And flippers are just people doing what business does and any commodity broker does specifically, buy low and sell higher. They see value where others do not. Great, now I want to watch Moneyball again.
The way I see these 3 types of people are based on motivation. And i think its good we all share our definitions because it helps all of our perspectives. Scalpers know something will be in demand and low in quantity. So they leverage that market for the money. Its a bit scummy because it takes away from genuine consumers and often causes toxicity in markets. Flippers only take advantage of what they can get. If they can get something for cheaper and flip it quick for a profit, they do. Its not usually premeditated like a scalper. We see this a lot at larger LGSs who sell high volume at close to cost. Big game stores get discounts on products based on volume ordered from their distribution. And investors are the long term minded person. They know the product will be a good money maker long term. Usually these people have a ton of knowledge. This is just how i see them. Obviously they are all motivated by money but its the secondary motives that matter in the morality of these kinds of situations.
I'd say one big difference with scalpers is that they also go out of their way to try to make the product scarce for everyone else, driving the price up so they can profit more. They're the ones using bots to make online storefronts sell out within seconds or camping out at the store to clear the shelf as soon as an employee brings the stock out.
Investors leverage their money to generate more passive income. Flippers leverage their time to generate more active income. Scalpers exploit situations where demand > supply.
Investors are such a mixed bag. There are some investors I completely dislike and disagree with, while there are other investors I don't have any issues with. It comes down to intent, the type of product, limit of the run, etc. I'd almost put a flipper and LGS owner in almost the same category; they buy a bulk amount of product and then sell it either wholesale or individually for a profit, though not to an excessive degree. The way you defined scalpers is why I have a problem with scalpers; profit above all else (Using bots to buy up everything as soon as they can and deplete all the stock so they're the only option, etc). With the recent Marvel Secret Lair and Gundam Beta Box, it's very obvious as to why they are such an issue. A very interesting video and I definitely enjoyed hearing your thoughts! Looking forward to hearing more in the future!
You are not a dictionary, but they do exist. How those definitions apply to TCGs is interesting. Scalpers are short term profiteers looking to maximize a limited window of demand. They sell the hot ultra rare meta relevant card for an exorbitant price, because they think they can get it. When the rarity drops, the card gets nerfed or the concert is about to start, they dump inventory.
investor: this item will accrue value over time flipper: this item is currently undervalued scalper: the value of this item can be manipulated upwards with buyouts
Important note: Terms like "Investors", "Flippers" and "Scaplers" are usually referring to private people, trying to do a side hustle. This is not only immoral, but even illegal in many countries, like Germany for example.
@@FranksHobbies It is less about the side hustle, more about being a private person, not a company. Maybe this is different for the US, but in my country if you are a private person, there are harsh limits to how much you can sell online without opening up a company. The govermnent implemented these harsh regulations to fight back tax evasion, because they lose billions of tax revenue from people selling stuff online without opening up a company.
And having a company myself, I like those harsh rules, because I need to pay taxes, while those scalpers I am referring to did not have to pay taxes in the past, despite sometimes even having a larger sales volume.
@@Paul-vq6jk In the US an individual can conduct business as a sole proprietorship, or as a hobbyist, but all have to pay taxes. The sole proprietorship or limited liability company can write off some amount of expenses per year, but the hobbyist cannot. In both cases profits are taxed at your income tax rate, you have to track your cost basis on everything, and every online platform like tcgplayer and ebay are going to send you a 1099-k form to you as well as a copy to the IRS so they know exactly how much you've had come back to you. There is no way around it unless you're strictly doing private deals in cash with no paper trail. Good luck scaling a small business that way lol
Maaaaan I just like collecting the cards I like. Still have my full base set of pokemon but also collect the new ones. I hate when people treat it like a business but it totally can be.... Wish I didn't trade my Goku the all powerful 6 star for a Gameboy pocket.
something to keep in mind most people that buy into a tcg and sell out of it within the first two years. This scalper definition is very counter productive as it would include 80% of new collectors who come and go. You also really don't clarify the difference between a flipper like yourself and a scalper outside of base knowledge this is a disservice to yourself :/. I'm sorry all these definitions seem way too blurry to be of any use to anyone. a flipper and an investor could be the same thing by your own definitions. A TCG player would have an amount they keep to play and hold onto if they're buying boosters cheap occasionally how does that make them a flipper only and not both a flipper and an investor ? they have cards to play long term as a player that's their investment in the game even if they flip the boosters occasionally.
I don't like your definitions that much. I get them but I believe you can nail down a scalper, more than what you've presented. I'd say a scalper is someone who buys into a TCG says magic, at a point when prices are fluctuating and unknown, say a new set release. while the prices are unknown they price all the rares at the highest point they can not caring if they rip off the customer long term. similar to what you said they 'wanna sell of quick' but more at the buyers expense in this case. these are generally the people that small time collectors get mad with as they sometimes cause artificial inflation from their perspective on sets that aren't as valuable. That explanation might sound a bit long winded but I think being a scalper is more about artificial inflation and scarcity than new buyers buying into a tcg with little knowledge.
@@brutusb8004 It’s important that you understand profitability drives the hobby in nearly every way and that if people weren’t making money on it, they wouldn’t sell it. With nobody selling it, nobody would be getting cards to play with. Players, stores, distribution, and companies are all part of a financial chain that allows these games to continue. I hope that you can come to appreciate that, some day.
Hey. First listener here. 3:34 in. You took too long to make any points. You seem to me like you think you’re smart but you’re not seeming smart to me. You haven’t finished your definition of scalping yet but you seem to be on the wrong track to me. FWIW AFAIK scalping is the practice of buying all of the supply of something dropping on a market and reselling it to that market immediately at a higher price. Sorry to be a downer. I hope this feedback is helpful and not just drive by negativity. Best of luck with your YouTubing.
I'm sorry this is a bad. it pushes the idea that you have to read 10 of the manga before collecting or play 20 hours of warcraft before collecting X TCG. This is the type of idea we need to drift away from. It's elitism at it's core not an actual argument despite being well intentioned against scalpers. watch this video and think from a new collectors perspective, this would make you nervous about collecting cards, people shouldn't have to pass a knowledge test prior to buying cards or to be accepted into any TCG community.
And flippers are just people doing what business does and any commodity broker does specifically, buy low and sell higher. They see value where others do not. Great, now I want to watch Moneyball again.
I love the content, not gonna lie though, I'm here for the pushups. Liked.
The way I see these 3 types of people are based on motivation. And i think its good we all share our definitions because it helps all of our perspectives.
Scalpers know something will be in demand and low in quantity. So they leverage that market for the money. Its a bit scummy because it takes away from genuine consumers and often causes toxicity in markets.
Flippers only take advantage of what they can get. If they can get something for cheaper and flip it quick for a profit, they do. Its not usually premeditated like a scalper. We see this a lot at larger LGSs who sell high volume at close to cost. Big game stores get discounts on products based on volume ordered from their distribution.
And investors are the long term minded person. They know the product will be a good money maker long term. Usually these people have a ton of knowledge.
This is just how i see them. Obviously they are all motivated by money but its the secondary motives that matter in the morality of these kinds of situations.
I'd say one big difference with scalpers is that they also go out of their way to try to make the product scarce for everyone else, driving the price up so they can profit more. They're the ones using bots to make online storefronts sell out within seconds or camping out at the store to clear the shelf as soon as an employee brings the stock out.
I guess it finishes up right moral of the story collect your collectibles however you want
Investors leverage their money to generate more passive income. Flippers leverage their time to generate more active income. Scalpers exploit situations where demand > supply.
Investors are such a mixed bag. There are some investors I completely dislike and disagree with, while there are other investors I don't have any issues with. It comes down to intent, the type of product, limit of the run, etc.
I'd almost put a flipper and LGS owner in almost the same category; they buy a bulk amount of product and then sell it either wholesale or individually for a profit, though not to an excessive degree.
The way you defined scalpers is why I have a problem with scalpers; profit above all else (Using bots to buy up everything as soon as they can and deplete all the stock so they're the only option, etc). With the recent Marvel Secret Lair and Gundam Beta Box, it's very obvious as to why they are such an issue.
A very interesting video and I definitely enjoyed hearing your thoughts! Looking forward to hearing more in the future!
You are not a dictionary, but they do exist. How those definitions apply to TCGs is interesting. Scalpers are short term profiteers looking to maximize a limited window of demand. They sell the hot ultra rare meta relevant card for an exorbitant price, because they think they can get it. When the rarity drops, the card gets nerfed or the concert is about to start, they dump inventory.
investor: this item will accrue value over time
flipper: this item is currently undervalued
scalper: the value of this item can be manipulated upwards with buyouts
Important note:
Terms like "Investors", "Flippers" and "Scaplers" are usually referring to private people, trying to do a side hustle. This is not only immoral, but even illegal in many countries, like Germany for example.
So if you remove emotion for the definition, they are still comitting a crime - stealing profits from companies, that are paying taxes.
I legitimately cannot comprehend the idea of having a side hustle as being 'immoral'.
@@FranksHobbies It is less about the side hustle, more about being a private person, not a company. Maybe this is different for the US, but in my country if you are a private person, there are harsh limits to how much you can sell online without opening up a company.
The govermnent implemented these harsh regulations to fight back tax evasion, because they lose billions of tax revenue from people selling stuff online without opening up a company.
And having a company myself, I like those harsh rules, because I need to pay taxes, while those scalpers I am referring to did not have to pay taxes in the past, despite sometimes even having a larger sales volume.
@@Paul-vq6jk In the US an individual can conduct business as a sole proprietorship, or as a hobbyist, but all have to pay taxes. The sole proprietorship or limited liability company can write off some amount of expenses per year, but the hobbyist cannot. In both cases profits are taxed at your income tax rate, you have to track your cost basis on everything, and every online platform like tcgplayer and ebay are going to send you a 1099-k form to you as well as a copy to the IRS so they know exactly how much you've had come back to you.
There is no way around it unless you're strictly doing private deals in cash with no paper trail. Good luck scaling a small business that way lol
I don’t really care about the spike. I care more about the reason why they spiked
Maaaaan I just like collecting the cards I like. Still have my full base set of pokemon but also collect the new ones. I hate when people treat it like a business but it totally can be.... Wish I didn't trade my Goku the all powerful 6 star for a Gameboy pocket.
Cheese burgers are my life next to nerd culture
i could eat cheeseburgers every day #CheeseburgerLife
something to keep in mind most people that buy into a tcg and sell out of it within the first two years. This scalper definition is very counter productive as it would include 80% of new collectors who come and go. You also really don't clarify the difference between a flipper like yourself and a scalper outside of base knowledge this is a disservice to yourself :/. I'm sorry all these definitions seem way too blurry to be of any use to anyone. a flipper and an investor could be the same thing by your own definitions. A TCG player would have an amount they keep to play and hold onto if they're buying boosters cheap occasionally how does that make them a flipper only and not both a flipper and an investor ? they have cards to play long term as a player that's their investment in the game even if they flip the boosters occasionally.
I don't like your definitions that much. I get them but I believe you can nail down a scalper, more than what you've presented. I'd say a scalper is someone who buys into a TCG says magic, at a point when prices are fluctuating and unknown, say a new set release. while the prices are unknown they price all the rares at the highest point they can not caring if they rip off the customer long term. similar to what you said they 'wanna sell of quick' but more at the buyers expense in this case. these are generally the people that small time collectors get mad with as they sometimes cause artificial inflation from their perspective on sets that aren't as valuable. That explanation might sound a bit long winded but I think being a scalper is more about artificial inflation and scarcity than new buyers buying into a tcg with little knowledge.
My bf don't understand i can buy 3 for $600 and sell in 2 years for $17500
Anyone in any 'card hobby' to 'make money' is a piece of shit ruining hobby for people who actually care.
@@brutusb8004 It’s important that you understand profitability drives the hobby in nearly every way and that if people weren’t making money on it, they wouldn’t sell it. With nobody selling it, nobody would be getting cards to play with. Players, stores, distribution, and companies are all part of a financial chain that allows these games to continue. I hope that you can come to appreciate that, some day.
Hey. First listener here. 3:34 in. You took too long to make any points. You seem to me like you think you’re smart but you’re not seeming smart to me. You haven’t finished your definition of scalping yet but you seem to be on the wrong track to me. FWIW AFAIK scalping is the practice of buying all of the supply of something dropping on a market and reselling it to that market immediately at a higher price. Sorry to be a downer. I hope this feedback is helpful and not just drive by negativity. Best of luck with your YouTubing.
@@dvorakviolin thanks for the feedback!
I'm sorry this is a bad. it pushes the idea that you have to read 10 of the manga before collecting or play 20 hours of warcraft before collecting X TCG. This is the type of idea we need to drift away from. It's elitism at it's core not an actual argument despite being well intentioned against scalpers. watch this video and think from a new collectors perspective, this would make you nervous about collecting cards, people shouldn't have to pass a knowledge test prior to buying cards or to be accepted into any TCG community.
You are not a dictionary?
I am disappointed!
Last Video had 32 Likes? Just gave you the 32nd Like on this one