Is Ticket Reselling (Scalping) Unethical?

FareEvader on 15/08/2019 - 15:34

Hi everyone,

I'd like to know your opinion on the resale of tickets at an exorbitant price. I've heard people buying tickets to concerts/music festivals at a mark-up of anywhere between 10% up to 100% and sporting events (AFL Grand Final/Australian Open Finals) at a mark-up of anywhere between 50% up to 200%!!

Personally, I've never paid more than RRP for an event. What event would you be willing to pay over RRP for? How much over the original price is being unreasonable/unethical? How much of a mark-up have you sold a ticket for? Do you think it's unethical to be scalping tickets or does capitalism win?

Poll Options

  • 23
    Scalping is fine - profit is profit
  • 64
    Scalping is unethical and un-Australian
Financial

Comments

  • jackinyourbox on 15/08/2019 - 15:40
    +4

    Some rely on scalpers to obtain tickets. It is a first in best dressed effort. Its only scummy when they scam ya and you don't get the tickets.

    • FareEvader on 15/08/2019 - 15:42

      I agree, scammers are the worst!

    • Cluster on 15/08/2019 - 16:43
      +8

      What happens when scalpers buy out large tracts of prime seats to popular concerts and then triple the price? Is that still 'first in/best dressed/screw the rest'?

      Here's a simple solution to the problem: Make all tickets electronic, print at home tickets. How do you know the scalper hasn't printed off 20 copies to sell? You don't. You could easily get ripped off. The market solves the problem itself by making every scalper untrustworthy in the eyes of the consumer.

      Can't attend the show? Ticket agencies can offer a buy back scheme with a modest fee (let's say, 10 to 20%) and put the tickets back on sale.

      • Typical16-bitEnjoyer on 15/08/2019 - 16:54
        +2

        Thus why a few major concerts have been electronic only, and tickets are available to print/download only days beforehand. Makes it harder for them to scalp them all so quickly.

      • jackinyourbox on 17/08/2019 - 12:23
        +2

        I understand where you are coming from about scalping. I find it hard sometimes to get tickets and have to buy them from the scalpers at a mark up price. I'm happy to get the tickets and attend.

        Even if there was a buy-back for people that don't attend it still may not help because one may be in the same situation of being too slow to buy tickets at retail price. I'm just annoyed at the scammers that don't sell real tickets and you miss out.

  • TheBilly on 15/08/2019 - 15:43
    +1

    No. It is just re-adjusting the supply and demand equilibrium.

    • HighAndDry on 15/08/2019 - 15:44

      Yeah - scalpers just allow demand and supply to actually set the price.

      • TheBilly on 15/08/2019 - 15:47
        +1

        Just demand, as they are the suppliers selling to whoever is willing to pay.

  • trustnoone on 15/08/2019 - 15:46
    +3

    As far as I know, I think its against the law in some states if the price is too high.

    Ticket reselling can happen when someone buys a ticket to an event and can then no longer attend. Tickets can also be resold by ticket scalpers who deliberately purchase tickets in advance to resell for a profit when an event is sold out.

    In NSW, new laws to target ticket scalping started on 1 June 2018. It is against the law to resell tickets above the original cost, plus transaction costs (capped at 10% of the ticket cost).

    https://www.fairtrading.nsw.gov.au/buying-products-and-servi…

    From a moral point of view I don't mind a bit of a price increase, but personally if I had to do it, I wouldn't add more then like 20%, I know others may feel different.

    • HighAndDry on 15/08/2019 - 15:49

      Christ, talk about a nanny state.

      • Eeples on 15/08/2019 - 17:22
        +2

        Looks like the law to me. So its fine. Nothing wrong with the situation :/

    • Typical16-bitEnjoyer on 15/08/2019 - 16:55
      +3

      Good. Otherwise next minute we have a company purchase EVERY ticket to a concert and sell them themselves at 200% of the cost. That doesn't benefit anybody, sure the artist gets paid but it won't help their image or their fans perceptions.

  • 87percent on 15/08/2019 - 15:46
    +3

    its not "unethical".. its just flipping for a profit. If everyone could do it, they would

    • HighAndDry on 15/08/2019 - 16:12
      +2

      Next we'll have laws banning retailers when people figure out how much cheaper wholesale prices for basically everything are…

      • Seraphin7 on 15/08/2019 - 16:41
        +2

        Bingo! My understanding is you should expect the retail price to be about twice the wholesale price. Obviously there will be exceptions all over the place, but I understand this to be broad rate for mainstream items purchased through major retailers.

  • HighAndDry on 15/08/2019 - 15:47
    +2

    Just in terms of the second poll option, what does "unethical" even mean in this context?

    Ethics is the study of harm, and minimisation of harm. No event (or concert, or sporting match, etc) I've ever heard of has been any kind of necessity. Absolutely no one is harmed because they couldn't get into a concert.

    How is there even an "ethical" component to this at all?

    • FareEvader on 15/08/2019 - 15:53

      Not the best use of of the word, but you get what I mean.

      • HighAndDry on 15/08/2019 - 15:55
        +1

        Right now, all it means is "Do I like this or not?"

  • mooney on 15/08/2019 - 15:48
    +4

    Scalpers are weapons grade aseholes. An no, its not true if everyone could do it they would, some people are not complete aseholes.

  • qwerty on 15/08/2019 - 15:48
    +4

    The AFL allows sponsers to do it by throwing in some junk extras like a breakfast or a comedy show and charging customers something like 5X the face value of the tickets its fine

    but joe schmoe trying to get a little bit more and its a crime

    • HighAndDry on 15/08/2019 - 15:50
      +3

      Exactly. Spend 5 minutes backstage 100m from the singer! Charge you 20x the normal price for the privilege. Actual added cost? $0.

      Also re transaction costs, even Fair Trading's examples are hilarious:

      Examples:

      Original cost = $100
      Booking and delivery fees + credit card surcharges (transaction costs) = $15
      Maximum legal resale price = $110 (original cost + 10% maximum)

      So the original seller can charge whatever they want for transaction costs, but you, the individual? Nah, hard-capped at 10% because that's "fair".

    • Seraphin7 on 15/08/2019 - 16:42

      Good call. I've noticed this all over the place with various "packages" of highly questionable added value.

  • coin saver on 15/08/2019 - 16:25
    +1

    In SA Part 4A of the Fair Trading Act 1987 (SA) prohibits the advertising or re-sale of a ticket to a sporting or entertainment event for a price that exceeds 110% of the original price of the ticket, as long as the ticket is subject to a re-sale restriction.
    Section 37B defines ‘resale restriction’ as a term imposed by the original seller of the ticket limiting the resale of tickets.

  • GG57 on 15/08/2019 - 16:41
    +11

    I don't have a problem with people selling tix that they can't / won't use, and if a seller wants to pay more that seems reasonable.

    My problem is 'scalping', where someone buys tix with the sole intention of reselling at a profit (hoping that the demand is high enough so that some people won't be able to buy from the original outlet).
    To me, that is just a low act.

    • sween64 on 17/08/2019 - 11:34

      And using bots to buy all the tickets before the general public have a reasonable chance to buy them from the initial seller!

  • pjetson on 15/08/2019 - 16:46
    +3

    I think the real reason that it's illegal (where it is illegal) is that the government and the organisation running the event don't get a cut of the scalper's profit. Otherwise, how is scalping any different from any other capitalistic endeavour?

  • Nalar on 15/08/2019 - 17:21
    +3

    Scalpers who use bots are the scum of the earth and should be shot in the head.

    Also touring is basically the only revenue stream a LOT of artists have now that stream music is the main way people consume music. Scalpers don't contribute to that.

    • HighAndDry on 15/08/2019 - 19:43

      Scalpers don't contribute to that.

      They do - a lot of authorised ticket sellers now (surreptitiously) place tickets directly on resale platforms to effectively sell the tickets at prices which might otherwise attract bad PR. Of course, they get a cut, but so does the artist.

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