(05-09-2017, 05:53 PM)rp_Neo2000 Wrote:Break it down. Retail is the act of purchasing materials specifically for resale. That is what a retailer does. The people purchasing wolfmnan razors and flipping them at a markup without using them are participating, explicitly, in the act of retail because they are, explicitly, purchasing an item with the intention of reselling it.(05-09-2017, 12:00 AM)BadDad Wrote: "Scalping" is specifically a reference to selling event tickets. Reselling material goods you previously purchased is called retail. High markups is called smart retail.
While 'scalping' was originally a reference to event-tickets, that does NOT mean it cannot be applied here - people are intentionally buying a Wolfman simply to turn-around and re-sell it. That is the very definition of Scalping, not "Retail". Retail literally is "the sale of goods to the public in relatively small quantities for use or consumption rather than for resale."
That is retail, by definition.
"Scalping" is a specific form of resale, where an individual purchases tickets to an event that is expected to sell out. They then increase their asking price for said tickets, and sell them at the venue. Both are forms of resale. 1 is purchasing a physical item with value and reselling it. The other is purchasing the cost of entry to an event and reselling it.
Scalping is specifically the resale of tickets to a sold out event.
Quote:I never pointed out that economics does not work this way, simply because economics DO work this way. If Wolfman raised his prices to what they are currently going for on eBay, he would eliminate the markup available to resellers, and thereby eliminate the resellers market, at least to a certain degree. Eventually, price will outweigh demand, and the market will stabilize, until the price needs to come down in order to raise demand and get them selling again. That is literally how an economy operates, in microcosm.(05-09-2017, 12:18 AM)BadDad Wrote: 2-Raise his prices. If he charged $400, the resellers would have no room for further markup.
Come on man - you literally pointed out that Economics doesn't work this way elsewhere so why is it that if a sorta-rare item costs $400, it shouldn't go for $550? If the market supports it (and quite likely it will ) then the issue still remains. Shawn of ChatillonLux once commented on how low his profit margin was on a LE set and watching it resell for a multiple of his price was weird for him.
Quote:Let's also consider Price Elasticity - those who genuinely want a Wolfman will balk at paying $400 and he won't have the demand that he has now. Price-setting is all about balancing what the market will bear versus what's the highest he can charge without losing too many customers. No businessman wants to price themselves out of the market nor is he creating a product for the Rich-only.Duh. This is why I stated earlier that it is a difficult proposition. Being difficult to manage does not reduce the viability as an option to eliminate resellers. He would simply be required to monitor his market value very closely so as to not price himself out of the market. Not impossible...just difficult. And pretty basic business...
Quote:I never said it was not OK. I merely pointed out that it was intentional. It is by his conscious choice. Nothing wrong with that, but let's not overlook the factuality of it...(05-09-2017, 12:18 AM)BadDad Wrote: Purposely? You mean by not hiring skilled machinist to assist in the production? Or not hiring skilled polishers to assist in final finish? I understand wanting total control over every aspect of the process, but please don't try to tell me that there is not another capable machinist available for hire, or even a lowly polisher that could be quickly and properly trained...
I don't get this reasoning either - if we don't expect Artisanal vendors to produce massive quantities of highly-desired soaps, are ok with Limited-Edition, are ok with Artisanal soaps never releasing their formula to somebody else because it's their product of love, then why are we not ok accepting a vendor who has a clear passion for his work not taking on an assistant? After all, it's the vendor's right to produce his product exactly how he wants to.
Quote:The problem isn't about James' inability to hire more or turn a hand-made product into a mass-production (thereby taking the joy out of it) - it's that there will always be people who game the system - both scalpers and the people with deep pockets who don't mind the premium. Asking James to both hand-produce and then keep an eye on scalpers is near impossible - nothing he does cannot be beaten by somebody motivated enough.Again...duh. That's been my point all along. James is doing nothing to curb resellers, and he SHOULD be doing nothing to curb resellers. Resellers drive demand. Limited productions and comparatively low pricing drives resellers. He creates a resale market by limiting production and pricing. This has always been my point...
I'm not sure why you're arguing with me. It seems like you read just enough of my response to generate a seemingly contrary position, but not enough to realize our positions are not contrary. You just want them to be...
-Chris~Head Shaver~