Most of you have heard about this, and it is true. People with pre-ordered PS3’s are selling them on Ebay, and people are actually buying them for $1,500, $1,700, even $2,200! Once I saw this, I said to myself, “Why didn’t I buy a pre-ordered PS3!” Now, I am thinking about sitting outside overnight to buy one. Target only has 8 people in line right now, and if they get 10 systems, then I would have a good chance at getting one. Let’s say I sold it for $1,600, then I would make $1,000 in profit! That is crazy. What some people will pay for convenience is beyond reason.
Of course, I could get in line and be one of the last people to NOT get a PS3. Then, I would have wasted my entire night’s sleep over making a quick grand. I tried to put this in an economic perspective. For as long as I waited, which would be about 14 hours, I would be making $71.40 per hour if I made a $1,000 in profit for buying and reselling the system. If I don’t end up getting one and I had waited all of that time, then I would have lost sleep, but I wouldn’t have lost any money, because I am not trading off being at work, instead. Economics is telling me to go camp outside of Target!
This is also a great example of the power of supply and demand in a free market economy. The fact that people are willing to pay 100% – 100% more than the actual value of the product, it shows how high demand and low supply will drive prices through the roof! My question is always this: Why do these video game manufacturers never have enough systems at the initial launch? Why would they not wait until they had plenty to ship out? It is not like they are benefitting from selling it to someone for $600, and then that person turning around and reselling it for $1,600. Maybe it is the marketing “buzz” that it generates. If so, it is genius, because many will be talking about the PS3 this weekend.
If I end up swallowing my dignity and waiting outside for one of these machines, I’ll be sure to blog about my experience tomorrow. Stay tuned . . .