Missing out on bargains, then seeing it selling on Gumtree for higher price

Hi fellow Ozbargainers!

I was browsing gumtree today, and noticed that a lady had just put up her "unwanted gifts" which comprised of several different attachments for the Kenwood mixer. This caught my attention only because I was unable to purchase anything from the $10 sale (which was posted on ozbargain recently) due to the website/ traffic even though I tried several times over a 3 day period. Seeing this lady's post really irritated me due to the fact that:

1) I couldnt get my hands on anything from the super sale
2) She is claiming them as "unwanted gifts" even though in one of the images, it is a screenshot of HER order/cart on the Kenwood website
3) she is selling them at $50 each which is a $40 profit on each one

http://www.gumtree.com.au/s-ad/1133975810?utm_campaign=socia…

I understand that with sales, it's first in best dressed, but I can't help getting so annoyed - yes I could build a bridge and get over it, but just wanted to have your opinion on this topic.

What are your thoughts on buying cheap - reselling it at an inflated price - resulting in making other legitimate buyers (me) miss out? Would you guys do this?

closed Comments

  • +6

    Do what I did once - offer the $10 sale price.

    • I did the same, saw iPhone 7 with kogan sims advertised at full Australian price right after it was $980 something on here. The guy got annoyed 😂

  • +26

    Heh, the only thing that could be wrong with this is if it was undeclared income. Other than that, it's all in the game.

    • +3

      I don't think anyone selling "Unwanted Gift" would declare the cash payment on their tax form.

      • Can you buy something yourself with your own money and then go advertise somewhere that is unwanted gift? Just asking

        • If that is the gift that you are giving yourself and now you no longer want it, why not?
          Sure it's not ethical but in no way is it illegal.

        • @highdealer:
          I thought reselling for profit was illegal though.
          I'm more familiar with UK law where reselling in such a manner is illegal.

          There is also a difference between casually selling second-hand / used goods and buying items with the intention of reselling them for profit - that becomes a business and a source of income.

          Furthermore, wouldn't she have to honour guarantees and warantees?

          ABout ten years ago a mate in UK had bought up a load of Le Creuset cooking pots on a bargain clearance in a shop and got his wife's staff discount too. He promptly put them on eBay and made considerable profit. He thought this was a nice little earner so he tried it again, and eBay picked up that he was acting as a business and required him to register as such with approriate tax declarations and so on.

    • +1

      Can't prove the guy is running business if he only sells these items ocassionaly. So the income is not assessable.

      Agreed, nothing is wrong here. Buy low sell high that's how to make profits. Products cost us 1,000 sells for 5,000 is normal.

  • +30

    "Would you guys do this?"

    Yes definitely done it before , How could anyone say no to easy profit like that.

    • +1

      I wont do it for sake of dealing with Gumtree buyers unfortunately ( I have bought many things myself from it), but anything you are selling for $200, will have offers saying $50-90. Then you decide to sell it and come to know that person didn't come or ran away with it or returned it broken next day saying it was like that and ask for refund.

      • Meet in a public place and ignore any refund requests.

    • "How could anyone say no to easy profit like that."

      Because it's unethical and probably illegal?

  • +23

    Thats how a free market works. I doubt you wouldn't do this if you had the opportunity, it's basically free money

  • +1

    Honestly it depends for me. If this is one of those, she grabbed a few stuff for cheap and is now making a profit on it, then I feel its a little bad but nothing really wrong with it, like I wouldn't hate her for it, but personally I wouldn't do it as I think I'd feel bad making money off other people knowing I got it for less.

    BUT you make the point of

    "claiming them as "unwanted gifts" even though in one of the images, it is a screenshot of HER order/cart on the Kenwood website"

    Which makes me wonder (and definitely could be wrong) that she may have just bought a butt load undercutting other people wanting to buy stuff and is selling them off while other legitimate people go without. Which may be legal? but I think is just rude and honestly bad. Sort of like a scalper buying up all the tickets for a cricket game so that they can sell it to users at double the price. Or someone buying 40 mini NESs to sell on eBay at 5x price while other people miss out (washes off a bit of salt lolol).

    • +10

      "I wouldn't do it as I think I'd feel bad making money off other people knowing I got it for less"
      Huh? Think of Real estate, stock markets, etc. This is one of the most basic and core principles in business.

      • Yeah I know, I don't think I'd be very good at real estate or the stock market because of it, I'd feel bad that someone buying the house is doing it at so much more then I paid lol.

    • +5

      personally I wouldn't do it as I think I'd feel bad making money off other people knowing I got it for less

      So you think all the retailers (HN, Good Guys, JB) are good saints because they sell their products without making any money?

      OP feels disgusted because OP knows EXACTLY how much the lady make, i.e $40 profit… If you had access to the retailer's database you would feel even more disgusted and what the lady has made would be just pocket change. You walk out of the retailer stores feeling happy because you didn't really know how much they made off you. If you had known how much they made I bet your feeling might be different.

      • I know HN and GG make money, thats not me, and OP asked for what I'd do. What I mean is that if I had my own shop and my supplier sold me items cheaper, then I personally would sell it cheaper to my customers. It might not be a great "making money" idea but I'd still do it.

        I know other people and other companies would not, in fact thats what most of the replies have been about before I posted lol.

        I also feel this may be a slightly different situation? Its one thing to buy a few items to try to turn a profit off it, but OP made it sound (or I understood it as which may have been my fault) the lady bought the lot (or a lot) making other people miss out. Basically making it sound a little unfair, sort of like if HN bought up almost almost every single PS4 and sold it at a high price because they knew no one else could buy one at the other stores. Or if Foxtel stopped shows going to Netflix so people would buy their Foxtel equivalent. Sure its a good tactic at making money, but I personally wouldn't do it.

        • +2

          Yeah I know what you mean but I don't think that is the case. The lady is apparently selling for less than the retailer (otherwise why would buyer buy from her instead of directly from retailers). Also it is not like the lady has 'brodened' all of em. It just sounds like the OP missed out then got angry, simply because the lady that snagged the deal didn't really need the item and offloading it for a higher price to make some profits.

        • @wildstone: lol yeah I see what you mean, I guess I figured people would buy from her because there isn't any stock left to buy from the retailer.
          But yeah I also for some reason concluded that she bought all the items. I probably made quite the assumption there which skewed my view a bit of the lady haha.

          No arguments about OP missing out on the deal and being angry either, definitely get what you mean.

  • +7

    It's called retail arbitrage.

    • If it's set up registered as a business and profits are declared.
      Otherwise isn't it called 'thrifting' or 'touting'?

      • Grifting i call it ;) I don't see a problem with it. I find it hilarious the do gooders who regard it as tax evasion when cash profits are undeclared. Probably the same morons that believe voting makes a difference and that politicians aren't sellout crooks.

  • -3

    Yes. Next.

  • Maybe her son gave her one because it was cheap even though she didn't need one?

      • +1

        This would give even more credit to her fake story. The son obviously had no idea and bought her attachments for something she doesn't even own. :p

  • +1

    Yeeeeah I do it occasionally with Amex statement credits. I suppose that's pretty shitty, but mostly I tell myself it's better that I profit than AMEX/retail seller does.

  • +10

    Don't you realize this is how e-tailers like Catch of The Day operates? They buy stuff in bulk and at clearance prices from other retailers, then they mark it up and sell it at a profit.

    https://www.ozbargain.com.au/node/173855

    In a stadium-sized warehouse in Melbourne's outer west, Gabby Leibovich has donned a hi-vis vest and is admiring his latest conquest.

    In the centre stands a great big aluminium grid, housing 25,000 bins. Each is filled with cut-price stock, from soccer balls to novelty mugs, clearance electronics and top-brand shoes.

    "I like to call it selling them shit they don't need at prices they can't resist," says Mr Leibovich, founder of Catch Group, of his bargain-based e-commerce offers to online shoppers.

    In any case, it takes actual work (and a little bit of money) to buy things things to flip online and it is not entirely risk free either. I have tried flipping things like games and technology goods but due to people doing the same (arbitrage) the window of opportunity to turn a profit is extremely limited.

    Back in the days where people didn't think of using eBay to import PC and Xbox games cheaply from Asian countries, I made a relatively small profit reselling games. I would make a loss nowadays as many businesses now do the same thing and have a way bigger marketing budget than I do.

  • +1

    It's unfortunate but many would if they have the time (I've done it twice before - one hit, and one miss).
    There might not be a demand for it anymore, then she's left with stock that she can't sell.
    $10 off is not a huge savings IMHO.
    However if she does sell 1 attachment for $50 then she has almost broke even.
    (5 attachments + $10 postage = $60 initial outlay.)

  • +2

    If your going to do it at least make it fair for both sides. If both sides are getting a bargain relative to the current/average sales price then all can be happy. Not everyone reads ozbargain or has time to find the best bargains, so would be quite happy to pay a little bit more for convenience. This seller is a bit greedy charging 4 times what when paid.

    • thats the market unfortunately nubzy, we are all guilty of cashing in at one time or another in our life
      granted 4x the price is a joke, but making small profits for a supply and demand item is how the market is

      Take the SNES for example (the most useless piece of junk I ever used, horribly emulated), people paid 120 for it with an extra controller and sold it for 400-500 in most cases due to it being "sold out" and being prior to christmas many people cashed in on the out of stock sale syndrome, was it wrong, it sure was but that was the market with no stock and a huge demand, people cashed in on the scenario.

  • This happens all the time, take it or leave it is the way I see it.

    Or if you want, you can negotiate with them to lower the price but whether they bother negotiating is up to them. I bought my Moto X Style for $400 because I couldn't make it out to store for the Vodafone store deal @ $300. Not the best deal but I needed a new phone and it was the cheapest I could find.

  • +6

    Meh. I wouldn't. Seem like a lot of effort for $200 bucks.

    • +2

      Same, especially considering half the people from Gumtree won't show up and they'll waste your time with low ball offers.

      This is generally why I don't bother with Gumtree any more. I just throw stuff out rather than try to sell it.

    • -2

      Selling for 200 means she makes a $140 net profit for about 20 minutes of work (take photos, list ad on gumtree, reply to potential buyers, make the sale)

      • +21

        You'd be delusional if you think selling on gumtree only take 20 mins of work.

        • Done it before as buyer and seller.
          And especially if it's sealed and not electronic too.

      • +4

        20 minutes of work to sell on gumtree 😂😂😂😂

  • +7

    Buy low, sell high. Isn't that the principle of capitalism?

  • -1

    isn't that brodening?

    • +2

      not really if its the one item being bought
      In this case she paid 10 dollars for all the items and is selling them for 200 if you buy the lot
      so 5 items are essentially 40 dollars, now granted they were reduced from a higher price for a shorter period of time

      I looked at the items online and they all retail for over 100 each, not sure about how shes ripping you off if you buy the lot for 200 dollars (40 dollars an item effectively)

      Its still a bargain in that regard, and yes shes making a profit, but thats how them apples roll, supply and demand, if you were to buy all the items seperately it would cost a fortune at retail prices

      She pretty much got lucky and yes while is frustrates the s**t out of me that people do this without actually owning a product it really is smart from the money making sense of things, she knows there is a demand, she can undercut any store basically selling each item anywhere between 60-100 dollars, its a tidy profit

      She isn't asking that much once you factor retail value of the items into this

  • In my Gumtree selling experience, people usually only offer 20% of the asking price, so this is probably about right.

  • +3

    First in first served! Get over it. Some ppl need to make a living and this how some do it.

  • +1

    I feel like everyone here saying to "get over it, it's fine" should also say that people scalping tickets should be fair game too.
    Tickets to the concerts, AFL, cricket games, everything sold out at the official site but appear on resellers.

    • -2

      I don't agree, tickets to a game being scapled is wrong but you'll agree its a supply and demand market
      if people miss out then they'll pay any amount to go see their favourite team

      Scapling can be elimninated very quickly though with the right systems in place / tying a purchase to a ID etc

      Selling some accessories at less than retail price but making a profit is a bit different
      OP missed sale, can get 5 items at 200 dollars, under 50 a piece, yet I see each piece retail for over 100 each…
      saving money on retail is the whole point of ozbargain

      She probably caught the oppurutunity, whilst I dont feel its right, its smart.

      • Yeah fair enough. Somehow missed the fact that the official distributor is still selling the items.

        Also, everyone's been saying to add ID checks to tickets in place for years now but I still don't understand why Ticketek and others just don't do it.

    • +1

      So ppl - the answer is simple… don't get taken in by anyone who you know has purchased cheap and is selling to rip others off. TBH - buying for $10 and put it up on gumtree for $50 ….doesn't mean she's made a zak until she has made a sale and got the cash in her hand or in her account. She thinks that she can make $40 - but she might get stuck with it and not be able to sell it to anyone cos no one is buying. Then what??

      • Very good point
        Bargain at the time, until she is forced to sell for less profit
        Unfortunately the items shes selling are pretty popular, no doubt she will turn a profit

    • +1

      Whats the issue with scalping tickets? If people are prepared to pay more to see a show, then ticket vendors should charge more, and the stadium should charge the ticket vendors more, and use that money to build bigger stadiums to have let more people see the show.

      • The issue with scalping tickets, which I overlooked when comparing, is that bots from multiple companies buy up swathes of seats in minutes upon availability. This normally leads to all tickets being sold out.

        Your ideology punishes the poor and rewards the rich.

        Imagine you're living in a refugee camp outside Syria and the policy for food is all you can carry. The first 5 people in line are all rich and brought in trucks with multiple trailers linked up. After the 3rd guy's filled up, there's no food left and the thousands are now forced to pay money for previously free food.
        You on the other hand were 6th in line and had a large backpack.

  • This guy is even blatantly boasting he is going to buy and then sell on Gumtree

    I will buy a couple of these to resell on Gumtree!

    • ironically i doubt he would have the upfront amount to pay for two let alone one
      seems more like sattire than boasting to be honest

      Everyone seems butthurt over posts here tbh

  • I don't think there is any issue in this.
    On the other hand when we see some good offers from small independent retailer don't we try to get a price beat / match from jb hifi, hn, tgg, ow etc so that we can save few more $$$.
    How do you think the independent retailer would react to this?

  • Do it all the time. As a student with no time to work and kids and stuff to pay for, its how I pay for holidays. I can make $1500 on iPhones during a holiday period just by snapping up cheap buy it now ones on eBay then selling for around $100 profit on gumtree. Or use the Amex deals too. I made $200 on a camera and all it took was jumping out of the car at Harvey Norman, 5 mins to post the ad and half an hour to go to the post office and send it.

    By the end of the month I'm so sick of the scum on gumtree that I give up on it but it's a necessary evil if we want to take a trip, and worth it. I'm hoping one day I'll have a decent job and never have to do it again though…

    • I knew a lot of students as well who did some side ebay buy/resell on the side to pay for those textbooks.
      I didn't like the risk of buyer-protection scams but whatever works for them I guess.

  • Come in suckers

    Another newbie with some strange issue.

    Why keep taking the bait???

  • +4

    You're not entitled to the deal… So if you miss out you miss out. Life goes on.

  • +7

    The seller is taking a risk.
    If the items don't sell, then you would be a loss/waste for her.
    The seller is investing capital, hoping for a good return for the effort.

    Seems fair to me.
    You get a lot of fake bids and messages on gumtree.

  • "resulting in making other legitimate buyers (me) miss out"… Technically speaking everyone is a "legitimate" buyer, what they choose to do with their goods is their business.

  • +2

    Just a reflection of some people's personality infused with greed.

  • +2

    If it really pisses you off that much, copy enough from the ad so that you can post a very similar ad with the actual price of $10, then either include the kenwood site in the ad or direct interested buyers to the kenwood site so that lady gets no interest (or do both).

    • -2

      lainey13 each item retails for over 120 on the kenwood site, so its a moot point

    • +1

      Not pissed off to that extent! I'm irritated but I've moved on from it- just wanted to see what the opinion was. I am sure there are people out there who aren't on ozbargain, who didn't know about the crazy sale, and would happily snap up her items at that price- it's just hard for me because I know the initial purchase prices lol

      • -2

        the initial retail price is over 100 for each item, you keep raising the same moot point time and time again
        seriously.

        • +2

          What the heck is a moot point?

        • @Mynameis:

          Neg me all you want

          A moot point is basically you going off like a broken record when they retail for 3x times as much as what she is asking if you bought the lot

          Cry elswhere mate

  • You snooze you lose

  • First world problem

  • I see no harm in that.

  • +1

    OP how about you go get the item for $10. Then I'll buy it off you for $11. I mean that's an easy 10% profit.

  • -3

    Messaged the link of this discussion to the seller (on Gumtree) and here is her explanation:

    "I read through the website link you sent me. Sorry if i irritated you, but truly my husband bought these, and told me he got them at good price (he didn't tell me how much he paid for them) but as I said I don't have space to store them and I don't have the kenwood. There's no point for me to keep them so i tried to sell them. The screen shot was sent to me by husband. I don't need to explain all this to you but I just want to tell you that i didn't intend to do what you think."

    • +2

      You sent the seller, the ozbargain link to this thread lol

  • Is her profile name broden? Lol

  • +5

    So that's one reason this place has turned to crap.

  • So did anyone buy the accessories or did she get the shits and closed the ad.

  • +1

    it is a screenshot of HER order/cart on the Kenwood website

    Doesn't mean she bought them, you're just speculating.

    And even if she did, so what?

    Sounds like a case of sour grapes to me.

  • +1

    This is similar to someone buying shares at $10 then later sell for $50, taking into accoint the holding cost and the risk of the shares not getting sold.

    Since OP is feeling jealous knowing someone made a profit, hence, it is considered unethical.

    • +1

      It isn't jealousy of the fact she's making a profit- its that she has products that I would've liked for myself! Also I am jealous of the price she paid lol

      • -1

        not really, another pointless comment
        for the total of 200 for 5 items you are PAYING LESS than the retail of each item anyway
        too bad how sad is how I see this situation

        • Lol right (Y)

        • -1

          @Mynameis:

          Neg me all you want mate, facts are facts
          Go cry somewhere else, this is ozbargain, you missed out, move on
          Pay retail if you dont like her pricing
          No one forced you to buy off her

          What next?

          You will rant when a TV you buy is 20 bucks cheaper

          Like whirlpool, this place should be called whingebargain

        • @shawncro 222:

          Mate, it wasn't me whom negged you. Long time lurker and I only recently created an account to seek 'opinions' regarding what people thought about this and as a result I can't neg you.

        • @Mynameis:

          Haha, one of you "friends"
          either way I don't see the need for to harrass someone over this whole ordeal
          stalker behaviour

  • +5

    Welcome to OzBargain kid.

  • +1

    What are your thoughts on buying cheap - reselling it at an inflated price

    It is Business 101 / Econ 101.

  • +4

    Stop having a sook and move on

    Next.

  • +3

    I think the OP is angry not just that the seller is making a profit but he missed out on buying one. Fair enough. But that's just how the world works, OP.

    I wouldn't do it as I couldn't be bothered for the small profit and risk of selling to a small selected group of buyers. Also, $50 from a gumtree seller vs $60 new from Kenwood (forgetting the code). Most ppl would buy new with warranty.

    I usually sell on stuff I grabbed for free. Less risk and stress in my old age. My latest was a bunch of old camcorders someone threw away. I sold each for $80.

    Maybe Kenwood will restock and continue discounted prices. That'll f### em.

    • I'm not angry- just irritated and a little sad haha! I don't wish bad things upon the lady - I hope she can sell them to someone who will still consider it a bargain. This is how the world works, right?

    • -1

      Not angry at all Oldbugger "Yet comes onto Ozbargain to whinge, bitch and name and shame the user on gumtree"
      Borderline Harrasment to be honest
      Spot on Comment
      OP needs to grow up and accept thats the fact of life

  • Only thing you can do is vote with your money if you think gumtree sellers like this should be stopped. As a matter of principle, are you happy to pay a little more and buy something from a bricks and mortar store?

  • +1

    What he's upset about is not being able to access a retail site when you have every man and their dogs buying wholesale amounts to resell.
    I am sick of the stupid prices people are asking for things on Gumflea, and that's why I have migrated over here to ozbargain
    Buyer definitely Beware of being gumfleeced

    • I have only ever done good off Gumtree

      1. Know the market and the target audience you want to sell to
      2. Know the goods
      3. Buy at the right time, Sell at the right time
      4. Its how business works and the harder the item is to get (most times) the better the resale will be when its out of stock
        take the nintendo Mini SNES for example, inflated up to 500-600 and people PAID THIS to get their hands on it.
        5.Advertise clearly and have photos, list everything clearly
        6.Ignore stupid lowball offers
        7.Profit
  • I'd feel upset too, but resigned to the fact that there's not a whole lot you can really do about it. There's no point suffering over it because the person who is reselling certainly isn't and you're just adding to the pain. There were a lot of people with doubles in that thread - why not contact them and ask if you can buy some things off them? I was miffed I missed out on the whole apple juicer!

    • I really wanted that apple juicer haha!

  • +1

    You obviously came here looking for outrage, so allow Me to fan your flame.

    Organise to buy one, meet her house. Upon arrival tie her up in her house and burn it down, cos she deserves it you know… If we let the water settle all the scum floats to the top.

    • No no didn't want any outrage! Just opinions - and most people are saying it's the norm. Nothing against the lady- I'm just a little bitter that she has the products and I don't have any lol! Life goes on!

  • +1

    1) I couldnt get my hands on anything from the super sale
    2) She is claiming them as "unwanted gifts" even though in one of the images, it is a screenshot of HER order/cart on the Kenwood website
    3) she is selling them at $50 each which is a $40 profit on each one

    Go on gumtree. Offer $2 and call them a bedwetter if they refuse.

    • I don't think that would hurt their feelings

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