Home > Misc. > What’s Wrong With Scalping?

What’s Wrong With Scalping?

Published Feb 15, 2006

Maybe someone can help me understand why scalping is illegal. As I understand it, scalping is when I purchase 50 tickets for a concert or ball game at regular prices then just before the event, I sell the tickets for whatever price I can for them. Why would any sane and sober legislator vote to make that illegal, however, scalping is illegal is 26 states and the District of Columbia.

Someone says, “But it isn’t fair for you to charge me $500.00 for a ticket that you paid $50.00 for two months ago.” What does fair have to do with it? Why didn’t you purchase your ticket when I did?

The day of the event, I stand in front of the stadium and hold up a sign informing everyone that I have tickets to the event. You want to go to the event so badly that you reluctantly agree to pay the inflated price. Why is it illegal?  I am not forcing you to do anything. You could have done exactly as I did if you were willing to stand in line for hours.
The event that the expected crowd does not materialize and the promoter begins to sell tickets at a lower price rather than have a small crowd, then I must also sell my tickets at a loss. After all, why would interested people purchase a ticket from me at an inflated price when they can purchase a ticket at the door at a discount? So, my investment lost.       

You understand that I might make a great deal of money or I might lose money. That’s the name of the game: free enterprise. I spent a great amount of time standing in line to purchase my tickets and time is far more valuable than money. You did not stand in line but you want to attend the event tomorrow night. Then you will have to pay my price.

It works the same way during hurricanes in Florida. I drive “Buford,”  my 1979 Chevy  pick-up, down to a lumber yard and purchase 100 sheets of plywood and store it in my garage. And wait, and wait. In fact, if the storm does not hit us then I’m “stuck” with a lot of plywood. Finally the storm arrives on its own. I had nothing to do with it. A few hours before the storm arrives, I pull the plywood out of my garage and put a sign on the stack indicating that each piece of plywood is for sale at $100.00 per sheet.  “But it isn’t worth that much!” However, it is if a customer is willing to pay that price for it.

It is called the market place. I put my own money into a stock of plywood expecting a storm to hit. I took the chance that some people would procrastinate until the last minute and be willing to pay my price. I am the one who took the risk. I might end up with a substantial stock of plywood that I will not be able to sell and will have to store some place.

“But it isn’t Christian to treat people that way,” says a brainwashed American. Are you suggesting that the government, state or federal, should be in the business of forcing us to act like Christians? And can’t Christians also make a good profit by having some forethought and taking a reasonable business risk?

Many of my readers are thinking that they would never treat people “that way.” Really? Let’s discuss real estate. I purchased our North Georgia home 16 years ago when the market was low. I did not even pay the price of the “average American home.” Now our home is worth almost three times what we paid for it. Now when we sell, do I consider the rather modest price we paid or what it is worth at this time?  What would you do? You know what you would do.

The same principle is true of gasoline prices. When does the high price of gas become “price gouging”? This is no plea for high gas prices, but if a dealer pays $2.00 per gallon of gas and sets the price at $5.00 per gallon, it is his business. Now, he may not be in business very long since many people may decide to ride a mule, a motorcycle or even walk. And when gas prices stabilize, his customers may retaliate against him and purchase their gas elsewhere. But it is all part of the free enterprise game yet non-thinking legislators have made it a crime. Dummies!

Tags: , price gouging,

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