Could You Make A Profit?

[mach1man]

So, here is the question

If you stopped by your LHS and saw a few Jato's, would you buy two and put one on Ebay to try and make money over what you paid?

You early Revo buyers may be the best to answer this as I do not remember what the supply was like when that was introduced...

[nitrohalic3]

if anyone did that i would be angry. just like how people buy 2 cars for themselves. i know its not suppose to be fair but it makes me angry anyways.

[mach1man]

it's part of capitalism or in economics "supply and demand"...
But you don't need to like it----use the current gas prices as an example:eek:

[rustlerbum]

your original plan sounds kinda low and underhanded, but what would be a good idea is to buy several, take out the engine, wheels (they're not ROAR legal) and electronics, and sell it as an semi-assembled "kit", and then sell the engine/electronics/wheels seperately. that way, you'd be helping out the racers who don't need the engine/electronics/wheels, and others could get the extra equipment.

[Maxx2.5Cruiser]

Good idea rustlerbum.

[carbon F]

Originally posted by nitrohalic3
if anyone did that i would be angry. just like how people buy 2 cars for themselves. i know its not suppose to be fair but it makes me angry anyways.


i have done that befor went to lhs and bought 2 r/c's and stripped them down and sold on ebay.

i think you will make money but not a lot,just like the revo when ppl stripped them down and sold the parts on ebay.for the first 3 months parts was selling for $$$$$ then it died off after the 6 month mark of being released. becuase parts was getting easyier to find in the LHS....

You would have to be a consistent seller on ebay to make good cash off r/c’s I have seen sellers come and go and some flop out after the first few weeks due to inflated shipping cost/slow shipping for the money they charge, if I was going to sell the jato on ebay as a whole r/c or strip It down I would price shipping to fit the parts, and I would leave cretin parts together so they would have a better chance on selling. And if I was to sell the jato I would sell for 10$ or 15$ over the price to clean some type of profit in the end.

But further more it might not sell and you would lose money!!

[S-Maxx69]

Id say if you were going to do this then purchase them from towerhobbies with the $40 rebate, if you sell them for the asking price then you are already making $40 and if you would strip them down and sell the engine, electronics, and wheels you would make quite a bit more.

[carbon F]

yes a lot more..becuase ppl will bid the price up very high on parts like enigne,tranny,suspension parts, and so on.


when the 2.5 ruslter was relased i bought one from my lhs for 319$. i stripped it down and sold it, io made a total of 420$ off all of my Auctions..

for the 2.5 with pipe,header,ez start went for 151$
tranny with drive shafts and axles i got 61$

so yea you can make money.

[BlitzK]

If you want to go buy them all and resell them, more power to ya...


I just want to bash mine!!!

[wombat427]

This hobby is expensive enough without us driving up our own prices. I'm sure it would work, but it doesn't sound ethical. How would you feel if your lhs stashed his first shipment and waited until they were on back-order everywhere before selling his for $50-$100 over retail?

[MILTMO]

I don't think its unethical at all.

There are many people doing it, and you don't have to buy it from them. That's the power that a consumer has.

Preorder...wait until they are in stock...or pay a premium to have it now.

Is it ethical for the LHS to charge 20% more for the same item on the internet just because of the convenience of being local?

The answer is yes.

[moviewavs]

There is a difference between ethical and legal. While it is perfectly legal to do this I don't believe it would be ethical.

Just because big companies use tricks to make the consumer pay higher prices doesn't make it ethical.

RC is supposed to be a fun hobby. The fun is tarnished in my opinion by people trying to make a quick buck off of other peoples excitement.

I knew a guy at work once that tried this when the Playstation 2 came out. He bought 4 of them. He ended up returning them to the store a couple months later. He didn't even want them. He was just trying to make a quick buck off of holiday shoppers. The sad thing is, the only thing he accomplished is keeping 4 people who stood in line in the cold from getting a present for their kids.

Just my opinion. I think people should let the ones who want Jatos, buy the Jatos.

[mach1man]

Interesting responses so far. By the way, I do not plan to do this but it does raise a question for everyone who disagreed...

If you bought a part from someone on ebay, etc for LESS that what they paid (meaning they lost money) would you be unethical?

In your mind probably not because you are not affected in a negative way and you would feel that the person either made a bad buying decision or the market could only bear what you paid.

So..on the flip side, if the market bears a higher price why should that be unethical?

I think there is a fine line between unethical and smart business moves. Traxxas waited to relase the price of the Jato which (IMO) was smart business not unethical

[wombat427]

mach1man,

There is difference between some one stock piling hard to get products with the intention of cheating their fellow hobbyists, and someone selling something on ebay that they no longer have a use for. If someone purchases, for example, control arms for their Revo, and then decides to sell them on ebay because they no longer own their Revo, what should they expect to get on ebay? Full retail? Half price? They will probably take what they can get, otherwise they'll get thrown out. Ebay is basically an online tag sale. It's a little different than robbing some teenage kid who's been saving for months for his new Jato, and now has to cough up an extra wad of cash because he was unable to jump in on the first shipping wave.

[mach1man]

[QUOTE]Originally posted by wombat427
[B]mach1man,

There is difference between some one stock piling hard to get products with the intention of cheating their fellow hobbyists, and someone selling something on ebay that they no longer have a use for.


The above does not answer the question.
My question was, if someone puts something on Ebay and you pay less than what they paid (regardless of condition-meaning it could be brand new) would that be unethical? Again, you would answer no even though the person selling it may feel cheated..

Is it unethical for Traxxas to charge more for the sum of the parts for a Tmaxx than the completed kit? Of course not-people will pay for it so they will charge what the market bears

Not to knock you, but you cannot be answering this the way if you have any business expierence.

[CrisisAngel]

If everyone goes out and buys two Jatos and strips one down and sells it, then there will be half as much Jatos...and the first shipment is usually quite small as it is...so with even less Jatos, less people are going to break things and seek replacement parts off ebay...

[wombat427]

Buying off eBay is not unethical - regardless of price. People posting on eBay know that the final selling price is basically a **** shoot. Win some, lose some. Thes eBay sellers are, hopefully, not creating a false market shortage in an attempt to drive up prices. We are talking about the ethics of the seller, not the buyer. The same could be said of Tower when competing against the lhs. Is it unethical to offer $40 off when you know that the local guy can't deal in the numbers tower does? I say no. We all look for the best deal we can get. The lhs makes up for it in services that tower can,t provide. It's the guy who tries to rip people off that's the problem.

Btw, I have years of business experience and I know that if you start scamming your customers, soon you won't have any left.

[jtcfanof3]

My question too you guys who think its unethical too sell it on ebay for profit is....
Is your LHS unethical for selling it for more then what he pays for it?
Is it unethical for TRAXXAS too sell too their distributors for more then what it cost them too make it?
Is it unethical for say SONY too sell you a new HD TV for more then their cost?
It is called capitalisim for a reason,socialism is a dead,just because you think its not fair for someone too sell something for more then what he paid for it has nothing too do with ethics here.
Answer my 3 above questions and youll have your ethics questioned answered.
If you dont want too buy the JATO for more then reatil,dont,thats why the free market works so so well.
People who are willing too pay that much over reatail have that right too do so.
^_^

[notahnda]

Originally posted by jtcfanof3
My question too you guys who think its unethical too sell it on ebay for profit is....
Is your LHS unethical for selling it for more then what he pays for it?
Is it unethical for TRAXXAS too sell too their distributors for more then what it cost them too make it?
Is it unethical for say SONY too sell you a new HD TV for more then their cost?
It is called capitalisim for a reason,socialism is a dead,just because you think its not fair for someone too sell something for more then what he paid for it has nothing too do with ethics here.
Answer my 3 above questions and youll have your ethics questioned answered.
If you dont want too buy the JATO for more then reatil,dont,thats why the free market works so so well.
People who are willing too pay that much over reatail have that right too do so.
^_^

“Ding, ding, ding! What do we have for him, Johnny?”

[mach1man]

I think the conversation has started to move towards
Ethics vs. "good" business practices

[Phroziac]

I don't see the big deal.
If parts are unavailable and a few people strip them and sell the parts, isnt it great that you can actually get a part?
My hobby shop parts out kits occasionally. Doesn't bother me.
A while back I needed a new slipper nut and spring for my npede. I asked for it and got a little unmarked bag with a slipper nut and spring, and the spur gear bushing. Hmm, I think I know where that came from :P

Parting out is a great way to get halfway decent money out of a used truck also. You get more out of the parts then the actual truck.

[wombat427]

There is a big difference here. Profit is not a four letter word. However, we are not talking about legitimate businesses doing what we ask them to do and without a profit they won't be there when we need them. What we have been discussing is "profiteering", The systematical destruction of fair market practices. It is legal in most cases because this is a free market society. Capitalism is alive and well in my town, but artificially inflating prices for the sole intent of over-riding the heart and soul of capitalism, supply and demand, is unethical and anyone who practices it is the lowest form of businessman and should be shunned by anyone in this hobby. People on this forum are already decrying a small price increase on Traxxas models. Are we going to defend another price increase by an individual who is simply trying to cheat us? Yes, I know, no one has to buy from these charlatans, but there will be those who can't wait or don't know better. I pity them. "Caveat Emptor."

[jtcfanof3]

Originally posted by wombat427
supply and demand

Ah yes,their it is,thats the answer,capitilizing on a small market share is what capitalism is all about.
You can only make so much profit,that depends on how much the market can bare,if alot of people need what you have and will pay for it no matter what the market has a high tolerence,if not,you will lose $$ and fade away.
I disagree with the last post,"capitalizing" on the supply and demand is what a free market is guy,not profiteering.
I personally dont do this,but I know of alot of people do,its just like the old markets,you can only sell your wares too those who wish too pay "your" prices.
Are you saying these people are not true bussiness men/women? Just because they have no"store front"?

[mach1man]

sounds like socialism is the way to go.
Everyone gets one of everything at the same price-wow what fun...

If people are willing to pay the price, so be it. Just because they are unaware or ignorant or "can't wait" why are we defending them? Do you pay extra if you "can't wait" to get your pictures developed or want your Jato from Tower in one day? Of course!

Our market is built on needs and wants. Someone who takes advantage of this by using available resources to profit is not unethical.

I was mad today because a guy bought 5 spur gears for himself and took the whole stock. Is that unethical to take from other customers? No way! If he turned around and said to me, I will sell one to you for $2 more than I paid, I still do not think its unethical. I do not need to buy it. Now if he purposely went to every single hobby shop and bought all the stock, then it would be unethical because he removed the competition and free market availability.

[jtcfanof3]

Originally posted by mach1man
sounds like socialism is the way to go.
Everyone gets one of everything at the same price-wow what fun...

If people are willing to pay the price, so be it. Just because they are unaware or ignorant or "can't wait" why are we defending them? Do you pay extra if you "can't wait" to get your pictures developed or want your Jato from Tower in one day? Of course!

Our market is built on needs and wants. Someone who takes advantage of this by using available resources to profit is not unethical.

I was mad today because a guy bought 5 spur gears for himself and took the whole stock. Is that unethical to take from other customers? No way! If he turned around and said to me, I will sell one to you for $2 more than I paid, I still do not think its unethical. I do not need to buy it. Now if he purposely went to every single hobby shop and bought all the stock, then it would be unethical because he removed the competition and free market availability.

There...........you..............go.
Anyone else?,didnt think so.
Well put mach1man,well put.

[wombat427]

Awesome thread, mach1man, I'm truly enjoying this. It sure beats reading the threads about guessing Jato price and availability. Or worse, reading all the phony "I got my Jato" posts. This is getting a bit heavy and I just want to make sure I didn't offend anyone by playing devil's advocate. This is some of the most intelligent conversation I've had on any of these forums and can see both sides of the argument.

[Tweedy Bird]

Originally posted by nitrohalic3
if anyone did that i would be angry. just like how people buy 2 cars for themselves. i know its not suppose to be fair but it makes me angry anyways.

Why would someone buying two of the same vehicle for themselves make you angry?

Tweedy

[mach1man]

Wombat-I was thinking the same thing-great conversation that actually made me WANT to come to the board and read.

Thanks for participating and great insight..

One question-what is the Wombat427 for? Does 427 represent a birthday or are you a Ford man or some other meaning? Just curious....

Paul

[wombat427]

Actually, mach1man, It doesn't mean a thing. I use the same handle everywhere I go online and I figured there are a few wombats out there but none with a big block engine.