4 ms·
scalper: someone who buys something and resells it at a price far above the initial cost.
by ra88it 16y ago
scalper: someone who buys something and resells it at a price far above the initial cost.
- ars 16y agoAll retail merchants do that. Sometimes people want to sell things for below their cost, to let more people enjoy them than otherwise would. A scalper takes advantage of this incorrectly low price, buys the item, and resells it for it's true market value.
- scott_s 16y agoExcept that scalpers are also a part of the market. When a large percentage of original purchases are by scalpers, they artificially up the market value.
- vetinari 16y agoThey still make market work the right way. Limited supply & higher demand -> price increase. They do not up market value (they up price). It is a side effect of artificial supply limit by the original vendor. If there is no artificial limit (tickets for example), it means that the price was too low in the first place and buyers are willing to pay more. Scalpers are market-based correction tool.
- jacquesm 16y agoInteresting. Your argument could be interpreted to read that apple misjudged their launch price.
- ars 16y agoYes, sort of. Yes apple could have made the launch price higher - but then they would have to lower it after the launch to get the rest of the customers. But the last time they did that, there was a firestorm as all the early customers were very mad at the very quick price reduction. So apple chose to start at the more longterm price. The correct way for them to handle it would be a premium or collectors or limited time edition. AKA the first ### buyers get a special dodad, or a signed shirt or some item to make them feel important. Then they pay extra, and don't feel cheated when it goes on sale at the regular market price.
- awa 16y agoNope they can artificially increase the price by hoarding and making it less available. Think about any commodity... everyone needs sugar/salt, what if somebody starts buying all the sugar from the market and hoards it... some people will start consuming less but the prices will increase due to lack of supply and more or less constant demand.. and then the person can open floodgates and make some dough in the process... Pretty common in Third world countries (and hence illegal)
- chollida1 16y ago> resells it at a price far above the initial cost This is often what happens but it isn't a necessary condition to be a scalper. You can sell tickets for at or even below the initial cost and still be considered a scalper. Indeed many scalpers often unload tickets for less than face value if they can't find a buyer at the price they want.