PS5 scalpers don’t like the bad press they are getting, compare themselves to Tesco

A PS5 scalper is very sad. Apparently everyone is horrible and mean and we shouldn’t be writing about how they are the scum of the universe, all the scalpers are doing is providing a legitimate and much needed service.

“There seems to be A LOT of bad press on this incredibly valuable industry and I do not feel that it is justified, all we are acting as is a middleman for limited quantity items,” said Jordan from scalping advisory group The Lab, in conversation with Forbes.

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“Essentially every business resells their products. Tesco, for example, buys milk from farmers for 26p or so per litre and sells it on for upwards of 70p per litre. No one ever seems to complain to the extent as they are currently doing towards ourselves.”

For the record, milk isn’t exactly in short supply and there are many options for purchasing cow based products which is why scalpers aren’t making huge profits on moo-juice and instead focus on in-demand consoles.

Some retailers should be releasing new PS5 stock today, for more on that click here.

A debate surrounding the act of scalping – and, more crucially, the use of bots to automatically order consoles and other expensive tech – has been called for by a number of UK Members of Parliament (MPs).

In a nutshell, they wish to block “the resale of gaming consoles and computer components at prices greatly above Manufacturer’s Recommended Retail Price”, to “[deny] unscrupulous vendors the chance to make themselves vast profits at the expense of genuine gamers and computer users, while also deterring fraudulent cybercriminal activity,” reports VGC.

In their motion, these MPs also wish to outlaw the use of automated bots which have been employed by individual scalpers and syndicates to jump retail queues. They propose legislation that mimics that surrounding the resale of concert and event tickets.

Scottish National Party MP Douglas Chapman has discussed the bill he will be submitting to Parliament with the BBC.

“It’s simply not in the consumer’s interests to have lots of stock for in demand, very exciting new products just being bought up en masse. It doesn’t give the ordinary consumer fair access to the market… It’s just so unfair for the ordinary person who just wants to play their game or give a gift to their child for Christmas. This situation’s just going to get worse and worse.”

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Source: Forbes

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8 Comments

  1. Last time I checked Tesco doesn’t go buying all the available milk from Asda, Sainburys, Morrisons, Aldi, and Lidl for 70p and then selling it on in their own store for £2.10 though… They are deluded if they think they are providing a service – this is nothing to do with the difference between wholesale and retail, they are deliberately preventing access to retail products and then demanding many time the RRP value of the item to give consumers access back to it. I urge people never to buy from a scalper no matter how badly you want it – if there is no market for them there is no incentive to keep buying them, and as a bonus they will be thousands out of pocket. I’m all for the motion to make the practice illegal in the UK…

  2. The government won’t do anything. Some MP has just said “This is bad. Sign the thing that says it’s bad”. Which then hangs around until whenever the current parliamentary session ends and then probably gets ignored. At best it draws a bit of attention to it, and something may happen in some number of years. Not with the current bunch of cockwombles in charge though. Maybe sometime after the PS6 and whatever ridiculous name MS come up with next?

    But surely these scalpers are committing a decent selection of crimes already? They can’t be buying loads of them with the same name, address and payment details, can they? There has to be some sort of fraud involved somewhere. Could be a matter for the police, or for any retailer who wants to take them to court. Which would involve spending money, rather than just taking the money and just pretending “only 1 each, please”.

    • It’s strikes me that the scalpers are being bastards and so are the retailers, allowing overselling and not adequately enforcing the purchase limit. Demand is too high and the scalpers are taking advantage of the cracks in the system, same as in any industry.

  3. Ebay should do the right thing for once and ban PS5 sales, or at least with some strict rules on the price. Majority of the problem could be solved. I know there are other sites but none are as big as ebay.

  4. Wee Jordan isn’t very bright, are they?

    Scalpers are not the middle-person because they’ve made the likes of Game, Argos etc the middle-person purely by existing and being the end point of sale. There is absolutely no necessary reason for a scalper to exist, other than for them to make money off inflated prices. If they didn’t exist the consoles would still find their way into consumers hands, just at the actual price they were meant to be sold at, rather than the scalpers extortion.

    This whole situation makes me feel slightly dirty, as a few years ago I purchased a couple of PS4s while they were on sale in November, with the sole purpose of reselling them. The circumstances were slightly different in that the bundles I purchased may have sold out, but new bundles were put in their place, and I sold them for prices in-between what I bought them for and what the RRP was at the time, so essentially anyone who had missed the sale still got the items cheaper.

    Excuse me while I go take a cold shower and scrub myself of my sins.

    • As note, Jordan says they are ‘limited quantity items’, ironically more so by their practices.

      And they are also seem very aware of the potential to make money here by calling it a ‘incredibly valuable industry’. If it wasn’t valuable, what’s the point, right?

  5. What a stupid argument! Are all these scalpers really that thick??

    Theres a big bloody difference between Tesco buying milk wholesale and making it available at retail, and what these scalpers are doing! General public cant buy their milk wholesale so, yes, Tesco are providing a valuable service. What they’re doing is more akin to them going and buying all the milk from Tesco then selling it at an inflated price as they’ve robbed the consumer of any other choice.

  6. Tesco actually make a loss on milk. This guy is just making up numbers.

    “Tesco dairy farmers get a fair deal, with a price above the cost of production for their fresh milk, so even if we drop the price of milk for customers, our farmers get paid the same.”

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