or family. It's on you.
 
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GymWolf

Gold Member















The fact that his parents are OK with him doing this show that they have failed in parenting.

the simpsons paddle GIF

Lol yeah i bet his parents are so sad that their 16 years old did thousand of dollars with a perfectly legal practice :lollipop_squinting:
 

LimanimaPT

Member
I don't have any problem with this. People buy and sell rare items all the time, some people just get offended because it's PS5s and they couldn't get one.
The real question is: how did he get those PS5s? Does he have some kind of scheme going on?
 
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He made a million dollars legally. I'd be pretty stoked if my kid had that level of entrepreneurship.
"Being morally bankrupt is totally okay, so long as we get rich."

Man I absolutely despise this opportunistic self-serving mindset. Using personal gain as an excuse to exploit others is everything that's wrong with today's hypermaterialistic society.
 

Cyborg

Member
It's not illegal what he is doing, he just saw an opportunity and stepped in to earn money. For sure it's frustrating to watch but the large companies enable him to do this.
There are enough (wealthy) adults/ kids who just pay the price and don't look back. It isn't fair for the regular joe and it sucks but this is the situation we are in.
 

KAL2006

Banned
I only got to scalp 2 PS5s to help fund my 3rd PS5 purchase.

Scalping videogame consoles should be the bottom of anyone's concerns. We have people scalping houses and putting them on rent causing house price increases leading people to be priced out and renting forever to the very people who scalped houses
 

BbMajor7th

Member
This is the only proper reply. People are volunteering their money to him. They’re fucking morons with zero self-control or patience.

Buyers have the right to buy how much they want. Retailers have the right to limit those purchases however they want.

That's not what it's about - if people want to spend $1200 on a scalped console, that's their call. My issue is that what he's actually doing is siphoning stock out of the general market, inflating the price and creating a premium a goods market available to people who can afford it. It's like if you wanted a pool for the kids for the summer, because everyone was in lockdown and they were bored, and you found one you liked for the right price, but nowhere had it in stock, because Max had a side hustle and bought up a few hundred and was busy reselling them on eBay to line his own pockets.

And he's getting the edge in direct-to-consumer purchases by paying off retail insiders for scoops on shipments and signing up to premium Discord servers where scoops are traded. He can do this because he's making enough money from the venture to justify it. But if you just a regular person, looking to buy something, you have to pay his inflated prices or go without.

This isn't 'hustle' - this is a small number of people using underhand measures to siphon stock out of the market, increase demand and manufacture economic scarcity, which they leverage to make exorbitant profits. Sure, it's not medical supplies he's scalping but the principle of the thing is shitty and self-serving and I'm sure little Max will grow up to be just the sort of entrepreneurial twat who exploits his staff and colleagues, liquidates failed business and sinks his cash in elegant tax avoidance schemes that make sure the government sees barely a cent.

TL;DR:

"Hey, Max, what's your business model there?"
"Oh, this? I deliberately and underhandedly inconvenience ordinary people and then charge them a fat premium to get that convenience back."
"What if they can't afford to pay that?"
"I find some sucker that will."

Gotta respect that hustle, though...
 
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SCB3

Member
Fair play to the hustle at that age, I mean we've all sold things for more than RRP I'm sure, I sure did for the Wii back in 2006. I was lucky to get all 3 consoles (PS5 at launch, Xbox Series S at Xmas time and a Series X last week) at retail price but I agree that the supplies should be more and they look to be increasing sooner rather than later

I would advise people to just wait, it sucks I know but its better than over paying
 

UnNamed

Banned
I don't know how it works in the US, but where I live you can resell some items, but you can't run a business if you are a person and not a company. This because if you sell lot of items, you are equal to a shop, so you have to pay tons of taxes.
For example, you can buy and resell a bunch of PS5 and some games during the year, but you can't sell a PS5 a day.
So you should buy a PS5 at 399€ and sell it at 800€ to have 240€, but you should probably pay even more taxes on them, so you can earn less than 200. This is you want to do stuff legally.

This people are probably tax evaders.
 
"Being morally bankrupt is totally okay, so long as we get rich."

Man I absolutely despise this opportunistic self-serving mindset. Using personal gain as an excuse to exploit others is everything that's wrong with today's hypermaterialistic society.

Are you saying he's exploiting people who are willing and able to spend more than market value for superfluous entertainment product? That's exploitation to you?

It's amazing to me that people buy and resell sneakers, magic cards, books, collectible toys, Lego etc and you don't see the level of manchild whining about it like you see with videogames.
 
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